Home
Properties 
Yalkin Construction
Car Hire
About Company
Contact Us
Buying process in TRNC
For sale villa in north cyprus For sale villas in north cyprus North cyprus properties Homes in north cyprus Estate agent in north cyprus Properties in north cyprus For sale properties in north cyprus For sale homes in north cyprus North cyprus property Real estate in north cyprus Real estate in northern cyprus Real estate agent in northern cyprus Real estate agent in north cyprus Real estate agency in north cyprus Real estate agency in northern cyprus For sale apartment in north cyprus For sale apartment in northern cyprus
When purchasing property in Northern Cyprus, it is important to ensure that you have a good understanding of the legal processes involved as the conveyance procedure is somewhat different to that in your country.
Make sure you follow these procedures on any of your purchase or construction deals:
- If purchasing a new construction, make sure the builder is experienced and if possible, try to view some of the properties previously built by the builder to get an idea of his standard and quality of work.
- Find a good and knowledgeable solicitor who is experienced in dealing with land sales to foreign purchasers. The solicitor should carry out Land Registry searches on the property to make sure that the vendor is the registered owner and has selling rights over the property. For new constructions, the solicitor should also check that the relevant building permissions have been obtained and that the plans have been stamped and approved by the City Planning Office.
- The solicitor will draft a contract of sale and the terms of this should give you maximum protection.
- With new constructions, payments should generally be made on completion of the construction stages and it is advisable to keep a small amount back until title to the property is transferred into your name.
- The next stage is the purchase permit application. All non TRNC citizens who wish to purchase property in Northern Cyprus must obtain permission from the Council of Ministers before the property can be legally registered in their names. The application for the permission will usually be made on your behalf by your legal representative.
- When the construction is finished, before making your final payment under the contract, it is always best to consult with your solicitor to ensure that when you take possession of your new home, all the relevant safeguards are in place, all documents are in the possession of the solicitor, any items of snagging are dealt with and in some cases, that a supplementary contract is prepared to reaffirm and clarify the remaining obligations between you and the builder.
- Once the purchase permission has been granted, your solicitor will fill in the relevant Land Registry transfer forms on your behalf. The Land Registry will then value the property and based on that valuation, the taxes will be payable. The Land Registry transfer fee which is almost always paid for by the purchaser is currently at 6% of the Land Registry valuation.
However as the new regulation stands purchasers now have the option to pay %3 of the Land Registry valuation. This option can only be used once in a life time.
The VAT which is usually paid for by the purchaser is currently at 5% of the Land Registry valuation. Once the taxes are paid, the transfer of title will take place. If you have given your solicitor a power of attorney, your solicitor will sign all the forms on your behalf at the Land Registry.
From the date of transfer, the property is legally registered in your name. However, the Land Registry usually requires at least one month issuing the new title deed to the land in your name.
Taxes and Legal Issues:
There are four main taxes involved in any property sale and purchase transaction. These taxes are:
- Transfer Fee - The transfer fee is 6%. However, every person has a once in a lifetime option to reduce this to 3%.
- VAT for Property Transactions - 5% of either the assessed value or the sale price.
- Capital Gains Tax - The rate will be 3.5% payable by the Vendor.
- Stamp Duty - This is 0.5% of the contract price provided this is paid within 1 month of the date of the contract. If it is not paid within this time, the rate increases in stages until after 6 months it becomes 1.5%.