Real estate acquisition process

Real estate acquisition process

Real estate for living on the island can be purchased by foreign individuals and legal entities. Commercial buildings can only be purchased by legal entities. Our specialists will help you understand all the nuances and will accompany you from the moment you apply to the transaction.

The purchase stages

Buying property in Northern Cyprus is a simple process, consisting of several stages:

• First, you need to decide on a choice that will satisfy your needs. That’s why our company exists. We agree on the cost, purchase terms and all the nuances.
• After that, we open an account in one of the banks in Northern Cyprus, make a reservation and pay a deposit: within 1-3 thousand pounds sterling. If the transaction is not completed, the deposit is not returned.
• The purchase and sale procedure should take place within the next month. During this period, negotiations are held and the object is checked for transaction purity. A lawyer deals with contractual relations: draws up a contract, registers real estate with the Land Department and all the necessary authorities. A general power of attorney must be drawn up for a lawyer to act on the buyer’s behalf. Such a power of attorney is often issued during a study tour.

The sales contract is drawn up in two copies in Turkish and English. The payment order is indicated, and the object is described in detail.

The real estate taking ownership

The client must pay one-time stamp duty (0.5% of the cost) and fully fulfill the payment obligations under the contract.

Our lawyer within 30 days after signing the contract provides it to the Land Office local department, where they certify the transaction legality. The procedure is important as it protects the buyer rights. If the object is in the construction process, the title registration is postponed until the housing official commissioning time. It can take from 3 to 6 years, it all depends on the construction stage.

After that, the owner receives the owner status and pays VAT, which is equal to 5% of the contract amount.

An important point – a foreign citizen to obtain a legal title in his name needs to obtain permission for real estate purchase in Northern Cyprus. This issue is dealt with by an attorney lawyer by applying to the Ministry of Internal Affairs.

The property subsequent sale is carried out with the income tax payment, which is 20% for individuals and 10% for legal entities.