Agreement between Cyprus and Luxembourg for the avoidance of double taxation

by:MICHAEL KYPRIANOU & CO LLC

On May 8, 2017, an agreement was signed between the Republic of Cyprus and the Grand Duchy of Luxembourg on the elimination of double taxation in respect of taxes on income and on capital, for the prevention of tax evasion and avoidance.

The agreement is based on the OECD Model Tax Convention on Income and on Capital on the Avoidance of Double Taxation and provides, inter alia, for the exchange of banking and other information.

According to the Minister of Finance, "The agreement between the two countries will contribute to the further development of trade and economic relations between the Republic of Cyprus and the Grand Duchy of Luxembourg. Updating, maintaining and expanding the existing Network of Elimination of Double Taxation, which is of utmost economic and political importance, aims to further strengthen and attract foreign investment and to promote Cyprus as an international business centre."