Cyprus and Hong Kong sign double taxation agreement

On June 12, 2026, the Republic of Cyprus and the Hong Kong Special Administrative Region of the People's Republic of China signed a treaty to eliminate double taxation on income and combat tax evasion and avoidance. The agreement was signed in Hong Kong by Koula Sophianou, Ambassador of Cyprus to the People's Republic of China, and Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong. Ambassador Sophianou was accompanied by Harindarpal Singh Banga, the Honorary Consul of Cyprus in Hong Kong. According to the Ministry of Finance, the pact establishes a framework for tax cooperation intended to facilitate business activities and boost investment flows. It provides legal certainty by clarifying the tax treatment of transactions between the two jurisdictions. Additionally, the treaty includes provisions for the exchange of tax information between competent authorities and a mechanism for resolving tax disputes. The initiative is expected to reduce the overall tax burden and encourage sustainable investments without creating loopholes for tax evasion.