Hong Kong and Cyprus Sign Comprehensive Double Taxation Agreement

The Hong Kong SAR Government signed a Comprehensive Avoidance of Double Taxation Agreement (CDTA) with Cyprus on 12 June 2026. This marks Hong Kong’s 58th CDTA, further expanding its tax treaty network and reinforcing Hong Kong’s standing as an international business and investment hub.

As an EU member state and Belt and Road participant, Cyprus serves as a vital gateway linking Europe and Asia, with expanding trade and investment links with Mainland China and Hong Kong. The treaty clarifies taxing rights, cuts Cyprus’s withholding tax rate on royalties to 3%, and offers tax credits to eliminate double taxation, boosting tax predictability for cross-border investors.

The CDTA comes into force after both sides complete ratification and exchange formal written notices. For Hong Kong, the agreement applies to assessment years starting on or after the following April; for Cyprus, it takes effect from 1 January of the year subsequent to entry into force.