North Cyprus Property
Take a warm climate, friendly people, beautiful surroundings, historic sites, and surround them with the warm Mediterranean sea. Add a newly refurbished airport, brand new golf course, fabulous water sports, and golden beaches, not to mention the pending EU membership and increased foreign investment. Now watch the price of property investments rise at up to 35% per annum, and you’ll see why a North Cyprus property investment is a lot more than just buying a place in the sun.
I want to build a house for myself in Northern Cyprus. How is this process going?
If we are talking about a private villa that you are building for yourself, the scheme is approximately as follows:
1. You give us all your wishes for the villa you want to build.
2. We select the land for you.
3. We help him purchase and issue a purchase, construction and villa ownership legally.
4. We obtain for you permission to purchase a land plot.
5. We make an architectural project that meets your wishes.
6. We get all the necessary permits for the construction.
7. We agree on the cost of construction of the turnkey villa.
8. We sign a construction contract between you and our construction company.
9. We build you a villa.
Your project will be handled by one of our managers who will provide you with all the necessary reports at any stage of the construction of your house. Sometimes it’s cheaper to buy a ready-made or a house under construction according to a standard project from a construction company, sometimes it’s cheaper to build on your own project. It all depends on the wishes of a particular buyer.
How is the purchase of real estate in Northern Cyprus and what documents will I receive?
The process of buying property in Northern Cyprus by foreigners is as follows:
1. You select the property you like.
2. We agree on the price and terms of purchase.
3. The lawyer of our company draws up a contract, which indicates the conditions of sale: the value of the property, terms, passport details of the seller, buyer and other special conditions.
4. A deposit of $ 2,000 is paid to reserve your property.
5. A contract is signed by the buyer and seller.
6. You make the first payment and pay the services of a lawyer plus a state fee of 0.5% of the value of the property specified in the contract.
7. For the acquisition of real estate by a foreigner, it is necessary to obtain a special permit for the transfer of property rights, which is issued by the Ministry of Internal Affairs of the Turkish Republic of Northern Cyprus. Our lawyer will prepare the necessary documents, and will contact the appropriate state authorities to obtain such permission from you. To carry out this procedure, you need to provide us with the following package of documents:
• copy of the contract;
• application form;
• a copy of the front side of the passport and the page where the entry visa is located;
The lawyer of our company will help you fill out all the necessary documents to obtain such permission.
8. After obtaining permission from the Ministry of Internal Affairs of the Turkish Republic of Northern Cyprus, you will be paid 5% VAT on the value of the property indicated in the contract.
9. 6% of the tax on the value of the property specified in the contract is paid – the cost of transferring the title to the land in your name (when you first buy real estate, you are exempted from 6% of the tax and pay only 3%).
10. After paying the rest of the cost, documents confirming the ownership of the real estate are drawn up in your name. The deal is completed!
Is it possible to obtain the citizenship of Northern Cyprus after buying a property?
Perhaps, but not immediately. Now, by law, you can obtain citizenship by living in Northern Cyprus for 10 years. But these laws will change (should change) after the next election.
Can I get a loan, and if so, for how many years and at what interest?
If you buy a building under construction, then you buy at a lower price and get installments for the construction period. Loans are possible for a period of 5-10 years at 5-9%, different conditions for different projects. We own an extensive database of real estate and will be able to choose for you what you want and according to your financial capabilities.
In what currency will the purchase of real estate be paid?
Property value is traditionally determined in British pounds. For convenience of understanding to our customers, we translate the price into dollars.
What taxes are paid in Cyprus?
All companies and joint ventures, with the exception of cooperative societies, are taxed on income.
The amount of tax.
1. Enterprises registered in the country as “Local companies” are subject to 25% income tax.
2. Enterprises that are classified as “foreign companies”, regardless of whether they are registered in the country or not, are also subject to 25% of the income received from trade or from any other type of activity on the territory of the TRNC.
3. Subsidiary subsidies for the establishment of an enterprise and subsequent annual deductions are deducted before tax on income of the enterprise.
An enterprise is classified as a “local company” if the central management and control of activities is carried out on the territory of the TRNC.
For the calculation of taxes, all income of such enterprises, including income received abroad, is taken into account, but in order to avoid double taxation, part of the company’s taxes is allowed to be paid abroad.
“What documents are required to pay VAT?”
There are several ways to pay VAT:
– on the invoice from the tax;
– independently, indicating the details in the tax service.
When paying tax yourself, we advise you to do it with the help of a lawyer or developer who will provide an invoice on the receipt of payment of value added tax. With this option of transferring money, you will be sure that there will be no problems and the lawyer will follow the process of delivery of funds.
“What are the legal titles for Property in Northern Cyprus and what is the difference between them?”
– Pre 1974 Turkish – lands with such a title belonged to the Turks until 1974, which means they have no claims from South Cyprus; these titles are quite rare, especially if you decide to purchase a site near the sea;
– Esdeger title (exchange) TRNC – this document is a confirmation that the land was issued to a resident of Cyprus of Turkish nationality in exchange for his land located in southern Cyprus.
– The title of TRNC TMD indicates that no exchange operations with these lands were made, therefore, in case of political issues, compensation to the former owners is possible. True, compensation is paid not by new land owners, but by the Compensation Committee on Real Estate, Turkey allocates finances.