🇦🇪 Tax Treaty
Cyprus–United Arab Emirates Double Tax Treaty
The Cyprus-UAE double tax treaty provides zero withholding on dividends, interest, and royalties between the two jurisdictions, supporting businesses that operate across both the UAE and Cyprus.
Withholding Tax Rates at a Glance
(standard rate)
(Cyprus side)
Full Withholding Tax Rates
| Payment Type | Treaty Rate | Conditions |
|---|---|---|
| Dividends (standard) | 0% | Standard WHT rate |
| Interest | 0% | On interest payments between the countries |
| Royalties | 0% | On royalties, licences, and IP income |
| Capital Gains (Cyprus side) | 0% | 0% in both jurisdictions |
Treaty signed: 1993. In force: 1994. Rates are treaty maxima — domestic law or EU directives may reduce them further.
Key Treaty Benefits
- ✓ 0% withholding on all payment types (dividends, interest, royalties)
- ✓ Certainty for Cyprus-UAE dual-structure businesses
- ✓ Capital gains fully exempt in both jurisdictions
Common Cyprus–United Arab Emirates Structures
- → UAE holding company above Cyprus operating company (or vice versa)
- → Cyprus IP company licensing to UAE free zone entities
Planning Notes
The UAE has no withholding tax domestically, so the treaty primarily protects Cyprus-source income from UAE tax (minimal practical impact given UAE tax system). The treaty provides certainty for Cyprus-UAE business structures.
Dual Residency Tiebreaker
Mutual agreement procedure
Planning a Cyprus–United Arab Emirates structure?
Treaty rates are only part of the picture. We help you design and implement Cyprus company structures that take full advantage of the Cyprus–United Arab Emirates double tax treaty — with genuine substance and robust documentation.