Cyprus and Germany have signed an agreement for the avoidance of double taxation on income and capital, which replaces an older agreement of 1974 between the two states.
The agreement was signed Friday by Minister of Finance Charilaos Stavrakis and German Ambassador in Nicosia Gottfried Zeitz. Both of them pointed out that this new agreement further enhances ''the very good'' economic and commercial ties between Cyprus and Germany.
The Cypriot Minister described the agreement as very important, noting that negotiations had begun in 2005, taking into consideration the new economic facts in both states.
“After long efforts, we have reached an agreement which is to the benefit of both states and further enhances the very good economic and commercial relations of our states”, Stavrakis went on to say.
He added that the government of Cyprus is committed to continue efforts to maintain and further strengthen its position as an important regional center of attracting foreign companies and investments.
The agreements for the avoidance of double taxation, he noted, “are a very important tool we give to the private sector in order to attract more foreign companies in Cyprus”.
The Minister of Finance noted that many important German shipping companies exercise their activities in Cyprus, adding that with this agreement doubts as regards the taxation regime of those companies are lifted.
In his statements, the German Ambassador said he was satisfied with “this new step” adding that the new agreement further strengthens the ''already excellent financial relations between the two states''.
Zeitz said that Cyprus has become ''an important EU partner for Germany'', and referred to the recent visits paid to Cyprus by German Chancellor Angela Merkel and German Foreign Minister Guido Westerwelle.
In addition, he referred to the memorandum of cooperation signed recently between the Cyprus Institute and the Max Planck Society.
Concluding, the German Ambassador expressed his country’s support towards the efforts to reach a solution of the political problem in Cyprus saying that this is important for the prosperity of Cypriots within the European family.
