Iraq and Switzerland Sign Tax Agreement to Boost Economic Cooperation
The Iraqi Ministry of Finance has announced the signing of an agreement with the Swiss Federal Union aimed at preventing double taxation, a strategic step intended to strengthen economic ties between the two countries.
On February 26, 2025, representatives from Iraq and Switzerland formalized the agreement, which addresses taxation on income and capital. This initiative is designed to enhance economic cooperation and foster a favorable investment environment.
The negotiations on behalf of Iraq were led by Muhammad Hamza Mustafa, who serves as the Director General of the Legal Department and oversees the General Tax Authority. He was accompanied by a delegation of financial and legal experts, as well as a representative from the Iraqi Fund for External Development.
This agreement is expected to significantly reduce tax burdens for Swiss companies and investors operating in Iraq. By alleviating these fiscal pressures, the framework aims to enhance bilateral trade and economic relations. Given Switzerland’s advanced tax collection systems, the agreement is anticipated to attract Swiss capital, which represents a crucial source of investment in the Middle East. This influx of investment will play a vital role in propelling Iraq’s broader development initiatives.
The signing of this agreement marks a pivotal moment in Iraq’s economic strategy, as it seeks to position itself as an appealing destination for international investors, particularly in partnership with established economies like Switzerland.