Cyprus Stamp Duty amendment
The Cyprus Parliament has recently amended the Stump Duty Law of 1963 to 2007, within the context of an effort to improve/simplify the existing regulatory framework. The Law provides that stamp duty is payable on any document which concerns any property situated in the Republic of Cyprus or matters or things to be executed or done in the Republic of Cyprus, irrespective of the place of execution of the document.
The Amending Law (Law 173 (1) of 2012) has been published at the Cyprus Official Gazette No. 4371 on the 17th December 2012.
The main changes include the below:
I. For contract valued €1 up to €5000 the value of stamp duty is zero.
II. For contract valued from €5001 up to €170.000 for every €1000 or part of €1000 the value of stamp duty is €1.50
III. For contract valued over €170.000 for every €1000 or part of €1000 the value of stamp duty is €2 with maximum amount of stamp duty €20.000.
Stamp duty must be paid within 30 days from the date of receipt of the relevant document(s) into Cyprus. Late stamping of the relevant document(s) entails penalties
Stamp duty is likely to be payable on the share pledge, on the share purchase agreement and the instrument of transfer (since they all relate to shares of a Cyprus company).
The Law came into force on 1st of March 2013.