The lawyer’s fees for handling the transaction cost about £1250–1300.

The registration fee for the contract is 0.5% of the property value and is paid along with the lawyer’s fees, as the lawyer is responsible for registering the contract in the real estate registry.

When purchasing real estate on the primary market, a 5% VAT is applied, which is usually paid when the keys are received. In some complexes, the VAT may be paid 3 months before receiving the keys or even a year after receiving them. Some developers may not require VAT to be paid until the ownership is transferred, so the conditions may vary depending on the real estate complex. VAT is a state tax, but it is paid through the developer’s accounting department.

The property transfer tax is 6% of the property value, but it can be reduced to 3% if the transfer is done for the first time. If you transfer ownership later, the tax will again be 6%. There is a new law allowing foreigners to own three properties with a 3% tax, but the tax for the second property will be 9%, and for the third one – 10%.

The transformer fee is a charge for connecting utilities to the project. The price depends on the project and the number of apartments and can range from £1000 to £2250. This fee is usually paid along with VAT when the keys are received, or in some areas, 3 months before or a year after receiving the keys. Fees are paid through the developer’s accounting department.

In total, when purchasing real estate on the primary market, 8.5% of the property value is paid in taxes if the ownership is transferred in your name, or 5.5% if the ownership is not transferred to your name (this applies when purchasing for investment and later resale).

Unlike developers, we also work with the secondary market.

When purchasing real estate on the secondary market, VAT is usually already paid. However, you need to be cautious, as some developers may require VAT to be paid not when receiving the keys but during the transfer of ownership. If you are purchasing real estate on the secondary market and the ownership has not yet been transferred, it is likely that VAT has not been paid. While this is rare, such situations can occasionally occur. Therefore, if you come across a very cheap secondary property online, it may be that VAT will need to be paid in addition to the listed price. In the worst-case scenario, you may have to pay a “stopaj” – a fee usually paid by developers. If the property is old and the ownership has not been transferred for decades, the developer’s company may have disappeared, and the buyer may be required to pay this fee.

Northern Cyprus Attracts Real Estate Buyers for Its Mild Climate, Stunning Landscapes, and Affordable Prices.

However, purchasing property abroad comes with certain risks and complexities. In this article, we’ll outline the key points to help you avoid common mistakes and make an informed decision.

Research the Real Estate Market

Before buying, it’s crucial to conduct thorough research on the Northern Cyprus real estate market. The market is currently booming, offering a wide range of properties—from apartments to villas. Property prices can vary significantly depending on the region. For example, properties in coastal areas and larger cities such as Kyrenia and Famagusta tend to be more expensive than in rural areas.

Experts predict that prices will continue to rise, making real estate in Northern Cyprus a worthwhile investment. However, it’s essential to carefully analyze the market and consider potential risks before making a decision.

Northern Cyprus has a unique legal status, which may present certain challenges when purchasing real estate. First and foremost, it is essential to ensure that the property is legally clear. This means checking the ownership documents and ensuring there are no encumbrances or other legal issues.

The involvement of a qualified lawyer, familiar with local laws, is a crucial step. A lawyer will help you avoid potential problems and ensure that your interests are legally protected.

Choosing a Reliable Real Estate Agency

Choosing a reliable real estate agency is key to a successful purchase. When selecting an agency, pay attention to the company’s licenses and reputation. It is advisable to study customer reviews and ask for recommendations.

When communicating with agents, it’s important to be attentive and ask all the questions you may have. A trustworthy agency should provide comprehensive and accurate information about the property and the terms of the transaction.

Purchasing real estate involves not only the cost of the property itself but also additional expenses such as taxes, fees, and commissions. It is important to assess all purchase-related costs in advance and take into account any potential expenses.

If you do not have enough funds to pay the full amount, consider financing options such as a mortgage loan or installment payments. However, don’t forget to set aside an emergency fund for unforeseen expenses.

Check the Condition of the Property

Before making a purchase, ensure a professional property inspection is carried out. This will help identify any hidden defects and avoid unpleasant surprises later.

During the inspection, pay attention to the infrastructure, utilities, and the condition of the building itself. It’s important to confirm that the property meets your requirements and does not require significant investments in repairs.

Documents and Transaction Registration

To successfully complete the transaction, you will need to gather all the necessary documents, including the sale agreement, ownership documents, debt clearance certificates, and others.

The transaction registration process involves several stages, each requiring careful attention. Special focus should be given to signing the sale agreement to avoid future misunderstandings or issues.

Post-Purchase Obligations

After purchasing the property, you will have new obligations, such as paying taxes and utility bills. It’s crucial to familiarize yourself with local rules and requirements in advance.

Property Insurance

Property insurance is another essential aspect that will help protect your investment from potential risks. It’s also advisable to plan ahead regarding property management and maintenance.

Purchasing real estate in Northern Cyprus can be a profitable investment if approached carefully and prudently. It’s essential to consider all the key points outlined in this article and seek professional assistance when necessary.

Be attentive, thoroughly check all documents, and avoid rushing into decisions. This will help you avoid common mistakes and make the right choice.