Let’s answer all the questions you have in mind.
Hiring a solicitor at this point is essential. The solicitor will be responsible for informing you and providing you with all documents relating to taxes, applications, processes from the time of sale through to the transfer of the title deed of the property you purchase. Furthermore, the solicitor will also deal with processing your permissions to purchase as a foreigner by applying to the appropriate Governmental Offices and will follow up on your applications to ensure completion. The solicitors in North Cyprus can be communicated via e-mail, fax and phone. Thus, constant correspondence can be ensured throughout the purchase process of a property. Moreover, a property purchase may even be completed from abroad if the solicitor has been granted the Power of Attorney to act on your behalf.
A sales representative from our company will assist you in viewing available projects that meet your need. Once you decide on the property you would like to purchase, make sure to pay the reservation fee to secure the property and have it removed from the market. If you are out of North Cyprus and would like to reserve a property from abroad, it is necessary to complete a wire transfer of the funds, as foreign cheques take a few weeks to clear. If you are present in North Cyprus, it is possible to pay via credit card or cash. By reserving a property, you will secure it for a period, which allows enough time for the sales contract to be drawn up, agreed and signed. Before moving on to the next step you should make sure that you have reached an agreement on the price and any extras that you may need.
At this stage, price negotiation takes place. Furthermore considering the needs and capabilities of the buyer, purchase terms and payment plans are drawn. Payment plans will change according to the purchased property. For instance, for properties that just require the finishing materials to move in, a payment of 60% of the purchase price + taxes (VAT, stamp duties and transformer fee) must be paid at the time of signing the contract, whereas for properties that are under construction this amount goes down to 30%. Furthermore, loans with and without interest rates with a variety of installment options may be provided by Ozan Estate.
The registration procedure of the Sale and Purchase Agreement for properties is done by a solicitor. It is therefore essential to hire a North Cyprus based solicitor. The solicitor’s role is to advise you, release payments upon your approval to the Developer if needed, apply to relevant Government Offices for your permissions to buy a property in North Cyprus, act on your behalf in your absence with the Power of Attorney, confirm title deeds including all governmental documentation, and ensure that a proper Contract of Sale is drawn up and made between you and the Developer. A contract of sale is then drawn up by your solicitor, setting down the terms of sale, i.e. property details, specifications of property, site plan of the property, governmental site plan of the land in North Cyprus, floor plans, price, payment terms, timescale, vendor, purchaser and any extra requirements. The prepared contract is then signed between the Seller and the Buyer.
A permit to purchase from the Council of Ministers in North Cyprus is then applied for by your solicitor. This may take around 12-18 months to be clarified. Once the permission is granted, the purchaser is entitled to register his or her name at the Land Registry as the registered legal owner of the North Cyprus Property. Again, in the absence of the purchaser, a Power of Attorney will allow the solicitor who will, on the clients behalf, deal with all these formalities. Most likely the solicitor will notify you when the permission has been granted and he/she will then fill out all of the necessary land registry valuation forms for the valuation of the property that you have purchased. It is usually at this point that taxes will be payable. The taxes are calculated based on the land registry valuation (usually the open market value of the property on the date the transaction took place) and are currently at the following rates:
Yes. North Cyprus requires a visa for resident status. People coming from the U.K. and other major European countries automatically obtain a 3-month visa upon arrival. An extension of this time period can be granted, provided you successfully apply for a residency permit (implying that you plan to settle permanently). Typically, as the visa process can be long and tiresome, many people opt to hire a solicitor.
Generally, solicitors charge around £1,000 – £1,300 for a purchase contract and £300 for the permit. This fee covers the handling of all applications required for living in North Cyprus. Solicitors also help in ensuring the validity and legality of transactions.
As mentioned earlier, the employment of a local solicitor is not required but is highly recommended. For a general fee a solicitor will personally follow-up on transactions at the local government offices. Furthermore, the solicitor will check your Contract of Sale to be signed by you and the developer of the property, therefore ensuring its legality and authenticity. A permit for owning a home is required.
Certainly, the last thing anyone wants is to be surprised with unanticipated charges. We have created a list below, of common taxes, fees, or charges that apply:
NOTE: The Tax Authorities have given first time investors the incentive of a one time opportunity to reduce the title deed fee to 3%.
At Ozan Estate, we aim to facilitate all of our clients needs, including those who live abroad. If you are interested in purchasing property but are not able to travel immediately, we would be happy to assist you. Simply submit an inquiry and one of our team members will contact you and personally walk you through the process.
Your passport is the only document required.
At present you are individually only allowed to own one property at a time, unless you have a local company registered in Northern Cyprus. According to Property Purchase (Foreigners) Law and other relevant regulations, Law No: 109, Foreigners’ purchase is limited to one donum (donum is a measurement of land equivalent to 1,600 square yards, 1,338 sq. meters or 14,400 sq. ft., 0.336 acre) of land or one immovable property, unless you register a local company in Northern Cyprus with Turkish Cypriots acting as 51% nominee shareholders.
Probably, the most common word you will hear in dealing with property purchase in Northern Cyprus is the “koçan (pronounced as kochan)”. “Koçan” means, “deed” and there different kinds of Kocan’s in the Turkish Cypriot legal system.: