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Is it safe to buy in Northern Cyprus?
It is safe to buy in North Cyprus provided the right
title deed applies to theproperty. There are three types
of freehold title in North Cyprus:
Pre 1974 Turkish Title. This is OK, but very hard to
find now.
TRNC Esdeger (Exchange) Title. This means that the
Turkish Cypriot owner has been given this land in exchange
for the equivalent piece of land they owned in the South.
This type of land is increasingly hard to find, especially
close to the sea.
TRNC TMD Title. This is where no exchange has taken
place, and therefore there may be some compensation
payable as part of some future politicalsettlement to
the Cyprus issue. Most developments are being built
on TMD land. As a company we prefer to buy Exchange
land, despite it being more expensive.
Purchase procedure
When you decide on the apartment you like, you initially
pay a reservation fee of £1,000. You would then
appoint a solicitor (we can give you recommendations)
who would deal with the contract. You are able to appoint
him/her power ofattorney if you are not able to travel
across at that time and he can then also apply for the
purchase permit from the Interior Ministers office and
transfer of title. They will charge approximately £1,000
for this service. The transfer of title takes around
6 months to complete. Your first instalment is due 30
days from the initial reservation.
Cost of purchasing a property
The closing costs are at present 6% stamp duty and 5%
VAT. These taxes are based on the valuation, by the
Tax Authorities, of the cost of replacing thebuilding;
therefore this total is significantly lower than 11%
of your purchase price. There is currently available
a one off opportunity for foreign investorsbuying for
the 1st time, to reduce the stamp duty to 3%. These
taxes are payable several months after key handover.
There is also initially a small contract stamp duty
to pay; your solicitor will advise you of this cost.
If you wish to instruct a local solicitor, and we suggest
you do, he/she will charge around £1,000.
How long can I stay in Northern
Cyprus?
British and the majority of Western Europeans receive
an automatic 3 month visa on arrival. You can then apply
for an extension to stay for longer or if you plan to
settle permanently, apply for a residency permit.
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