Cyprus: Introduction of withholding tax on income distributions paid to entities resident in EU blacklisted countries


Clearstream Banking1 informs customers that effective

1 January 2023

Cyprus will introduce the following new withholding tax rates on income distributions paid from Cypriot unlisted securities to entities that are resident in non-cooperative jurisdictions (EU blacklist):

  • 17% withholding tax on dividends; and
  • 30% withholding tax on interest.

The withholding tax is however not applicable if the income distribution is paid from Cypriot securities that are listed on a recognised stock exchange.

Impact on customers

There will be no impact for customers holding Cypriot securities via Clearstream Banking’s local depository Citibank Europe plc (Greece Branch) as only listed securities are eligible.

Customers will consequently continue to receive Cypriot interest and dividend distributions with a 0% withholding tax deduction.

Further information

For further information, customers may contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or their Relationship Officer.


1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.