Cyprus and Sweden on Friday signed a protocol updating their bilateral double taxation agreement, bringing the treaty into line with OECD international tax standards and strengthening cooperation on tax transparency and the exchange of information.

The protocol was signed on behalf of the Republic of Cyprus by Finance Minister Makis Keravnos, while Swedish Ambassador Martin Hagstrom signed on behalf of Sweden, according to a statement issued by the finance ministry.

The ministry said the protocol amends the original 1988 Convention for the Avoidance of Double Taxation with respect to taxes on income.

It explained that the revised agreement incorporates the minimum standards of the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, introduces provisions relating to bilateral tax treaties and includes mutually agreed wording governing the exchange of tax information.

According to the ministry, Sweden faced constitutional obstacles that complicated the implementation and entry into force of the Multilateral Instrument (MLI).

As a result, the two countries decided to conclude a separate protocol to introduce the relevant amendments.

The ministry explained that the objective of the MLI is to enable the automatic and rapid incorporation of internationally agreed BEPS measures into existing double taxation agreements.

The protocol will enter into force once both countries complete their respective domestic ratification procedures.

“The updating, maintenance and expansion of the existing network of double taxation avoidance agreements, which are of the highest economic and political importance, aims to further strengthen and attract foreign investment and promote Cyprus as an international business centre,” the finance ministry said in a statement.

It added that such agreements also help to “advance tax transparency, fairness and compliance in line with international standards“.

The agreement forms part of Cyprus’ broader strategy of expanding and updating its international network of tax treaties to facilitate cross-border investment while strengthening safeguards against tax avoidance.

In June 2026, Cyprus also signed a double taxation agreement with the Hong Kong Special Administrative Region of the People’s Republic of China, establishing a framework for tax cooperation, the exchange of tax information and the prevention of tax evasion and avoidance, with the aim of supporting investment and trade between the two jurisdictions.

“The agreement creates a modern and reliable framework for tax cooperation that is expected to facilitate business activity and strengthen investment flows as well as trade transactions,” the finance ministry said at the time.

Earlier, during 2025, Cyprus concluded similar agreements with Vietnam and Curacao, continuing its efforts to expand its international tax treaty network and reinforce its position as an international business and investment centre.