Cyprus and Croatia sign agreement to eliminate double taxation
07:50 - 18 October 2023
The Republic of Cyprus and the Republic of Croatia signed an Agreement for the Elimination of Double Taxation with Respect to Taxes on Income and on Capital and the Prevention of Tax Evasion and Avoidance, along with a relevant Protocol.
The agreement was signed during the ECOFIN meeting held on 17 October in Luxembourg.
According to a Ministry of Finance press release, the Agreement, signed by the Cypriot Minister of Finance, Makis Keravnos, and his Croatian counterpart, Marko Primorac, updates an existing agreement dating back to 1985, which was signed between the Republic of Cyprus and the Socialist Federal Republic of Yugoslavia. The agreement was still in force after the country's dissolution.
“The new Agreement will contribute to the further development of trade and economic relations between the two countries, especially after Croatia's accession to the European Union. It also provides tax certainty and security to companies, organisations and individuals on the fiscal treatment of their income and capital gains,” the Ministry points out.
The Agreement is based on the OECD Model Tax Convention on Income and on Capital and incorporates all the minimum standards of the Base Erosion Profit Shifting (BEPS) project, as issued by the OECD /G20.
“Expanding and upgrading the network of the Double Taxation Agreements, by signing another important convention, is of high economic and political importance to the Government and aims to further strengthen and promote Cyprus as an international business centre,” the press release concludes.