Simple answers to the most frequently asked questions regarding the stamp duty in relation to real estate agreements.
Stamp duty is a form of a tax paid on signed documents concerning property or other matters performed in, or related to, Cyprus. It was abolished with effect from 01 January 2026, so no stamp duty applies on documents signed after that date.
No stamp duty applies on documents signed after 01 January 2026. Stamp duty applies to documents dated prior to 01 January 2026 such as contracts of sale, loan agreements, mortgage agreements, pledge of shares agreements, construction agreements, tenancy agreements, and charges over property (if the subject matter property, or thing is in Cyprus).
If stamp duty applies, it is calculated on a tiered system based on the value of the subject matter of the agreement. No stamp duty is payable for agreements with consideration up to €5,000. For agreements with consideration between €5,000 and €170,000, the rate is €1.50 per €1,000 or part thereof. For agreements with consideration above €170,000, the rate is €2.00 for every €1,000 or part thereof. No stamp duty applies on documents signed after 01 January 2026.
If stamp duty applies, a stamp duty online calculator is available on the Tax Department’s website. Other private websites of brokers and other professionals also offer online stamp duty calculations. See Useful Resources. No stamp duty applies on documents signed after 01 January 2026.
Yes, if stamp duty applies, the maximum stamp duty payable is capped at €20,000. No stamp duty applies on documents signed after 01 January 2026.
If stamp duty applies, the stamp duty is €34. No stamp duty applies on documents signed after 01 January 2026.
If stamp duty applies, it is a flat rate of €2 per document. No stamp duty applies on documents signed after 01 January 2026.
If it applies, stamp duty must be paid within 30 days from the date of execution of the document, or within 30 days from the date the document is received in Cyprus if it was executed abroad.
If stamp duty applies, and if it was not paid in the timeframe presented by law, a surcharge of 10% of the unpaid stamp duty is imposed if payment is made within six months after the due date; If payment is made after six months, the surcharge increases to double the amount of the unpaid stamp duty. No stamp duty applies on documents signed after 01 January 2026.
Yes, the maximum penalty is €4,000. This is equivalent to twice the 10% surcharge on the maximum stamp duty.
If stamp duty applies, not paying stamp duty does not invalidate the subject matter agreement. Possibly, the document cannot be used as evidence in court without payment of the duty and the appropriate penalty. Most importantly, agreements dated prior to 01/01/2026, which are subject to stamp duty are not stamped, are not accepted by government authorities, such as the tax office or the Land Registry, and thus you will be unable to secure tax clearances or lodge an agreement with the Land Registry for specific performance purposes unless the agreement is duly stamped.
If stamp duty applies, the parties can decide who pays the stamp duty. If not specified, there is a legal presumption that it is usually paid by the purchaser, issuer, insured, assignee, or tenant (depending on the type of agreement). No stamp duty applies on documents signed after 01 January 2026.
If stamp duty applies, you calculate the stamp duty using the online tool, send the calculation form to the Tax Department via email, purchase the relevant stamps, and cancel them by signing and dating.
Fore amounts more than €100, you calculate the stamp duty using the online tool, present the calculation form at the District Office of the Tax Department, pay at the cashier’s desk, and have the stamps affixed by the Stamp Duty Officer. Alternatively, you can pay online, through the Cyprus government tax portal, by direct transfer or credit/debit card, using the code generated by the calculator, however, the Tax Office will only affix the stamp once the payment clears, which may take a few days.
The Stamp Duty Commissioner, part of the Inland Revenue Department, was the regulatory authority responsible for stamp duty. Following the abolition of stamp duty with effect from 01/01/2026, the office has been abolished and related matters are handled by authorized officials of the Inland Revenue.
Stamp duty was imposed pursuant to the Stamp Duty Law of 1963, as amended. It was abolished by repealing Law 239(I)/2025, with effect 01/01/2026.
For more information on this or any other property law-related matter, you can contact the author and his team of expert property law practitioners at [email protected].
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