Stamp Duty in Cyprus – provides that stamp duty is payable on any document, which concerns any property situated in the Republic of Cyprus. The buyer must pay stamp duty to legalize the purchase of real estate before the sale contract will be registered in the Land Department of Cyprus.
Where to pay stamp duty in Cyprus?
Stamp Duty should be paid only once within 30 days from the date the sales agreement was signed.
What happens if you will not pay?
Stamping is possible even after the expiry of 30 days. However, certain fines apply which increase in correspondence with the delay:
- If passed more than 30 days, that for the contract with total worth more than €35, the fine will be 10 cents for each €1
- If the payment is overdue for more than 6 months, that an additional fine will be imposed on the buyer.
How much is property stamp duty in Cyprus?
The rates of Stamp Duty depend on the amount of the Contract:
- For Contacts up to €170 000 – 0.15% from the value
- For Contracts over €170 000: first €170 000 – 0.15% from the value + 0.20% for entire remaining amount.
- NR! The first €5000 of the total value is no Stamp Duty payable.
The following examples clearly illustrates this:
- The total value of the Contact - €130 000 (€5 000 x 0% + €125 000 x 0.15%) = €187.5 – the Stamp Duty
- The total value of the Contact - €380 000 (€5 000 x 0% + €165 000 x 0.15% +€210 000 x 0.20%) = €667.5 – the Stamp Duty
Also, when you buy property in Cyprus, you must pay another mandatory tax - Property transfer Fee. You can find more details in another article.
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Source: DOM LiVE