Cyprus and Hong Kong sign double taxation avoidance agreement

On June 12, 2026, the Republic of Cyprus and the Hong Kong Special Administrative Region of the People’s Republic of China signed an agreement to eliminate double taxation on income taxes and prevent tax evasion. The agreement was signed in Hong Kong by Koula Sophianou, Ambassador of Cyprus to China, accompanied by Honorary Consul Harindarpal Singh Banga, and Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong. This treaty establishes a formal framework for tax cooperation between the two jurisdictions. It aims to facilitate business activity, reduce the tax burden, and encourage sustainable investment by providing legal certainty. The agreement includes provisions for the exchange of tax information between competent authorities and established procedures for resolving potential tax disputes. According to the Cypriot Ministry of Finance, the pact is expected to enhance trade flows and investment links between the two regions. The terms are designed to ensure clear tax treatment while closing loopholes for tax avoidance.