Stamp Duty in Cyprus: What Property Buyers Need to Know

Overview

With effect from 1 January 2026, Cyprus abolished stamp duty under Law 239(I)/2025. While this reform applies to a wide range of sectors, this article focuses on its practical implications for property purchases.

Key Effect on Property Transactions

For agreements executed from 1 January 2026 onwards, no stamp duty is payable. Beyond the cost saving, the change also accelerates transactions, as agreements previously required submission to the Tax Department for stamping, a process that could take several working days.

Agreements signed on or before 31 December 2025 remain subject to the prior stamp duty regime and must still be properly stamped

Example of Stamp Duty (Old vs New Regime): Purchase Price €350,000 plus VAT

Under the previous regime, stamp duty was calculated on a progressive basis:

• 0% on first €5,000 

• 0.15% on €5,001 to €170,000

• 0.20% above €170,000

Therefore, for a purchase price of €350,000 plus VAT, the stamp duty previously payable was approximately €608.

Under the current regime, applicable to agreements executed from 1 January 2026 onwards, the stamp duty payable is €0.

What Has Not Changed

The stamp duty abolition does not modify or affect the underlying legal framework governing property transaction. In particular, the following remain fully applicable:

• Due diligence on the property

• Land Registry procedures and submission requirements

• VAT and transfer fees

Land Registry Practical Point

Although stamp duty has been abolished, execution formalities remain. The Land Registry now requires certified signatures on sale and purchase agreements submitted.

Under the previous regime, agreements bearing the Tax Department stamp were commonly accepted without separate certification of signatures.

Conclusion

The abolition of stamp duty marks a practical simplification of Cyprus property transactions, reducing administrative steps and eliminating a traditional cost component. At the same time, the core legal and procedural safeguards governing real estate purchases remain unchanged.

This reform reflects Cyprus’ continued effort to modernise its legal framework, enhance transactional efficiency, and maintain its attractiveness as a stable and substance-driven investment jurisdiction.