The Netherlands has given the green light for a ground-breaking double tax agreement with Cyprus paving the way for it to take effect from the beginning of 2024.  

The Upper House of the Dutch Parliament approved on 18 April "the first of its kind Double Tax Treaty" between the two jurisdictions signed on 1 June 2021, KPMG said in a briefing note. 

The ratification process in the Netherlands will be finalised by the signature of the Treaty by the King of the Netherlands.

Cyprus has already completed its ratification with the publication of the Treaty in the Cyprus Government Gazette on 4 June 2021.

The ratification process will be finalised upon the exchange of Notification letters.

The DTT will abolish withholding taxes on cross-border interest and royalties payment and limit withholding tax on dividends to 15%.

It will also authorise the two countries to charge capital gains tax on disposals of property investment companies.

The Treaty is expected to take effect from 1 January 2024.