Buying Guide

The rules and procedures when buying properties differ a little from those in your home country, but are very straightforward. Just like in many other parts of the world, you hire a lawyer who handles the formal, such as contract, registration and law enforcement.

North Cyprus is subject to UK property laws and all property sales are made in British Pounds (GBP).

Choice of lawyer

The buyer is represented in North Cyprus by a lawyer. The lawyer assists you throughout the affair and handles the formal, such as contract, registration and law enforcement. As a buyer, you freely choose your lawyer.

The lawyer checks so that there are no deficiencies and errors in the property register, that the home is not burdened by old loans or servitude and that no old bills are due for payment

Contract

When the buyer and seller agree, you write a reservation contract and in connection with that, the buyer usually pays between £ 1,200 – £ 1,500 to the lawyer’s account. The amount varies depending on the purchase price.

When the reservation contract is signed, the home is taken directly away from the market. The buyer’s lawyer starts the buying process and draws up the complete purchase contract to be signed by both the buyer and the seller.

Permission to Purchase

In order to own a home in Northern Cyprus, you need to get a permit from the Interior Ministry authority, which is called “Permission to Purchase”. This helps your attorney in connection with the buying process and the cost is included in their fees. You need to be able to show an excerpt from the load register from the country you are written in.

Taxes

In addition to the purchase price:

The tax consists of 0.5% in stamp duty and is paid within 21 days after contract writing.

5% in VAT

3% in legal tax (Title deed transfer fee)

Title deed

When all payments are complete and purchase permits have been obtained, title deeds can be transferred to the buyer and thus the entire purchase is completed.

VAT, Value Added Tax (VAT) 5%

All properties where an application for a building permit has been submitted to the Building Committee are subject to 5 % VAT (Value Added Tax).

✹ If you purchasing a resale property from a private person, no VAT need to be paid, provided that the previous owner has paid this.

Stamp Tax (Stamp Duty) 0.5%

For each purchase of immovable property, a stamp duty shall be paid by the buyer to the Tax Office. This must be paid no later than 21 days after the signing of the contract. The stamp duty is based on the sales contract’s purchase price.

Transfer fee 3%

Transfer of immovable property to a buyer can take place when permission is obtained from the Council of Ministers that the buyer may own property. The transfer fee is necessary for full ownership of the property to be registered with the buyer. This can happen when Title Deed is issued and the purchase is completed.

When this registration takes place at the Land Registry Office and the title is handed over, the buyer must pay a transfer fee for the acquired property. The transfer fee is a onetime fee and must be paid to the Land Registration Authority.

We get many questions from our customers. Here we have collected the most common questions with answers. Hopefully the answer to your question is here. Otherwise, you are of course welcome to contact us here with your questions or comments.

What do the different title deeds mean?

There are generally 3 different types of teams in North Cyprus;

• Turkish Title did – Real estate owned by Turkish Cypriots before 1974.
  ● Exchange Title did – Real estate granted to Turkish Cypriots in compensation for real estate that they left on the south side after 1974.
  ● TMD Title deed – Real estate granted by the authorities to Turkish Cypriots after 1974 to encourage occupation. (not sold to foreign nationals)

Is it safe to buy real estate in North Cyprus?

The Immovable Property Commission (IPC) was created by the European Court of Human Rights in 2005 to provide a local solution for land or compensation requirements to Greek Cypriots. Previously, their only opportunity was to turn to the “European Court of Human Rights” (ECHR), which was unnecessarily costly and time consuming for both the court and the plaintiff.

IPC has its office in Nicosia and its operations officially started on March 17, 2006.

In addition to providing a solution for the plaintiff, it has also led to providing complete protection for buyers of real estate in the north.

The ECHR has established that it is a final and effective solution to the Cyprus problem. Landowners can receive either financial compensation or compensation with other land (if the property has not been improved or transferred to another).

IPC has successfully contributed to an overall solution of land issues in northern and southern Cyprus.

In addition, the IPC has successfully managed the exchange of land between Turkish and Greek Cypriots, which reduces the economic burden for IPC.

A study by ECHR of all decisions on land issues provides total security and protection for buyers of real estate in northern Cyprus. Buyers are also protected and can feel completely confident in the fact that ECHR is the supreme court and its decision is final and can not be appealed.

Some advice, regarding the Greek / Turkish Cypriot question, that it would not be safe to buy real estate in northern Cyprus is HOWLY FAILURE!

Read more www.tamk.gov.ct.tr

Can I sell the property before I have received my title deed?

Yes, you can sell your property before you have received your title deed.

Do I have to wait for the purchase permit before I can move into my property?

No, when your property is ready, you will be able to take possession of your property and move in.

Will I have to pay a profit tax on the sale of my property, if so, how much will it be?

This depends on whether you are an individual or a professional seller. Each individual has the opportunity to use tax-free sales at any time in his life. If you make use of this, you will not have to pay a profit tax. On each subsequent sale you will pay 3.5% profit tax, based on the fact that you do not sell more than 3 properties during that year. If you sell more than 3 properties in one year, you count as a professional seller and pay 6.25% profit tax.

What happens if I sell before I received my title deed, will I still have to pay a profit tax?

If you sell the property for more than you bought it, you will still have to pay a profit tax. If the team has not changed in your name, it is still in the last seller’s name. The name of the team speed determines who needs to pay a profit tax. Since the previous seller will not want to pay for more profit than it had, it will be written to a clause in the contract that points to this. You will therefore be paid a profit on your part of the profit.

Is it possible to get loan for the purchase of properties?

As a European citizen, you can borrow from a North Cypriot bank to 50% of the purchase price at an annual interest rate of 6-8%. This only applies to real estate with registered landlords (not “off plan” real estate and real estate under construction). To be granted loans, you must meet certain requirements from the bank, including fixed income from your home country.

The most common thing is to lend a possible. property in home country for property abroad. This means taking a loan on an existing mortgage loan with significantly lower interest rates than a North Cypriot bank offers.

For buildings that are off-plan, under construction or new production, construction companies offer a financing plan, often called “in-house loan” or “payment plan”. This varies between the companies but usually you pay 25-30% of the purchase price when signing the purchase agreement and the remainder in installment for 3-5 years without interest or at a lower interest rate than the bank.

Do I need a passport or visa to enter North Cyprus?

If you are a citizen of an EU country with at least 6 months left before the passport expires, you will get into Northern Cyprus. When you arrive at Ercan Airport in the north or when you cross the South and North border you will receive a visa in your passport. There is no cost for this. Normally you can stay in the country for 30 days per visit.

Is it easy to cross the border between north and south?

There are several passages along the border where you can take you between the Turkish Republic of Cyprus and the Greek Republic of Cyprus. The main passage is in Nicosia at Ledra Palace and Metehan and at Famagusta. EU citizens can cross the border with a valid passport, while other citizens need to contact the Greek Embassy in their home country. Your passport will be checked on both sides of the border. There are restrictions on what and how much you can import / export. E.g. There are restrictions on alcohol, cigarettes, etc. Getting across the border is very easy. If you drive by car, you will need an insurance that can be purchased at the border. One month costs about £ 25. (You need insurance for each side).

What is the currency of north Cyprus?

The currency is in Turkish Lira. The exchange rate is liquid but stable. Euros, US Dollars and English Pounds usually also pay. If possible exchange is usually paid back in Turkish Lira. Generally speaking, it is most advantageous to trade with Turkish Lira.

Why is the English Pound mentioned so often?

All property purchases are made with English Pounds. Attorney fees and taxes on the purchase of property are also made in the English Pound.