BUYING PROPERTY IN NORTH CYPRUS

PURCHASING PROCESS REQUIRED DOCUMENTS

Documents required for the buyer to carry out the necessary transactions regarding the real estate to be purchased.

Below you can see what foreign nationals who want to buy or rent a property in Northern Cyprus should prepare before making the transaction.

• COPY OF VALID PASSPORT
• CLEAN SHEET FROM THE POLICE OFFICE OF THE COUNTRY HE LIVES IN
• BANK ACCOUNT FROM WHICH YOU CAN TRANSFER INTERNATIONAL MONEY CONTACT
• PROVIDING THE INFORMATION NECESSARY FOR INSTALLATION (HOME ADDRESS, PHONE, EMAIL)
• COUNCIL OF MINISTERS APPROVAL REQUIRED FOR PROPERTY TO BE PURCHASED

Foreign nationals must obtain approval from the Council of Ministers when purchasing real estate in NORTH CYPRUS. To carry out these transactions, you can also get support from lawyers or different businesses that provide professional services.

For the approval of the Council of Ministers, the documents specified in Article 1 must be prepared.

The approval process varies between approximately 3 and 6 months.

SITUATIONS THAT THE BUYER SHOULD PAY ATTENTION TO

Below you can see the points that foreign nationals should pay attention to when buying or renting a property in Northern Cyprus. The due diligence of the real estate to be purchased is required. It is necessary to check with the Land Registry and Cadastre Office of the relevant city whether the title deed of the property is shared or joint, whether it is subject to a mortgage, lien or similar restriction, or whether there is a statement that will create any obstacle in the sale of the immovable property. If the real estate purchase will be made from a construction company, it is very important to research the company that will carry out the construction.

The buyer must make careful research as to whether the real estate to be purchased will be delivered completely by the construction company. In order to avoid any grievances, you can conduct research on the deliveries of the projects the construction company has previously completed and have more effective information about the current situation of the company. You can also research the due diligence of the company that will carry out the construction with the help of any lawyer and see its reliability.

The purchase of properties sold by an individual or a construction company must be completed in accordance with the contract prepared with the help of a professional lawyer. In this way, it will be ensured that both the buyer and the seller complete the transaction safely during the purchasing process.

If the immovable property to be purchased is still in the construction phase, it is recommended to find out whether the contractor company has received Construction Permits related to the project. It is not recommended to work with people or companies that are reliable, expert and not registered in their sector and/or registered with the relevant authorities.

It is recommended to prefer buildings built by contractors registered with KTİMB and the Construction Committee. If the real estate to be purchased is a 'completed land', it should be learned whether it is a shared or detached property and the transfer conditions. If the immovable property is an ongoing 'subdivision project', it must be ensured that the contractor company has obtained Construction Permits for the project.

BUYER'S APPROVAL OF THE SALES CONTRACT

When purchasing real estate in Northern Cyprus, the contract prepared for the purchased real estate must be approved by the LAND REGISTER AND CADASTRE OFFICE within 30 DAYS at the latest, based on the date the contract was signed.

PROPERTY PURCHASING LIMITATIONS

Foreign nationals who buy or rent real estate in Northern Cyprus are required to act in accordance with certain criteria within the framework of the "Immovable Property Acquisition and Long-Term Rental (Foreigners)" Law. In long-term rental; The lease period can be at least 10 (ten) years and at most 99 (ninety-nine) years. If there is construction on the immovable property to be acquired through long-term lease, the relevant conditions must be included in the long-term lease agreement with all the details. If the property is vacant land, its surface area cannot be more than 1 (one) decare (14,400 square feet or 1,338 square meters). If there is 1 (one) residence or 1 (one) apartment within the land to be rented, the surface area of the land cannot be more than 5 (five) decares (6,692 meters of land), and a second residence cannot be built on the land to be rented. In purchasing; A foreign national can purchase land up to 1 (one) decare (14,400 square feet or 1,338 square meters) provided that the land is vacant. If there is a residence on the land to be purchased, they can purchase up to 5 (five) decares of land, provided that there is 1 (one) residence. If the 1 (one) house they will purchase is within a Site, there is no area limitation for the land in question. A foreign national has the right to purchase only 1 (one) house or apartment in accordance with Law No. 52/2008. Couples with the same surname are treated as one (1) person. A foreign national has the sole right to purchase a house on vacant detached land, detached land with houses in it, or land on which a site-style settlement is located; he does not have the right to build or purchase another house/flat. A foreigner may transfer, sell or mortgage to another foreigner the property registered in his/her lease or name, to persons with first and second degree blood and kinship ties, with the knowledge of the Ministry and with the approval of the property as a result of investigations.

TAXES AND FEES

0.5% stamp duty (stamp stamp) on the sales contract. (For future deliveries, the sales contract signed between the parties must be registered in the Land Registry Office within 30 days. This process ensures the registration of the buyer's property rights). (Paid by buyer). Immovable property transfer fee is 6% for TRNC and Turkish citizens, 12% for foreign nationals, based on the value of the immovable property (based on the current value determined by the Land Registry Office). (Paid by buyer). In sales made with a sales contract, foreign nationals are obliged to pay 6% of the 12% fee in advance, which corresponds to half of the 12% fee, while the sales contract is registered at the Land Registry Office. (the remaining amount is paid during the title deed transfer). Of the 6% paid in advance, the entire transfer fee of 12% is collected at once in transactions where title deed is transferred directly, without registration of the sales contract. This application will last until December 31, 2023. Afterwards, it is aimed to reduce the transfer fee from 12% to 6% for foreign nationals. The decision is under the authority of the TRNC Council of Ministers. 5% VAT fee on the value of immovable property. (If the seller is a professional, the VAT fee is paid by the buyer. (If the seller is not a professional, he does not pay VAT). 4% Withholding Tax on the value of the immovable property. (2.8% if the seller is not a professional). (Paid by the seller). Implemented by the Decision of the Council of Ministers dated 14 February 2023 With the Decree Having the Force of Law and valid until January 31, 2024, an additional tax has been introduced to the withholding tax for a temporary period due to the economic contraction experienced worldwide and affecting our country. Accordingly, real persons who are TRNC citizens are exempt from this application, Turkish citizens, Additional 1% contribution to be calculated over the current withholding tax amount, For foreign nationals outside the TRNC and the Republic of Turkey, an additional 2% contribution to be calculated over the current withholding tax amount. For legal entities, if 51% or more of the shareholders are TRNC citizens, an additional 2% contribution will be calculated over the current withholding tax amount. 1% contribution will be paid, and if 51% or more of the shareholders are foreign nationals, an additional 2% contribution will be paid, calculated on the current withholding tax amount. COB TYPES Turkish Title Deed: Before 1974, Turkish Cypriots, British and other nationalities owned

Immovable Property Vouchers Equivalent: After 1974, Turkish Cypriots left their immovable properties in Southern Cyprus and migrated to the North. Later, the TRNC State issued title deeds to some immovable properties in the North that previously belonged to Greek Cypriots, in exchange for the properties left in the South. This type of real estate is popularly called Equivalent Koçanlı. Allocation: Real estate given and/or allocated by the state after 1974 to TRNC war veterans, their families, people invited to settle from the Republic of Turkey, people who came from the South to the North and do not have any property.

UNITS OF MEASUREMENT

In TRNC, decare, evlek and square foot (ft2) measurement units are frequently encountered in land purchases and sales. You can easily calculate using our square meter to acre mesh converter below. 1 Donum = 4 Evlek = 14.400 month² = 1.338 m² 1 Evlek = 3600 month² = 334.5 m² 1 m² = 10.76 month²