Property Purchase Costs in North Cyprus

The cost of buying property in North Cyprus varies depending on whether the property is new or resale (pre-owned). Resale property means that the property has been sold before. The VAT will have already been paid in this case, but you will be responsible for the title deed transfer tax. The costs also vary by property type, purchase price, payment conditions, and so on.

You should allocate an additional 8% to 20% on top of the property value in North Cyprus.

Here is the breakdown of the costs:

• VAT
• Title Deed Conveyance Tax
• Capital Gains Tax
• Stamp Duty
• Lawyer Expenses
• Notary Fees
• Mortgage Fees (if applicable)
• Electric Distribution Fee
• Utilities & Subscriptions Fees
• Annual Property Tax

Detailed Explanation of the Costs & Fees

1. VAT

A copy of the sale contract is required by the Land Registry Cadastre to calculate VAT. It is currently 5% for new properties. Resale property in Northern Cyprus is exempt from VAT. This is applied if you purchase a brand-new property from the developer. Property price lists do not include VAT at construction companies.

2. Title Deed Conveyance Tax

From 27 January 2023, it is 12% of the property value. This payment will be regardless of whether it is the first purchase or not. The first 6% of the purchase price must be paid upon the contract's Land Registry registration, and the remaining 6% is paid once the Ministry of Interior has granted permission for the transaction.

3. Capital Gains Tax

It is usually 4% of the sales price and paid by the seller. A copy of the sale contract is required by the Land Registry Cadastre to calculate the tax.

4. Stamp Duty

It is 0.5% of the sales price and paid by the buyer. A copy of the sale contract is required by the Land Registry Cadastre to calculate the tax.

5. Lawyer Expenses

The lawyer fee is around £1000 - £1500 + (16% VAT). Although working with a lawyer is not required, we advise doing so to collect your paperwork and submit your application. Investing in Cyprus will be a very comfortable process for you, especially if you work with a real estate company that has corporate lawyers.

6. Notary Fees

It costs £15 per document.

7. Mortgage Fees (if applicable)

You can get a mortgage up to 50% of the property value from banks. The mortgage fee is 1%.

8. Electric Distribution Fee

It is around £1,200 - 2,500, depending on the property size.

9. Utilities & Subscriptions Fees

You may pay about £220 for a water subscription and about £200 for an electricity subscription.

10. Annual Property Tax

It is £0.2 per square meter.

The prices given above are average. If you are considering applying for a permanent residence permit in Northern Cyprus, additional procedures and costs may arise. TEKCE experts can provide you with the exact price. You can contact us now or visit our nearest office to learn more.