Other Taxes - Stamp Duty

Stamp duty is payable on certain chargeable instruments executed in Cyprus or, if executed outside Cyprus, relating to any act to be performed in Cyprus. All chargeable instruments and the value of the stamp duty payable are set out in the First Schedule of the Stamp Law.

The payment of the duty may be made by means of revenue stamps affixed on the instruments or in cash at the Inland Revenue office, either on or before the date of execution or within 30 days thereafter. Fines are imposed depending on the amount of the duty and period of delay, e.g., if an amount of stamp duty exceeding C£10 is paid within six months a fine of C£10 plus 5 cents on each pound or part of a pound exceeding C£10 is payable. If the duty is paid after six months the fine is twice that stated above.

Instruments which are drawn up outside Cyprus must be stamped within 30 days from their receipt in Cyprus.

The duty is payable, in the absence of any agreement to the contrary, by the purchaser in the case of transfer of any interest, by the drawee in the case of a bill of exchange and so on. Any person receiving any money, bill of exchange, cheque, promissory note of one pound or over must, on demand by the person paying, give a duly stamped receipt (2 cents for amounts from C£2 - C£20 and 4 cents for amounts over C£20).

Offshore companies are exempt from the payment of any stamp duty on any instruments in respect of transactions connected with their normal trading activities.

This information was correct as of 12 February 1997.

The contents of this article are intended to provide a general guide to the subject matter. Specialist advice should be obtained before any action is taken.