Buying property in North Cyprus is not a complicated process, but we would recommend you to turn to a solicitor for arranging all legal issues, like preparation of contracts, purchase permits, etc. Solicitors’ fees for such services usually amount to £ 500 -1,000. Our company closely cooperates with Gürkan & Gürkan Advocates and Legal Advisers, and we also recommend them to our customers. For more information, please go to www.gurkanandgurkan.com.
When you decide to buy property in North Cyprus, you will have to overcome several stages:
You choose the property, which you want to buy, and agree all terms of purchase and price with the vendor. As a rule, when buying a property in Cyprus, it is also required to pay a reservation fee of approximately £ 1,000 in order to secure the property for you.
Sales contract is being prepared, which includes all important terms and conditions. The contract should always include full property details, property specifications, site plan, title deeds, payment schedules.
Payment of stamp duty should be arranged. You can pay it at 0.5 % of the contract price within 21 days of the contract date. If it is not paid within this time it increases to 1.5 %. This means that you will have a choice to pay upfront or later on transfer of a title deed but at a higher rate.
It is recommended that a sales contract is always stamped for two reasons:
- The buyer may deposit the sales contract within the Land Registry Office to protect his interests. If the sales contract is not stamped it is not accepted by the Land Registry Office of North Cyprus.
- For the sales contract to be considered a legal document it must be stamped.
After the contract has been signed, a deposit, which usually amounts to 10% of property price, is paid.
Application for Purchase Permit to the Council of Ministers. This permit is always issued when you buy property in North Cyprus. The procedure for getting purchase permit usually takes from 18 up to 24 months. The application costs between £ 750 and £ 1,500.
Before applying for permit all foreigners firstly need to receive police clearance report.
When processing purchase permit applications, the Council of Ministers will check the information in military and immigration offices. If everything is positive, the permit will be granted.
VAT payment. After the developer has finished and hanged over purchased property to the customer, the latter has to pay additional 5% VAT (KDV) of the purchase price to the government.
Land Registry Transfer Fee payment. Usually this fee amounts to 6% of the purchase price, but each individual has the right to pay it at a lower rate of 3% once in a lifetime.
Final payment of property cost to the vendor and transfer of title deeds.