Stamp duty in Cyprus is levied on ‘documents’ (i.e. written agreements/contracts) relating to assets located in Cyprus and/or matters taking place in Cyprus. Stamp duty is calculated on the value of the agreement at 0.15% for amounts exceeding €5.000 up to €170.000, and at 0.2% thereafter with a maximum payable cap of €20.000 per stamped agreement.
The person legally liable to pay the stamp duty (unless otherwise stated in the agreement) is the purchaser. The stamp duty is payable within 30 days from the day of the ‘signing’ of a document which is considered to be subject to stamp duty when such document is signed within Cyprus. In the event where the deadline lapses without payment of stamp duty penalties are imposed. The related penalties are depended on the amount of the contract and the time lapsed but in general, it is estimated at 10% for the first 6 months and approximately double the 10% charge, following the lapse of the first 6 months. This means that the maximum exposure on top of the maximum stamp duty cap of €20.000 is an additional penalty of not more than €4.000.