Taxation

As in many countries around the world, when purchasing a property in North Cyprus, certain legal taxes and fees must be paid in addition to the sale price. These costs are as follows:

• Stamp Duty (0.5%):

This tax is required for the official registration of the sales contract. It is paid by the buyer at the stage when the contract is signed and officially registered at the Tax Office.

• VAT (5%):

This tax applies to new development properties and recently built units. It is calculated based on the contract price and must be paid by the buyer to the Tax Office before the property is delivered.

• Transformer Contribution + Infrastructure Connection Fees:

Since the government does not cover electricity, water, telephone, and similar infrastructure installations, these costs are shared equally among property owners. This fee typically ranges between £1,500 and £2,500 and must be paid before the property handover.

• Title Deed Transfer Fee (3%):

This fee is applied once the buyer’s Purchase Permit has been obtained, all outstanding payments have been completed, and the property is ready for title deed transfer. The Land Registry evaluates the property and charges 3% of its assessed value during the transfer.

Second-Hand Property Purchases:

When purchasing a second-hand property with a ready title deed, some taxes are not applicable:

• VAT is not required.

• Transformer and infrastructure fees are not charged.

• If a contract is signed with the owner, only 0.5% Stamp Duty is paid.

• If transferring the title deed directly without a contract, only the 3% Title Deed Transfer Fee is paid.

Annual Property Tax:
 

• All homeowners in North Cyprus pay an annual property tax to the local municipality. The tax is calculated at 1 TL per square meter. For example, a property of 80 m² requires an annual payment of 80 TL.