Taxes and Fees When Buying Property in Northern Cyprus
Buying property in a foreign country always raises numerous questions: which region to choose, what type of property to purchase, what additional payments will need to be made. Clients of Veles learn all this information on a viewing шinvestment tour, the details of which can be obtained here, but today we suggest separately discussing the issue of property taxation in Northern Cyprus.
Imagine you’ve chosen your dream property.
Initial payment: a deposit ranging from £2,000 to £5,000 to reserve the property.
Next, within a month: a down payment of 35-40%. To register the sales contract, you pay a stamp duty of 0.5% of the property value and a 6% purchase tax. Upon completion of construction and handover of the keys, payment of VAT – at a rate of 5% (for properties up to 300 square meters) and subsequent payments according to the sales contract. After completing all payments under the contract and transferring the title deed to your name, you pay a 6% transfer tax.
In Northern Cyprus, there is also an annual property tax – 4 Turkish liras (which is 10 cents) per square meter.
Let’s summarize, the one-time taxes on the purchase of one unit of real estate are as follows:
- 0.5% stamp duty
- 6% property purchase tax
- 6% title transfer tax
VAT and Changes in Payments
Starting from February 2024, VAT on properties less than 300 square meters is 5%, and on properties larger than 300 square meters, it is 10% of the property value. This information regarding all taxes and payments when purchasing real estate is accurate at the time of the article’s publication. We recommend contacting Veles directly to consult on your individual inquiry.
Source: Veles Enterprises
Article prepared by: Kateryna Veles
Direct your questions to Veles experts. We do not only help with relaxation or property selection but also with solving your problems as foreign in North Cyprus. Feel free to ask any question about residence permit, company formation, property buying or selling, rentals, notary and legal services, document translations & visa applications to Veles Expert.
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