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Property Buying Process

Freehold property purchase
  • Select property from Unistar International Investments and agree price
  • Contract to be drawn up by a solicitor based in northern Cyprus, to include price, payment terms and specification.
  • Lawyer checking the title deed to ensure it is clean of mortgages, debts and claims
  • Purchaser pays solicitor's fee
  • Both vendor and purchase (or a lawyer if he has been given power of attorney) sign the contract
  • Purchaser pays 0,5% stamp duty
  • Purchaser provides deposit (the amount will vary from one property to another)
  • Solicitor applies to Council of Ministers on your behalf for purchase permit
  • Purchaser pays outstanding ballance for the property to a vendor
  • Purchase permit has been received
  • Final balance payable
  • Purchaser pays 3% transfer fee and 5% V.A.T.
  • Vendor pays 6,25% capital gain tax
  • Vendor transfers title into purchaser's name
  • Sale complete

All properties with Foreign, Turkish, Esdeer or TMD title deeds are freehold.

Foreign investor is restricted to the ownership of one donum of land and one property unless he either purchases through a local limited company structure or buys land or property with foreign title pre 1974.  To establish a local limited company structure an investor has to have a Turkish Cypriot partner who is the majority shareholder.  It is quite simple to establish the limited company and remove the effective voting powers of the majority shareholder and most lawyers in North Cyprus can assist an investor with this setup.

If the investor is buying land or completed real estate then the final purchase price will become due on the day the final contract is signed.  If the investor is buying off plan or a property under construction it’s usual to have a payment plan written into the contract and stage payments will then be due at fixed points during the build process.

Often those foreign buyers who purchase property in Northern Cyprus when on holiday or on a viewing trip to the island only sign one conditional contract for the purchase.  This contract is both the conditional preliminary contract and the unconditional final contract.  The way it works is that if any of the conditions of the contract fail to be met by a vendor within a set timescale the contract is terminated and monies paid are returned to the investor – however, if all conditions are met within the timeframe the contract stands as final.

All foreign buyers of freehold real estate in Northern Cyprus have to have the permission of the Council of Ministers to own the real estate. The whole permission process can take many months (around one year).  Those who buy off plan property in TRNC usually have their permission in place by the time their property is completed. The best method of payment is by wire transfer, as cheques can take up to 28 days to clear through the banking system.

Leasehold property purchase

There are a number of leasehold properties in Northern Cyprus and usually includes government's beaches, forests or reserves. The process is very similar to purchasing a freehold, however an application is made to the Ministry of Tourism and not the Counsil of Ministers. Properties offered leasehold from the government are usually in need of renovation and are available for up to 50 years.

In terms of the main additional fees and charges that an investor will likely incur when buying investment property in Northern Cyprus these include lawyer’s fees which should be agreed in advance and will range from GBP 750 to GBP 1,500, VAT which is 5% of the purchase price and transfer tax which is 3% of the rateable value of the property for the first property and 6% for any other properties – the rateable value is almost always less than the purchase price.  Stamp Duty is 0.5% of the contract price if it is paid within a month of signing the contract.

 


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