Cyprus Expands Its International Double Tax Treaty Network in 2025–2026
Cyprus continues to strengthen its position as an attractive destination for international business and investment through the ongoing expansion and modernisation of its Double Tax Treaty network. Over the years, the country has developed strong tax relationships with jurisdictions across Europe, Asia, the Middle East and other regions, making it an important location for companies and investors involved in international activities.
With more than 70 Double Tax Treaties and tax agreements in place, Cyprus has established one of the most extensive treaty networks in the region. This is an important advantage for businesses looking to operate internationally, as these agreements can help prevent double taxation, provide greater certainty regarding tax obligations and create a more favourable environment for cross-border investment.
Combined with its competitive corporate tax framework, EU membership and established legal system, this extensive treaty network continues to make Cyprus a preferred jurisdiction for international companies, holding structures and investors.
During 2025 and 2026, Cyprus has made further progress in expanding its international tax cooperation, with several new agreements being signed and existing treaties being updated to reflect modern international tax standards.
One of the latest developments is the Protocol amending the Double Tax Treaty between Cyprus and Sweden, signed on 3 July 2026 in Nicosia. The Protocol aims to update the existing agreement and ensure that the treaty framework remains aligned with current international tax practices. This development reflects the continued cooperation between the two countries and their efforts to maintain a clear and effective framework for cross-border taxation.
Another important development is the signing of a new Double Tax Treaty between Cyprus and Hong Kong on 12 June 2026. Hong Kong is widely recognised as a major international financial and commercial centre, and the agreement represents a positive step towards strengthening economic and investment relations between the two jurisdictions. It is also expected to provide greater clarity for businesses and investors conducting activities between Cyprus and Hong Kong, subject to the agreement’s entry into force and applicable provisions.
Cyprus also expanded its treaty network into Central Asia with the signing of a Double Tax Treaty with the Kyrgyz Republic on 8 June 2026. This agreement further demonstrates Cyprus’ efforts to develop tax cooperation with a wider range of international markets and to support opportunities for future business and investment activities.
Further progress has also been made in relation to Vietnam. The Double Tax Treaty between Cyprus and Vietnam, which was signed on 15 December 2025, officially entered into force on 1 June 2026. The agreement provides an additional framework for tax cooperation between the two countries and is particularly relevant as Vietnam continues to attract international business interest and investment.
In addition to these developments, Cyprus has also made progress in its treaty relations with Curaçao and Oman. The Double Tax Treaty with Oman, signed in December 2024, entered into force in March 2025, with its provisions becoming effective from 1 January 2026. These developments form part of Cyprus’ wider efforts to maintain and expand its international tax treaty network.
The importance of these agreements goes beyond simply increasing the number of countries covered by Cyprus’ treaty network. For international businesses, Double Tax Treaties can play an important role in determining how income is taxed between different jurisdictions, reducing the risk of the same income being taxed twice and, where applicable, providing relief from certain withholding taxes.
They can also offer greater clarity when structuring international investments, establishing holding companies or carrying out business activities across borders. The benefits available under each agreement depend on the specific treaty provisions, the circumstances of the taxpayer and the applicable tax legislation.
As international business activity continues to develop, having access to an extensive and regularly updated Double Tax Treaty network remains an important consideration for companies choosing where to establish their operations.
Cyprus’ continued efforts to conclude new agreements and modernise existing treaties reinforce its position as an established international business jurisdiction. These developments, together with the country’s broader legal and tax framework, contribute to its ongoing appeal for foreign investors, entrepreneurs and businesses considering establishing a company in Cyprus.
With further international cooperation and an expanding network of treaty partners, Cyprus continues to demonstrate its commitment to supporting cross-border business activities and maintaining its role as an important international business and investment destination.
For companies using Cyprus as part of their international structure, these new and updated agreements confirm that Cyprus remains a reliable and well-connected business jurisdiction, offering a strong legal and tax framework for international operations.
Conclusion
At Simon Zenios & Co LLC, we continue to monitor the latest developments in Cyprus tax treaties and international business regulations, supporting clients with legal, corporate and tax-related guidance for their cross-border structures and operations.
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Disclaimer: This press release is for informational purposes only and does not constitute legal advice. Clients are encouraged to seek professional legal and tax advice tailored to their individual needs.
