Real estate transfer tax changes 2023: Everything you need to know!
North Cyprus land transfer tax changes 2023: Everything you need to know!
Taxes on real estate of Northern Cyprus
You have decided to buy a property in North Cyprus, but you are not sure what taxes and fees will be. Don’t worry, we’re here to help you navigate the jungle of taxes and fees. When you buy a property in North Cyprus, you have to deal with various taxes and fees.
Changes to the real estate transfer tax as of February 10, 2023
One of these taxes is the real estate transfer tax. This tax was recently changed and is 12% of the purchase price as of February 10, 2023. The tax is due in two installments: 6% upon registration of the property and another 6% upon completion if you wish to transfer the Title Deed into your name. Please speak with your attorney to find out if this tax does not apply in your case or what options are available to you. The new tax rules are aimed at generating revenue for the government and encouraging the growth of the real estate sector in Northern Cyprus.
Stamp duty
In addition to the land transfer tax, you must also pay stamp duty, which is 0.5% of the purchase price and is due when the contract is signed.
Value added tax
Also note that 5% VAT is added to the purchase price. The timing of payment of this tax varies by developer, so be sure to check on this.
Property tax
In addition to taxes and fees, you also need to consider the annual property tax, which is comparatively low in North Cyprus. The amount is only 1.25 Turkish Lira per 1 m².
We hope that this information will help you to prepare for the purchase of a property in North Cyprus and to establish a company if needed. Do not hesitate to contact us if you have further questions or need assistance.
