Stamp duty is governed by Stamp duty Law (19/1963) and it is noted that documents which concern property situated in the Republic of Cyprus as well as matters or things to be performed or done in Cyprus, irrespective of the place of execution of such documents, are subject to stamp duty. There is also a time limit as to when a document can be stamped either on or before the signing of that particular documents or within 30 days from the date the document was signed. Nonetheless stamping is also possible after the expiry of 30 days with certain fines being applicable. The consequences of the failure to stamp the said documents means that they cannot be accepted as admissible evidence in Court-save for criminal proceedings. In case a non-stamped document need to be submitted as evidence in Court proceedings, the document can be stamped even at this stage but certain fines will be applicable.
The purchaser will be liable to pay transfer fees for the property acquired, when this is registered in his name at the Lands’ Office. The fees are charged on the property’s market value at the date of purchase and vary depending on the price. Based on the current amendments of the Law regarding the Fees and Rights of the Land Registry, Properties that are subject to VAT (new buildings, houses, villas, flats etc) are exempt of any Transfer Fees. Also, properties that are not subject to VAT (resales, plots etc) have 50% of any Transfer Fees.
For further information on this topic please contact Ms. Nada Starovlah (firstname.lastname@example.org) at SOTERIS PITTAS & CO LLC, by telephone (+357 25 028460) or by fax (+357 25 028461)