The Republic of Cyprus signed an agreement for the elimination of double taxation with respect to income taxes and the prevention of tax evasion and tax avoidance with the Government of the Hong Kong Special Administrative Region of the People’s Republic of China on Friday, in Hong Kong.

According to a statement by Cyprus’ Ministry of Finance, the agreement concerns the elimination of double taxation in relation to income taxes and the prevention of tax evasion and tax avoidance between the Government of the Republic of Cyprus and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China.

“The Agreement establishes a modern and reliable framework for tax cooperation, which is expected to facilitate business activity and enhance investment flows as well as trade between the two jurisdictions,” the Ministry said. Furthermore, it noted that the agreement “will contribute to reducing the overall tax burden and encourage sustainable investment, without creating opportunities for tax evasion or avoidance, while ensuring legal certainty.”

The Ministry added that the bilateral agreement provides for clear tax treatment of transactions between the two jurisdictions, offering certainty and stability to investors. The agreement also provides for the exchange of tax information between the competent authorities and procedures for resolving tax disputes.

“The signing of this Agreement reflects the importance the Government places on developing strong economic and political ties with international financial and commercial centres, particularly with partners such as Hong Kong, thereby strengthening prospects for cooperation in an ever-evolving global economic environment,” the statement said.

It is noted that the agreement was signed on behalf of Cyprus by Ambassador of the Republic of Cyprus to China, Koula Sophianou, accompanied by Dr Harindarpal Singh Banga, Honorary Consul of Cyprus in Hong Kong. On behalf of the Hong Kong Special Administrative Region of the People’s Republic of China, the agreement was signed by Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong.

CNA/EAN/EPH/2026

ENDS, CYPRUS NEWS AGENCY