Costs And Taxes In North Cyprus

Below is an overview of all the taxes and costs involved in property purchase in Northern Cyprus, along with estimated running costs.

Buying Costs

• All property sales transactions in Northern Cyprus are normally conducted in British Pounds Sterling.
• Purchase Tax for foreigners in North Cyprus is 3%, which is calculated on the nominal value of the property as assessed by the Land Registry Office (LRO). The LRO valuation is not directly related to the current market value and is typically around 60% of the purchase price
• VAT of 5% of the LRO valuation is payable to the LRO on transfer of title, if the vendor is a company. (Rate confirmed as at 6 June 2005)
• Municipality Tax of 1% is payable in most regions.
• Legal service costs are normally a fixed price of £1,000 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.
• We can recommend several reliable lawyers that offer a complete service.
• Purchase Tax and VAT is not normally included in the purchase price.

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 £1,000.
• Our local partner agencies offer competitive rates and fast results if you want to sell your property (see links).

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 upon 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 suitable for drinking 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 dialing. 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.

You may also be interested in the following:

• Costs And Taxes In North Cyprus
• Property Tax In Cyprus
• Investment Property In North Cyprus
• Land Titles In North Cyprus
• Cyprus Property