Protocol amending the Convention for the Elimination of Double Taxation between Cyprus and the United Kingdom

On 19 December 2018, the Cypriot Minister of Finance, Harris Georgiades; and the British High Commissioner to Cyprus, Stephen Lillie, signed a protocol amending the Convention for the Elimination of Double Taxation between Cyprus and the United Kingdom (the Protocol), with respect to taxes on income, capital gains, and the prevention of tax evasion and avoidance.

The Protocol introduces a grandfathering period for the calendar years ending on or before 31 December 2024 so that persons whose pension was subject to tax in Cyprus under the provisions of Article 19(1) of the Convention of 1974, may elect to be taxed under that Convention and exempt from the provisions of Article 18(2) of the 2018 Convention.

This latest amendment of the Protocol created a framework that facilitates economic cooperation, fiscal stability and transparency in the relations of the two countries.

If you have questions on the Protocol and how it will apply to you please contact Emily Yiolitis, Marisa Efstathiou or your usual Harneys contact.