Buying process in North Cyprus
Here’s a streamlined overview of the property buying process in North Cyprus:
1. Reservation
Once a verbal agreement is made, the buyer pays a non-refundable reservation deposit (minimum £1,000) to their solicitor. This deposit secures the property and takes it off the market at the agreed price for 2-3 weeks, giving the buyer time to sign the sales contract and transfer payment.
2. Signing the Sales Contract
A contract of sale, detailing the terms, specifications, and payment plan, will be drawn up in English by the buyer’s solicitor or a certified notary. The solicitor reviews the contract with the client, making any necessary amendments. Once finalized, the contract is signed by the buyer, seller, and two independent witnesses.
3. Registration of the Sales Contract
If the buyer leaves Cyprus before signing, they can authorize their solicitor with Power of Attorney to sign on their behalf. Within 10-14 days of signing, the buyer typically makes the first payment. According to Northern Cyprus law, the buyer has 21 days after signing to pay the 0.5% stamp duty and register the contract at the Land Registry, protecting the buyer’s ownership rights.
4. Purchase Permit
All foreign buyers need a purchase permit from the Council of Ministers to transfer the title deed into their name. A solicitor can prepare this application, which costs between £200 and £1,000. The application requires a copy of the buyer’s passport and a criminal record check (originals required).
The permit process typically takes around six months, although the buyer can sell the property without the title deed during this period. Generally, permits are granted unless:
- The buyer has a criminal record.
- The property overlooks a military area (we will provide advice on this if relevant).
From the moment the contract is signed, the buyer holds ownership rights to the property and can sell, rent, or modify it.
5. Title Deed Transfer
Once the purchase permit is granted, both the buyer and seller pay the relevant property transfer taxes. The seller transfers the title deed at the Land Registry Office, completing the sale.
Taxes and Fees When Buying Property in North Cyprus
When purchasing property in North Cyprus, there are taxes and fees to consider. Below is an overview of the most common costs associated with a property purchase:
Taxes
Stamp Duty – 0.5% of the purchase price – Paid upon signing of the purchase contract.
Title Deed Transfer Tax – 9% of the purchase price
6% is paid upon registration of the sales agreement
3% is paid at the transfer of the title deed
VAT – 5% of the purchase price – Applies mainly to new-build properties and is usually paid to the developer when the title deed is transferred.
Additional Fees
Legal Fees – Approximately £1,000–£1,500, depending on the scope of legal services provided.
Utility Connection Fees
Water connection and meter: approx. £1,500
Electricity connection and meter: approx. £1,500
Wireless internet (WiFi): approx. £200
Property Tax – Approximately 1.5 Turkish Lira per square meter per year.
Home Insurance – From £100 per year, depending on the property type and coverage.