Cyprus and France update double tax treaty

The Republic of Cyprus and France have ratified an updated double tax treaty, the Finance Ministry announced.

It said the update was deemed necessary in an effort to eradicate double taxation concerns and bolster measures against tax avoidance.

The updated agreement renews a previous arrangement between the two countries dating back to 1981. The revised treaty was signed on behalf of Cyprus by Finance Minister Makis Keravnos and on behalf of the French government by Cyprus’ Ambassador Salina Grenet-Catalano.

Following the signing, Keravnos said he was satisfied with the revised treaty and thanked the French Ambassador for their mutual collaboration.

Explaining the content of the agreement, Keravnos said it modernises an agreement dating back to 1981 and is currently applicable to the incomes of natural or legal persons who are tax residents of the Republic of Cyprus and the French Republic, respectively.

As per the provisions of the agreement, it covers income tax, corporate tax, a special contribution for defence, and capital gains tax.

Keravnos said he was confident that this agreement will create even better conditions for collaboration between Cyprus and France in the economic sector and pave the way for more investments for the mutual benefit of both countries and their people.

Meanwhile, Catalano acknowledged that the agreement needed updating in order to factor in new regulations and data.

“We are very pleased with the signing of this new agreement between France and Cyprus, which will provide our citizens and our businesses with an updated legal framework on tax matters,” she said.

She said the agreement reflects the strong bonds between the two countries and aims to strengthen cooperation, especially in the financial sector.

Catalano added that it will enhance cooperation between the tax services of the two countries, opening new avenues for collaboration, and said the primary objective is to establish a legal framework that aligns with the latest international rules and data on taxation, representing a step forward in their excellent bilateral relations, specifically in tax matters.