Stamp Duty – Cyprus

Is Stamp Duty payable on the Building or Construction Contract for a new house on your own land in addition to the Stamp Duty paid on the contract to purchase the land?

Yes, on the interpretion of Cyprus Law by PWC – Price Waterhouse Coopers.

Under the Stamp Duty legislation of Cyprus, stamp duty is imposed on documents referring to assets in Cyprus, or matters or things that will be done in Cyprus irrespective of where the documents are signed.

Therefore, if there is no document, no stamp duty arises.

So the answer to the question is that you pay stamp duty on the purchase value of the land and the contract value of the construction contract. 

Stamp duty rates are as follows:

Stamp duty on agreements that do not include values on which stamp duty can be calculated – Cí20 (in case where the Commissioner of Stamp Duty can determine the value,he can still seek to apply Stamp Duty)

Stamp duty on agreements (Contracts /Loan agreements) – between 0.15% – 0.20%The duty is payable within 30days after signing the agreement.

A penalty charge of 10% applies if payment is not made within the due period, and up to 6 months. This penalty rises to 20% for periods of more than 6  months.

Cyprus Property Help & Advice Centre™ ® ©
The Black Art of Buying Property in Cyprus™ ®
The Cyprus Informer™ ® ©
http://cyprusinformer.eu

Related posts:

1. Conversion to Euro – May 2007THE CYPRUS pound will be locked into its final exchange rate against the euro by May or June next year, ahead of the government’s target to join the eurozone on January 1, 2008, the Central Bank and Finance Ministry said yesterday. Following the successful ecu-peg policy, the Cyprus pound was pegged to the euro on 1 January 1999, the first...
2. Sales agreements: all you need to know.The Law regarding Conveyancing Whether you are buying land, new development property or an existing property, the same legal procedure is followed: 1. The buyer and seller reach an agreement and a Sale Agreement is drawn up. 2. Four copies of this agreement are made and all of them are stamped at the District Land Registry Office. One of the...
3. Tax? Residents and non-residents: Liability to tax in the United Kingdom  It would seem that the HMRC in the UK are changing the rules set out in IR20. Is IR20 still correct? I don't want to quote the whole article by Blevins Franks but the following short conclusion should have you going to the full article which is here. " The tax world on residence has been turned upside down as...
4. Contract contents when buying a property/home in CyprusWhat do I need to cover contractually when buying a property/home in Cyprus? The universal advice is to get everything in writing and the most appropriate place is in your Contract. The following tick list of items cover both off plan and re-sale properties, so you will need to cross some of these out depending on the detailed circumstances of...
5. Property purchase agreementsSales agreements: all you need to know The second in a five-part series that was published in the Cyprus Press and it intends to advise British and European home owners of the differences in purchasing a property in Cyprus. It is not a do-it-yourself guide The Law regarding Conveyancing. This article is an excerpt from the booklet Living in Cyprus...
6. Investment Property Abroad Tax ImplicationsInvestment Property Abroad Tax Implications One of the main considerations for anyone thinking about buying investment property abroad will likely be the potential tax implications of property purchase and ongoing ownership. With international real estate proving an ever popular investment portfolio addition let’s look at some of the taxation implications property owners should consider, and also examine the use of...
7. Title Deeds   Quote: This article was written by me.  Sellers have a habit in stating that "The Property Comes with Title Deeds" as if not having title deeds is a bad position. This is not so in Cyprus and many more property transactions take place without title deeds than with them. If not then the Cyprus Property Market would grind to...
8. How to find a propertyEstate Agents UNTIL a couple of years ago, the author was not aware of a single British-run estate agency based in Cyprus. Today, looking at newspaper advertisements, there are several. Cypriot estate agencies abound aplenty and estate agents have woken up. While artists’ impressions remain the most common items typically displayed in the window at least the properties they portray...
9. Council of Ministers ApplicationAs of May 2009 this is not required for EU Citizens The following documents and information will assist your Council of Ministers application for consent to acquire immovable property in Cyprus if you are an EU Citizen and do not have residency status in Cyprus. Likely to be unnecessary in 2009. 1. Written confirmation from your bank or accountant stating...
10.  http://www.aloizou.com.cy/documents/AyiaNapaLectureCyprusRealEstateMarket.htm On the 12/1/08 Saturday Mr Antonis Loizou has given a lecture at Ayia Napa on behalf of the U.K. Alzheimer’s Society, which was attended by 120 mainly foreign residents in Cyprus. The subject was the Real Estate Market in Cyprus. We provide a shortened version of the speak. Real Estate Investment in Cyprus , be it a house, land...