Work with Credible Companies
There are predictably 900 legal and illegal people or companies that work in estates sector. Visiting the office of the agency beforehand the purchase and verify their membership on estates agencies union will pave the way for a purchase from a credible company. The clients of the companies that are members of the estates agencies union have insurance up to 100,000 Euros loss during the purchase process.
Foreigners are entitled to purchase one house, 1 donum of plot or 5 donums of terrain that are deemed as lands. The Council of Ministers approval for this is ensured by credible attorneys. Foreigners who purchase houses in TRNC, alongside receive residence permits. Annually renewed, the residence permits allow one to stay in TRNC permanently, open bank accounts and claim rights at the civil services.
Pay Attention to Below Beforehand the Purchase.
- A contract is a must during a house purchase. We strongly recommend you to make contract before an attorney to protect your rights. For contracts, Turkish identity cards or passports should be submitted. The contracts can be made for 2 or 3 people.
- Accreditation by TRNC stamps with 0.5 per cent in the Tax Office will enable the validity of the contract in front of the civil organisations.
- Following the confirmation whether the property you would like to purchase is mortgaged as per to the Search analyses, the contract that is registered in the Registry office will prohibit the vendor to sell it to someone else as per to “Annotate”. This procedure is withdrawn by you or your attorney.
- The payments should be made through an attorney for registration purposes, we strongly recommend this option.
- For quick and safe submission of the purchase permits (approximately 1.5 or 2 months) attorneys are recommended to be the channel.
- Following the submission of all permits and interview date at the Registry Office, parties gather at the office and complete the process. Remaining payments are completed at this stage.
Larger scaled people or companies who would like to make investments in North Cyprus can complete their investments through attorneys. Non-citizens of TRNC, who would like to launch a business in North Cyprus cannot obtain more than 49 per cent shares of the company. Therefore, a TRNC citizen person or their attorney should obtain 51 per cent share of the company. Hence, this should not frighten you. Only the Share rate should be like this according to the Law. The share to the TRNC citizen might be deemed as a duty while through the Escrow Agreement, foreign rights are protected. Also, a salary for TRNC citizen is of custom. Following the company establishment, Investor company is free to purchase lands and make tourism or construction investments.
1- VAT: Value Added Tax is paid to the companies by 5 per cent of the contract value at the process of purchase during Registration or house submissionIf the vendor is not professional, you are exempted from VAT for second-hand house or terrain purchases.
2- Contract Stamp Fee:This is the procedure of contract registrations to TRNC Tax Office with stamps. It is compensated in 0.5 per cent of the contract expense by the client.
3- Transformer Contribution Fee:In case you purchase a house from the projects, the companies register the power supply, water, phone lines and other substructures for a fee that will be shared in equal amounts on all purchasers beforehand the submission of the keys. Varying according to the project, the transformer contribution fee is generally between £ 1,200 – £ 1,800.
4- Deed Transfer Fee : This fee, which is paid once upon the evaluation of the contract expenses or deed inspections, is implemented on locals and foreigners with 3 per cent discount. The deed department evaluations might be below the contract expenses. Additionally, deed department charges 8.00 TL fixed rate for foreign currencies. The fee will be evaluated as the 3 per cent of the evaluation expenses and is paid in TL.
Withholding Fee: This fee is paid by the vendor. If the vendor is a non-professional and individual freelancer who do not intend financial profit, s/he may be exempted from this fee for one time. However, for any following sales, the vendor is obliged to pay 2.8 per cent withholding fee that is evaluated following the consideration and approval of the sale price in the deed department. Professional vendors are obliged to pay 4 per cent withholding fee for each sale. This fee is paid to the tax department.