Cyprus and France have today signed an agreement to eliminate double taxation related to income taxes and prevent tax evasion and avoidance. This new agreement updates an earlier accord between the two countries dating back to 1981. The agreement was signed by Cyprus's Minister of Finance, Makis Keravnos, and the French Ambassador to Cyprus, Salina Grenet-Catalano.

Post-signing, Mr. Keravnos expressed his pleasure in finalizing the agreement, which modernizes an arrangement from 1981, now applicable to incomes of both natural and legal persons residing in the Republic of Cyprus and the French Republic, with income sources in both countries.

According to the agreement, it covers income tax, corporate tax, defense levy, and capital gains tax.

The Minister expressed confidence that this agreement would create even better conditions for cooperation with the French Republic in the economic sector and foster more investments for the mutual benefit of both countries and their people.

On her part, Ms. Catalano noted that this agreement, predating back to September 1981, needed modernization to reflect new rules and realities.

"We are very pleased with the signing of this new agreement between France and Cyprus, which will provide our citizens and businesses with an updated legal framework in tax matters," she said, adding that this agreement reflects the strong bonds between the two countries and aims to strengthen cooperation, especially in the economic sector.

Furthermore, it will enhance collaboration between the tax services of both countries, opening new avenues of cooperation. The main goal is to establish a legal framework compliant with the latest international rules and data in tax matters.

She noted that this represents a new step forward in the excellent bilateral relations in all matters, particularly in taxation.