ABOLITION OF THE STAMP DUTY
Pursuant to law N. 239(I)/2025, and with effect as of January 1, 2026, the Stamp Duty Law of 1963- 2025 has been officially abolished.
Indeed this is a significant change to the island's tax framework. This reform aims to reduce bureaucracy, simplify administrative procedures, and make Cyprus more attractive to investors.
Key Points to Consider
Effective Date: The abolition under Law N. 239(I)/2025 took effect from January 1, 2026.
Post Abolishion Agreements: Any document drafted and executed on or after January 1, 2026, is no longer subject to stamp duty. This includes contracts, share transfers, loan agreements, pledges, and most legal instruments.
Pending Documents: Documents drafted and executed on or before December 31, 2025, remain subject to the previous Stamp Duty Laws of 1963 to 2025 and must be stamped according to those procedures. The absence of a properly paid duty on these documents may still result in fines during audits or court proceedings.
Use of Existing Stamps: Licensed stamp duty vendors can continue to use stamps they already possess, but only for documents that still fall under the old rules. Existing stamps can also temporarily be used for fees under other legislation administered by different government departments until new payment arrangements are introduced.