Abolishment of Stamp Duty in Cyprus

Cyprus Abolishes Stamp Duty as of 1 January 2026

The Cyprus Tax Department has officially announced that stamp duty will be fully abolished as of 1 January 2026. With the entry into force of the new legislation, the stamp duty regime will be completely repealed.

This reform represents a significant step toward simplifying administrative procedures and reducing the regulatory burden for individuals and businesses.

What the Abolition of Stamp Duty Means

For private individuals, investors, and companies, the abolition of stamp duty will result in:

• substantial simplification of document execution and administration;

• reduction of transaction costs;

• no stamp duty payable on contracts, lease agreements, commercial agreements, and other legally binding documents executed on or after 1 January 2026.

The change is expected to improve Cyprus’s business environment and further enhance its attractiveness as an investment destination.

Documents Still Subject to Stamp Duty

The Tax Department clarifies that the abolition of stamp duty does not have retrospective effect. Any document prepared and signed by at least one of the parties on or before 31 December 2025 will continue to be subject to stamp duty.

Such documents include, among others:

• employment contracts signed in 2025;

• lease agreements executed before 31 December 2025;

• other agreements and legally relevant documents signed before that date.

These documents remain governed by the Stamp Duty Law of 1963–2025 and must be duly stamped in accordance with the applicable procedures.

Failure to comply with stamp duty requirements may result in penalties and additional costs during audits, registrations, or court proceedings.

Conclusion

While stamp duty will be fully abolished from 2026 onwards, careful attention must still be paid to documents executed prior to the end of 2025 to ensure full compliance with the existing legal framework.

Source: Official Journal of the Republic of Cyprus, No. 239/2025.

Note: The content of this article is relevant at the time of its first publication. It is intended to provide general information on the topic and does not constitute legal advice. We recommend seeking professional advice regarding your specific matter before taking action based on the information presented. For more information or consultation, please contact our tax experts by email at contact@mainpartnertrust.com

See more at Instagram, https://t.me/mainpartnertrust