Cyprus signs tax deal with Kyrgyzstan to strengthen business ties

Cyprus and Kyrgyzstan have signed a new agreement designed to make doing business between the two countries easier, while helping prevent tax evasion and providing greater certainty for investors.

The convention, signed on Monday in Bishkek, the capital of Kyrgyzstan, focuses on eliminating double taxation on income and capital, a common obstacle for businesses and individuals operating in more than one country.

Foreign Minister Konstantinos Kombos signed the agreement on behalf of Cyprus, while Kyrgyzstan was represented by Economy and Commerce Minister Bakyt Sydykov.

According to the Finance Ministry, the agreement marks an important step in strengthening economic, trade and investment ties between the two countries.

In practical terms, the deal means that income or assets will not be taxed twice by both jurisdictions, reducing costs and administrative hurdles for businesses and investors.

At the same time, officials stressed that the agreement includes safeguards aimed at preventing tax evasion and aggressive tax avoidance practices.

The convention also establishes clear rules for the taxation of cross-border transactions, provides mechanisms for the exchange of tax information between authorities, and sets out procedures for resolving tax disputes.

While Kyrgyzstan may not be a country that features prominently on the radar of most Cypriots, the government views such agreements as part of a broader strategy to strengthen Cyprus’ international business footprint.

The Finance Ministry said expanding and modernising Cyprus’ network of double taxation agreements remains a key economic and political priority, helping reinforce the island’s attractiveness as a destination for international investment and business activity.

For Cyprus, whose economy relies heavily on professional services, international business and foreign investment, such agreements are often seen as building blocks that help maintain the country's competitiveness in an increasingly interconnected global economy.