Are there any restrictions on foreign ownership of property? |
Non TRNC Citizens are entitled to take title to only one property up to a maximum area of 5 donums per household. If you wish to take title to more than one property, or a property over 5 donums in area you will need to find a nominee (this person should be a friend or relative or someone you know and trust) to take title to the property and hold the property in trust for you or you will need to set up a TRNC company. |
Can my Spouse and I purchase one property each? |
No, Husband and Wife are counted as one household and the current property restrictions are one property per household. |
What are the Purchase Costs & Taxes? |
Lawyers Fees vary between £1000 and £1,250 for the completion of sale particulars, and for organising your permission to purchase with the relevant authorities.
Taxes include Stamp Duty at 0.5%, which is calculated against the sale price. This must be paid within 21 days of signing the contract of sale and prior to the registration of the contract.
The Land Registry at Kyrenia is charging a fee for the registration at the rate of 53.00TL for one title deed and an additional 16.00TL for each additional title deed plus an extra 7.00TL for every additional plot. It may be that your site has several title deeds.
6% Transfer Tax which is payable at transfer of title, however every person has a once in a lifetime option to reduce this to 3%. Once this option has been used transfer fees on all future purchases by that person will be 6%. Transfer tax is calculated against the higher of either the assessed value or the contract price.
5% VAT which is payable on possession of the property is also calculated against the higher of either the assessed value or the contract price.
On most property purchases there is also a small local municipality tax which is 1% of the transfer fee amount.
Capital Gains Tax is usually paid by the Vendor unless otherwise stipulated in your contract of sale. |
Can I sell my property before I obtain my purchase permission? |
Yes, selling before taking title also has tax advantages as transfer tax is payable only when the transfer of title takes place. |
Do I need to wait for my purchase permission before I can move into my property? |
No. Once your property is complete, you will be able to take possession of your property and move in. |
Can I sell my property before its completion? |
Yes, and what’s more you will not incur any Transfer Tax. |
Will I have to pay Capital Gains Tax on the sale of my property, If so, how much will this be? |
This depends on whether you are a private individual or a professional vendor; every private individual has a once in a life time tax free sale option. If you use this option, you will not be liable to Capital Gains Tax on that sale. On all subsequent sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, making you a professional vendor.
For professional vendors, there are no tax exemption rights. Capital Gains Tax is payable on every sale at a rate of 6.25%. |
What if I sell my property before taking title, will I still have to pay Capital Gains Tax? |
If you are selling your property for more than you paid for it you may have to contribute towards the Capital Gains Tax. If you have not taken title, the title deeds remain in the original Vendor's name. Therefore the transfer will take place from the original Vendor directly to the new purchaser. If the price at which you are selling the property is more than the price which you paid, the original Vendor will not wish to pay the Capital Gains Tax on the new higher price. The original Vendor is likely to agree to pay the Capital Gains Tax on the price you paid and request you pay the difference. |
Am I buying freehold or leasehold? |
The apartments & villas are sold freehold. |
Kensington Development Group offer Developer Mortgages and extended payment plans on all their properties. Please visit the finance sections for further details. |
What will our inspection trip include and how much does it cost? |
We believe in one to one inspection trips to give you all the time you need to ask all those important questions about our developments and buying in Northern Cyprus. We give you the time and opportunity to see all our developments and investment in the surrounding areas. We can also arrange for you to see a recommended lawyer for a no obligation chat on legal aspects of property buying. Should you proceed to purchase we will refund up to £1,000 towards the cost of your trip. (Receipts required) |
What support do I get once I have decided to purchase? |
We are not just about taking the deposit from you, our experienced international team support you throughout the entire purchase process even after you have taken your keys. |
What measures do you have in place to maintain your developments to a high standard? |
We employ professional management companies to maintain all communal areas of the developments, such as swimming pools, beaches, landscaping, play areas etc. They produce annual accounts and chair regular shareholder meetings. This gives you the chance to have a say in how the development is run, maintained and what additional services you may require. |
What about the water shortages that Cyprus is susceptible to? |
We are the only developer in Northern Cyprus that is really taking this problem seriously as it is only likely to get worse. We construct desalination plants, which convert sea water to drinking water. Therefore, you have a constant, uninterrupted supply of water at low cost. |
Do I need a passport or visa to enter North Cyprus? |
If you’re a British or EU passport holder with at least 6 months left to run on your passport you can enter Northern Cyprus. When you arrive at Ercan Airport in the North or on crossing the border between the South and North you will be required to complete a visa form with your name, nationality and passport number. There is no charge for this. Other nationalities may require a visa to enter Northern Cyprus. You can get complete and up to date information from the offices of the Turkish Republic of Northern Cyprus by calling their office in London on +44 207 631 1930 |
Is it easy to cross the border between the North and the South? |
There are several places along the border where you can cross in either direction between the Turkish Republic of Northern Cyprus and the Republic of Cyprus. The main crossing points are in Nicosia at Ledra Palace and Metehan and at Famagusta. EU passport holders can enter the South with a valid passport while other passport holders will need to contact the Republic of Cyprus's Embassy or Consulate in their country of domicile. Your passport will be checked on both the Turkish Cypriot and Greek Cypriot sides of the border. There are limits to the amount of goods you can import or export. For example limits are placed on cigarettes, alcohol etc. Crossing is very easy and straightforward to do. If you are driving across you will need insurance which can be bought at the crossing. A month’s cover will cost approximately £25. |
What is the local currency? |
The currency is the Turkish Lira. Exchange rates fluctuate but on the whole the currency is very stable. GBP, Euros and US Dollars are readily accepted, with change normally given in Turkish Lira. |
What is the predominant religion in North Cyprus? |
Turkish Cypriots are predominantly Muslim, with Christian and Jewish minorities living happily amongst them. The Turkish Cypriot interpretation of Islam is very relaxed, with alcohol freely available and women dressing in western European clothes. Gambling is permitted at the many casinos and nightclubs are full with locals and tourists alike at the weekends. |
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