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Buying Property in North Cyprus
As the legal system in North Cyprus is based on the UK legal system, the process of buying property in North Cyprus is fairly straight forward. All legal documents are prepared in English and there is a wide range of reputable solicitors in North Cyprus who are bilingual in both English and Turkish. Once the purchaser has decided on the property of their choice and paid over the holding fee, the property is taken off the market and the property purchase can be completed in a very short period of time.
Property Purchase Procedure and Taxes
- Select and reserve the property of your choice. The property will be kept off the market for 28 days on a fully refundable basis and subject to viewing, if you are planning to visit North Cyprus.
- Agree on the price and terms of sale. We recommend that any extras are discussed at this stage and are included with the agreement.
- The validity of the title deed is checked by the purchaser’s appointed solicitor and the contract of sale is drawn up laying out the terms of sale.
- Agreement of sale is signed by both parties (Purchaser and Vendor). The solicitor can sign the contracts on the purchaser’s behalf, once the purchaser is happy to proceed, if a Power of Attorney (or POA) has been arranged by the purchaser.
- Purchaser pays agreed deposit, solicitor’s fees (£1250) and Stamp Duty (0,5%) within 14 days of signing. All payments are usually made via bank transfer to the appointed solicitor. Stamp duty is payable at 0.5% of the contract value if paid within 1 month from signing of the contract. If it is not paid within this time, it increases to 1.5%.
- The solicitor applies for the foreign purchase permit on the purchaser’s behalf. Once the purchase permit is granted, the regional Land Registry values the property.
- Stage payments and/or monthly payments are made to your solicitors according to the agreement of sale.
- Following the last payment under the contract of sale, the title deed is transferred into the purchaser’s name.
- 5% VAT and 3% Transfer Charges are paid upon property completion.
- Sale is now officially at completion.
Buying first and viewing later?
A property purchase may be completed from abroad if the solicitor has been granted the Power of Attorney to act on the purchaser’s behalf. This can be easily arranged in the UK.
After initial contact, the purchaser would be required to fill out client information forms, purchase permit application and provide a copy of their passport.
Once the terms of sale have been agreed and the agreement has been signed, the solicitor will apply to relevant Government Offices for the purchase permit and ensure all relevant taxes (as above) are paid on time.
The solicitors in North Cyprus can be reached via e-mail, fax or phone. Thus, constant correspondence can be ensured throughout the purchase process.
Below is a summary of the purchase costs:
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Purchase Price |
Holding Fee |
First Payment* |
Stamp Duty |
Legal Fee |
VAT |
Transfer Charges |
Total Purchase Costs |
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|
£1000 |
Less Holding Fee |
0.5% |
£1,250 |
5% |
3% |
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| 1 Bedroom Apartment |
£34,900 |
1000 |
£12,800 |
£172.50 |
£1,250 |
£1,035 |
£867 |
£4,182.50 |
| 2 Bedroom Apartment |
£41,900 |
1000 |
£15,760 |
£209.50 |
£1,250 |
£2,095 |
£1,257 |
£4,811.50 |
| 3 Bedroom Apartment |
£54,900 |
1000 |
£20,960 |
£274.50 |
£1,250 |
£2,745 |
£1,647 |
£5,916.50 |
| 2 Bedroom Villa |
£59,900 |
1000 |
£10,980 |
£299.50 |
£1,250 |
£2,995 |
£1,797 |
£6,341.50 |
*First payment based on 40% on exchange for 1 bed, 2 bed and 3 bed apartments and 20% for 2 bed villas
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