Taxes are strictly regulated by TRNC legislation.

When purchasing real estate, the following is paid in stages:

• Stamp Duty = 0.5% of the value specified in the contract
• Lawyer services – 1000 – 1400 pounds – this is the total amount for all the work of a lawyer for the entire period of registration of real estate.
• Upon receipt of the Right of Ownership and receipt of the keys, payment of VAT (VAT) = 5% of the value specified in the contract
• If this is a new property, you pay for the connection of water and electricity, the so-called transformer fee. This can cost between £1,500 and £2,500, depending on the specific property and is written into the Purchase
• Contract. Payment is due within 3 months. before getting the keys.
• After the construction is completed and the keys are received, when applying for a Property Acquisition Permit, you must pay a property acquisition tax (also called a title transfer tax) = 3% of the appraised value of the first property (or 6% if the property is purchased a second time). If you plan to resell the property, then there is no point in obtaining a Title Deed and paying this tax. After all, the new owner will have to draw up the Title for himself again.
• Annual property tax: in most regions of Northern Cyprus, the property tax is 3 Turkish Lira per square meter.

Property buying process

The process of buying property in Northern Cyprus by foreigners takes place in the following sequence:

➢ 1. The buyer selects a suitable property. We agree on the cost, details and terms of the purchase.

➢ 2. You choose an Attorney who drafts the contract (if it is a resale) or verifies and edits the contract from the Developer. The contract specifies all the conditions of sale: the cost of real estate, payment terms and installment terms, passport details of the buyer and seller and the details of the developer, and other special conditions.

First of all, the Lawyer requests all the necessary documents from the seller and checks the title to the land and who is the owner of the land. Also checks for an approved Building Permit.

Based on the documents provided, a real estate purchase and sale agreement is drawn up in English / Turkish or Russian (if necessary) languages.

After agreement and approval by both parties (buyer and owner-developer), the contract will be signed.

➢ 3. After signing the contract, the buyer must pay a fee – Stamp Duty, which is 0.5% of the contract value of the property.

It is advisable to pay the Stamp Duty along with legal services, because. it must be paid before registering the contract with the Land Department.

In accordance with the law, the contract must be registered with the Land Department within 21 days from the date of its signing.

Registration of the contract is carried out in order to protect the rights of the buyer, because. after the registration of the contract, the seller does not have the right to dispose of the property, i.e. sell, pledge or encumber in any other way.

➢ 4. After registering a contract for the purchase of real estate, the buyer becomes its owner (even if the buyer paid only the first installment of 30%)

Registration of real estate in the name of the buyer in the Land Committee and the Tax Office is done by a lawyer who draws up the transaction.

➢ 5. After receiving the keys of the purchased property, the buyer pays VAT (VAT) in the amount of 5% of the value of the property specified in the contract.

➢ 6. To obtain a title deed (Kochan in Turkish) in the name of a buyer who is not a citizen of Northern Cyprus, it is necessary to obtain permission to purchase real estate.

Lawyers apply on behalf of the buyer for such permission to the Ministry of Internal Affairs and deal with this issue until the application is considered and permission is obtained. Usually, if the Buyer has no criminal record, then the decision is positive.

How much money to take with you to Northern Cyprus to pay for real estate when signing a contract:

1. To reserve an object, you must pay a deposit of 1500 – 5000 British pounds (depending on the specific object) in order for the object to be withdrawn from sale. The amount is paid in any currency at the current exchange rate. The amount paid is counted towards the total amount of the contract.
2. Lawyer’s fee – 1000-1400 British pounds (drafting and verification of a contract for the acquisition of real estate, verification of all legal issues related to the legality of construction and ownership, execution of powers of attorney and a contract, registration of a contract with the Tax Office and the Land Registry, control of financial settlements between buyer and seller for the acquired property, transfer of the title to your name).
3. Payment of the Stamp Duty – 0.5% of the value of the property specified in the contract.