What is the stamp duty on Contracts in Cyprus?

What is the stamp duty on Contracts in Cyprus?

What is Stamp Duty in Cyprus?

Stamp duty is a government tax payable on most contracts and written agreements in Cyprus, including property sale agreements. It is applied to the total value stated in the agreement and is collected by the Cyprus Tax Department.

Although paying stamp duty is not a precondition for an agreement to be legally valid, it is essential if you intend to use the contract with government authorities such as the Land Registry. For example, a property sale agreement must be stamped before it can be deposited at the Land Registry to protect the buyer’s rights.

How is Stamp Duty Calculated?

Stamp duty is calculated on the value of the agreement as follows:

• 0% – for the first €5,000
• 0.15% – for the amount between €5,001 and €170,000
• 0.2% – for any amount above €170,000

The maximum stamp duty payable on a single agreement is capped at €20,000.

Examples of Stamp Duty Payment

Here are a few examples to make the calculation clear:

1. Example 1 – Apartment Purchase (€90,000)
   First €5,000 – no tax = €0
   Remaining €85,000 at 0.15% = €127.50
   Total stamp duty: €127.50
2. Example 2 – House Purchase (€250,000)
   First €5,000 – no tax = €0
   Next €165,000 at 0.15% = €247.50
   Remaining €80,000 at 0.2% = €160
   Total stamp duty: €407.50
3. Example 3 – Large Property (€1,500,000)
   The calculated stamp duty exceeds €20,000, so the cap applies.
   Total stamp duty: €20,000 (maximum)

Stamp duty must usually be paid within 30 days of signing the agreement. Late payment may result in penalties.

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Read more:

• Buying Property in Cyprus Without a Title Deed – Legal Considerations
• What is the stamp duty on Contracts in Cyprus?
• What is the title deed and why you need it when you are buying property.
• Can Foreigners Buy Property in Cyprus? – Legal Guide 2025
• Taxes & Fees When Buying Property in Cyprus – 2025 Guide
• Key things to know when buying property in Cyprus.