New Double Tax Treaty Between Cyprus and Kyrgyzstan

On June 8, 2026, a new Double Tax Treaty was signed, providing greater tax certainty and a modern framework for cross-border business and investments. The HLB Taxence team has prepared a brief overview of the key changes:

Reduced Withholding Tax (WHT) rates: Dividends (7–10%), Interest and Royalties (8%).

Capital Gains: New taxation rules for gains derived from shares linked to immovable property.

Anti-Abuse Rules: Implementation of the Principal Purpose Test (PPT).

Cyprus Exemptions: Favorable domestic WHT exemptions for non-residents remain applicable.