Entering the real estate market in the Turkish Republic of North Cyprus (TRNC) isn’t necessarily
a complicated matter, but it does help to be familiar with the different terminologies used in the
business as well as the tax laws and government regulations of the land.
In this introductory guide to purchasing and selling property in the TRNC, we’ll go over the
basics so that you know what to expect. Let’s get started.
Property titles and deeds in the TRNC
Leasehold title: These titles are reserved for land that the TRNC government leases out
to third parties, usually foreigners, for periods of up to 49 years.
While all these different title deeds are different from each other, they are all considered wholly
legal within the country, as well as internationally.
Property tax laws in the TRNC
In the following section, find out what the common taxes associated with purchasing, selling,
and owning properties are within the TRNC.
1. Value-added tax: Simply referred to as VAT, this tax, which is comprised of five per cent
of the contract value of the property, is applied and collected by the government if the
seller involved in a property sale is found to be a professional vendor. This means that
the seller is selling the property as part of a commercial trade. If the seller is not a
professional vendor, no VAT is applied.
2. Capital gains tax: This is the tax withheld by the government before transferring a
property title deed from the seller to the buyer. The current tax rate is at four per cent of
the assessed property value.
3. Transfer fee: This fee is payable to the Land Registry Office and is charged upon
enacting the transfer of ownership from one party to another. The rate is standardized at
six per cent of the assessed property value and is typically paid by the purchaser.
However, first-time property buyers can claim a discount that brings down the rate to
three per cent.
4. Stamp duty: This is another fee that is typically paid by the purchaser to the government
upon registering the contract of sale. The current rate of this fee is 0.5 per cent of the
total contract value of the property.
Let’s conclude the introduction here. Hopefully, you now have a better technical understanding
of property trading in the TRNC.
If you’re looking to invest in property in North Cyprus, get in touch with us to see how we can