Additional Costs When Buying Property in North Cyprus.
North Cyprus
North Cyprus > North Cyprus Guide > Buying Property in North Cyprus > Additional Costs
SECTIONS
RANDOM PHOTO
Whirling Dervishes
Whirling Dervishes
photo by: Anonymous
[ enlarge photo ]
BOOKMARK & SHARE

Del.icio.ous

Digg

Technorati

Reddit

Furl

Blinklist

Google Bookmarks

TELL A FRIEND
Your name

Your friend's name

Your friend's email address

Additional Costs

Buying Property in North Cyprus

Buying property for investment or pleasure in North Cyprus is a relatively simple affair, since the system is very much based on the British model. Just as in Britain, there are some additional charges that the potential North Cyprus property buyer needs to be aware of:

North Cyprus furniture shop

North Cyprus Property Purchase Permit: freehold

All non-nationals buying a freehold property must obtain a property purchase permit from the government. Your North Cyprus solicitor or notary can obtain a permit for you, which takes between 4 and 12 months to come through. Typically, the cost of obtaining this permit will be included in any sales transaction fees, at a charge of around £750.

North Cyprus Property Purchase Permit: leasehold

If you are buying a leasehold property, your property vendor must apply to the Ministry of Tourism for permission to transfer the lease, and then you, as the purchaser, must also apply to have the lease transferred into your name. You should employ a solicitor or notary to apply for you.

North Cyprus District Lands’ Office fees

The District Lands’ Office oversees the transfer of property from seller to purchase, and levies a Purchase Tax on all property sales. A form must be submitted in person (or by a designated person under Power of Attorney), which includes evidence of all taxes paid on the property to date, such as local town taxes and sewerage taxes. As part of the registration process, the Office will assess the value of the property, and levy a 3% fee based on their assessment of the property’s value on the open market, regardless of the contract sales price. Since this value is set by the value of the bricks and mortar and land, not fixtures and fitting, it may actually be considerably less than you pay for your North Cyprus property.

Deposits on properties in North Cyprus

Most North Cyprus properties are subject to a 10% deposit while contracts are being signed and permits obtained. You may be asked for up to 25% deposit. This deposit money will, of course, be deducted from the purchase price on final payment.

VAT on properties in North Cyprus

All property purchases must pay an additional 5% KDV (VAT) on top of the purchase price.

North Cyprus Stamp Duty on properties

Stamp duty of 0.5% is due and payable to the Registry Office, if paid within 14 days of signing the contract. If prefered, it can be paid after the title deed transfer but 1.5% instead of 0.5%.

Northern Cyprus Solicitors

As with UK property purchases, your North Cyprus solicitor’s fees may vary according to the complexity of the sale, etc, but will probably be a minimum of £1000.

Utilities Connection Fees in North Cyprus

To be connected to the water and electricity supplies will cost around £500. These costs may not apply if you are buying an apartment in a development. New telephone connections will probably also incur a charge.

North Cyprus Local taxes and Utilities

Property tax is under £20 a year, with electricity and water making up the major running costs at around £25 per month for a couple in a property without central heating.

Other Costs of moving to North Cyprus

As with all house moves, you will also need to consider costs such as:

North Cyprus Property Maintenance

You may choose to employ a property management company to look after your property while you are back in the UK. This is a stress-free and easy way to ensure your North Cyprus property investment stays in good condition for you and any rental guests.

Selling your North Cyprus property

When the time comes to sell your North Cyprus property, you as the vendor also pay 6% tax.

Other Taxes in North Cyprus

All income tax in North Cyprus is deducted at source at a rate of 15%. Companies must pay Corporation Tax. VAT is chargeable at various rates according to regulations, from 0% and rising to 19%.

North Cyprus Residence Permit

Non-nationals must also have a residence permit, which costs around £150 to initially acquire, plus a small fee per year. Read more on residence permits.