Property Buyer's Guide
Buyers Guide
Buying property in North Cyprus is an exciting and life-changing decision as well as a very wise business investment. It is not a complicated process and Blue Nest is here to help. We guide our customers through the whole buying process from recommending a lawyer to the title registration until finally, you get the key and title deed (where needed) with unconditional transparency. A non-TRNC citizen is entitled to take title to only one property of a maximum area of 5 Donums (6690 Sqm) of land per person provided that the property only consists of one dwelling. In addition to this, a husband and a wife may respectively own their own property. This TRNC Freehold title deed can be broken down into four possible variants, one of which will apply to your purchase. These are:
Pre. 1974 Foreign Title.
This applies to land or immovable property that was owned by a foreign national before 1974.
Pre. 1974 Turkish Title.
As the name implies, this applies to land or immovable property owned by a Turkish Cypriot before 1974.
TMD Title.
This applies to land given by the government to Turkish and Turkish Cypriot people after 1974 for military service and to encourage settlers. This was to promote and encourage economic progression.
Exchange Title. (Esdeger)
This applies to land or property awarded by the government to a Turkish Cypriot in exchange for land or property they were forced to leave behind when fleeing the south in 1974.
Guide to purchasing property in The Turkish Republic of Northern Cyprus
⁃ Individually non-TRNC citizens are legally allowed to take the title of one property (immovable dwelling) up to a maximum area of 5 donums, provided the property consists of only one dwelling.
⁃ Building permission will not be granted to build further dwellings after permission to purchase has been granted.
⁃ New regulations allow a married couple to each own a title in their individual name, previously a married couple had been considered as one household and therefore could only hold one title.
⁃ Before the title deeds can be registered you require permission to purchase from the TRNC Council of Ministers (see document Guide to obtaining the necessary checks for your purchase permit)
⁃ If you wish to take the title of more than one property or property over 5 donums, your conveyancer will advise you on using trustees or setting up a TRNC company.
The conveyancing process is designed to ensure your interests are protected throughout the whole process.
⁃ Having identified a property you wish to purchase, the next stage will be to meet with a conveyancer to discuss the details of the purchase including the price agreed with the vendor, any payment plan and included items. Bluenest property advisors will already be guiding you with this process.
⁃ At this point you may wish to allow the power of Attorney to be taken by the conveyancing team, enabling them to sign on on behalf should you be out of the TRNC.
⁃ The conveyancer will prepare a contract of sale to protect your interests, this will include important items such as plot number, plot size, price, payment schedule, and completion date along with any penalty clauses for late completion.
⁃ Attached to the document will be all floorplans and specifications this will ensure the vendor is bound to carry not the construction work in accordance with the lodged detail.
⁃ The contract will be sent to both the vendor and purchaser for confirmation signature.
⁃ In accordance with current law the contract of sale for immovable items must be registered with the district land office within 21 days of the signature, and the stamp duty (0.5% of the purchase price) must also be paid by the purchaser.
⁃ Once the contract of sale is registered the purchaser is protected against the land being sold to a third party and the contract takes priority over any subsequent encumbrance.
⁃ The cost of Title registration is around 100TL with a slight variation between the office of Famagusta and Kyrenia.
⁃ Your conveyancing team will guide and support you through this process should you wish to lodge the registration yourself, alternatively, the team can complete the registration on your behalf.
⁃ The conveyancer will review the title deeds to ensure the vendor is the registered freehold owner of the land and that there are no charges, injunctions, or other encumbrances on the property. Whilst also checking building permission for the construction was legally obtained.
⁃ The permission to purchase will next be requested, from the council of ministers who will make searches with the land registry, the military and the immigration authorities provided these are positive permission will be granted.
⁃ The permission to purchase process can take some time (currently unto 1 year), however, this will not prevent you from moving into the property, leasing it, or even selling the dwelling.
• Guide to obtaining the necessary police checks for purchase permits
⁃ As a non-TRNC citizen you must provide details of any criminal prosecutions, cautions, or convictions held, in order for your purchase application to be processed. This refers to the person (s) who will be named on the title deeds.
⁃ You will need to make enquiries with the local police service or consulate in your country of origin for more information in gaining this information.
⁃ If the information is produced in a language other than Turkish or English you must have it translated into either Turkish or English and the document certified as a true and correct translation by a Notary.
⁃ Both the original and translated documents must be provided to the conveyancer.
Legal fees, taxes, and related costs that you should be aware of
Stamp Duty:
0.5% of the sales price
VAT:
5% of the sales price. Usually not included in the price and paid. On the sales price by the buyer. Upon delivery of the property possession.
Land Registry Transfer Fee:
6%. However, each person has an exemption, once in a lifetime, to pay this tax at a tax rate of just 3%. (Note that during 2021 it has been reduced to 1% for a limited time?) It is recommended that. you use this exception if you have no intention of buying another, more expensive property, in the near future.
Capital Gains Tax:
Varies between 2.8%-4%%, depending on the status of the seller, this tax is usually paid by the seller.
Legal Fees:
£1,200- £1,600 including the power of attorney (POA), registration of contract and applying for permission to purchase.
Electric Transformer Contribution:
£1,500- £2,500 which is the cost of electricity and water connection (when buying a new house) and approximately £1,000. for the transfer of the electricity to your name (when buying a resale property)
Property Tax:
1,5TL per sqm/year.
Important to note:
According to the law of Northern Cyprus, non-TRNC citizens currently have the right to own one property. You are still the contract owner of the property even if you do not own the title deed in your name after the contract has been duly signed and registered. If you wish to sell at any stage after receiving the title deed, no VAT will be paid by you (the first time). Every sale of a second property incurs, a 2.8% VAT
