Cyprus has signed an updated DTA with Kuwait and continues to further upgrade and improve the position of the island as an important international investment hub. The DTA with Kuwait is one of the three DTAs signed with countries of the Arab world from 2010 and after (the other DTAs are with Qatar and United Arab Emirates), which is an indication of Cyprus policy of enhancing relations with the wealthy Arab states.

The new DTA provides for the following attractive withholding tax rates:
(a) Dividends 0% (previously 10%)
(b) Interest 0% (previously 10%)
(c) Royalties 5%

The agreement marks the commencement of a new favorable economic and trade relations framework between Cyprus and Kuwait, which is deemed to be of a high importance for Cyprus economic prospects.

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Charilaos Hadjiioannou, BSc, ACA