What is the interest withholding rate between Cyprus and Germany?
The Cyprus-Germany tax treaty reduces the withholding rate on interest payments to 0%. This means interest paid between residents of these two countries is exempt from withholding tax at source. This is particularly beneficial for cross-border debt financing and bank deposits. The 0% rate still requires proper documentation — it does not apply automatically. Interest is fully exempt — Cyprus has 14 such treaties in its network.
Network Comparison
Cyprus
Rank 4 of 25 active treaties (lowest rate = #1)
Lower rates with: Austria (0%), Switzerland (0%), Czech Republic (0%)
Higher rates with: Denmark (0%), United Kingdom (0%), Hungary (0%)
Germany
Rank 4 of 49 active treaties (lowest rate = #1)
Lower rates with: United Arab Emirates (0%), Austria (0%), Switzerland (0%)
Higher rates with: Czech Republic (0%), Denmark (0%), Spain (0%)