Buyer’s Guide

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Taxes

A stamp duty of 0.5% (as at January 2011) of the contract price must be paid within 21 days from the date of signature on the contract.

Value Added Tax (VAT) is currently 5% and is paid to the Tax Office by the time the house is completed.

The Title Transfer Fee is paid to the North Cyprus District Land Registry Office when the transfer of the title is made. The rate, as at January 2011, is 6% of the contract. However, each person has a “one-time-only” option to purchase with the Title Transfer Fee at 3% instead of 6%.

After choosing the property you would like to purchase and agree on payment terms, a sales agreement (contract) is signed. This sales agreement will include details of the total price, timescale, conditions of payment and any requested extras of the buyer.

IMPORTANT NOTE

Foreign buyers are only permitted to purchase four property or land per person. Married people who have the same surname are classified as “one” person. Those with different surnames are classified separately. Foreign buyers also have to get permission from the Government to get their deeds and will also need a purchase permit. These purchase permits can take anything from 12 months to 24 months to be issued and local solicitors must be used to facilitate them. Solicitor fees range from £1,000 to £1,500. Tanyel Construction can point you in the direction of a solicitor if requested.