On the 17th of December 2012, the amending Law 173 (1) of 2012 was published in the Cyprus Official Gazette amending the Cyprus Stamp Duty Law of 1963 to 2007 with an effort to improve the regulatory framework relating to stamp duties.
The major changes relate to the rates of the stamp of duty, which will be applicable as at the 31st day of March 2013.
- On contracts with value between €1.00 – €5.000, the value of the stamp duty is zero.
- On contracts with value between €5.001 – €170.000, for every amount of €1.000 or part of the amount of €1.000, the value of the stamp duty is €1.50.
- For contracts with value more than €170.000, for every amount of €1,000 or part of the amount of €1,000, the levy is €2.00 with a maximum amount payable 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 Law amends the penalties payable if the stamp duty is not paid within 30 days from the date of receipt of the contractual documentation in Cyprus.
- If the stamp duty is paid within six months after execution then for the unpaid stamp duty not exceeding €2.00, the unpaid amount must be paid plus €2.00;
- For the unpaid stamp duty exceeding €2.00 but being less than €35.00, the unpaid amount is payable plus a penalty of €35.00; and
- For the unpaid stamp duty exceeding €35.00, the unpaid amount is payable plus 10% on the amount of the stamp duty which exceeds €35.00.
The following instruments are exempted from stamp duty:
- Sale of goods
- Transaction involved in company restructures
- Transfers of securities listed on recognized stock exchanges
- Share warrants to bearer issued by a company
- Receipt of money deposited with banks
- Company debentures that are marketable securities
- Transfers of shares or debentures in a company
- Hiring of employees