North Cyprus Property Purchase Costs

Investment Opportunities in Northern Cyprus: Key Information for Buyers

Much has been written about the investment potential of Northern Cyprus. Affordable prices for apartments and villas continue to attract new potential buyers, who eagerly follow the latest listings and "hot" property offers on our website. From the very first step of choosing a property, our clients should have a clear understanding of the actual costs involved. These depend largely on the type of property chosen: a new build from a developer or a resale property on the secondary market. We provide detailed information about additional expenses, ensuring transparency and clarity for all prospective buyers.

Calculating the Total Cost of Real Estate in Northern Cyprus

To estimate the full cost of purchasing a property in Northern Cyprus, including taxes and registration fees, you need to consider the property's price and type—whether it’s a new build or a resale property, for which most one-time taxes have already been paid.

One-time expenses and taxes include:

• Connection fees for electricity and water
• 5% VAT (based on the contract price).

For any property purchase in the Turkish Republic of Northern Cyprus (TRNC), regardless of the number of properties acquired, buyers should account for the following expenses:

• Legal fees for an attorney and property transaction management
• Contract registration fees
• Stamp duty
• Title deed transfer tax
• Property maintenance costs (especially in residential complexes with developed infrastructure).

If the property is part of a residential complex with shared amenities, monthly maintenance fees should also be considered.

Taxes and Fees for Property Buyers in Northern Cyprus

Both residents and non-residents are subject to taxation when purchasing real estate in Northern Cyprus. Taxes are shared between the buyer and the seller. Below is a breakdown of buyer-related expenses:

1. Legal fees: £1,600 - £1,800 (GBP), depending on the scope of work and specific requirements. Some law firms include contract registration and will drafting in this fee. All taxes listed below are paid by the lawyer on behalf of the client.
2. Contract registration fee: Stamp duty at 0.5% of the property price.
3. 5% VAT: Paid upon receiving the property title (keys).
4. Title transfer tax (land ownership): 12% of the property's value, paid as follows:
   • 6% upon contract registration.
   • 6% upon full ownership transfer (title deed issuance).
5. Document submission fee for permission to transfer the title to your name: £500.
6. Annual property tax: In most regions of Northern Cyprus, this tax is calculated at 2 Turkish Lira per square meter.

Important Update (February 2023):
For foreigners registering contracts in the Land Registry Office, the following costs apply:

• Stamp duty: 0.5%
• Municipal fees
• 50% of the title transfer tax (6% of the sale price): The remaining 6% is paid upon transferring ownership (title).

Bank Transfer Fees:
For bank transfers to Northern Cyprus under £100,000, a fee of approximately £21 is charged.

Comprehensive Support from Alliance-Estate

Alliance-Estate provides full assistance throughout the property purchase process, including contract registration, document submission to the Ministry, title deed transfers, and property setup.

With our expert guidance, purchasing property in Northern Cyprus becomes a clear and seamless process, allowing you to focus on making a confident investment decision.