Costs of purchasing real estate in Northern Cyprus
Purchasing real estate in Northern Cyprus - fees:
Property tax:
This tax is paid when you purchase a property and is usually charged as a percentage of the property's value.
Legal services costs:
You will need legal services to draw up the contract and confirm ownership of the property. These costs may be determined by agreement with your lawyer or law firm.
Registration fees:
Registration fees may be required when registering real estate in the property register.
VAT:
In some cases, VAT may be applied to the purchase of property, but this depends on the specific situation and type of property.
A copy of the sales contract is required by the Land Registry Department to calculate VAT. Currently it is 5% for new properties. In Northern Cyprus, resale property is exempt from VAT. It is charged if you buy a brand new property from a developer. Real estate price lists of construction companies do not include VAT.
Tax on the transfer of title
From January 27, 2023, it constitutes 12% of the property value. This payment will be regardless of whether this is your first purchase. The first 6% of the purchase price must be paid upon registration with the Land Registry Department and the remaining 6% will be paid upon approval of the transaction by the Home Office.
How to obtain a residence permit?
A residence permit can be obtained after the transfer of the ownership deed. This permit is valid for 1 year and must be renewed annually. After the end of the 3rd year, you can apply for an indefinite residence permit. If you are over 65 years old, you can receive indefinite leave to remain immediately after the title deed is handed over. If you want to spend your life here after you retire, there's nothing stopping you. If you want to change your citizenship to Northern Cypriot citizenship, you must have lived here for 11 years with a residence and work permit.
Capital gains tax
It is usually 4% of the sales price and is paid by the seller. The land registry department requires a copy of the sales contract to calculate the tax.
Annual real estate tax
It is £0.2 per square meter.
How transactions work:
For more information, you can contact us. We will briefly present the main 5 steps in the process of transferring ownership of real estate in Northern Cyprus:
- Initial exchange of contracts
- Actual exchange of contracts
- Confirmation and registration of contracts
- Application for permission to purchase real estate
- Document of transfer of ownership
The prices given above are average. If you are considering applying for permanent residence in Northern Cyprus, there may be additional procedures and costs involved.
It is important to consult with a local agency or property specialist so that they can advise you on the exact fees and costs associated with purchasing a property in Northern Cyprus.
