Taxes and Fees for Buying Property in North Cyprus
Buying real estate in the country where you are a foreigner always raises many questions: which region to choose, what type of real estate to purchase, what additional fees you will have to pay. Veles clients will learn all this information on a viewing tour, the details of which can be found here, but today we propose to discuss the issue of taxation on real estate in Northern Cyprus separately.
Imagine, you have chosen the property of your dreams.
First payment: a deposit of 2 to 5 thousand pounds for the property reserve.
Then, within a month: the first installment is 35-40%.
To register a contract of sale, you pay stamp duty of 0.5% of the value of the property and 6% purchase tax.
Upon completion of construction and handover of the keys, VAT is paid in the amount of 5% (the area of the property is up to 300 sq m) and subsequent payments following the purchase and sale agreement.
After completing all payments under the contract and when the title deed is transferred to your name, you pay a 6% tax on the transfer of the title. North Cyprus also has an annual property tax of 4 Turkish lira (10 cents) per sq m.
To sum up, one-time taxes on the purchase of one property unit are:
0.5% stamp duty
6% real estate
purchase tax 6% title deed transfer tax
VAT and payment changes
From February 2024, VAT on real estate less than 300 sq m is 5%, and on real estate over 300 sq m 10% of the value of the property. This information on all taxes and payments when buying real estate is relevant at the time of publication of the article. We recommend contacting Veles personally and consulting on your personal issue. Ask your question directly to Veles experts.
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