What is the Purchasing Process in Northern Cyprus?
Can Foreigners Buy Real Estate in TRNC?
Within the framework of the Law No. 52/2008 on the "Acquisition of Immovable Property and Long-Term Rental (Foreigners)" adopted at the meeting of the TRNC Parliament on November 10, 2008, provided that official transactions and legal applications are made; Foreign real or legal persons have the right to purchase or long-term lease of immovable property from our country, subject to the approval of the Council of Ministers.
Foreigners who will purchase or lease immovable property in the TRNC must apply to the Ministry of Interior and obtain the approval of the Council of Ministers in order to purchase immovable property and to be legally entitled to that property. The approval process varies according to the nature of the application and is usually completed in 6 to 12 months.
What should I pay attention to when purchasing real estate from the TRNC?
You can learn about all your legal responsibilities by examining the Law No. 52/2008 on the "Acquisition of Immovable Property and Long-Term Rental (Foreigners)" regarding the acquisition of real estate by foreigners in the TRNC.
- Issues such as whether there is a mortgage, lien or similar restriction on the immovable property to be purchased or whether there is any personal statement or situation that prevents the sale of the immovable property should be checked from the relevant Land Registry and Cadastre Office.
- It is not recommended to work with people or companies that are unreliable, non-expert, and unregistered in the sector and/or not registered with the relevant authorities. It is recommended that the buildings built by contractors registered with the KTİMB and Construction Committee should be preferred. NorthernLAND provides support to its customers in this regard.
- In order to protect the legal rights regarding the issues included in the contract to be made between the owner and the buyer, it is recommended that the contract be certified at a registered Notary public office and a legal opinion must be obtained from a lawyer's office before the contract is signed.
How Many Types of Property Deeds Are There in TRNC?
There are 3 types of property deeds in total in the TRNC:
- Turkish Land Registry: The title deeds of Turkish and British places prior to 1974 are referred to as Turkish Land Registry. It is considered as the safest type of title deed.
- Deed of Equivalent Property: The TRNC state has issued title deeds against some immovables in the North that were previously owned by Greek Cypriots and the properties left in the South, within the scope of the Law on Settlement, Landing and Equivalent Property (ITEM Law). This type of immovable is called Equivalent Property Deed among the people.
- Allocation Property Deed: It is the type of title given for the places allocated by the TRNC. Persons with this title have the right to use the area. Banks cannot provide housing loans for this type of deeds.
Which Taxes Are Paid When Buying a House?
The following taxes are paid when buying a house in the TRNC:
- Stamp fee: 0.5% of the price on the contract. It must be paid to the tax office within 21 days after signing the sales contract.
- Real estate transfer fee: 6%. It is paid as 3% when the one-time exemption right is used.
- VAT rate: 5%.
- Withholding tax: 0% for the first sale and 3% for the 2nd and 3rd sales within a year. If you are a professional real estate agent, the withholding tax you have to pay is 6.5%.
How to Get a Residence Permit?
You can get a residence permit after the property deed transfer. This permit is valid for 1 year and you will have to renew it yearly. After completing your 3rd year, you can apply for an indefinite residence permit in Cyprus.
If you are over the age of 65, you can get an indefinite residence permit right after the property deed transfer. If you want to spend your life here after retirement, there are no obstacles in front of you.
If you want to change from another citizenship to TRNC citizenship, you must live in Cyprus for 11 years with a residence and work permit.
How does the deed transfer take place?
You can contact us for more information. However, the transfer process in Northern Cyprus consists of 5 steps:
- Preliminary exchange of contracts
- Actual exchange of contracts
- Stamping and registration of contracts
- Application for a purchase permit
- Deed transfer