Frequently Asked Questions

Guidances

Regardless of whether you are looking to acquire a private or a commercial immovable
property in Northern Cyprus, it is our firm’s priority to provide you with the best possible service
and to see you through every step of the process. We ensure that you are well cared by us,
whatever may come up. Additionally, when buying immovable property in Northern Cyprus we
want to ensure that our Client’s purchase proceeds without any unexpected surprises by knowing a
few basic facts:
Under the new laws of the Turkish Republic of Northern Cyprus, non- TRNC citizens are entitled
to take title to only one property. If the property purchased is a plot of land, this plot of land must
not exceed the size of 1 donum, however, if the Property is a dwelling, the plot of land it is based
on must not exceed the size of 5 donums, providing that the property only consists of one
dwelling. Under the government previous policy, spouses were considered as a single household
and were only entitled to purchase one property between them. However, officials at the TRNC
Ministry of Internal Affairs have confirmed that this policy has been changed and that spouses can
now individually purchase one property each.
The conveyancing procedure starts with an initial meeting with the lawyer to give information
about the Property you have chosen; details of the Property, price of the property, payment
schedule, any informal or verbal agreements you have reached with the Vendor such as extra items
provided within the sale. At this stage, we also arrange for you to sign a special Power of Attorney;
which only authorises us with the power of purchasing immovable property on your behalf in
north Cyprus, to ensure that we can finalise the purchase and act on your behalf, while you have
returned back to your home country.

Then a Contract of Sale will be prepared that will be designed to ensure that your interests are
protected as far as possible. Once all parties (the Seller and the Buyer) have approved the draft
contract it will be signed and exchanged. Every page including the appendixes should be initialed
and the Contract of Sale should be signed in the presence of at least 2 witnesses. You should retain
one copy of the original Contract of Sale and keep it safe. Please pay attention to inspect the
specifications attached to the Contract, as any verbal agreement prior to or subsequent to the
Contract of Sale shall be deemed to be not included in the agreement.
Under law 38/07, contracts must be deposited with the Land Registry Office within 21 days of the
contract date and it is now compulsory for the stamp duty to be paid at the rate of %0.5 before
registration can take place. Once the contract of sale is registered, the property is protected from
being sold to any other third party and the Contract will take priority over any subsequent
encumbrance.
The next stage will then be arranging your application to the TRNC Council of Ministers, for the
necessary permission to be granted to you in order for the title deed of the Property to be
transferred and registered in your name, since any purchase of any immovable property by non –
TRNC citizens must be sanctioned by the Council of Ministers under the Law 52/2008. A copy of
your Contract, the Title deed, site plan, purchase permit application form filled by you and an
original police clearance certificate obtained from the local police station at your residency should
be provided to the Ministry of Internal Affairs along with your application. The permission granted
by the Ministry of Internal Affairs is not required for entering into a contract but rather for transfer
of title deed. Whilst processing your purchase permit application, the Council of Ministers will
take searches from the land registry, the military and the immigration authorities. Provided that
these are positive the permission will be granted. The permissions are granted in the majority of
the applications with the main reasons for refusal in rare cases being due to the location and
proximity to a strategic military installation or criminal history of the purchaser at the Interpol
level. The permission process can take a long time to complete; the current estimation is around 4-
6 months. However, this will not prevent you from moving into the property or leasing the
property or possibly even selling the Property – as standard practice we usually make sure that the
contract is assignable.
Once your purchase permission has been granted, all the necessary valuation forms will be filled
out and provided to the Land Registry Office in order for your property to be evaluated.
Depending on the valuation amount provided by the Land Registry Office, all taxes and costs
payable for the transfer of title deed shall then be paid according to this amount and the title deed
will be transferred and registered in your name(for the taxes due on transfer of title please refer to
our guidance for Taxes for Property Transactions). If you designated us as your Legal Attorney for
purchasing Property in North Cyprus, you do not need to be present at the Land Registry Office
and we will attend and complete the transfer of title deed on your behalf.
Once the construction of your Property is finalized and you are able to take delivery of your house,
if it is not finished within the scope of your contract, you may refuse to take delivery. Should you
wish to take delivery of the house subject to completion of missing/defective work thereafter, you
must obtain a signed undertaking from the Vendor to make sure that taking delivery does not
amount to forbearance. You can move into the Property under your Contract of Sale and no
additional documentation is necessary. Please make sure that you keep all your receipts/bank
receipts for the payments made under the Contract.

There are 3 main taxes involved in any property sale transaction (different taxes apply to gifts of
property). These taxes are:
 – The transfer fee which is payable to Land Registry Office
 – The capital gains tax which is payable to the Tax Office
 – The VAT which is payable to the Tax Office
 
The Capital Gains is usually payable by the vendor and the transfer fee is usually payable by the
purchaser (although this can be varied by the parties in the Contract of Sale). VAT, however, is
subject to the terms of the Contract of  Sale agreed between the parties (i.e. whether or not the sale
price includes or excludes VAT).
The amount of tax levied depends on whether or not the vendor is a ‘professional vendor’ (i.e.
whether the transaction is of a commercial nature or for profit). The table below indicates the
percentages levied accordingly. The percentages for all three types of tax are percentages
of assessed value of the property which is carried out just before transfer of title takes place. The
valuation assesses the property in the state it is in at the date of the valuation i.e. if there is a new
construction on the property, this will be included in the assessment of the value of the property.

 

TRANSFER FEE?

The transfer fee payable is 6% upon Land Registry’s valuation of the property purchased with the
option to pay 3%. Once this option right is used, the fee payable is 6% for future transfers.

VAT FOR PROPERTY TRANSACTIONS

VAT is levied only on sales where the vendor is a ‘professional vendor’. Who is a ‘professional
vendor’?
A professional vendor is a limited company or a person who has sold more than three properties
within one year or a person who is deemed to be in the business of construction or real estate and
is deemed to be a professional vendor.
What is the rate of VAT?
The rate of VAT is 5%.
Will I have to pay the new increased rate even though the rate was lower when I signed my
Contract?
Unfortunately, the VAT is payable at the rate in force when the transfer of title takes place. Even if
you signed your contract and/or took possession of your property before the VAT rate was

increased, if the title to the property has not yet been transferred into your name, you will pay VAT
at the new rate when this transfer takes place.
Will I have to pay VAT on my property purchase?
In determining whether you will be liable to pay VAT on your property purchase, you need to
establish the following:
 – whether the vendor is a professional vendor as defined above
 – whether your contract requires you to pay the VAT. Where the contract does not expressly
mention VAT, it is our opinion that the purchase price shall be deemed to be inclusive of VAT.

 

CAPITAL GAINS TAX

Will I have to pay Capital Gains Tax on my purchase?
Generally, no. Capital Gains Tax is usually paid by the Vendor, unless otherwise stipulated in your
contract.
Will I have to pay Capital Gains Tax on the sale of my property? If so, how much will this be?
This depends on whether you are a private individual or a professional vendor
(as defined above):
Every private individual has a once in a lifetime tax free sale option (for a
house and land not exceeding approximately 1 donum). If you use this option,
you will not be liable to Capital Gains Tax on that sale. On all subsequent
sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell
more than 3 properties in one year, making you a professional vendor.
For professional vendors, there are no tax exemption rights. Capital Gains
Tax is payable on every sale at a rate of 6.25%.
What if I sell my property before taking title? Will I still have to pay Capital Gains Tax?
Capital Gains Tax is not payable if you sell the property before taking title by doing an assignment
of contract. However, you will have to pay stamp duty on the contract, which is charged at 0.005%
of the contract value, if you pay within 1 month of signing the Contract of Sale. This amount is
multiplied by 2 if you pay within 2 to 6 months of signing the Contract and is multiplied by 3 if
you pay after this period.
Property Tax
While transferring title deed must make sure that you do not owe any Property Tax.
Property Tax is payed annually to the municipality and it is calculated by time 1,5 TL for
each m2. Purchasers are liable to pay Property Tax starting from the day they receive the
possession of the property.

 

Application of permission to purchase for non-TRNC citizens requires an original certificate of
criminal history obtained from your home country to be submitted with your application (Please

refer to our Guidance on Purchasing Property in TRNC for a detailed information on immovable
property purchase in TRNC). You must visit your local police station to obtain this in your country
of origin. Unless you obtain it from the local police station of your home country, you should
make enquiry at the consulate in your country of origin for information on how to obtain it. If you
reside in a country, which you do not originate, you must make your application to the appropriate
authority in your country of origin.
Once you obtain the certificate of criminal history, it needs to be provided with TRNC Ministry of
Interior within 1 year from the date of it, since the Ministry of Interior requires a certificate of
criminal history up to date. The Ministry of Interior only accepts the certificate of criminal history
in a hard copy with original stamp of the relevant authority (electronic documents is not accepted).
If this document is provided in a language other than Turkish or English, it is important the
certificate is translated into either English or Turkish. If you are unable to arrange the translation,
we shall arrange this for you.
You will then need to send the certificate of criminal history to us by courier. We advise you to use
DHL courier service since they have local offices here, in TRNC. Please do let us know once you
send it, in order for us to trace it at this end.
Our postal address:
Post code 99300
Post Box 291
Eylem Şakir & Associates Law Firm
Özyalcın Apt.180, Floor 4, Office 7,
Kyrenia via Mersin 10 Turkey
Please also do reference to Ercan Airport (ERC) as the final airport of dispatch.
DO NOT REFERENCE OR MENTION ON THE ENVELOPE CYPRUS OR NORTHERN
CYPRUS!
We will confirm, once we receive your mail with your criminal clearance certificate.
Subsequently, we will prepare the relevant application and all the required documents in regards to
the property purchased and submit them for consideration to the Ministry of Interior on your
behalf.
We will track this application and inform you once the permission in your name has been granted
by the Council of Ministers. Once you obtain this permission, we may then arrange for the title
deed of the immovable property purchased to be transferred and registered into your name.
PLEASE NOTE THAT FAILURE TO PROVIDE US WITH YOUR CERTIFICATE OF
CRIMINAL HISTORY WILL RESULT IN YOUR PURCHASE PERMIT APPLICATION NOT
BEING SUBMITTED, WHICH MEANS THAT YOU WILL NOT BE ABLE TO OBTAIN
TITLE DEED OF THE PROPERTY YOU PURCHASED.

As soon as you decide to acquire a private or a commercial immovable property the next
question you might have is how to get the resident permit in order to enjoy your property in any
time of the year. Here our guidance will come handy.
What we will cover in this guidance:
1. Visa on arrival

2. Visa types
3. Resident permit/ Application process
4. Short term residence permit
5. Duration of the residence permit for foreigners who possess immovable property
6. Family residence permit
1. Visa on arrival.
Regularly you are granted a visa up to 90 days (depending on the purpose of your visit) upon
your arrival, it is important to have proof that you will leave the country within the specified
period and fulfil other conditions in the Regulation ( see Visa types granted by the TRNC A).
Exception to this regulation: citizens of the republic of Armenia, the Federal Republic of Nigeria
and the Arab Republic of Syria are required to obtain a visa from the TRNC Representative
Offices abroad, by declaring the purpose of their visit.
No visa is required from those who have legal residence status or have a residence permit
exemption.
The length of stay granted cannot exceed 90 days within a period of 180 days.
Important Note: Check the Expiry date of your passport!
The regulations on Residence Permits and Visas, which entered into force on 23 October 2019,
states that the citizens of the countries that have a representative office in the TRNC and the
citizens of the EU countries must have a passport valid for at least 2 months and the citizens of the
other countries mist have a passport valid for at least 6 months to be able to apply a visa upon
arrival.
2. Visa types granted by the TRNC
A) Tourist visa- for people who come to North Cyprus for a touristic visit and will stay in a
hotel or another accommodation facility and those who rented a dwelling for this
purpose and declare this, can be issued a visa for a maximum 30 days. However, if they
can submit documents showing that a prior payment has been made for accommodation,
a visa up to 90 days may be granted.
A visa up to 60 days can be granted to those who arrives in the country for the purpose
of family/ relative visit and stay in relative’s house.
A visa up to 90 days may be issued to those who come for official visits, business
meetings, conferences, seminars, meetings, festivals, fairs, exhibitions, sporting events,
cultural and artistic events, health tourism and similar purposes.
B) Work Permit Visa- granted for a period of 30 days to foreigners who have come to the
country with preliminary permit in accordance with the Law on Work Permits of
Foreigners. The citizens of the countries who does not have an embassy, consulate or
another representative office in the TRNC are required to have a passport valid for at
least 2 years to be able to apply for a visa.
C) Business Establishment Visa- foreigners who come to the country for the purpose of
starting a business can be issued a visa for a period of 30 days provided that they have
the fund to start a business.

D) Residence Permit Visa
The following types of visas may be issued to foreigners who will enter the country in
order to apply for one of the residence permits:
 Visa for Family Residence Permit- foreigners who will apply for a family
residence permit can be given a visa for this purpose up to 90 days upon their
arrival.
 Visa due to Ownership of Immovable Property- a visa can be issued up to 90
days for those who have a title deed document indicating that they own an
immovable property.
 Visa for Student Residence Permit Application- foreigners who come to the
country to obtain a student residence permit may be granted a 60-day visa upon
submission of a student registration or pre-registration certificate.
 Visa for Judicial and Administrative purposes- those who come to the country
upon the request or decisions of judicial or administrative authorities may be granted
a valid visa for the term of their duty.
 Visa for Scientific Research- those who come to the country for scientific research
purposes may be granted a valid visa for the duration of the research.
 Visa for Graduates from Universities in the Country- students who have studied
and graduated from any of the two-year higher education programs or have studied
at least 3 years in any of the four-year higher education programs in the TRNC can
be granted a visa valid for 30 days.

3. Resident permit/ Application process
If you want to stay in North Cyprus for more than 90 days within a period of 180 days, you will
have to apply for resident permit, the steps you will be going through:
1) Submit applications for a residence permit to the Immigration Authority of the District
Police Directorate responsible for the area where you reside within 30 days after the
commencement of the period granted with the visa given while entering to the TRNC.
Applications for renewal of a residence permit shall be made no earlier than 60 days and not
later than 20 days before the expiry of the current residence permit.
2) The applications are first evaluated by the Immigration Authority of the District Police
Directorate and then submitted to the Immigration Department within 10 days, with a
reasoned opinion whether it is appropriate to grant a residence permit or not.
3) After the application is received by the Department, the applicant submits a clean medical
report to the Department and if no further examination is required, a residence permit is
issued at that time.
If the clean medical report is not delivered to the Department by the applicant within 30 days
starting from the date of application, a short message is sent to the applicant stating that his/ her
application has been rejected and that he/she has to leave the country within 5 days will be

considered as having stayed in the country without permission from the competent authorities and
will be fined in accordance with the Law.
4) The information and documents required for each type of residence permit are determined
by the Department and published on the official website http://icisleri.gov.ct.tr/.
In cases where possible, applications will be made through the official website of the
Department.

4. Short-term Resident Permit
– is issued, each time, for a period of maximum 1 year. The duration of the short-term residence
permit is decided based on the person’s request, reason and other issues related to residence
permit. You are eligible to apply for a residence permit if you own immovable property or
according to your income*.
*monthly income shall be equal to the total of 5 minimum wages or has the annual equivalent of
that amount in a bank account.
Who also can obtain a short- term residence permit:
 The foreigners who came to the TRNC for scientific research or archaeological
excavation;
 The foreigners who came for to the TRNC for vocational training or an internship;
 The foreigners who came to the TRNC for treatment of a medical condition that does not
pose a threat to public health;
 The foreigners who complete their higher education in a 2-year program or studied and
graduated at least in three years from a higher education program that lasts four years or
longer can be issued a one-time residence permit for maximum 6 months if the apply
within 60 days of their graduation;

 The yacht owners or leaseholders, who arrive within the context of yacht tourism, as well
as the crew and the passengers can be issued short-term resident permit up to 6 months
within a 12 months period provided that they have submit the relevant documents
regarding the duration of their stay in the TRNC harbour where their yacht is anchored;
 The foreigners who arrive for shooting a movie/ documentary can be issued short-term
residence permit each time they apply for a period of maximum one year if the visa that
they were granted in the first place proved to be not sufficient for shooting to be
completed.
If you want to apply for the resident permit based on the ownership of immovable property
you may be granted 1-year renewable resident permit for the first 3 years and thereafter 2-years
renewable resident permit in the condition that you have obtained the title deeds registered on your
name.
Criteria for residence permit for foreigners who possess immovable property in the TRNC:
He/ she must possess a house suitable for residence that is currently being used for this purpose.

If the Title Deed of a dwelling is divided into more than one share and one of the shareholders has
been issued a short-term residence permit in accordance with this paragraph, no short-term
residence permit shall be granted to another shareholder for the same dwelling.
In the event that the immovable property has been purchased through concluding a contract, it is
required that the payment for at least one-third of the sale price has been made and the applicant
must have applied for a permission to purchase from the Council of Ministers to acquire the
immovable property.
If the immovable property has a title deed registered to the name of the applicant, the applicant is
required to have an income equal to at least 3 monthly minimum wages; if the instalment are still
being paid for immovable property that has been acquired through a contract, the applicant must
have an income equal to at least three monthly minimum wages in addition to the monthly
installment amount stated in the contract.

5. Family residence permit
Do you have kids or other family members and relatives you would like to spend time in North
Cyprus? How can they get the resident permit if the immovable property is registered on you? In
this case they can obtain family resident permit.
The person who is ready to cover the financial expenses of a foreigner who wish to come to
North Cyprus for the purpose of family unity and whose name is registered in his/ her
application for residence permit are considered as his/her sponsor. The persons who could be
considered as a sponsor are: the TRNC citizens, residency permit holders, business permit
holders, student residence permit holders and the foreigners who have been legally working in
the TRNC at least for a year.
People who can receive family residence permit:
 The sponsor’s spouse who is not a TRNC citizen;
 His/her or spouse’s handicapped foreign children who is over eighteen;
 The sponsor’s or his/her spouse’s parents, if the sponsor and his/her spouse is working
and have children under 12 y.o.;
 Student resident permit holders’ parents and spouses;
 The children of foreigners residing in the TRNC who are not a student, not working,
single and under 23 y.o.
 The parents of the sponsor who is a citizen of the TRNC

Guidance on Making a Will in TRNC
Planning ahead in life always gives you benefits, as an old saying states that “If you are failing to
plan, you plan to fail”. The inheritance law and regulations differentiate in each country. Many
people who live permanently or temporarily in Northern Cyprus own estates, however they have a
lack of information on inheritance procedures. In Northern Cyprus inheritance rules and
regulations are mainly based on “Wills and Succession Law 1959”. It is not very difficult to make
a Will in Northern Cyprus, as long as one follows the correct procedure. Many people believe that
a simple handwritten Will is valid and sufficient, however it is not the case. If the required
procedure is not followed the testator’s Will will be held invalid. This is an unwanted result as one
may have wanted to leave his or her legal estate differently to a preferred benefıciary.

Why do I need to make a Will in Northern Cyprus?

Many people who live in TRNC either temporarily or permanently own a property, a car or a bank
account, however there is a common misunderstanding that they believe after they pass away their
spouse will inherit everything they own. However, according to Northern Cyprus’s “Wills and
Succession Law 1959” where a person dies leaving a spouse and children, the spouse will receive
only 1/6 of the property and the rest will pass on children or grandchildren. In case there are no
children or grandchildren the spouse will receive ½ of the estate and the rest will pass to
deceased’s siblings or parents or cousins up to 6th degree of kindered. If there are no living
children, siblings, parents or nieces and nephews the spouse will inherit ¾ of the estate and the rest
will pass to any relatives up to 6th degree kindered. Under TRNC law in the state of being intestate
spouses receive less than they would receive in a divorce case. This is a very difficult position for
a spouse whom may have shared many years of his or her life with their partner. Also unmarried
couples are not entitled to claim any legal right from their partner’s estate. This rule applies to
children born to unmarried parents who have no entitlement in the estate of their father. In addition
Civil Partnership is not recognised in Northern Cyprus and the spouse will not be able claim legal
entitlement under Northern Cyprus laws.
Do I need to make a Will in Northern Cyprus even if I have made a Will in my home country?
Most people believe that once they have made a Will in their home country it will be applicable in
Northern Cyprus. The Will made might be valid in the country where the Will has been made,
however it might not meet the jurisdictional requirements in Northern Cyprus. Once you have
made a Will in another country, lawyers based in that country will not have sufficient knowledge
of TRNC law and will not be able to provide you with accurate information. In some cases, in
countries such as United Kingdom, people may pass all their assets by Will to one person who is
not a relative, whereas that is not the case in TRNC. Any asset that you own in Northern Cyprus
may be left to a kinder up to sixth degree.
In some cases the Will made abroad might be valid, however the probation process can be more
complicated. The Probate Registrar may require additional conditions in order to prove the Will
such as requiring a witness who attested the will to sign an affidavit. The deceased’s family may
have difficulties reaching the witnesses if they are not professional solicitors, or the witness may
have passed away before the testator. It is more cost efficient and guaranteed to make a Will in
Northern Cyprus for your assets and property.

What do I need to make a Will in Northern Cyprus?
Once the Will is prepared according to the regulations in Northern Cyprus, it needs to be registered
at the court by a registrar. At the registration process the testator has to be present with two
witnesses. They have to sign each page in order to confirm that they have read the Will. There is
also a stamp fee, which is due to be paid at the registration; the amount depends on the length of
the Will. Lastly the registrar stamps and confirms the Will and secures it until the testator is
deceased.

Divorce and matrimonial proceedings in TRNC are regulated by Family, Marriage and Divorce
Act No. 1/1998. In TRNC the Family Law principles are based on protection of family structure
and children.

The most frequent issues in the Law of Family we face are divorce cases. Our Law Firm often
represents clients as a lawyer in divorce cases and works hard to reach the best result under the
Law of Family and related regulations.
We can distinguish two main types of divorce procedure: agreed divorce and non-agreed divorce.
First of all, we need to mention that in order to initiate agreed divorce both parties must have been
married for the period of at least one year prior to the date when the case was filed. Should the
parties agree on maintenance or other issues regarding their divorce the procedure concerning the
agreed divorce can be followed and initiated. This procedure is less time and money consuming.
Should the parties not agree on any issue related to the divorce, the procedure concerning non-
agreed divorce should be followed. The issues related to the divorce can be: division of joint
assets, custody of the children and/or maintenance, e.g.
 ESA Law Firm regardless the parties opt to proceed with agreed divorce and non-agreed divorce
by taking utmost care deals professionally and separately with each delicate subject like the future
of children, division of joint assets, payment of maintenance and/or compensation by one party to
another. However, our law firm also provides solutions by analyzing the legal situation in the best
possible way for the fields like marriage, legal situation of children born out of marriage,
guardianship, obtaining protection order during divorce cases, custody / temporary custody,
maintenance order.

Condition and documents required from a foreign shareholder to establish a company:
Minimum number of shareholders – two.
Minimum share capital of a limited company is 100,000 USD. Foreign shareholders’ share
participation must be lodged with a TRNC bank (during the incorporation process which is
estimated a week to ten days) and verified to the authorities with a letter from a bank confirming
such. After completion of incorporation process this funds can be used at the shareholders’
discretion.
Please note that there are certain restrictions for 100% foreign owned and foreign controlled
companies in acquiring property and land plots. They need a Council of Ministers approval for any
property and land plot acquisition even for 1 donum. Under the new laws of the TRNC non TRNC
citizens are entitled to take title to only one property up to maximum 5 donums per houshold
providing that the property only consists of one dwelling.
Foreign nationals and/or investors who want to speed up this process or alternatively who want to
buy more than 1 donum and/or bypass this requirement have to set up a limited company in which
51% of shares must belong to TRNC citizen. Furthermore TRNC citizens must be majority on the
Board of Directors of the company (1 TRNC or 2 TRNC + 1 foreign). This issue is particularly
important on the date of the land acquisition (It is advisable that the Board of Directors is
established with the TRNC citizens in majority). After the acquisition the TRNC directors can
resign. Our firm provides nominee director and secretary services.
In order to protect and alleviate the anxiety of the foreign investor, a Trust Agreement certifying
that the shares are held in trust by the TRNC individual on behalf of the foreign investor together
and a signed blank Share Transfer Certificate confirming that he undersigns to sell the shares to
anonymous person or to the foreign investor himself shall be issued to the foreign investor.

However, the foreign investor can not realize and/or register such transfer with the Company
Registry as this would mean holding over 49% of the shares, but can transfer to another TRNC
individual.
Once a client provides all the required information a company can be registered within a week to
ten days. In order to speed up this process we recommend to send us in advance a list of desired
company names with 5-6 alternative options arranging them in order of preference, so that we can
check the availability of the names submitted.
Tax application of real estate companies
Property companies are taxed in a totally different manner than trading companies. These
companies are liable to taxation only when they dispose/sell any part of their immovable property.
Unlike trading companies, property companies are liable to taxation even if they make a loss on
disposal and/or even if the company has a trading loss. Tax on rental income is 10% on the gross
rental income payable on the 15th day of the following months. This forms the final tax liability.
Distribution of dividends after this tax of 10% is no liable to any further taxation. Real Estate tax is
levied by the municipalities. The amount of tax is generally immaterial (1 TL per sq.meter + 25%
(1,25 TL) if there is a pool.
Legal services provided by Eylem Sakir & Associates Law Firm
– Establishment & Registration of the company
– Trustee, nominee shareholders and directors, secretary services
– Drafting a trust deed and issuance of a blank share transfer certificate for investor protection (as
mentioned above)
– Advise on commercial transactions, structuring commercial agreements including resolving
commercial disputes and assisting in formulating corporate structure, management and governance
– Bankruptcy and insolvency litigation
– Mergers and acquisition (local and abroad), capital rising, tenders
– In association with leading accountants and other business partners, advice on taxation levels,
double taxation, estate and inheritance taxes, international tax planning and structuring for
business
– Drafting of contracts for purchase and sale of residential and commercial property,
conveyancing, purchase permits, construction agreements, operating agreements, tenancy
agreements, letting agreements, commercial lease
– Advising on long-lease from government, the construction industry on large scale projects and
tenders We remain at your disposal for further information and clarification you may require on
the above.

Requirements and general information in respect of registration of an International Business
Company (IBC Company) in TRNC.
1. General Information:
i. Minimum number of shareholders is two.

ii. Shareholders must be of foreign origin and must not ordinarily reside in TRNC.
TRNC citizens whose permanent place of residence is outside TRNC are also
eligible to be shareholders.
iii. Minimum share capital is € 20,000,00 which has to be deposited at one of the local
TRNC banks, prior to application. This money will be at your disposal once the
company is incorporated.
iv. Application will be made by us, on your behalf, to the TRNC Ministry of
Economy together with the Memorandum and articles of Association of the
prospective IBC Company and the receipt verifying that the minimum share
capital of € 20,000,00 has been deposited.
v. The IBC Company is liable to corporation tax only at the rate of 1% (previously
2,5%) of taxable profit, payable after the 5 th month of the end of fiscal year. (i.e.
not later than 31 st May).
vi. The annual license fee of International Business Companies (IBC) is € 5,000,00
per annum. Annual license fee is payable on the following month of incorporation.
There after at the end of each January.
vii. In the event of setting up an office, at least one of the employees must be a TRNC
citizen.
viii. There is no tax on distribution of dividends. Furthermore, there are no exchange
control restrictions on such distributions, subject to such distributions, being
affected through official bank channels.
2. Documents to be provided by each shareholder:
i. The original Application Form in respect of forming an International Business
Company.
ii. A notarized and/or apostilled photo-copy of his/her passport. If the original
passport, together with a photo-copy is presented to the Registrar of Companies,
then the need to notarise or apostille such document is not necessary.
iii. The original reference letter from an advocate or Commission of Oath practicing
in the country where the shareholder resides, stating that the shareholder has no
criminal record and is of good character and an original reference letter from a
bank that handles the accounts of the shareholder stating that the financial
standing of the shareholder is good.
iv. An original c.v. of the promoter.
v. A fresh dated original utility invoice (i.e. electricity, water, local telephone, etc.)
to prove that the person is of foreign origin who lives abroad. The said invoice
should have the same name and address details of the subscriber stated in the
Memorandum and articles of Association.

3. In the event of founder member being an entity (corporation), the original notarized
documents of the company will be required. Such documents comprise of:

i. The Memorandum and Articles of association
ii. The certificate of Incorporation
iii. List of shareholders showing type, number and value of shares held by each
shareholder, nationality and address
iv. List of directors and secretary given names, address and nationality
v. A newly dated certificate from the Chamber of Commerce or Industry or any other
related body that the company is presently active and in operation Documents that
are not in Turkish or in English must be translated into any of the two above
languages and notarized to certify that such translation is a true version of the
original.

4. Appoint a local person as representative in TRNC to receive any notices and documents sent to
the company by the TRNC authorities. This representative, who will be obliged to furnish any
documents demanded by the Ministry, should be an approved auditor as per TRNC regulations or
an advocate who is a registered member of the TRNC Bar. Where such a representative is not
appointed, a TRNC citizen must be appointed as director.
5. A shareholder who does not wish to appear in person can appoint a trustee for this purpose.
Such trustee can be a practicing advocate or accountant. However, the accountant so appointed can
not be the auditor of the company at the same time. Trustee must pay an annual fee of € 500.00
each for this privilege. In such cases the identity of the ultimate owner is kept under strict secrecy
with the Ministry of economy and can not be disclosed to anybody unless and until a court order is
procured.

Free Zone Companies
The Free Port and Zone situated at Famagusta is considered to be an ideal place for all kinds of
businesses and investments. Famagusta Free Port and Zone covering an area of 103.000 sqm,
offers to foreign investors excellent opportunities for transit trade as well as manufacturing
opportunities for middle-east and near-east countries.
Incentives:
 All income derived from activities and operations undertaken by producers in the Free Port and
Zone are exempt from Corporate and Income Taxes (including all kinds of trade, production and
service).
 All income and capital derived from operations are subject to free profit transfer without any
limitations to the transfer size.
 All kinds of operations including sale of goods to foreign countries and Free Port and Zone in
North Cyprus as well as buying of goods are exempt from custom duties, VAT and indirect taxes.
 All income derived from activities and operations undertaken by investors other than producers
are exempt from Corporate and Income Taxes when the goods and services are not directed to the
Turkish Republic of Northern Cyprus.
 Permission to employ foreign expert, engineer and technical personnel.

 All kinds of craft maintenance and repairment, manufacturing of goods, banking and
insuranceservices, warehousing, exporting of the finished goods as well as manufactured goods are
accepted facilities and operations. (Warehouses are available for transit trade activities).
Essential Documents and Required Information on the Formation of Companies in
Famagusta Free Port Zone:
1- Pre-examination and approval of company name. Three alternative names would be
determined by a client for application. For Example: Evren Export LTD.
2- Notarized Passport photocopy of the shareholders or original passport. Third party citizens
have to notarize their passport photocopy at Turkish Republic Embassy.
3- Distribution of shares amongst shareholders (what percentage would be hold by each
shareholder).
4- Notarized Passport photocopy of directors or original passport ( at least one person must
be assigned as a director and he/she can be both director and shareholder). Third party
citizens have to notarize their passport photocopy at Turkish Republic Embassy.
5- Notarized passport photocopy of company secretary or original passport (There must be
sole company secretary and he/she can be also a shareholder). Third party citizens have to
notarize their passport photocopy at Turkish Republic Embassy. For Example: If there are
two shareholders, one can be a director and the other can be a company secretary
6- Clean criminal record received from internal security bodies of the country of origin of
directors and shareholders.(except EU countries, Russia, USA)
7- Information on the operation, scope and objects of the company
8- List of all purchased/sold goods and services related with the scope of the company and
estimated values.
9- List of international countries planned to build business relations. Import/Export countries
should belisted separately.
Note: If the shareholders are legal persons rather than natural persons, essential
documents would be different.
Procedures for company formation in Famagusta Free Zone Port
1- Initiation of company formation procedures
2- Applying for company name registration at the Registrar of Companies
3- Free Zone Pre-application will be undertaken by our company on behalf of client and
files willbe sent to Council of Ministers
4- Following the approval of pre-application at the Council of Ministers, Memorandum
of Association and Articles of Association will be sent to a client
5- Authorized capital of 100.000 USD (min. 100.000USD) will be blocked at one of the
domestic banks. (100.000 blocked capital can be withdrawn from the bank without
any hassle after completion of company formation. Company formation may
approximately take one month)

6- Finally, registration to the Tax Authority will be done and company will become
operative.

The Immovable Property Commission was set up under the Immovable Property Law (67/2005) in
accordance with the rulings of the European Court of Human Rights in the case of Xenides Arestis
v Turkey. The purpose of this Commission was to establish an effective domestic remedy for
claims relating to abandoned properties in Northern Cyprus. The European Court of Human
Rights, with decision on 1 March 2010 as to the admissibility of Demopoulos and Others v.
Turkey found that Law no: 67/2005 provides an effective remedy and rejected the complaints of
applicants for non-exhaustion of domestic remedies.
In the light of the European Court of Human Rights’ previous decisions in Arestis Xenides, the
main rulings in Demopoules confirm that the Immovable Property Commission formed not only be
considered as a ‘domestic remedy’ but was also in realistic provision for redress in current
situation.
Xenides – Arestis case along with Demopolous case represents the Court’s most recent application
of the pilot judgment procedure developed in 2005 ‘as a means of dealing with large group of
similar cases that derive from the same underlying problems.
The Immovable Property Commission officially began its performances on 17 March 2006. The
Immovable Property Commission examines claims for restitution, compensation and exchange
according to the provisions of the law no 67/2005. Its considerations are based on the principles of
bi-zonality and bi-communality which have been common elements of the 1977-1979 High Level
Agreements as well as plans for a settlement of the Cyprus Issue prepared by the United Nations. It
seeks to satisfy the legitimate claims of property owners without prejudice to the rights of the
Turkish Cypriot Community.
The Commission with its local and foreign experts, acts as a court. As of 24 October 2012, 3912
applications have been lodged with the Commission and 276 of them have been concluded through
friendly settlements and 7 through formal hearing. The Commission has paid GBP 83,276,225.- to
the applicants as compensation. Moreover, it has ruled for exchange and compensation in two
cases, for restitution in one case and for restitution and compensation in five cases. In one case it
has delivered a decision for restitution after the settlement of Cyprus Issue, and in one case it has
ruled for partial restitution. IPC seeks to be a just, fast, an effective remedy for property claims. In
this way the Commission affirms to contribute to the comprehensive settlement of the Cyprus
Issue.
What We Offer in Eylem Şakir and Associates Law Firm?

In Eylem Şakir and Associates Law Firm we offer a comprehensive and complete representation
to everyone who would like to apply to the Immovable Property Commission. Our firm takes pride
in the professional and efficient approach it has. We maintain these high quality services from the
very beginning of the application process until the end.
Our firm has got very effective and helpful associates that provide detailed property analysis as
well as valuations which are crucial for successful applications.
Guideline on Divorce and Matrimonial Proceedings.

Compare listings

Compare