Cyprus and Sweden have signed a protocol updating their bilateral double taxation agreement, bringing it in line with OECD international tax standards and enhancing cooperation on tax transparency. The new protocol, signed by Cyprus' Finance Minister Makis Keravnos and Sweden's Ambassador Martin Hagstrom, replaces provisions of the original 1988 agreement and incorporates key elements of the OECD's Base Erosion and Profit Shifting (BEPS) initiative.

The protocol introduces updated clauses on the exchange of tax information and bilateral tax treaties to ensure greater tax compliance and fairness. The move comes after Sweden faced constitutional challenges in implementing the Multilateral Instrument (MLI), prompting the two countries to adopt a separate protocol. The agreement will take effect once domestic ratification procedures in both countries are completed.

This update is part of Cyprus' broader strategy to expand and modernize its network of international tax treaties, attracting foreign investment and reinforcing its position as an international business hub. The initiative follows similar double taxation agreements recently signed with Hong Kong, Vietnam, and Curacao to support cross-border investment and enhance tax cooperation.