Step 1 – SELECT AND RESERVE YOUR PROPERTY
Step 2 – PRICE NEGOTIATION AND PURCHASE TERMS
For properties that require only 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 payment plans may be provided.
Step 3 – SIGNING THE PURCHASE CONTRACT
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 and release payments upon your approval to the Developer.
Step 4 – PURCHASE PERMIT AND FEES
A permit to purchase from the Council of Ministers in North Cyprus is then applied for by your solicitor. This may take up to 12-18 months to be cleared. Once the permission is granted, the purchaser is entitled to register their 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 client’s behalf, deal with all these formalities. Most likely the solicitor will notify you when the permission has been granted and they will then fill out all of the necessary land registry forms for the valuation of the property that you have purchased. It is usually at this point that taxes become 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:
• Land Registry Transfer Fee at 6% (however, every purchaser has a once-in-a-lifetime option to reduce this fee from 6% to 3%. At the time of transfer, you will be asked whether you wish to use this option, in which case you will only pay 3%)
• VAT at 5%
• Stamp duty is to be paid at 0.5% of the contract value if paid within 1 month upon signing the contract.
• Property infrastructure payments which may vary from site to site
• The sales process will come to an end when all of the above taxes are paid and the title deed is registered in your name.