The Cyprus Stamp Duty Law (the “Law”) provides that stamp duty is payable on any document which concerns any property situated in the Republic of Cyprus or matters or things to be executed or done in the Republic of Cyprus, irrespective of the place of execution of the document. The Cyprus Stamp Duty Law has been amended by Law 173(I)/2012 and it is effective since 1st March 2013.
The due date for such stamp duty payment is within 30 days from the date of the signing of a document which is considered to be stampable. If for whatever reason an agreement, which is considered stampable, is not stamped, then there would be a penalty imposed.
The Cyprus Tax Department announced that as from 27/07/2020 the process of stamping of documents, based on the value of the document, changes. Such documents include rental, employment, loan, sale, purchase agreements etc.
The new process of stamping only applies to initial agreements. The value of stamps can be calculated online through the Tax Department website. If the total amount of the stamps does not exceed the amount of €100, the interested party can send the relevant stamp calculation to the Tax Department electronically. Additionally, the party must purchase the stamps from a licensee representative and not from the Tax Department.
When the total amount of the stamps exceeds the amount of €100, the interested party should follow the above procedure of stamp duty calculation, print the related document of calculation and take it to the Tax Department for effecting the payment.
The key rates of stamp duty for contracts are the following: