Cyprus signs New Double Tax Treaty with the Kingdom of Bahrain
On March 19th, 2015, Cyprus signed a new double tax treaty with the Kingdom of Bahrain.
The expansion of the double tax treaty network of Cyprus with countries in the Middle East has been one of the main objectives of the Cypriot Government over the last few years, with plans to extend Cyprus’ treaty networks in Iran, Israel, Jordan and Saudi Arabia.
The new treaty with the Kingdom of Bahrain
The new treaty, as with the other recent treaties conducted, is now based on the OECD Model Tax Convention framework.
The treaty applies to taxes on income as well as on gains from alienation of movable or immovable property. In the case of Bahrain, the treaty covers the oil tax paid to it, whereas in the case of Cyprus, it covers corporate and personal income tax, defense tax and capital gains tax.
The treaty provides for zero withholding tax on dividends, interest and royalty payments.
The full text of the treaty can be found here.
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