PURCHASE PROCESS

Below is the standard process for buying property in the Turkish Republic of Cyprus, and issues that may affect that purchase:

• A solicitor compiles a contract detailing the exact terms of the sale; price, timescale to completion, vendors details, purchaser's details, and any special conditions.
• All paperwork must be signed (and witnessed) by both the vendor and the purchaser.
• A deposit of 10% of the purchase price is required to be paid.
• A Purchase Permit, applied for by the appointed solicitor, must be obtained from the Council of Ministers. A minimum period of 4-5 months should be allowed for this, and should not impede moving into the property.
• Upon receipt of the Purchase Permit, the remaining balance of the purchase price is required to be paid. If completion takes place before receipt of the Purchase Permit the remaining balance minus 5% - 10% (for purchaser's security) should be paid.
• Upon payment of the outstanding balance, the vendor signs over the title deeds.

Costs of a standard property purchase in Northern Cyprus include the following:

• A Transfer Fee is payable to the Land Registry Office, and is set at a rate of 6%. However, every person is subject to a one off reduction to 3%. Once this has been used, all future purchases will be subject to the standard 6%.
• Capital Gains Tax is exempt on the first time sale of a property. After the first sale, Capital Gains Tax is levied at 3.5% of the property price for both locals and foreigners, and is payable to the Tax Office. However, this tax rate is only applicable up to a maximum of 3 sales per year.
• Stamp Duty of 0.5% of the purchase price is payable to the Tax Office if paid within one month of the date of contract. If paid after this period, the percentage increases in stages to a maximum of 1.5% after 6 months.
• 5% VAT (KDV), of either the assessed value or the sales price, is payable on all property transactions.

Why Buy Property in Northern Cyprus?

Investment into Northern Cyprus property markets has been consistently strong with all indications forecasting a long-term upward trend. Property prices have significantly augmented during the past 3 years due to the influence of the increasing numbers of foreign investors present in the property market. However, prices still remain as much as 50% below property values in the south of the island, presenting incredible capital growth potential as the North converges with the South.

This promising growth in terms of return on property investment in the Turkish part of Cyprus, particularly when compared to other property markets within the EU and UK, is increasingly attracting significant attention from overseas property investors. Northern Cyprus is currently enjoying a boom in property investment as prospective growth indicates significant return on investment over the next decade.

Capital appreciation in Northern Cyprus surpassed an annual average of 25% over the last 2 years, with rental returns exceeding 10% per annum, as reported by Cyprus-homes.com. It is expected that capital appreciation on property in Northern Cyprus will continue to accelerate as the country receives increased exposure from the world arena, with rental returns to receive equal growth as a result of the forecast expansion of the tourism industry.

Buying Property Abroad:

If you are considering buying a property abroad then visit the country location of your choice from our list below. On all our country pages you will find useful information about buying investment property including information on mortgages, foreign currency, solicitors, economic & tourism factors, research sources, due diligence reports, books and property investment guides to assist you in making a well informed decision when buying a property abroad.

• Northern Cyprus Property
• Buying in Northern Cyprus
• Economy Northern Cyprus
• Legal Aspects
• Mortgages Northern Cyprus
• Tourism Northern Cyprus
• Investment Research
• Property News North Cyprus
• Books on Northern Cyprus
• Featured Development
• Northern Cyprus Weblog