BUYERS GUIDE TO NORTH CYPRUS PROPERTY
- You should understand the North Cyprus property buying procedure, particularly the type of land your property is on.
- You should understand why property is so cheap and the potential prospects of your property purchase with regard to rental income and long term investment. Please write to us on the provided email for further information on North Cyprus property investment potential.
- It is essential that you understand how a law relating to North Cyprus Property known as the Specific Performance Law affects your purchase contract
WHICH CURRENCY IS IN USE IN NORTH CYPRUS? WHY?
British Pound £ (GBP) is in use in terms of non-movable properties. This is because the Cyprus used to be a British Colony from 1878 to 1960. North Cyprus still has a huge influence from British rule over its Law system, vehicular traffic (traffic runs from left opposite to America, Russia and most of the world) and non-movable property valuation (prices).
EXPENSES WHEN BUYING PROPERTY IN NORTH CYPRUS
To purchase a property in North Cyprus you have to pay a 0.5% tax on the value of the property at the time of signing the contract in order to register the sale. It is essential this is done in order to safeguard your interests.
- On hand over of deeds, when you have your permission to buy, usually 2 years later, you pay 5% VAT and 3% purchase tax.
- There is an annual property tax depending on size of property, about £100 to £150.
- Solicitors cost for the purchase procedure are in the region of £1000 to £1200.
We hope this information helps you. Of course there are many other factors to consider before purchasing property in North Cyprus, so please do not hesitate to contact lockOn CYPRUS agents.
NORTH CYPRUS TITLE DEEDS
Title Deeds in North Cyprus
There are a number of things you need to think about before purchasing property in North Cyprus, two of the important ones are; what type of land are you buying? And how reliable is builder that is building or has built your property? The following explains the situation with regard to title deeds:
North Cyprus Property Title Deeds Types:
The Turkish word for title deed is Koçan and is usually a single A4 sheet of paper containing a lot of useful information and of course all in Turkish. The North Cyprus Property you buy will normally have one of the following titles.
FOREIGN TITLE DEED:
This is land or a house that was owned by a foreigner (non Cypriot) prior to the division of the island in 1974. This type of deed was not affected by the division and the ownership of this type of property is not disputed. There is very little of this property and it is unlikely that this is the type of North Cyprus property you will be buying.
TURKISH TITLE DEED PROPERTY (TURKISH listed on our advance search facility):
This is property that has always been Turkish and of course still is. It belonged to Turkish Cypriots before the division in 1974. As an example, the vast majority of the old walled part of Mağusa (Famagusta) was and still is Turkish. Girne (Kyrenia) was mainly Greek before the division in 1974.
It is important to realise that there is property on the Greek side that was Turkish and that the Turkish Cypriot owners no longer have use of this property (the same applies to the Greek Cypriots who owned property on what is now the Turkish side of the division). North Cyprus property on original Turkish land is becoming scarce.
NORTH CYPRUS (T.R.N.C.) TITLE DEED PROPERTY:
After the division in 1974 the Turkish Cypriots were isolated and not recognised internationally. This has meant a lack of development on the North side of the island and that is why it is so un spoilt (it really is a wonderful place to live or have a holiday).
So the TRNC government started an administrative process and issued TRNC title deeds on Greek property on the Turkish side of the division. The process is to this day not recognised by the Greek Cypriots. However, there now seems to be a growing opinion even among some of the Greek Cypriots that this administrative process in one way or another will be taken into account when a settlement is one day reached. The North Cyprus issued a number of different types of deeds but the two most important types are Esdeger (equivalent or exchange property) and Tahsis (property that has been assigned).
NORTH CYPRUS PROPERTY - ESDEGER PROPERTY (ESDEGER listed on our advance search facility):
This is Greek Cypriot property that was allocated to Turkish Cypriot people who lost property on the Greek side. This was done by a points system and is known simply as exchange property. The estate agents that the North Cyprus Property Consultant has spoken to in North Cyprus are of the opinion that Esdeger land, or a house built on Esdeger land is financially safe. Most European, Persian and Russian people have bought property built on this type of land.
TAHSIS TITLE DEED PROPERTY (TAHSIS listed on our advance search facility):
Also known as TMD property. This is Greek Cypriot property that was given (and we mean given) to Turkish settlers, or given as a reward for military service. Among the estate agents opinion is mixed as to how this type of property will be dealt with after a settlement. The consensus of opinion in North Cyprus is that once a property has been built on TMD land then it is as safe as a property built on Esdeger land (exchange land)
North Cyprus Property - Leasehold Title
It is possible to lease property from the North Cyprus government. Usually these are old houses which are in need of renovation and are leased for 49 years at a nominal ground rent. You have to apply directly, or using a solicitor, to the Ministry of Tourism.