The cost of buying a property in North Cyprus varies depending on whether it is a new property or a re-sale (pre-owned). Resale property means that the property has already been sold. In this case, VAT will already have been paid but you will be liable for the transfer tax on the title deed. Costs also vary according to the type of property, purchase price, payment terms, etc. You should add a further 8% to 20% to the value of the property in North Cyprus. Here is a breakdown of the costs:
- VAT
- Tax on the transfer of ownership
- Capital gains tax
- Stamp duty
- Cost of a lawyer
- Notary fees
- Mortgage fees (if any)
- Electricity distribution charge
- Service and subscription fees
- Annual property tax
1. VAT
A copy of the sale and purchase agreement is required by the land registry for VAT calculation. Currently it is 5% for new properties. Resale of property in North Cyprus is exempt from VAT. This applies if you buy a brand new property from a developer. Property price lists do not include VAT for builders.
2. Tax on the transfer of the title deed
From 27 January 2023, it is 12% of the value of the property. This payment will be regardless of whether it is a first purchase or not. The first 6% of the purchase price must be paid when the contract is registered with the Land Registry and the remaining 6% is paid once the Ministry of the Interior has given its approval for the transaction.
3. Capital gains tax
These are usually 4% of the sale price and are paid by the seller. A copy of the sale and purchase agreement is required by the Land Registry to calculate the tax.
4. Stamp duty
It is 0.5% of the sale price and is paid by the buyer. A copy of the sale and purchase agreement is required by the land registry to calculate the tax.
5. Cost of the lawyer
The fee for a solicitor is approximately £1,000 – £1,500 + (16% VAT). Even if you do not need to work with a solicitor, we recommend that you get your paperwork together and make an application. Investing in Cyprus will be a very comfortable process for you, especially if you are working with a property company.
6. Notary fees
It costs £15 per document. You can get a mortgage for up to 50% of the value of the property from the banks. The mortgage fee is 1%.
7. Electricity distribution fee
It’s around £1,200 – £2,500 , depending on the size of the property.
8. Service and subscription fees
You can pay around £220 for a water subscription and around £200 for an electricity subscription.
9. Annual property tax
It is £0.2 per square metre. The prices shown above are an average. If you are considering applying for a permanent residence permit in North Cyprus, there may be additional procedures and costs involved. We can give you an exact price when you buy the particular property in question. You can contact us now or visit our office to find out more.
