The relations between Spain and Cyprus are stronger every day since the double tax treaty was signed on February 2013 and enters into force on 28th of May 2014. Automatically, Spain removed Cyprus from the blacklist, making possible and easier the business between the countries in all the levels: importing and export products, investment in Real Estate, or using Spain as the first stop with the objective to expand services to South America.
Regarding the Taxes, under the treaty there is no withholding tax on interest and royalties. The following withholding tax rates apply on dividends:
-0% if the beneficial owner of the company paying de the dividend is a company whose capital is wholly or partly divided into shares holding directly at least 10% of the capital o f the company paying the dividend;
-5% in all the other cases
Irrespective of the above withholding tax rate on dividends under the treaty, Cyprus will not apply withholding tax on dividends payments out of Cyprus.
How can we help you?
Our team will be at your disposal to discuss your interest to set up business in Spain or those companies which wish to invest in Cyprus and offer the most complete solution.