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And we will give you free advice on purchasing real estate in Northerh Cyprus
For property buyers, one of the important issues is the tax on the purchase, as well as the cost of maintaining housing.
Consider Northern Cyprus – real estate here is still relatively affordable, although prices have risen significantly over the past year. Let’s take a closer look at taxes.
Real estate purchase taxes in Northern Cyprus
When buying an apartment or house in Northern Cyprus, you have to pay 3 main taxes:
1️⃣ Stamp duty – 0.5% of the price of the object under the contract. Must be paid within 21 days of the transaction.
2️⃣ VAT – 5% of the price.
3️⃣ Transfer of the Title Deed – 12% of the total cost. This tax is divided into two payments: the first 6% must be paid upon registration of the contract, the remaining 6% upon receipt of the keys.
Title deeds do not need to be in your own name, if you are buying a property to resell, you can escape this tax.
In addition to taxes, it will be necessary to pay for the connection of communications (electricity, water) after the completion of construction.
🔹 Transformer fee (trafo) €1500-3000 (depending on the property).
🔹 Payment for connecting water meters will cost about 4000 TL (depending on the area), electricity – 575-2000 TL (depending on the object).
As a result, for the purchase of an apartment from a developer worth €100,000, you will have to pay additionally:
Additional expenses:
trafo: €1,500
counters: €500
TOTAL: €2,000 or ~2%
Let’s compare taxes on the purchase and ownership of real estate, as well as the cost of maintaining it in Northern Cyprus and in Spain.
Taxes on the purchase of property in North Cyprus have recently increased, but property ownership is still inexpensive compared to European countries, so the tax difference is leveled out fairly quickly.
| Northern Cyprus | Spain | |
| Purchase taxes
(primary property) |
Stamp duty – 0.5% of the property’s cost
VAT – 5% of the property’s cost Transfer of Title Deed – 12% of the property’s cost |
Registration Tax – 0,5‐1,5% of the property’s cost
VAT – 10% of the property’s cost Notary fees – 0,03‐0,45% Registration costs – 0,02‐0,175% |
| Purchase taxes for an apartment with cost €100,000 | 100,000*0,5% + 100,000*5% + 100,000*12% = 500+5000+12000 = €17,500
17,5% of the property’s cost |
100,000*1,5% + 100,000*10% + 100,000*0,45% + 100,000*0,175% = 1500+10000+450+175 = €12,125
12% of the property’s cost |
| Property ownership tax | Annual property tax – 3 Turkish Lira for 1 sq.m. | Municipal property tax:
0,7-1,6% from the cadastral value of the property Personal Income Tax (IRNR) – 24% from 2% of the cadastral value of the property |
| Annually | Apartment of 50 sq m:
3*50=150 TL p.a Total: €5 |
Apartment €100,000:
€100,000*1,6% = €1600 €100,000*2%*24% = €480 Total: €2080 |
| Real estate maintenance costs (excluding utilities) | An apartment in a complex without a pool and a gym – about €18 per month (garbage removal, lighting and cleaning). Apartment in a luxury complex – about €75 (pool cleaning, landscaping, etc.). Villas will cost more – about €130.
The annual tax for paying utility bills to the municipality (water supply, cleaning and street lighting, garbage disposal) is 100-150 TL per year. |
Comunidad depends on the availability of an elevator, pool, park area. |
| Annually | €60-1500 | €30-1300 |
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