THE CYPRUS STAMP DUTY LAW
THE CYPRUS STAMP DUTY LAW
The Cyprus Stamp Duty Law (the “Law”) provides that stamp duty is payable on ‘documents’ which relate to any property/assets situated in the Republic of Cyprus and/or matters or things taking place in the Republic of Cyprus, irrespective of the place of execution of such documents. In an effort to improve the regulatory framework relating to stamp duties, the Law has been amended by the Cyprus Parliament by Law 173(I))/2012, with effect from 1st March 2013 and the principal changes relate to the conversion of Cyprus Pounds to Euro. The rates of stamp duty as from 1st March 2013 are calculated based on the value of the agreement/contract and are capped at a maximum of Euro 20.000. The rates of stamp duty are as follows:
a) for Agreement(s) with a value of Euro 1 up to Euro 5.000 no stamp duty is payable;
b) for Agreement(s) with a value between Euro 5.000 and Euro 170.000 the stamp duty payable is of Euro 1,50 for every Euro 1.000 or pat thereof is payable;
c) for Agreement(s) with a value exceeding Euro 170.000 the stamp duty payable is Euro 2,00 for every Euro 1.000 or part thereof is payable.
If on an agreement or memorandum of agreement and all documents embodying any agreement there is no amount of consideration specified, then the stamp duty is €34.17.
Stamp duty is payable within thirty (30) days from the date of receipt of the agreement(s) into the Republic of Cyprus. Late stamping of the agreement(s) entails penalties which are calculated as follows:
A) If the stamp duty is paid within six months after execution:
(1) For the unpaid stamp duty not exceeding €2.00, the unpaid amount must be paid plus €2.00.
(2) For the unpaid stamp duty which exceeds €2.00 but being less than €35.00, the unpaid amount is payable, plus a penalty of €35.00.
(3)For the unpaid stamp duty which exceeds €35.00, the unpaid amount is payable, plus 10% on the amount of the stamp duty which exceeds €35.00.
B) If the amount of the stamp duty is paid after a period of six months has elapsed from execution, the amount of the unpaid stamp duty is payable, plus double the amount referred to under A (1) above.
Certain type of documents are exempt from stamp duty including inter alia transactions involved in company restructure, transfers of securities listed on recognized stock exchanges, company debentures that are marketable securities, transfers of shares or debentures in a company, ship mortgage deeds or other security documents etc.
Author: Artemis Milidoni
Disclaimer: The above is intended to provide a general guide only and shall not be considered as professional advice. It is essential that appropriate independent advice is obtained on a case by case basis from an advocate of our law firm at email@example.com.