Buying Property in North Cyprus. A guide to procedures and taxes
Page 3 of 3
Current Percentages for tax calculations.
The transfer fee is 6%. It should be noted however, that all persons have an option
that can be used once only which reduces the percentage to 3%. Once this option has
been taken up, all further transfer fees on future purchases will be at the full
Capital Gains Tax.
This tax, as indicated above, is normally paid by the vendor and as such the percentage
used for the calculation will depend on his/her status as a vendor. A private vendor
will pay tax based upon currently 3.5%. A professional vendor will pay based upon
a percentage figure of currently 6.25%. There is one exemption whereby a private
vendor selling a house and land of not more than about one donum has a once only
option for a tax free sale. When this option has been used the standard rate applicable
at the time will apply. If you sell more than 3 properties in a year you will be
deemed to be a professional vendor and taxed accordingly.
The percentage is based upon a sliding scale according to date of payment. Currently
0.5% of the contract price if paid within one month of date of contract.
Thereafter the rate increases in stages until after 6 months when it becomes 1.5%
VAT. Currently the rate of VAT for property transactions is 5%. Your Contract of
Sale document should state if the vendor requires payment of VAT on the sale price
on the date of completion. Check with your solicitor.
Whether or not you have to pay VAT on your property purchase depends on whether or
not the vendor is deemed to be a professional vendor or a private vendor. Also any
requirement to pay VAT will be specified in your contract if applicable.
Normally Capital Gains Tax is not payable when you purchase your property as this
is paid by the vendor. When selling, you can exercise your one off tax free option.
For future sales as a private vendor you will pay the full private vendor rate. Professional
vendors have no reductions rights and all sales currently attract the rate of 6.25%.
Normally the Transfer Fee and Stamp Duty are payable by the purchaser at the rates
currently applicable. Check with your solicitor for any clauses that may vary this.
The Busy Bees Guide to procedures and taxes is intended to assist our clients and
those having an interest in buying or selling land or property within the TRNC. To
the best of our knowledge the information that we have assembled is correct at time
of this publication. This information does not constitute any form of legal or professional
advice and all parties engaging in property transactions are strongly recommended
to engage a professional and independent solicitor before proceeding. Any liability
for damage, harm or loss as a result of persons using this information is specifically
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