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Sophie Stylianou |
Until recently, it was obligatory that contracts with a consideration of up to CYP 100,000 ($237,473) were subject to a stamp duty of 0.15%, while any amount in excess of CYP 100,000 was subject to a stamp duty of 0.2%.
Now, contracts concluded in Cyprus with a consideration of over CYP 5 million shall be subject to special treatment. The amended legislation was passed on August 1 2007 and came into force on August 14, upon its publication to the official gazette of the Republic. Accordingly, contracts having a consideration amount exceeding CYP 5 million will be subject to a maximum flat stamp duty of CYP 10,000.
Consequently the revised stamp duty rates as from August 14 2007 have become as follows:
Contract value (CYP) |
Stamp Duty |
Up to 100,000 |
0.15% |
From 100,000 to 5 million |
0.2% |
Over 5 million |
CYP 10,000 fixed stamp duty |
It can consequently be concluded that Cyprus can now offer even additional economic and tax advantages to foreign investors when concluding high-value contracts through Cyprus, in order to capture the vast benefits of its tax regime and its wide double tax treaty network.
Sophie Stylianou (sophie.stylianou@eurofastglobal.eu), Nicosia
