Purchase Guide

Purchase Guide

In many new projects in Northern Cyprus, additional connection fees such as electricity, water, and telephone are not provided by the government. Therefore, the relevant connection fees are collected pro rata from the buyers by the construction company during the project delivery process.

Property Purchase Procedure and Taxation in Northern Cyprus

Whether you want to buy a new project or a resale property in Northern Cyprus, the process consists of certain steps and official state procedures. Here is a step-by-step guide:

1. Arrival and Initial Meeting
   • The client arrives in Northern Cyprus, our team welcomes them at the airport.
   • Project areas are toured, sample apartments/villas are shown.
   • Reservation is made for the selected property (usually £2,000 – £5,000).
2. Legal Procedure
   • Lawyer Selection → Foreign buyers must work with an independent lawyer. The lawyer checks the title deed, company documents, and project with state institutions.
   • Sales Contract → Prepared by the lawyer, signed by both parties.
   • Land Registry Registration → The contract is entered into state records, the buyer’s right becomes official.
   • Council of Ministers Permit → Required for foreigners to buy property. The lawyer applies, process takes 6–12 months. During this period, the buyer can use the property.
3. Taxes and Additional Costs
   New Project Purchase
   • VAT → 5% of the sale price
   • Title Deed Transfer Fee → 6% of the sale price (3% for first-time buyers)
   • Stamp Duty → 0.5% of the contract price
   • Infrastructure Contribution → Transformer fee + basic connections (electricity, water, telephone). Varies by project, average £1,500 – £3,000.
   Resale – Title Deed Transferred Property
   • VAT → Not paid (property is already registered to an individual).
   • Title Deed Transfer Fee → 3–6% of the sale price.
   • Withholding Tax → Seller must pay, sometimes shared with buyer.
   • Stamp Duty → 0.5% of the contract price.
   Resale – Title Deed Not Transferred Property
   • If the first buyer did not take the title deed, the property is still registered to the developer. In this case, the process for the second buyer is like a new project purchase:
   • VAT (5%) is paid.
   • Title Deed Transfer Fee (3–6%) is paid.
   • Stamp Duty (0.5%) is paid.
   • So, the second buyer pays both VAT and title deed fee in resale without title deed.
   Annual Taxes
   • Property Tax → Paid to the municipality annually, average £0.1–0.2 per m².
   • Example: For a 100 m² apartment, annual £10–20.
   • Garbage and Cleaning Tax → £50–100 per year to the municipality.
4. Construction and Payment Process
   • First payment (30%) → Made during the sales contract.
   • Remaining payments → Paid as construction progresses or according to the installment plan.
   • The client is regularly informed during the construction process.
5. Habitation Permit and Title Deed
   • Habitation Permit → Obtained from the municipality when the project is completed, certifies the property is livable.
   • Title Deed Transfer → After Council of Ministers permit is granted, title deed is transferred to the buyer at the Land Registry Office.
6. Usage
   • After title deed and habitation permit are completed, electricity, water, and internet subscriptions are opened.
   • The property is now fully owned by the buyer, who can live in it, rent it out, or keep it as an investment.

Effective Date

These terms are effective as of January 1, 2025.