Once you have thoroughly researched the market place in North Cyprus, you will be ready to make your decision what to buy.
The next step is to take advice from a lawyer for all matters from conveyancing to making a will. We do not favour any particular law firm but we do have a list of those we have used previously and have been impressed by their services. Please ask if you require a copy.
After terms are agreed on price, make sure you have secured a written list of any extras and the specifications. We will hold your hand to agree maximum discount and we will ensure that the contract and specifications thoroughly cover the full terms and any extras agreed with a vendor.
You will normally reserve a property by way of the payment of a non-returnable reservation deposit in the order £2,000.
Your lawyer in North Cyprus will check the deeds and make all searches on your behalf.
Your lawyer will also make an application to the Council of Ministers for the purchase permit to be handled on your property purchase whilst you are out of the country. You will have full possession of your property whilst your purchase permit is being processed.
Your lawyer will then draw or check the contract of sale to be signed by you and the vendor.
Normally you will then be given 14 days from the date of signing the contract to pay a more substantial deposit, normally around 25- 30% of the purchase price, unless it is a re-sale or existing property. We will always negotiate on your behalf to obtain the most favourable payment terms.
The contract of sale will stipulate the payment plan for your property and will establish a completion date. Once the contract is signed it will be registered at the Land Registry office (TAPU) as a record of your legal interest in the property. At this time you will pay stamp duty at 0.5 % of the contract price.
On the day of completion your appointed solicitor will require the remainder of the funds for your property purchase in North Cyprus, together with payment of Title Transfer Tax, currently at 6%, however there is a right for the first time buyers to reduce the Title Transfer Tax to 3%.
When deciding to buy a property in North Cyprus, you must allow for all your Purchase costs. Such taxes and fees are as follows:
- Stamp Duty for the contract registration – 0.5% of the contract amount (as described above);
- VAT at 5 % of the contract price is payable to the vendor when you take occupation of your property (key hand over). This tax is only payable on new properties as re-sale properties normally include this tax in their selling price.
- Title Transfer Tax – 3% of the contract price (as described above) payable at Title transfer to the name of the purchaser (within approximately 6 to 18 months after filing application for the permission). This delay is due to the time taken for your purchase application to be processed. At the same you can have full possession of your property and fully enjoy it yourself or rent it out. Once your application is granted then title can be transferred and at this time you will be asked to pay the tax to the Tax office.
- Lawyers fees – These vary depending on which lawyer you use, but 2018 fees are on average £1500 to include ALL of the necessary legal work from Power of Attorney to Title Transfer application