VLT HIGH-END PROPERTIES LTD Reg. No. 870 & Licence No. 435/E
How much is property stamp duty in Cyprus ?

How much is property stamp duty in Cyprus ?

Legal & Financial Tuesday, 02 April, 2019

 

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.

Rates

1. For Contracts with a value of €1 up to €5.000, there is no stamp duty payable.
2. For Contracts with a value between €5.000 up to €170.000 the stamp duty payable is of €1,50 for every €1.000.
3. For Contracts with a value over €170.000, the stamp duty payable is €2,00 for every €1.000 with a maximum stamp duty of €20.000.

If on an agreement or memorandum of agreement and all documents embodying any agreement there is no specific fixed value, then the stamp duty is €34.17.

The stamp duty is payable at once.

Specific Agreements – Documents

1. An agreement for the purchase of shares in a Cypriot company, which is executed in Cyprus, is not required to be stamped in Cyprus.
2. An instrument of transfer of shares in a Cypriot company, which is executed in Cyprus, is not required to be stamped in Cyprus.
3. An agreement for the purchase of the shares in a foreign company, which is executed in Cyprus, is not required to be stamped in Cyprus.
4. An instrument for the transfer of shares in a foreign company, which is executed in Cyprus, is not required to be stamped in Cyprus.
5. Loan Agreements executed in Cyprus. If the monies to be advanced under a loan agreement, which is executed in Cyprus, are not utilized in Cyprus and the loan is repaid from funds outside Cyprus, the loan agreement is not required to be stamped in Cyprus.
6. Pledge over the shares of a Cyprus company. Under recent court precedents, such a document is subject to stamp duty because of the requirements to be done in Cyprus that affect its validity.
7. Pledges or Charges over the property of a Cyprus Company. Under recent court precedents, such a document is subject to stamp duty because of the requirements to be done in Cyprus that affect its priority.

A document can be stamped

1. On or before the signing of that document
2. Within 30 days from the date, the document was signed.
3. Stamping is possible even after the expiry of 30 days. However, certain fines apply which increase in correspondence with the delay.

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