Expenses When Buying Property In Northern Cyprus

Expenses When Buying Property In Northern Cyprus

Real estate in Turkey, including Northern Cyprus, is popular among buyers from around the world. When calculating how much a purchase will cost, people often take into account only the price of a residential property. However, almost every step of acquiring real estate in the Turkish Republic of Northern Cyprus (TRNC) involves certain costs. Here we will tell you what you need to prepare yourself for if you plan on buying a villa or apartment in Turkey in this region.

Content:

How much do legal services cost?

Buying a property without hiring a lawyer can turn into an unpleasant surprise for the investor. For example, they may not actually be the only buyer, or it may turn out that the property was purchased from someone who only pretended to be its owner. That is why it is better to seek the help of a lawyer so that they check all the papers and ensure the due diligence of the transaction. For document verification services for one property, a lawyer in Northern Cyprus will charge you approximately USD1,600.

How much does it cost to book a property?

To book a property in Northern Cyprus the buyer is interested in, they must make a deposit. The amount depends on the agreement between the buyer and the seller. Usually it ranges from USD1,250 to USD6,500 depending on the final cost of the selected property. After that, the property is withdrawn from sale for one month. If the transaction takes place, then the deposit is deducted from the final settlement.

Stamp duty

The stamp duty must be paid before registering the contract with the Land Registry. The rate is 0.5% of the sale price specified in the contract.

Expenses When Buying Property In Northern Cyprus

Title deed transfer tax

From January 2023, foreign nationals must pay a title deed transfer tax of 12% of the value of an apartment or villa. 6% must be paid upon registration of the contract with the Land Registry, and the remaining 6% is paid after obtaining permission to purchase from the Ministry of Interior.

VAT

After receiving the keys to the house or apartment, the buyer must pay VAT. In the TRNC, the rate is 5% of the value of the purchased house or apartment. The value indicated in the contract rather than its listing price is taken into account.

When purchasing a property in the primary market, the buyer also transfers approximately from USD1,800 to USD3,700 to the developer’s bank account, depending on the specific residential project. This amount is a fee for connecting the sewer, telephone line, and other communications.

Property maintenance expenses

Owners of properties in buildings with a well-developed internal infrastructure, for example, with a communal swimming pool in a residential complex, pay between USD37 and USD87 per month.

Monthly charges for water supply, lighting, street cleaning, and garbage disposal are about USD7 to USD8.

The annual property tax is paid immediately after obtaining the title deed, and every year thereafter. The amount of the tax varies depending on the area of the property. It is necessary to pay between USD0.06 and USD0.10 per square metre.

Expenses When Buying Property In Northern Cyprus

Northern Cyprus residence permit for property owners

Foreign nationals purchasing a property in the Turkish Republic of Northern Cyprus can expect to receive a residence permit. It does not matter how much the property costs: any buyer from any country can apply for a residence permit.

To apply for a residence permit, you must:

  • Buy an apartment or a house.
  • Obtain a certificate in two copies from the head (mukhtar) of the district. The document will confirm that the head personally knows you, meaning that you are a real buyer.
  • Open a bank account. Residence permit applicants must have about USD10,000 on their current account.
  • Apply for a residence permit and fill out an application form on the official website.
  • Purchase a health insurance policy.
  • Get your blood tested to prove you don’t have any dangerous diseases. A medical report form can be obtained from the police.
  • Submit complete paperwork to the local police station.

You need to prepare the following papers:

  • an international passport for making copies of the pages with a photo and the last entry stamp;
  • a police clearance certificate;
  • two photos of the residence permit applicant;
  • a certificate from the local head;
  • an account statement;
  • a marriage certificate and a child’s birth certificate;
  • a title deed or a sales contract for a house or apartment.

The Immigration Department will make a decision within one to three months. It is recommended not to leave the country during this period.

Apart from the investor, their minor children and spouse can also apply for a residence permit. There is no need to submit a separate application for children under 18, as they will be issued a residence permit automatically. If a residential property is owned by several individuals, then only one of them can obtain a residence permit.

Usually, owners of property in Northern Cyprus are granted first-time residence permits valid for one year. They can then be renewed for three years.

Expenses When Buying Property In Northern Cyprus

Property in Northern Cyprus

Here are examples of apartments and houses in the Turkish Republic of Northern Cyprus that you can buy right now:

  • A 49 m2 studio in Famagusta is on sale for USD110,000.
  • A 45 m2 studio in İskele is on sale for USD135,000.
  • A 78 m2 studio in Famagusta is on sale for USD143,000.
  • A 90 m2 apartment in Gaziveren can be purchased for USD180,000.
  • A 130 m2 apartment in Gaziveren is on sale for USD155,000.
  • A 90 m2 apartment in Esentepe can be purchased for USD404,000.
  • A 150 m2 apartment in Famagusta costs USD111,000.
  • A 130 m2 apartment in Gaziveren is on sale for USD155,000.
  • A 200 m2 villa in Alsancak costs USD370,000.
  • A 410 m2 villa costs USD1.37 million.
  • A 232 m2 house in Bahçeli can be purchased for USD1.75 million.
  • A 200 m2 villa in Alsancak is on sale for USD500,000.
  • A 300 m2 villa in Girne costs USD1.43 million.
  • A 600 m2 house in Girne can be purchased for USD1.37 million.
  • A 280 m2 penthouse in Girne costs USD1.99 million.
  • A 334 m2 penthouse in İskele can be purchased for USD1.86 million.
  • A 497 m2 penthouse in İskele can be purchased for USD1.3 million.
  • A 140 m2 penthouse in Güzelyurt costs USD130,000.
  • A 270 m2 penthouse in Yeni Boğaziçi is on sale for USD747,000.
  • A 155 m2 penthouse in Girne can be purchased for USD745,000.
Share
Subscribe to newsletter
Subscribe