Protocol amending the Convention for the Avoidance of Double Taxation with respect to Taxes on Income was signed between the Government of the Republic of Cyprus and the Government of the Kingdom of Sweden

The Protocol for the Avoidance of Double Taxation with respect to Taxes on Income was signed today, 3 July 2026, in Lefkosia, between the Government of the Republic of Cyprus and Government of the Kingdom of Sweden. On behalf of the Republic of Cyprus, the protocol was signed by the Minister of Finance of the Republic of Cyprus, Mr Makis Keravnos, and on behalf of the Kingdom of Sweden, the Protocol was signed by the Ambassador of the Kingdom of Sweden to Cyprus, Mr Martin Hagström.

The signed Protocol amends the original Convention signed back on 25/10/1988 in London. The Protocol introduces, inter alia, the minimum standards of the Base Erosion and Profit Shifting (BEPS) actions of the Organisation for Economic Co-operation and Development, related to bilateral agreements and other amendments that have been bilaterally agreed upon.

Due to constitutional challenges on behalf of Sweden, which hindered the implementation and entry into force of the Multilateral Agreement (MLI), the objective of which is the automatic, swift and efficient amendment of bilateral treaties by introducing the relevant provisions of BEPS actions, it was decided to conclude the above-mentioned Protocol towards this direction. The Protocol will enter into force upon completion of the foreseen constitutional ratification procedures by both Contracting States.

Upgrading and expanding the network of Double Taxation Conventions is of high economic and political importance and aims to further strengthening and attracting investments by promoting Cyprus as an international business centre, while promoting tax transparency, fairness and compliance with international acceptable standards.