On the 18.02.2011, the Republic of Cyprus and the Federal Republic of Germany executed an updated agreement for the avoidance of double taxation on income and capital. The new agreement replaces the existing tax agreement of 1974.
The agreement was signed in Nicosia, by Cyprus Minister of Finance Charilaos Stavrakis and German AmbassadorGottfried Zeitz.
The Cypriot Minister stated that that the government of Cyprus is committed to continue efforts to maintain and further strengthen its position as an important regional center of attracting foreign companies and investments. The agreements for the avoidance of double taxation, he noted, “are a very important tool we give to the private sector in order to attract more foreign companies in Cyprus”.
The Minister noted that many important German shipping companies exercise their activities in Cyprus, adding that with this agreement doubts as regards the taxation regime of those companies are lifted.
In his statements, the German Ambassador said he was satisfied with “this new step” adding that the new agreement further strengthens the ”already excellent financial relations between the two states”.
Zeitz said that Cyprus has become ”an important EU partner for Germany”, and referred to the recent visits paid to Cyprus by German Chancellor Angela Merkel and German Foreign Minister Guido Westerwelle.