When relocating to a new country, every individual encounters not only the challenges of moving and adjusting to a new society but also the need to familiarize themselves with government institutions and their procedures. One such procedure is the payment of stamp duty when submitting documents to governmental authorities.
What is Stamp Duty?
Stamp Duty in Cyprus is a type of tax that is paid on all lease agreements that will be submitted to the Immigration Department and/or other relevant government authorities on the island.
What are the applicable rates?
The applicable rates depend on the value of each agreement and are as follows:
0% up to €5,000
15% from €5,001 to €170,000
20% for €170,001 and above
The maximum stamp duty per agreement is €20,000.
How is Stamp Duty paid?
Step 1. Click on the following link: https://www.mof.gov.cy/mof/tax/taxdep.nsf/All/F1ACCBC32EEA7980C22585BD0038D6A0?OpenDocument
Step 2. Download the ‘.xls’ file named ‘stamp duty calculator’.
Step 3. Open the file and follow the provided steps to calculate the tax amount.
Step 4. Print out the last page (the tax calculation page from step 3).
Step 5. Proceed to make the payment by card (or bank transfer) on the tax portal (https://taxportal.mof.gov.cy/).
If you do not have a tax portal account yet, you can provide this stamp duty calculation page to your employer or another person with a tax portal account for payment.
Step 6. Print out the payment receipt.
Step 7. Take the lease agreement (and any additional original copies that you would like notarized), the payment receipt, and the tax calculation page to the tax office.
The tax department will contact you after a few days to collect the notarized agreement(s). Your documents will then be ready for submission to any government institutions.
The content of this article is valid as of the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal, financial, or other advice.
