Additional Costs on Buying Property in North Cyprus
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
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 pho
tographs. 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..