The Cyprus House of Representatives has unanimously approved a law capping stamp duty on transactions with a value over CY£5 million (€8.5 million).
In general, stamp duty on contracts is charged at a rate of CY£0.02 per CY£10, with a lower rate of CY£0.015 per CY£10 on the first CY£100,000. This means that a transaction valued at CY£100,000 will be subject to stamp duty of CY£150, a transaction of CY£1 million will cost CY£1.950 of stamp duty and one of CY£5 million will be subject to stamp duty of CY£9.950.
For transactions in excess of CY£5 million the stamp duty will be no greater than CY£10.000, however large the value of the contract.
The move will significantly reduce the amount of stamp duty payable on large transactions and enhance Cyprus's attractiveness as a financial centre, particularly for bond issues.