In Cyprus, stamp duty is imposed by the Department of Lands and Surveys, which is a government agency responsible for the registration of property and other legal documents. The stamp duty is paid when a legal document is presented to the Department of Lands and Surveys for registration. This includes documents such as real estate contracts of sale, employment agreements, and other legal documents that are subject to stamp duty.
The payment of stamp duty can be made at any of the Department's offices located across the island. The department also allows the payment of stamp duty online through its e-services platform, which facilitates the submission of legal documents and the payment of stamp duty electronically.
It's worth mentioning that the Department of Lands and Surveys is also responsible for the collection of other taxes related to property transactions, such as transfer fees and capital gains tax.
It's always recommended to consult a tax advisor or the Department of Lands and Surveys for further information about the applicable stamp duty rate, exemptions, reductions and any other details that are relevant for your specific case.
The stamp duty rate can vary depending on the type of legal document and the purpose of the transaction.
In Cyprus, some examples of the rates for stamp duty are:
- Real estate contract of sale: 0.15% of the total value of the property being sold
- Employment agreements: €17.08 per each €1,000 of the total annual salary stated in the agreement
- Mortgage agreements: €17.08 per each €1,000 of the total amount of the mortgage
- Power of attorney: €17.08 per each €1,000 of the total amount of the transaction
- Lease agreements: €17.08 per each €1,000 of the total annual rent stated in the agreement
It's worth mentioning that there are some exemptions and reductions that may apply for the stamp duty depending on the specific case. For example, if the property is the main residence of the buyer, or if the employment agreement is for a foreign national and the period is not exceeding 3 months.