Legal Information - A Guide to property purchase in North Cyprus - North Cyprus Lawyers

In North Cyprus current property law dictates, that Non-TRNC citizens entitlement is to take title to one property or plot of land upto a maximum area of one donum per household .  Should you have unmarried children who do not live at the same address as you, they may purchase land or a property in their own right.

1 Donum = 3rd of an acre

Per Household - refers to husband, wife and unmarried children over the age of 18

Before any title deeds to North Cyprus property are registered in your name, you will need receive permission from the TRNC Council of Ministers. Should you wish to take title to more than one property in North Cyprus, or property with over one donum in area, Donaghy and Beyler will be able to give you advice on using trustees or the possibilty of setting up a  Company in North Cyprus to hold title to the properties for you.

North Cyprus conveyance procedures that are followed by the many law firms - Lawyers, Advocates

1. There will be an initial meeting with your Lawyer Advocate, to obtain information from you regarding the North Cyprus property you have chosen, informal agreements you have made with the vendor including price, payment schedule and included items. This meeting may also involve the giving of power of attorney to your lawyer in order that they may act on your behalf, enabling them to sign documents for you, should you not be in North Cyprus.

2. Preparation by your Lawyer of Contract of the North Cyprus Property Sale.  This is to ensure your interests are safeguarded.

Included in the contract of sale will be all important terms such as property plot number, the plot size, sale price, payment schedule and property completion date also penalty clauses in case of late completion.

Floor plans will be attached to the contract, also specifications and the selling agent's advertising material this is to ensure the Vendor is bound to carry out all construction works/sale of the property in accordance with these.

Your Lawyer will conduct necessary land registry searches to ensure the vendor is the registered freehold owner of the property. That there are no mortgages or charges, injunctions or other encumbrances on the property. A check will be made to ensure building permission for  construction has been obtained should you be buying off plan or a new property. This contract will be sent to both the vendor and you the property purchaser for review.

With both parties happy with the contract, the contract will be signed;

3. The Tax office in North Cyprus, under new regulations, are requesting to see a copy of the Property Sale Contract prior to transfer of title and require all stamp duty paid up.

Stamp duty in North Cyprus is payable at 0.5% of contract price if paid within 21 days of the contract date. Should it not paid within this time the charge increases to 1.5%.

You have the option to pay upfront or to make payment on transfer of title (at the higher rate). It is strongly advised that  you pay this on signing of contracts in order to avoid complications later;

4. In North Cyprus all foreign purchasers are required to go through the 'North Cyprus permission to buy' process. Although a lot simpler than it sounds it may take around two-three years to complete the process.

The permission process does not prevent you from moving in your property or leasing your property for a rental term and it does not prevent you from selling the property on.

At the begining of 2008 a new law was passed in North Cyprus whereby signed and stamped sales contracts are now lodged at the District Lands Office.  This is to protect the purchaser from the title owner borrowing or selling your property to another party. The purchaser is 100% protected until title deeds are registered into the buyers names;

5. Your North Cyprus lawyer will fill out necessary Land Registry Valuation Forms once your purchase permission to buy has been granted, your lawyer will also work out and notify you of taxes payable then they will finally transfer the property into your name/s. North Cyprus property taxes are calculated based on the North Cyprus Land Registry Valuation which are currently at the following rates:

 

Land Registry Transfer Fee - 6%

Every purchaser in Noth Cyprus has a once in a lifetime option and is able to reduce this fee from 6% to 3%.  You will be asked whether you wish to use this option at the time of transfer.  If you do you will only pay 3%

VAT - 5%

VAT is only payable if the vendor is classed as a professional, for example: a developer, a construction company or private individual who has sold three properties or more.  It is worth noting that unless you are buying a property which  is already registered in a foreign nationals name, then and only then is it unlikely you will pay VAT.

Stamp Duty - 0.5% rising to 1.5% should it not be paid within 21 days from the date of your Property Sales Contract.

These taxes will be paid and title deeds will be registered in your name.  Should you have left your lawyer a power of attorney this can be dealt with and you will not be required to travel to Cyprus. The lawyer or Agent will collect and keep your title deeds until you are ready to collect them.

Note: It is necessary that all foreign nationals apply for a police clearance report and this must be done before you apply for permission to purchase. The procedure for a police clearance can take a few weeks so it is best to be prepared before you intend  arriving in North Cyprus.

The following link provides you with instructions and a form for you to download. www.met.police.uk/dataprotection 

When your purchase permit application is being processed, North Cyprus  Council of Ministers will check with the military and immigration authorities, provided that these are positive i.e. that the property you are buying is not overlooking a military installation and that you are not a convicted criminal and  on the run; your permission to purchase will be granted. In the unlikely event your application is refused, you can nominate another person to take title of the property on your behalf and they can hold it on trust for you;

Kyrenia Region

English speaking Lawyers

Funda Emin Kusadali
Advocate
Afrodit Apt G4
Turkmen Sokak, Girne, Kibris

Tel: (009) 0392 815 4521
Fax: (009) 0392 815 4632

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Akan Gurkan, LL.B
Advocate
Gurkan & Gurkan
37 Turkmen Sokak, Girne, Kibris

Tel: (009) 0392 815 2719
Fax: (009) 0392 815 5381

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Web: www.gurkanandgurkan.com

Nicosia Region

English Speaking Lawyers

Ozlem Onbasi LL.B (Hon)
Advocate
Bedrettin Demirel Cad, Dr.Semsi Kazim Is Merkezi Kat. 1-D3

Tel: (009) 0392 816 0266
Fax: (009) 0392 816 0267
Mobile : (009) 0542 851 9265
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