Cyprus and Germany sign tax agreement

CYPRUS and Germany have signed an agreement for the avoidance of double taxation on income and capital, which replaces an older agreement of 1974 between the two states.

The agreement was signed yesterday by Minister of Finance Charilaos Stavrakis and German Ambassador in Nicosia Gottfried Zeitz. Both of them pointed out that this new agreement further enhances ”the very good” economic and commercial ties between Cyprus and Germany.

The Cypriot Minister described the agreement as very important, noting that negotiations had begun in 2005, taking into consideration the new economic facts in both states.

“After long efforts, we have reached an agreement which is to the benefit of both states and further enhances the very good economic and commercial relations of our states”, Stavrakis went on to say.

The Minister of Finance noted that many important German shipping companies operate in Cyprus, adding that with this agreement doubts as regards the taxation regime of those companies are clarified

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.

In addition, he referred to the memorandum of cooperation signed recently between the Cyprus Institute and the Max Planck Society.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.