EU List of Non-Cooperative Jurisdictions for Tax Purposes

The EU Council has decided, on 14 February 2023, to include British Virgin Islands, Costa Rica, Marshall Islands, and Russia in the EU List of non-cooperative jurisdictions for tax purposes.

As a result, a Cypriot tax resident company making dividend/interest/royalty payments to a company that is a resident of any of these jurisdictions, or a company incorporated or registered in these jurisdictions but not considered a tax resident elsewhere not included on the EU List, may face withholding tax.

If your business engages in transactions with entities located in these non-cooperative jurisdictions, it is recommended that you assess the impact of the updated EU List on your operations.