Cyprus and Italy sign protocol on double taxation avoidance

Cyprus and Italy have signed an additional protocol on the avoidance of double taxation.

The protocol was signed  by Minister of Finance Charilaos Stavrakis and Ambassador of Italy in Nicosia Luigi Napolitano.

In statements to the press, the Cypriot Minister said that the additional protocol opens a new chapter in the economic and commercial ties of Cyprus and Italy and “removes Cyprus from the so-called black list of Italy”, thus solving pending tax issues of the past seven years between the two states.

Cyprus, Stavrakis said, is now ready to welcome Italian investors who can make their investments in the Russian, Eastern European and other markets through Cyprus.

The additional protocol of the Convention on the Avoidance of Double Taxation between the two states provides for the exchange of bank and other information based on the Convention on the Avoidance of Double Taxation of the Organisation for Economic Cooperation and Development (OECD).

Napolitano noted that the additional protocol further enhances the “already excellent bilateral commercial relations”.

Pointing out that Italy is the second most important export country in Cyprus, Napolitano said that Italian businesspeople “have a golden chance” to discover and make use of Cyprus’ advantages, services and support to enter markets which are connected to the network of investments and services of the island.

“The same will be possible for Cypriot investors and businesspeople in Italy”, he noted.

The Italian Ambassador said that “this new tool we have in our hands will not only enhance our economic cooperation but it will also develop further bilateral ties in general”.