The process of buying a property or land in Northern Cyprus depends entirely on what type of title deed it has. As you may or may not be aware, there are several different types of title deeds, which are:

Turkish Title

These lands/properties were Turkish Cypriot owned prior to 1974.

Foreign Title

These lands/properties were Foreign owned (British, German, American etc) prior to 1974.

TRNC Title (Eþdeðer – Exchange Title)
These lands/properties were Greek owned prior to 1974.  Following the liberation of the Turkish Cypriot people in 1974 they were forced to migrate to the North of the island leaving everything they owned in the South.  The Government awarded these Turkish Cypriots properties/lands according to the value of the properties/lands they had had to leave in the South.  These were awarded on a points basis and based upon the amount of points awarded these Turkish Cypriots could take Greek Cyprýot properties/lands to the equivalent of that which they had left ýn the South.  Their properties/lands in the South were signed over to the TRNC government who are holding them until a settlement is agreed between themselves and the government of South Cyprus. The Turkish Cypriot owners of these former Greek Cypriot properties/lands were then issued with a Title Deed but were unable to sell such assets until this was issued.

TMD Title

These lands/properties were Greek Cypriot owned prior to 1974 and no Title Deeds have yet been issued. These lands/properties are usually offered for sale at lower prices.

Leasehold

These properties are more often than not derelict and may be leased by foreigners from the Government for up to 49 years. A nominal ground rent is paid but the properties must be renovated by the lessee at their own expense.

PLEASE NOTE  Foreigners are only allowed to purchase 1 property/land up to an area of 1 dönüm (0.33 acre) of land per person (married couples are counted as 1 person unless they have different surnames).

THE PURCHASE PROCESS

Prior to coming out to Northern Cyprus to choose your dream home, ensure you have at least £1,000 available, either cash or credit card as, should you find the house you are looking for you will need to pay a reservation deposit to ensure that it is taken off the market.  Although this deposit is generally non-refundable, it will be deducted from the total cost.

Have some idea of what you require, ie number of bedrooms, whether views are important, an apartment or a villa, is a swimming pool a necessity, etc, etc, and let us know of your preferences before you visit.  This will help us to arrange viewings to only appropriate properties. Please also remember that you need to budget approximately 10% on top of the purchase price to cover other expenditure such as Stamp Duty, Transfer of Title and VAT charges.

Once you have found your ideal property and the purchase price has been verbally agreed, we would recommend you to one of several lawyers who will guide you through the legal processes. They will tell you what their charges are for this service and generally these are between £1,000-1,200. At this stage it will be necessary to pay the reservation deposit.  The lawyer will check the Title Deed to see that there are no charges against the property/land you wish to purchase, such as mortgages or debts of any kind, injunctions etc. 

Once your lawyer is sure there are no outstanding issues with the Title Deed, a Contract of Sale will be drawn up. This will show details relating to the property, payment schedule, any extras that have been agreed, and details of what you and the vendor are liable to pay with regard to taxes, installation of water and electricity supplies, if applicable, and any other relevant information.  Payment schedules vary according to the property you are purchasing. Generally a 10-30% deposit will be paid at this time. If you are purchasing an off-plan or partially built property then payments are normally due at specific stages of construction.  If you are purchasing a resale property or newly completed property then the whole amount will be due on signing of contract. If your intention is to return to your home country before all formalities are dealt with then it is necessary for you to provide your lawyer with a Power of Attorney to enable him/her to act on your behalf in your absence.   

In addition to this your lawyer will make representation to the Council of Ministers for their permission to allow you to purchase your property.  This process can take anything up to 2 years, although the government is working hard to reduce this time.  It is necessary for you to acquire a Subject Access Form from your local Police Headquarters (or you can download this from the web) and submit this as instructed.  The original of this should be sent to your lawyer in order for him/her to make representation. Should you be refused permission, which is very unlikely, there are other options which your lawyer will explain to you.  However, this should not deter you from going ahead with your purchase as all foreigners have to undergo this, and once the Council of Ministers give their approval the Title Deed will be issued in your name.  

The various taxes that have to be paid are as follows:

Stamp Duty

Stamp Duty is currently 0.5% of the contract price of the property if paid within 1 month of the contract date. This then increases to 1%, and after 6 month 1.5%. This is payable by the purchaser and should be paid to the Tax Office. A copy of the receipt and a copy of your contract should be taken to the Land Registry Office in order to lodge the contract. At this time the Land Registry Office will carry out relevant searches on the land and the Title Deed.

VAT

At the present time VAT (currently at 5% of the contract price) is paid by the purchaser to the vendor, who takes this plus the Capital Gains Tax (currently at 6.25% of the contract price) which is payable by the vendor to the Tax Office when the purchaser’s permission to purchase has been approved. A receipt is given and a copy of this is taken to the Land Registry Office where the purchaser must pay the Transfer Fee in order to obtain the Title Deeds in his/her name(s). The Transfer Fee is currently 6% of the contract price.  As a first-time purchaser you have the option to pay just 3%, however, if you take this option any further purchases you make will be charged at 6%.

Of course, purchasing any property can be a stressful process, whether in your home country or abroad, and some of the above may make you feel as if there is a lot to take in, but we at Beydola Estates will endeavour to make the whole process as stress-free as possible, whatever type of property you choose.

This information is for use as a guideline only and no liability can be taken for changes in government policy or other with regard to the purchase of property in Northern Cyprus.