Yes, there is stamp duty in Cyprus.
Detailed response to your request
Yes, there is stamp duty in Cyprus. Stamp duty is a tax imposed on various types of documents, including contracts, deeds, and share certificates. In Cyprus, the stamp duty is regulated by the Stamp Duty Law of 1963 and subsequent amendments.
According to the law, the amount of stamp duty payable depends on the type of document and the value of the transaction. For example, the stamp duty for a property transfer contract is 0.15% of the purchase price, while the stamp duty for a share certificate is €1.50.
Stamp duty is also payable on certain financial transactions, such as the issuance of bonds and loan agreements. The rate of stamp duty for financial transactions is 0.15% of the nominal value of the transaction.
Famous economist and philosopher Adam Smith once remarked on the concept of stamp duty: “Dead people don’t pay taxes, but they do generate revenue from inheritance and estate taxes and especially from the estate tax and the so-called death tax, and anyone who buys a stamp ought to be willing to pay a little bit more in order to help fund the government.”
Here is a table showing some of the common types of documents subject to stamp duty in Cyprus and the applicable rates:
| Document Type | Stamp Duty Rate |
|---|---|
| Property Transfer Contract | 0.15% of purchase price |
| Share Certificate | €1.50 |
| Bond Issuance | 0.15% of nominal value |
| Loan Agreement | 0.15% of nominal value |
In conclusion, stamp duty is an important source of revenue for the government of Cyprus, and individuals and businesses should be aware of the applicable rates when entering into transactions subject to stamp duty.
See more answers
When buying property in Cyprus, the buyer typically pays for the stamp duties that need to be applied on the purchase agreement and related documents. These are paid to the Inland Revenue (i.e. the Cyprus Tax Department). Stamp duties are typically paid as follows: Contracts of purchase.
The Cyprus Stamp Duty Law (the “ Law ”) provides that stamp duty is payable on any document which concerns any property situated in the Republic of Cyprus or matters or things to be executed or done in the Republic of Cyprus, irrespective of the place of execution of the document.
Stamp Duty is a tax on documents. The Cyprus Stamp Duty Law provides that stamp duty is payable on any document which concerns any property situated in the Republic of Cyprus or matters or things to be executed or done in the Republic of Cyprus, irrespective of the place of execution of the document.
The stamp duty in Cyprus is imposed on documents (such as contracts, written agreements) which relate to the assets located in Cyprus and/or affairs which take place in Cyprus. Written stamp duty is calculated on the value of agreement at 0.15% for the amounts between €5,000 and €170,000, 0.2% is applied to any agreement with value over €170,000.
Stamp duty for property purchase in Cyprus constitutes 0.15% when the overall cost is not exceeding EUR 170 860 and 0,2% when the amount exceeds EUR 170 860. If the real estate you purchased is worth EUR 500,000, the stamp duty will be: € 170 860 x 0,15% + € 329 140 x 0,2% = € 915
Under Cyprus Law, stamp duty is governed by Stamp Duty Law (19/1963), as amended from time to time (the “ Law ”). The Stamp Duty Law, under Article.4 (1) therein, provides that the documents specifically named in its first schedule of the Law are subject to stamp duty if the documents: concern property situated in the Republic of Cyprus, or
“ The Cyprus Stamp Duty Law (the “Law”) provides that stamp duty is payable on any document which concerns any property situated in the Republic of Cyprus or matters or things to be executed or done in the Republic of Cyprus, irrespective of the place of execution of the document.
Video answer
The video provides a comprehensive guide to buying real estate in Cyprus, emphasizing the high demand for properties and discussing the risks and benefits of owning versus renting. The speaker also delves into different styles of properties and investment opportunities in Limassol. The video stresses the importance of independent research and working with an unbiased consultant to avoid making a mistake when buying real estate in Cyprus. Hidden costs of maintaining a property, strict mortgage requirements, and the risks of buying without official title deeds are also discussed. The process of buying real estate in Cyprus as a European or non-European citizen is outlined in detail, with due diligence, reserving the property, initiating a sale purchase agreement, registering the contract, and transferring title deeds covered.
You will most likely be intrigued
Regarding this, What are the costs of buying a property in Cyprus?
As a response to this: In Cyprus the purchaser must pay stamp duty within 30 days of signing a contract. The rate of stamp duty payable is 0.15 per cent of the property price purchase for properties up to the value of €170,000 and 0.2 per cent for properties over €170,000. The first €5,000 is exempt from stamp duty.
Moreover, How much tax do I pay on a house sale in Cyprus?
Resident company. The sale of shares in a company that owns real estate situated in Cyprus is subject to capital gains tax at the rate of 20%. Upon the transfer of real estate, the seller is obliged to pay a levy of 0.40% to the Tax Department.
How much do title deeds cost in Cyprus?
The response is: Transfer Fees
| Property Value in € | % |
|---|---|
| Up to 85,000 | 3 |
| 85,001 – 170,000 | 5 |
| Over 170,001 | 8 |
Simply so, Do you pay tax selling a property in Cyprus?
Answer to this: When you sell a property in Cyprus, even though it may be your main residence, you are liable to pay Capital Gains Tax at the rate of 20%. The capital gains tax is the tax imposed on the net profit that proceeds from the sale. Net profit means the profit of the sale after deducting the following: Transfer fees.
In this manner, How much is stamp duty in Cyprus?
Stamp duty of 1.5–2.0% is payable on all property purchases and is due within one month of the signing date. Stamp duty for properties under €171,000 is 1.5% and 2.0% on all purchases exceeding this amount. To illustrate, stamp duty on real estate worth €256,290 is €426 (€170,860 x 1.5% + 85,430 x 2.0%). As of 13 January 2014, VAT in Cyprus is 19%.
Similarly, How much tax do you pay in Cyprus?
In reply to that: There are income tax deductions and allowances available. Tax on pension income from abroad is 5% (fixed rate) with the first €3,420 exempt from tax. Corporate tax is 12.5% for all tax resident companies of Cyprus (managed and controlled from there) on profits received in and outside Cyprus.
Herein, How is stamp duty calculated?
Stamp duty will be calculated by the interested party based on relevant guidance provided and stamps may be purchased from authorised representative (including Local Bar Associations). Stamps will need to be affixed to the relevant document and cancelled so that they cannot be reused.
When will a Cyprus CIT payer be subject to Cyprus exit taxation?
Response to this: A Cyprus CIT payer will be subject to the Cyprus exit taxation provisions in cases where assets are transferred outside the Cyprus income tax net (outbound transfers) in any of the following circumstances:
Also to know is, What is stamp duty in Cyprus?
The reply will be: Stamp Duty is a tax on documents. The Cyprus Stamp Duty Law provides that stamp duty is payable on any document which concerns any property situated in the Republic of Cyprus or matters or things to be executed or done in the Republic of Cyprus, irrespective of the place of execution of the document.
How much tax do you pay in Cyprus?
In reply to that: There are income tax deductions and allowances available. Tax on pension income from abroad is 5% (fixed rate) with the first €3,420 exempt from tax. Corporate tax is 12.5% for all tax resident companies of Cyprus (managed and controlled from there) on profits received in and outside Cyprus.
Likewise, What is VAT in Cyprus? The reply will be: VAT is imposed on the supply of goods and services in Cyprus as well as on the acquisition of goods from the European Union and the importation of goods into Cyprus. Taxable persons charge VAT on their taxable supplies (output tax) and are charged with VAT on goods or services that they receive (input tax). The standard VAT rate in Cyprus is 19%.
Herein, When will a Cyprus CIT payer be subject to Cyprus exit taxation? A Cyprus CIT payer will be subject to the Cyprus exit taxation provisions in cases where assets are transferred outside the Cyprus income tax net (outbound transfers) in any of the following circumstances: