A new double tax agreement between Cyprus and Spain was signed on 14 February 2013 and has entered into force on 28 May 2014.
The tax relations between the two countries have been steadily improving since 2009 when the Spanish Government removed certain restrictions for Cyprus-resident companies which were previously not allowed certain Spanish tax exemptions.
Negotiations between the two countries and an improved tax relationship finally led to a double taxation agreement between them. This is a positive development for the financial relationship between Cyprus and Spain and will hopefully assist in strengthening the financial links between the two countries.
