Real estate is taxed under the laws of the country on which territory it is located. Purchasing property in Northern Cyprus, the buyer must pay the taxes and government fees in accordance with the laws of the TRNC. The so-called additional costs that are paid in addition to the prices for the selected real estate in Cyprus, paid by the purchaser associated with legal fees, government taxes and fees, and costs for the contents of real estate.
A lawyer’s fee, who conducts verification of documents of acquired property before you receive the full rights of ownership, is estimated at £ 1250 - £ 1350 (if a customer wishes the contract is provided in two languages).
Registration of the contract - £ 100 - £ 350
Stamp duty (Stamp duty) - costs of registering the contract in land registry. It is calculated based on the 0.5. % of the value of the purchase, stated in the contract of sale. Stamp duty is paid within 21 days after signing the contract.
When buying a property it is important to remember that new owners of the property pay property tax 5%, which must be paid upon receiving of the keys to the property. This VAT is payable only once, in case of purchasing a resale, if this tax already has been paid, it is not payable again.
Tax payable at the time title deed s is transferred at new owner’s name and the tax is equal to 12 % of property value as stated in the contract of sale.
Payment for services of the maintenance company of the development the property is located in. The amount depends on the infrastructure of the development.
When buying newly built property an amount should be paid for communication connections – electricity, water, and telephone line.
Annual property tax is calculated from the value of the property, area and size of the plot (if there is one), in accordance with the prices stated by the municipality in which project is located. The fee for rubbish collection, street lighting, sewage, etc (if the property is not located in a development) is included in the price of monthly water bills. Basic utilities - electricity and water are paid individually according to consumption, based on readings of the meters.
To register the contract in the land cadastre (for foreign citizens, the buyer must pay) - new rules of February 2023
- 0.5% stamp duty
- municipal fee
- 50% for the certificate of ownership (title deed), which is 6% of the sale price (full tax 12%)
The remaining 6% is paid when transferring ownership of the client's name (i.e. when transferring title)