The Agreement for the Elimination of Double Taxation with Respect to Taxes on Income and on Capital and the Prevention of Tax Evasion and Avoidance, and its Protocol between the Republic of Cyprus and the Republic of Croatia signed today October 17, 2023 in Luxembourg, within the context of the ECOFIN meeting. The Agreement was signed by the Minister of Finance Mr. Makis Keravnos on behalf of the Republic of Cyprus and by the Croatian Minister of Finance, Mr. Marko Primorac.
The signed Agreement updates the existing Agreement which was signed back in June 1985, between the Republic of Cyprus and the Socialist Federal Republic of Yugoslavia, which was in force after its 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 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 one important convention, is of high economic and political importance of the Government and aims to further strengthen and promote Cyprus as an international business center.