Cyprus and Curaçao Sign Double Taxation Agreement

Discover how Cyprus’s new Double Tax Treaty with Curaçao will benefit international businesses, reduce tax burdens, and reinforce Cyprus as a premier investment hub.

Following the September 2024 announcement that Cyprus and the Kingdom of the Netherlands had reached a preliminary agreement to extend the double taxation treaty to Curaçao, the two jurisdictions officially signed the treaty on April 23, 2025. This signing represents the culmination of months of technical and diplomatic collaboration. It is a direct continuation of Cyprus’s expanding tax treaty network.

Cyprus–Curaçao Tax Agreement: A Strategic Milestone

This new Double Taxation Agreement (DTA) eliminates the risk of double taxation on income for individuals and businesses operating between Cyprus and Curaçao. As a constituent country within the Kingdom of the Netherlands, Curaçao operates under its own fiscal regime, and this treaty brings certainty, stability, and opportunity for investors and multinational groups active in the Caribbean and European markets.

The agreement follows OECD standards and includes modern anti-abuse provisions aligned with the BEPS (Base Erosion and Profit Shifting) framework, ensuring it is not only a business enabler but also a commitment to tax transparency and cooperation.

Cyprus–Curaçao Tax Treaty: What It Means for International Investors

With this treaty, investors can now:

• Avoid double taxation on cross-border income such as dividends, interest, royalties, and capital gains.
• Structure cross-border operations more efficiently, using Cyprus and Curaçao as regional hubs.
• Access treaty benefits under clear rules that limit treaty shopping and promote genuine economic substance.
• Benefit from tax certainty in both jurisdictions through mutual agreement procedures.

This opens the door for fintech, shipping, e-commerce, and professional services businesses to strengthen their presence across the Atlantic.

How the Curaçao Treaty Strengthens Cyprus as a Global Business Hub

Cyprus’s latest treaty with Curaçao adds to its robust DTA network, currently spanning more than 65 countries. It cements Cyprus’s status as a competitive, well-regulated gateway between Europe and emerging markets. Curaçao, being an offshore-friendly jurisdiction with a growing international business base, complements this vision.

The new treaty enhances Cyprus’s reputation as a forward-thinking jurisdiction that proactively secures opportunities for its businesses and investors abroad. It is particularly significant for Cypriot firms exploring Caribbean partnerships or fund structures, offering them direct benefits in terms of withholding tax rates and fiscal clarity.

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