Cyprus and Spain signed Double Tax Treaty between

In 2009 Cyprus was removed from the Spanish “Black List” of tax havens and now on 14 February 2013 countries signed a Double Tax Treaty, which is a positive development in the trading and investment relationship between the two. In three months the treaty will enter into force with several significant provisions of the treaty as follows:

Capital Gains

  • Gains from the disposal of immovable property are taxed in the country in which the immovable property is situated.
  • Gains from the disposal of shares or comparable interests (other than those listed on the Stock Exchange of either country) deriving more than 50% of their value from immovable property, are taxed in the country in which the immovable property is situated.
  • Gains from the disposal of any other type of shares are taxed in the country of which the seller is resident.

Dividends

  • 0% withholding tax applies if the beneficial owner is a company (other than a partnership) holding at least 10% of the capital of the company paying the dividend.
  • 5% applies in all other cases.

Interest

  • 0% withholding tax.
  • Royalties

  • 0% withholding tax applies with respect to copyrights of literary, artistic or scientific work including films, any patent, trademark, secret formula or process or for information concerning industrial, commercial or scientific experience.