Cyprus and Iran signed am avoidance of double taxation treaty on Tuesday, opening the way for new investment opportunities and trade relations between the two countries.
“Today, we have signed an especially important agreement, an agreement to avoid double taxation, which I am sure will open new opportunities, new avenues of co-operation, new investment prospects, and trade and financial relations between Cyprus and Iran,” Finance Minister Harris Georgiades said.
The timing of the deal could not have been better, the minister said.
Three weeks ago, there was an international deal on Iran that creates the conditions for normalisation of relations, stability, and co-operation.
Expansion and upgrading the network of double taxation agreements, is of high economic and political importance to Cyprus, aiming to further strengthen and attract foreign investment.
“At this critical moment, Cyprus, with its specialised economy, its role as a reliable international service centre, can be a bridge between Iran and the European and international market,” Georgiades said. “I think we have opened an important door and I am sure the private sector will use this opportunity.”
Iran’s Tax Affairs Organisation Director Ali Askari expressed hope that the agreement would contribute to the development of co-operation between the two countries in the financial and business sector.
Askari said Iran could act a bridge between Cyprus and East Asia.
Deputy Chairman of the Cyprus – Iranian business association Yiannos Athiainitis said after the signing ceremony, that “this historic agreement opens a channel for investments from Iran to Cyprus”.
“Cyprus can be Iran`s door to Europe. We are Iran`s most friendly country to the west. Relations between the two countries are long-standing, Iran has always been supportive in the Islamic Conference,” he said.
He noted that Iran had the largest tanker fleet in the world and that the Cyprus flag could benefit from this fleet. He also said that the agreement opens up new horizons for Cypriot companies in the emerging market of Iran.