GUIDE TO BUYING A PROPERTY IN NORTHERN CYPRUS

 

To purchase a Freehold title property in Northern Cyprus, there are a number of checks carried out by the Ministry of Interior. This will currently take approximately 6-12 months to be completed.

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 The process for buying any freehold property is as follows:

 

• Decide on the property and agree price.

 

• Pay an agreed holding deposit to secure the property as well as the 0.5% contract stamp duty and legal fees.

 

• Contract drawn up by solicitor, setting down the terms of sale, i.e. price, timescale, Vendor, Purchaser and any other special conditions.

 

• Vendor and Purchaser sign contracts.

 

• Contract is stamped at the Tax office and the 0.5% contract stamp duty is paid.

 

• Contract is registered at the land registry office within 21 days.

 

• Purchaser provides 20% deposit within the time frame specified in the contract (usually within 14 days) or the full amount if taking immediate possession.

 

• Solicitor applies for a Purchase Permit from the Council of Ministers.

 

• Purchaser applies for an up to date police criminal check in the UK.

 

• The purchaser pays the balance on the date agreed within the contract and takes possession of the property.

 

• For off-plan, or properties that are under construction, stage payments are paid until completion of the property under the terms of the contract. Purchaser then takes possession of the property.

 

• Purchaser pays balance, transfer of title stamp duty which is currently 6% (reduced to 3% on any one purchase) and 1% of the stamp duty charge to the local council, plus any KDV (VAT) applicable. Vendor then signs title deed into name of the purchaser.

 

• North Cyprus property sale completed.

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The costs involved are as follows:

 

• Solicitors Fees:    Including; drawing up of contract, POA (Power of Attorney), purchase permit application, contract stamping & registration and seeing sale through to completion = £1,350

 

• Stamp Duty: Currently at 12% (or foreign nationals) of the valuation levied by the Land Registry Office and 1% (of the stamp duty charge) paid to the Local Council.

 

• KDV (VAT): Currently at 5% of the valuation levied by the Land Registry Office. Payable on all sales except those where the title is being transferred from an individual and not a company. Generally this will mean that KDV is not payable on re-sale properties in Northern Cyprus.

 

• Contract Duty: Currently at 0.5% of the Contract value, payable at the TAX office within 21 days of the contract date.