Foreign nationals are entitled to buy either one of the following:
- A registered freehold property in up to 5 donum’s of land
- A parcel of land of up to 1 donum
- An apartment
- A Leasehold property
Note: For multiple purchases either an individual TRNC company or trust company via a lawyer is required or alternatively, additional family names. For more information about multiple purchases please contact us.
Securing a property
What to do when you have found your dream property in North Cyprus:
- Agree a price with the vendor through your agent.
- Secure the property with a 5% deposit for a resale property or £2-5k to reserve an off-plan property.
- Instruct a lawyer to start conveyancing on the property/land. Once your legal advisor is satisfied all is in order, contracts will be drawn up for approval. This can be as quick as 4 weeks for a resale property, or a date to suit both vendor & buyer.
- Your contract is registered at the land registry (0.5% fee) securing your legal rights to that property. It is law that all contracts must be registered within 21 days of signing.
- On full payment possession is given to resale properties.
For off-plan properties, payments are made through your lawyer at each stage of the build until completion. Your lawyer will obtain a receipt from the developer for every payment made.
Permission to Purchase
Foreign nationals go through a process called Permission to Purchase or PTP. This is how it works:
- Your lawyer will request you get a DBS (Disclosure & Barring Service) check from your home country to start the process. Your application will then be processed through various government offices.
- The process takes up to 3 – 9 months for other Foreign Nationals & 3 months to complete for Turkish Nationals.
- During the application period your purchase is secured and possession is given after registration of your purchase at the land registry.
Buying Taxes & Costs
- Stamp Duty of 0.5% is payable at the time of registration of the contract.
- Resale properties transferred into the present owner’s name are VAT (5%) exempt (known here as KDV).
- 5% VAT (KDV) is payable on new build properties at the time of title transfer.
- A Purchase tax of 6% is payable on transfer of title, however everyone has a once in a lifetime opportunity of a reduced purchase rate of 3%. It is your choice when to take advantage of this reduction.
- Legal fees vary between £1250 - £1500
- Wills: £150 – 200 on average.
- Utilities (electric & water) require a small deposit to be registered in your name.
Turkish Nationals and local citizens are able to apply through local and Turkish banks for Mortgages at a 75% loan to value rate with the necessary deposit and income related documentation.
Other foreign Nationals may apply for a loan through local banks subject to status & income checks. This is not a common practice as it is a lengthy process.
A number of builders and developers provide payment plans over a 3–10 year period to all nationals.