Luxembourg and Cyprus finally sign Double Taxation Treaty

Luxembourg’s Ministry of Finance announced last week that Luxembourg and Cyprus have signed a tax treaty together. The agreement was signed in Nicosia by the Finance Ministers of both countries: Mr Pierre Gramegna from Luxembourg and Mr Harris Georgiades of Cyprus.

Starting from January 1st 2016, France will enforce a capital gains tax (CGT) charge at a rate of 33% on German- and Luxembourg-resident Shareholders of property companies whose main investments are located in France. The alterations are currently being approved by the jurisdictions and are expected to apply to transactions taking place after the end of this year.

Legal action taken on the “Luxembourg Leaks” violation

The so called Luxembourg Leaks are based on confidential information about tax rulings from 2002 to 2010 which resulted in making available to the public in November 2014 the names of over three hundred multinational companies involved in the tax rulings. The Luxembourg Leaks' disclosures attracted international attention about tax avoidance schemes in Luxembourg and elsewhere.