When purchasing a property in North Cyprus,
it is a fairly uncomplicated process, however there are additional
costs involved which should be taken into account and we outline
them below:
North Cyprus property purchase
permit: freehold
If you are not a citizen of the Turkish Republic of North Cyprus,
you must obtain a purchase permit issued by the Council of Ministers
in order to receive your title deeds. It is advisable to appoint
a local Lawyer who can obtain this on your behalf together with
searches on the property. The cost of this process is around
1000 Sterling although it can vary and you should check this
before proceeding. It is also advisable to leave power of attorney
with your appointed Lawyer if you are not permanently resident
on the island.
North Cyprus property permit: leasehold
If you are purchasing a leasehold property, your vendor must
apply to the Council of Ministers in order to transfer the leasehold
title in to your name. A local Lawyer can act on your behalf
and it is advisable to leave power of attorney with your appointed
Lawyer if you are not permanently resident on the island.
North Cyprus District Lands’
Office Fees:
The District Land Office is responsible for transferring the
property into the purchasers name and it levies a Purchase Tax
on all property sales. After assessing the property the Land
Office will levy a 3% tax which includes local town and sewerage
tax. The assessment is made according to bricks, mortar and
the land the property stands on, not fixtures and fittings or
the sale price agreed.
Deposits for property in North
Cyprus:
On contract signing an initial deposit normally based at 10%
will be applicable, but it should be noted that this varies
according to developers and also at what stage of completion
the property is at the time of signing. It goes without saying
that the deposits are deducted from the final payment of the
property.
VAT on properties in North
Cyprus:
On all property sales 5% VAT (KDV) is applicable on the purchase
price.
North Cyprus Stamp Duty on
properties:
The Stamp Duty is set at 0.5% if it is paid to the Registry
Office within 14 days after contract signing. if you prefer
to pay it after title deed transfer, it will increase to 1.5%.
North Cyprus Lawyers:
North Cyprus Lawyer fees vary according to the complexity of
the sale procedures and it is advisable to check the fees before
proceeding. The normal fees are normally around 1000 Sterling
Utilities Connection Fees
in North Cyprus:
Electricity and water connections cost about 500 Sterling and
are normally arranged by the construction company on new builds.
New telephone connections are the responsibility of the purchaser
and lines can be applied for through the local telecom office.
Local Taxes and Utilities:
Property tax is around 20 Sterling per year, electricity and
water running costs vary from property to property and of course
it should be noted that houses with central heating and pools
will have higher utility bills than those without.
Other Costs in North Cyprus:
When you purchase a property in North Cyprus, you should also
take into account other costs such as;
- Furniture and soft Furnishings
- White goods - Oven, Refrigerator etc.
- Shipping of any goods from the UK to North Cyprus
- Local removal costs if relocating on the island.
- Connection of telephone, broadband, satellite TV
- Shipping of pets if relocating from overseas
Project Management:
Most Real Estate Agents can offer a project management service
if you are purchasing a property that is not yet completed.
In your absence they can regularly visit the property and report
the progress to you including photographs. They act independently
of the constructor and you can relax in the knowledge that there
is an onsite representative looking after your interest in your
absence. Your project manager will liaise direct with your builder
on any snagging issues or individual changes which you may have
to the original specifications.
Property Maintenance:
You can pay a local management company to look after your property
if you are not intending to live in North Cyprus, this way you
can rest assured that your investment remains in good condition
for when you visit. Property management companies will take
care of paying all your bills, take care of your garden and
check your property on a regular basis in case of water leaks
or any other such problems which may occur in your absence.
Selling your North Cyprus
property:
When you want to sell your North Cyprus property, you have to
pay 6% tax as a vendor.
Other Taxes in North Cyprus:
Income Tax is deducted at a rate 15% and all companies must
pay Corporation Tax.
VAT varies from 0% to 19% according to regulations.
Residence Permit:
You only need apply for a residency permit if you are going
to live in North Cyprus full time or spend more than 90 days
here at one time, the cost is approximately 150 Sterling per
year..
