Purchasing a Property

Read our comprehensive guide about purchasing a property

1. Why purchase a property in Northern Cyprus?

• It is noteworthy that Northern Cyprus is one of the unique places in the world to live due to its climate
• With approximately 330 days of sunshine and a naturally beautiful environment, the Mediterranean Island offers a good quality of life and cultural wealth.
• Additionally, the sea temperature in Northern Cyprus rarely drops below 20 degrees C.

2. Who can purchase a property in TRNC?

All World citizens have the right to purchase a property in Northern Cyprus. However, during the legal procedures, a security investigation is undertaken by the appropriate government authority.

3. What is the legal procedure for property ownership in Northern Cyprus?

• It is recommended that you visit as many estate agents or builders as possible to find a property to buy.

• Check if the estate agent is registered and certified by the Interior Ministry, and if the builder is registered and has a certificate. More info can be found here.

• A purchase permit from The Council of Ministers must be obtained by all foreigners. Your solicitor must be authorized to apply for the Permission to Purchase Application and follow up on all proceedings until you receive the title deed in your name.

• A fully independent solicitor should be found to act on your behalf for the purchase. Your solicitor should be authorized to carry out all procedures, including sales agreement, Permission to Purchase Applications, and follow-up on papers until all procedures are completed.
• The new law mandates that Estate Agents conduct all necessary investigations about the immovable property.
• The conditions of the property and any encumbrances and/or restrictions must be informed to you by the estate agent.

• Before paying any fees, make sure to enter into a term of engagement contract with your lawyer.

4. What procedure must be followed when applying for Permission to Purchase?

1. You must complete the pre-application process personally or through your solicitor.
2. An information form must be filled out personally or through your solicitor, this form must be addressed to and lodged at the Ministry of Interior in Lefkosa (Nicosia).
3. Some documentation, such as a photocopy of title deeds, site plan, contract (if available), passport, and criminal record/police clearance obtained from your own country, must be provided with the information form.

1. One property per family, not exceeding 1 donum of land (1/3 acre), is allowed for foreign buyers.
2. When purchasing a property as a family unit (spouses and unmarried children), they are counted as one.

• The purchase price usually excludes purchase tax and KDV (VAT), which are additional.
• Purchase tax is presently 6% of the sales price with a one-time discount of 3%.
• The vendor is responsible for paying withholding tax.
• If the seller is not a professional seller, the tax is 3.5% + no VAT (KDV).
• If the vendor is a professional seller or a company, the tax is 6.25% + 5% VAT (KDV).

(A professional seller is one who sells more than three properties in one year. Any other terms agreed by both parties in a sales agreement remain valid, notwithstanding the legal tax amounts mentioned above.)

When viewing a property, ensure to obtain copies of important documents. These include:

• Title Deed.
• Tapu (Land Registry) registered District site plan (Stamped by the Land Registry Office).
• Architectural, structural, electrical, and mechanical specifications and plans, certified by the Chamber of Architects and Engineers (Vize).
• Land search document issued by the Land Registry.
• Building permit issued by the local authority.
• The original title deed should also be viewed.

8. What is the legal process to be followed by homebuyers when in the stage of signing the contract?
According to the new Estate Agent Law:

To ensure legal compliance, the following steps must be taken:

• Within 21 days after signing, sales agreements made by a solicitor must be lodged at the Land Registry Office through the estate agent or builder.
• Within 1 month after signing, the sales agreement must be stamped at 0.5% of the sales value.
• Finally, all signed and stamped sales agreements must be registered with the Land Registry Office.

9. What do we need to know about the deeds in Northern Cyprus and other related issues?

10. What are the legal liabilities of the construction companies?

As per the Law, Construction Companies must:

• Be registered with the Constructors Association and obtain a constructors certificate.
• Have a full building permit before starting construction.
• Provide infrastructure before constructing the properties.