As part of a major overhaul of its tax system, Cyprus abolished stamp duty with effect from 1 January 2026. This reform was introduced through legislation approved by the House of Representatives in December 2025 and represents one of the most significant changes to Cyprus tax law in more than twenty years.
The abolition of stamp duty aims to modernise the legal and fiscal framework of Cyprus, reduce administrative burdens, and enhance the country’s attractiveness as an international business and investment hub.
What Was Stamp Duty in Cyprus?
Stamp duty in Cyprus was a tax imposed on various legal, commercial, and corporate documents, including:
- Commercial contracts and agreements
- Loan agreements and lease contracts
- Share transfer documents and corporate instruments
- Certain property-related agreements
- Prior to its abolition, stamp duty constituted an additional cost and compliance requirement for businesses and individuals executing legally binding documents in Cyprus.
Abolition of Stamp Duty Under Cyprus Tax Reform 2026
Under the new tax reform legislation, the Stamp Duty Law of 1963, as amended up to 2025, has been fully repealed with effect from 1 January 2026.
According to the official announcement of the Cyprus Tax Department dated 7 January 2026 (Law N. 239(I)/2025), the following key clarifications apply:
1. Stamp Duty on New Documents
Documents drafted and signed on or after 1 January 2026 are no longer subject to stamp duty in Cyprus.
This applies to all contracts, agreements, and instruments executed after the effective date of the repeal.
2. Stamp Duty on Pending or Pre-2026 Documents
Documents signed (even by only one contracting party) on or before 31 December 2025 remain subject to stamp duty.
Such documents must be stamped in accordance with the Stamp Duty Laws of 1963 to 2025 and the applicable procedures in force at that time.
3. Use of Existing Stamp Stock
Authorised Stamp Vendors may continue selling only stamp stock already in their possession.
These stamps may be used exclusively for documents that remain legally subject to stamp duty.
4. Fees Under Other Legislation
The payment of fees imposed under the legislation of other Ministries, Services, or Government Departments may continue through the use of existing stamps currently in circulation.
This arrangement will remain in place until new payment mechanisms are introduced by the competent authorities.
Implications of the Cyprus Stamp Duty Abolition
The abolition of stamp duty in Cyprus is expected to:
- Reduce transaction costs for businesses and individuals
- Simplify legal and corporate documentation procedures
- Improve efficiency in contract execution and compliance
- Enhance Cyprus’s competitiveness as a regional and international business center
Conclusion
The abolition of stamp duty highlights Cyprus’s commitment to being a business-friendly jurisdiction. By reducing costs and simplifying legal procedures, the reform strengthens Cyprus’s appeal for investment, corporate transactions, and cross-border business, reinforcing its position as a competitive and modern business hub.
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