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House purchaseWhen you need a Solicitor, Lawyer or Advocate in North Cyprus, our firm is one of the most reputable firms. Mainly dealing with immovable property issues and conveyancing.
Our firm is meticulous in advising clients and preparing contracts of sale regarding purchasing immovable property in Cyprus. We realise that the decision to purchase a new home is one of the most important decisions you make in your life and it is most likely to be your most significant financial investment. Therefore we show utmost case to make it a successful one. We believe it is essential that the solicitor you instruct to act for you during this important transaction is one that you can feel completely confident in. The Conveyancing process can be stressful as a result of a lack of communication between all parties involved in a transaction. We will liaise with all relevant parties at every stage; be that your estate agent government officials and most importantly you. We will make a search about the property, examine and translate the Title Deeds of the property and will explain the precise legal status of the deeds to you. Application to the Council of Ministers According to the laws of North Cyprus a foreigner has to obtain purchase permit from the Council of Ministers to become the registered owner of the property.
As North Cyprus lawyers, we will make the application on your behalf. Obtaining the purchase permit may take time due the time table of Ministry of Interior. We will follow up the application to capedite the procedure. Title deeds In Northern Cyprus there are different types of title deeds.
Given to Turkish Cypriots due to their lands left in South Cyprus (exchange of land/property) or (awarded land/property) to Turkish Cypriots by the Turkish Republic of Northern Cyprus (TRNC) Government. Based on the 1983 TRNC Constitution, all the deeds rectified and named as TRNC deeds are freely transferable to foreigners.
Pre 1974 properties were owned by either Greek Cypriots, Turkish Cypriots or 3rd nations (English, German, French, Russian etc.).
After 1974, Greek owned properties were nationalized by the Turkish government (this applied to approximately 17% of the property on north) this was compulsory acquisition done in exchange for compensation.
Buying costs
Property sales transactions in Northern Cyprus are normally conducted in British Pounds Sterling.
Purchase Tax for foreigners in North Cyprus is 3%, which is calculated on the value of the property assessed by the DLO (District Lands Office). If more than one properties are purchased the tax on the following properties after the first is %6.
VAT of 5% of the DLO valuation is payable on transfer of title, if the vendor is a professional. A one off Municipality Tax of 1% is payable in most regions. Property Tax (council tax) is normally less than Stg100 p.a.
Legal costs
These are normally a fixed price of Stg1,250.- or as negotiated with your solicitor. This service normally includes land search, drafting the purchase contract and application to Council of Ministers for permission to buy.
Most property purchases in Northern Cyprus require a connection fee to be apid to the electricity and water utilities based on the cost of connection. Allow Stg500.- but check that this is itemised in the contract.
Purchase Tax and VAT is not normally included in the purchase price.
Selling Costs
There are no government restrictions on selling your property in North Cyprus.
The Vendor pays 3.5% capital gains tax when selling. On the first sale of up to one building site, it is possible to get an exemption from this duty. If you want to pass the property to the name of your children then there is a transfer tax of 0.2%. |
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