Warning: session_start() [function.session-start]: open(/home/content/10/6603210/tmp/sess_o1578a74f8bn7b37n8kuj0uep0, O_RDWR) failed: No such file or directory (2) in /home/content/10/6603210/html/taxation.php on line 3

Warning: session_start() [function.session-start]: Cannot send session cookie - headers already sent by (output started at /home/content/10/6603210/html/taxation.php:3) in /home/content/10/6603210/html/taxation.php on line 3

Warning: session_start() [function.session-start]: Cannot send session cache limiter - headers already sent (output started at /home/content/10/6603210/html/taxation.php:3) in /home/content/10/6603210/html/taxation.php on line 3
North Cyprus Estate Agents, Northern Cyprus Properties, Stringer Estates, North Cyprus-TRNC Guide to Property Taxes
type: bedrooms: location: price:
North Cyprus Estate Agents
banner
EMAIL: info@stringerestates.com - TEL: 0090 392 8158844, UK Office 01279 870083

North Cyprus-TRNC Guide to Property Taxes

There are four main taxes involved in any property sale and purchase transaction in the TRNC – Northern Cyprus.

These taxes are:

  • The Transfer Fee
  • The transfer fee is Payable to Land Registry Office
  • The Capital Gains Tax
  • Capital Gains Tax is payable to the Tax Office
  • The VAT (KDV)
  • VAT (KDV) is payable to the Tax Office or to the Vendor

The Stamp Duty

Stamp duty is payable to the Tax Office Different taxes apply to gifts of property for no consideration and transfer of property between family members. Usually, Capital Gains Tax is payable by the vendor and the Stamp Duty and Transfer Fee is payable by the purchaser. Taxes are generally paid on transfer of title.

The percentages listed below are calculated as follows: The Transfer Fee is paid as a percentage of the assessed value of the property which is carried out just before transfer of title takes place.

The VAT, Capital Gains and the Stamp Duty are based on either the assessed value or the contract value, whichever is the highest. Under new regulations, the Tax Office now requires a copy of the contract of sale to be presented to them prior to transfer of title.

North Cyprus-TRNC Guide to Property Taxes

The percentages levied for each of the three types of tax are shown below:

TRANSFER FEE

The transfer fee is 6%. However, every person has a once in a lifetime option to reduce this to 3%. If a purchaser elects to use this option on the purchase, he or she will only pay 3%. Once this option right has been used, the transfer fee payable on all future purchases by that person will be 6%.

VAT FOR PROPERTY TRANSACTIONS

5% of either the assessed value or the sale price.

CAPITAL GAINS TAX

The rate will be 3.5% payable by the Vendor.

STAMP DUTY

This is 0.5% of the contract price provided this is paid within 1 month of the date of the contract. If it is not paid within this time, the rate increases in stages until after 6 months it becomes 1.5%.

USEFUL INFORMATION:

Vat for Property Transactions

Capital Gains Tax

Will I have to pay Capital Gains Tax on my purchase? Capital Gains Tax is usually paid by the Vendor, unless otherwise stipulated in your contract.
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 lifetime tax free sale option (for a house and land not exceeding approximately 1 donum). If you use this option, you will not be liable to Capital Gains Tax on that sale. On any further sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, therefore qualifying you as 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? Capital Gains Tax is not payable if you sell the property before taking title by undertaking an assignment of contract.

 
Login: Password: Create new account
Forgot password?
  Specials | News
type: bedrooms: location: price:
Copyright 2017, Stringer Estates, All rights reserved
Stringer Estates - Registered Northern Cyprus Estate Agent, Union Membership No: (169)

Warning: Unknown: open(/home/content/10/6603210/tmp/sess_o1578a74f8bn7b37n8kuj0uep0, O_RDWR) failed: No such file or directory (2) in Unknown on line 0

Warning: Unknown: Failed to write session data (files). Please verify that the current setting of session.save_path is correct () in Unknown on line 0