North Cyprus Property
Buying, Selling & Running Costs
|
Buying Costs
- All property sales transactions in Northern Cyprus are normally conducted in British Pounds Sterling.
- Purchase Tax in North Cyprus is now 3.5% and is calculated on the nominal value of the property or the sales price, whichever is higher, and is assessed by the Land Registry Office (LRO). (This assumes that the buyer is exercising their one time option to pay this rate.)
- VAT (KDV) of 5% of the LRO valuation is currently payable to the vendor if the vendor is a company.
- Legal service costs are normally a fixed price of £1000 or as negotiated with your solicitor. This service normally includes land search, drafting the purchase contract and application to Council of Ministers for permission to buy.
- Most property purchases in Northern Cyprus require a connection fee to be paid to the electricity and water utilities based on the cost of connection. Allow £500 but check that this is itemised in the contract.
- Municipality Tax is sometimes levied at 1% of the LRO valuation per annum but this varies by district.
- We can recommend several reliable lawyers that offer a complete service.
- Purchase Tax and VAT are not normally included in the purchase price.
- All rates quoted are as at 7 April 2006
|
| Next
> |
Selling Costs
- There are no government restrictions on selling your property
in North Cyprus.
- The Vendor pays 3.5% capital gain tax when selling. On the first sale of up to one dönüm, it is possible to get an exemption from this duty.
- If you want to pass the property to the name of your children
then there is a transfer tax of 0.2%, i.e., £2 per
£1000.
- Our local partner agencies, offer competitive rates and fast
results if you want to sell your property (see Links)
|
| Top > Next > |
Running Costs
- Annual Municipal Taxes are normally less than £100
p.a.
- Electricity supply is 240 volts AC 50Hz. The power supply is
subject to disruption and we can supply back up generators or UPS
systems on request.
- Water in Northern Cyprus is by mains supply and in some
properties supplemented by wells. Water is stored in your tank
which should be large enough for three days supply as some areas
are only refilled every other day. Water is normally potable and
can also be purchased via tanker.
- Drainage is via individual septic tanks which require
servicing every 18-24 months at a typical cost of £25.
- Telephone lines can take several months to be connected but
do provide International direct dialling. Internet connections
are relatively cheap at no more than £10 p.m. Broadband is
available by satellite but is expensive at present.
- Satellite (including Sky) TV is available.
- Mobile phones have extensive coverage in North Cyprus and are
relatively cheap.
|
| Top > Next > |
Household Goods
|
A residents permit is required to bring personal goods into
North Cyprus and residents may bring into the country a full
household of furniture. A nominal 2 - 3% tax is levied on used
goods but new goods may be subject to import duties.
We also have reliable personnel who will guide you through the
Government Departments for importation of household and personal
goods, vehicle registration, immigration permits, driving
licences etc. - as well as advice from our legal and accountancy
colleagues for your pension, investment and banking needs.
|
| Top > Next > |
Cars
|
All foreigners should carefully examine the importation of
vehicles into North Cyprus from overseas, as cars are valued
(Glass's Guide) and import tax is levied on the basis of the
value, engine capacity and age. In most cases, the tax assessment
is high. It is often better to purchase a Turkish made Renault or
Fiat (Murat), new for about £6,000 or a Polo, Fiat Palio,
Renault Clio for approx £11,000. Second-hand vehicles are
in abundance, but prices for reliable cars rarely drop below
£2000, no matter the condition.
Car road tax is approximately £40 annually (more for
larger cars/jeeps etc.), and third party insurance in the region
of £30.
|
| Top > Next > |
Procedures
|
Most applications for licences, visas, permits etc., do
require an inordinate amount of patience, but the endearing charm
of the North Cypriot people make each and every excursion into
Lefkosa or Girne a most interesting and pleasant diversion,
albeit retrospectively.
|
| Top > Next > |
Tax Rates
|
Please note that tax rates may differ from the examples given
above and are subject to change. Taxes will be applied at the
rate ruling at the time.
|
| Top > |
|
