• Cyprus - Spain
    Tax Treaty Enters Into Force

    11-06-2014

    The Income Tax Treaty between Cyprus and Spain entered into force on 28 May 2014 and its provisions will come into effect on 1 January 2015.

    In accordance with the signed treaty, the following withholding taxes will apply:

    • Dividends:
      • 0% if the beneficial owner is a company (other than a partnership) which holds at least 10% of the capital of the company paying the dividend.
      • 5% in all other cases.

    • Interest: 0% withholding tax on interest.

    • Royalties: 0% withholding tax on royalties.

    • Capital Gains:
      • Gains from the disposal of immovable property are taxed in the country where the immovable property is situated.
      • Gains from the disposal of shares or comparable interests not 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. For the purposes of determining the value referred to above, the domestic law of the country where the immovable property is situated applies.
      • Gains from the disposal of any other type of shares are taxed in the country of which the seller is resident.
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