Process of buying a property in North Cyprus
This beautiful island can provide a perfect place for your family to live in or spend your vacation (Click here). Process of buying a new property is normally needs you to know about regulations and law specially if your new property is on a foreign country. Sometimes it can get confusing since there are language barrier and different laws. If you already decided that you want a property in North Cyprus, here are some useful information for you.
As mentioned before in our Ultimate guide to buy a property in North Cyprus, there has been confusion regarding title deeds. since 1974, The North and South parts are separated. The separation happened because of a dispute between Turkish Cypriots (North) and Greek Cypriots (South). Lots of refugees from both side were forced to leave their properties. Both North and South Cyprus, as a land, is a European Union territory and Cypriot citizens are European Union citizens. Regarding the type of title deed you will receive, legally, in North Cyprus there is one type of title deed which is a title deed issued by TRNC and all the holders of title deeds are guaranteed rightful enjoyment and ownership of their properties.
What will happen after resolving the conflict?
Based on the past resolved similar disputes in the world – North Africa and Germany with the fall of Berlin wall – after 43 years relocation is impossible since it would trigger more conflicts between the societies. In addition, as a result of the agreed land exchanges between the Turkish and Greek Authorities under the supervision of United Nations. Only certain parts of the Island would be exchanged. If North and South agree on a soloution 28.6% of the land would remain under the control of Turkish Authorities. Maras, Guzelyurt and part of Mesarya is to be exchanged if there would be an agreement.
What should I know as foreign purchaser?
While purchasing an immovable property in North Cyprus, every international buyer should have a lawyer who is competent with English language or who has a translator during the purchase process in order to. His job is to develop awareness on legal rights in the procedure of purchasing. Attorney can have a search on the status of the property intended to be bought. Also, receive an information on the reliability of the Construction Company. They assist you on the terms of contract during the signing of the contract of sale. Make sure they have all the necessary applications completed as required under the Turkish Republic of Northern Cyprus (TRNC) legislation 52/2008 Acquisition of Immovable Property and Long Term Lease (International Buyers) to receive the title deed of the property bought under your name.
Every international buyer needs to apply to the related ministry and exhibit criminal conviction report in order to obtain permission to purchase which would enable them to receive the title deed of the property bought in return of the full payment of the sale price.
What are the legal limitations?
Every person (every household / husband and wife) can only register one title deed of one house or one flat or one store or one donum of land (around 1350 meter square of land) or five donum of land provided that there is already a house constructed on the land and is registered on the title deed.
Registering the beneficial ownership gained by singing of the contract of sale to freeze the property until the transfer of title deed is completed. However, for this to take place, the construction companies in North Cyprus require at least 50% of the sale price to be paid.
What are my legal rights?
You have full right on to your property. In addition, if you are interested you can apply to the permission of residency – provided that you have enough means in your bank account to survive in North Cyprus. Also, you can sell or rent your property to third parties as you like.
What are the Taxes and Duties I have to pay?
0.5% of the sale price needs to be paid by the Buyer to the tax office as a stamp duty payment. 6% of the sale price – reduced to 3% for the first time buyers – needs to be paid by the Buyer to the Land Registry as transfer charges, and, 1% of this charge needs to be paid to the municipality as a contribution. 5% VAT (where the seller is a professional/company) of the sale price needs to be paid by the Buyer to the Seller in return of a receipt of payment or to the Tax Office before taking the possession or title deed of the property. 4% of the sale price as an Income Tax (of the professionals or companies) needs to be paid to the tax office by the Seller.
To sum up, make sure you have a good understanding from what is required from you. Having an experienced attorney to represent you is highly recommended since there are unfamiliar language and laws are being applied. After you finished the buying process you can enjoy you time in beautiful and peaceful North Cyprus with your family.
Our experienced Lawyer team
Celik Law Firm
We have an experienced team to help you with your process of buying a new property. Celik Law Firm was founded in 2010 by Berna Celik Dogruyol. She was born in Leicester, United Kingdom and raised in Famagusta, Northern Cyprus. Berna Celik has studied primary and secondary school in Famagusta, and high school in Oak Park and River Forest High School at Chicago, IL, USA. She has returned to Cyprus on the final year of High School and graduated from Eastern Mediterranean College in Famagusta. In 2002 she went to UK to study Law in one of the top 10 law schools in UK, Cardiff University. She has completed a degree in law (LL.B., (Hons)) and a Master degree of Law (LL.M.) in Cardiff University. In 2007 she returned to Cyprus and registered with the Bar Association in Cyprus. She has worked in a law firm in Nicosia as a trainee lawyer and as a lawyer and legal advisor in a law firm in Kyrenia for 3 years and established her law firm in 2010. Berna Celik has acted as a general secretary and as the spokesperson, to the European Commission on the Cyprus dispute and possible ways of resolution, in the Business Women Association in Cyprus.
Our law firm has more than 8 years of experience in conveyancing and real estate, sports law, companies; offshore, free-zone and international share hold company formation, taxation, European sports law, International and European dispute resolution and litigation. Our firm’s clientele are mainly international with a few exceptions.