Below is an approximate example of the additional costs that you can expect when investing in a property in Northern Cyprus.
The figures have been calculated using a valuation figure of £100,000.
Purchase Tax of 3%: £100,000 x 3% = £3,000 [Purchase Tax is 3% for the first purchase only. For second and after Purchase Tax is 6%]. Purchase Tax is payable on transfer of title. Purchase Tax is based on the Land Registry’s valuation (assessment) of the northern cyprus property. Assessed value is usually considerably less than (around 60% of market/sale price) the selling price since only bricks, mortar and size of land are taken into consideration, not fixtures and fittings.]
VAT (KDV in Turkish) of 5%: £100,000 x 5% = £5,000 [VAT is also payable on transfer of title]
In Northern Cyprus The costs of the electricity meter, water meter, and charge levied by the Telecommunications Office for connection of telephone lines sum up to approximately £280. (Gas (LPG) is bottled in Northern Cyprus)
Charges for provision of sewerage/drainage facilities: Currently at£460 approximately per immovable property (eg per apartment)
Solicitor’s (legal) fees are around £1,000 [Legal Fees usually include search, preparation of sales agreement, application to buy from the Council of Ministers and transfer of title at District Lands Office services]
Municipality Fees: 1% x £3,000 = £30 [1% Municipality Tax on 3% Purchase Tax]
TOTAL £9,770 (9.77% of purchase price or valuation, assuming that the two amounts are equal)
