Taxes on the purchase of real estate in Northern Cyprus

Real estate in Northern Cyprus is not just about square meters, it is a lifestyle that combines a mild Mediterranean climate, picturesque landscapes, warm sea, delicious cuisine and an atmosphere of unhurried island life. More and more foreigners-especially from the CIS and European countries-are paying attention to Northern Cyprus as a promising destination for investment, recreation, as well as long-term residence. The interest is especially high among those who are looking for an affordable alternative to European and Turkish resorts, but at the same time with a high level of comfort.

The current situation in the real estate market of Northern Cyprus shows strong growth in demand, especially in the areas of Iskele, Famagusta, Bafra and Kyrenia. European-level residential complexes with developed infrastructure are being actively built here: swimming pools, fitness rooms, restaurants, spas, beaches and hotel-level services. At the same time, housing prices are still significantly lower than in the European Union or Turkey. For example, a modern apartment with a sea view can be purchased from €8,5,000, and a villa – from€2,50,000.

Real estate in Northern Cyprus is particularly relevant for:

• those who are looking for a summer cottage by the sea or a place to spend the winter;
• investors who want to earn rental income.
• families with children who want to move to a warm, safe region with a high-quality education.
• pensioners looking for peace, comfort and a mild climate;
• students and teachers, thanks to numerous international universities in the region.

Buying a property here gives you access to many advantages:

• 320+ sunny days per year and mild climate.
• azure sea, well-groomed beaches and picturesque coves;
• fresh seafood, organic food and traditional Cypriot cuisine;
• low crime rate and peaceful environment;
• favorable tax system and simplified registration of property;
• English-language services in most areas-from medicine to education;
• active development and growing interest from foreign buyers, which makes the purchase a promising asset for the future.

However, despite the availability and simplified procedure, buying a property in Northern Cyprus involves mandatory tax and legal procedures. Knowing these nuances will help you avoid hidden expenses, calculate your budget correctly, and confidently go all the way — from signing a contract to obtaining a title to property.

The “thaw” has begun in Northern Cyprus, and in this guide we will analyze in detail all taxes, fees and additional expenses that should be considered when buying a property in the TRNC, as well as give useful tips based on current practices in 2025. The island is open to foreigners again!

1. Basic property purchase taxes

When buying a property in Northern Cyprus, the buyer faces a number of taxes and mandatory fees that are part of the standard transaction processing procedure. These taxes depend on the type of property (primary or secondary), the legal status of the seller, and the stage of ownership of the property (purchase agreement or transfer of title). Below, we’ll look at the key taxes that every buyer should consider.

1.1. Stamp DutyStamp Duty)

What it is:

Stamp duty is a mandatory tax on the registration of a contract for the purchase and sale of real estate. It is paid once and records the legal obligations of the parties to the transaction.

Bid:

• 0.5% of the value specified in the purchase and sale agreement.
• If the payment period exceeds 21 days, the rate increases to 1.5%, so it is important to observe the payment deadline.

Payment term:

• No later than 21 days from the date of signing the agreement.

Who pays:

• Buyer.

Example:

When buying a property for £100,000, the stamp duty will be £500 (if paid on time).

1.2. НДС (KDV – Katma Değer Vergisi)

What it is:

Value-added tax levied by the state when buying new buildings from a developer.

Bid:

• 5% of the property value, if the seller is a legal entity (developer/developer).
• When buying from a private individual (secondary market) VAT is not charged.

Payment term:

• Simultaneously with the first payment under the contract or upon receipt of the title, depending on the terms of the contract.

Who pays:

• Buyer.

Important:

Some developers include VAT in the contract price, but this should be specified in advance. When registering a title, the tax may be charged additionally, if it was not paid earlier.

1.3. Transfer Fee for the transferof ownership rights)

What it is:

Official tax paid to the Land Registry (Tapu Office) when transferring title from the seller to the buyer.

Bid:

• 9% of the property’s value (usually – from the estimated cadastral value, not from the market value).

Payment structure:

• 6% is paid when the contract is registered in the cadastre.
• 3% — at the final transfer of the title.

The previously valid “first benefit” (3% for the first object) has been officially canceled. Currently, the rate of 9% applies to all categories of foreign citizens9%.

Who pays:

• Buyer.

Important:

The possibility of dividing payments into stages (for example, through a condition in a contract) depends on the agreement of the parties, but this is not regulated by law.

1.4. Capital Gains Tax (Stopaj or Capital Gains Tax)

What it is:

Tax on income from the sale of real estate, which is usually paid by the seller. However, it is important for the buyer to make sure that this tax is taken into account in order to avoid disputes or double payments.

Bid:

• 3.5% — if the seller is a private person (individual).
• 6.25% — if the seller is a legal entity (company / developer).

Exemption:

• An individual who sells one propertyis entitled to a one-time exemption from capital gains tax if the conditions are met (for example, if the property is less than one donum — approximately 1,338 m2 — and has not been used for commercial purposes).

Who pays:

• Officially — the seller, but the contract may specify otherwise.

Block totals

Type of tax	Rate	Who pays	Comment
Гербовый сбор (Stamp Duty	0.5%	Buyer	Payment within 21 days
VAT (KDV)	5%	Buyer	Only for new buildings from legal entities
Transfer Fee)	9% (6% + 3%)	Buyer	is required upon receipt of title
Capital Gains Tax (Stopaj)	3.5% / 6.25%	Seller	Depends on the seller’s status

In the next section, we will analyze what additional expenses should be considered when purchasing: legal services, connection of communications, annual property tax, and other important payments.

2. Additional expenses when buying a property

Buying a property in Northern Cyprus is accompanied not only by taxes, but also by a number of additional mandatory or recommended expenses. These cost items are not always mentioned in advertising materials, but they significantly affect the final cost of the transaction and the comfort of further living. The key ones are listed below.

2.1. Legal services

Why you need a lawyer:

Buying a property in Northern Cyprus requires mandatory legal support. Only a licensed lawyer has the right to submit documents for registration of the contract, check the legal status of the object and conduct correspondence with government agencies.

What is included in the services:

• Checking the legal title and restrictions on the object (liens, encumbrances, land restrictions);
• Preparation and registration of the purchase and sale agreement;
• Submission of documents for stamp duty and cadastral registration;
• Representation of the client’s interests by proxy;
• Support in obtaining a purchase permit (for foreigners).

Cost:

• From £1,000 to £3,000, depending on the complexity of the object and the amount of work.
• An additional 16% VAT is charged.

2.2. Notary services and translations

When you need:

• When issuing a power of attorney (if the lawyer acts on your behalf);
• When certifying translated documents (for example, a passport, a certificate of non-criminal record, a marriage certificate, etc.).

Cost:

• An average of £10 – £30 per document.
• Translators and notaries work at fixed rates, but prices may vary depending on the city (Nicosia, Kyrenia, Iskele, etc.).

2.3. Connecting public utilities

Electricity (KIB-TEK):

• When buying a new apartment, you need to register a counter in the name of the new owner.
• Deposit: from £300 to £500 (refundable on sale or check-out).
• One-time fee: it can reach up to £1,200 – £3,0,000 depending on the project, especially if the electricity supply is arranged from a private supplier in a residential complex.

Water supply:

• Payment is made for installing a counter and connecting to the municipal system.
• Average cost: about £200 – £250.

Gas (if available):

• Basically, gas is used in cylinders. If there is a central connection — the counter installation fee is about £200 – £300.

2.4. Annual Property Tax)

What it is:

Annual tax paid by the owner to the local administration for infrastructure maintenance.

Bid:

• 0.2 pounds sterling per 1 m2 of living space.
• For an apartment of 100 m2-the tax will be about £20 per year.

When to pay:

• As a rule, once a year, until the end of March of the current year.
• Payment is made in the localм municipality (Belediye) or online (in some regions).

2.5. Expenses for furniture, appliances and repairs (optional)

• When buying real estate “from the developer”, housing is usually rented with basic finishing (walls, floors, plumbing).
• Furniture and household appliances are most often purchased separately.
• Average budget: from £5,000 to £15,000, depending on the trim level and configuration.

2.6. Utility fees (if you buy in a residential complex)

• Residential complexes with swimming pools, security, elevators and spas often charge regular utility bills.
• Average cost: from £40 to £100 per month-depending on the infrastructure, the number of residents and the region.

Final estimate of additional costs

Item of expenditure	Approximate amount	Required
Legal services	£1,000 – £3,0,000 + VAT	Required
Notarial actions	£30 – £100	If necessary
Electricity and water	£1,500–£2,700	Required
Annual property tax	£20 – £50 per year	Required
Furniture and appliances	£5,000–£15,000	Optional
Utility fees (in Russian) LC)	£40 – £100 per month	Required in the LC

Understanding all the additional costs in advance will allow you to make a realistic estimate of the budget and avoid unpleasant surprises after signing the contract. Next, we will look at the specifics of purchasing real estate by foreign citizens and tell you what are the restrictions and nuances of registering property rights in the TRNC.

3. Features of purchasing real estate for foreign buyers

Northern Cyprus is open to foreign investment in real estate, and more and more citizens of other countries consider buying a house or apartment in the TRNC as a reliable investment, a way to improve the quality of life or earn rental income. However, for foreign citizens, there are certain restrictions and mandatory procedures that must be taken into account before making a transaction.

3.1. Restrictions on the area and number of map items

Foreign individuals (citizens of other countries, including the Russian Federation, Belarus, Kazakhstan, Ukraine, etc.) have the right to:

• Purchase 3 apartments or 2 villas per individual.
• The maximum allowable land area is 1 donum, which is approximately 1,338 m2.

If you plan to purchase several properties or a land plot with an area of more than one donum, you must register the purchase with a legal entity (a company registered in the TRNC).

3.2. Obtaining permission from the TRNC Council of Ministers

The purchase of real estate by a foreign citizen requires obtaining an official permit from the Council of Ministersof the TRNC. Without this document, it is impossible to formalize the title (ownership) in the name of the buyer, even if the transaction was completed.

The procedure includes:

• Submitting an application through a lawyer after signing the purchase and sale agreement;
• Checking criminal records and security certificates (background check).
• Confirmation of the source of funding;
• Waiting for a decision (on average, from 6 to 12 months).

Important:

Waiting for permission does not prevent the buyer from owning, using or renting out the property — these rights are recorded in the registered contract. However, the transfer of full title will only take place after receiving a positive decision of the Council. After receiving the permit, the transfer of ownership must be completed within the 1st calendar year, otherwise the permit will be revoked. If the property is paid in installments, the one-year period starts from the date of the last payment. From the moment of issuing the permit, the parties must pay taxes within 75 days (previously it was 60 days).

3.3. Purchase of real estate through the company

To circumvent restrictions on the number of properties or area, foreign citizens often set up a company in Northern Cyprus. This is a common practice among investors and those who want to purchase several properties at once — for example, for rent or resale. Due to the new law, citizens of countries that recognize the territory of Northern Cyprus now have the opportunity to open a company, where 51% will belong to them, and 49% to a TRNC citizen.

Advantages of buying through the company:

• The ability to buy an unlimited number of real estate objects;
• The ability to purchase land plots of any size, including commercial ones;
• Simplified registration of rental and hiring staff for real estate management.

Disadvantages:

• The need to maintain the company (annual reporting, accounting, legal support);
• The purchase is made on behalf of a legal entity, which entails additional taxes on the sale.

3.4. Ownership and titles

In Northern Cyprus, there are several types of legal titles (property rights), and foreign citizens are advised to purchase properties only with a “Turkish” (Turkish Title) or “Turkish Equivalent” (Exchange Title) title, as they are considered the most secure and recognized.

• Turkish Title — real estate owned by Turkish citizens before 1974.
• Exchange Title — real estate granted to Turkish Cypriots in exchange for lost properties in the south.
• TRNC Title — titles issued by the TRNC government for land after 1974 (the risk is higher, especially in disputed areas, such as Varosha).

Before purchasing, be sure to ask a lawyer to check the title’s history to avoid possible disputes in the future.

Output by block

Foreigners have the full right to purchase real estate in Northern Cyprus, but subject to a number of conditions:

• Space restrictions.
• Mandatory obtaining of a permit;
• Recommended legal verification of the title type.
• Ability to purchase through the company to extend your rights.

Compliance with these conditions will ensure a safe and legal transaction, as well as comfortable ownership of the property in one of the most promising regions of the Mediterranean.

In the next section, we will take a step-by-step analysis of the transaction processing procedure, including signing the contract, registration, taxes, and transfer of title.

4. Transaction processing procedure

Buying a property in Northern Cyprus is a relatively transparent process, especially when accompanied by an experienced lawyer. However, for foreign buyers, it is important to understand all the stages: from choosing an object to obtaining the title of ownership. Knowing this procedure helps you avoid mistakes, allocate your budget correctly, and minimize legal risks.

4.1. Object selection and negotiations

It all starts with choosing the right object — whether it’s an apartment in a residential complex, a secluded villa or a plot for construction. After preliminary approval of the terms and conditions (price, payment form, delivery date and equipment), both parties proceed to the preparation of the contract.

At this stage, it is important to:

• Check the legal integrity of the property (type of title, availability of restrictions or liens).
• Make sure that the seller (or developer) has the right to sell;
• Get preliminary calculations for taxes and fees.

4.2. Appointment of a lawyer and signing of a power of attorney

For foreign citizens, the purchase of real estate must be accompanied by a lawyerregistered with the TRNC Bar Association. So that they can act on your behalf (for example, sign a contract, submit documents), a power of attorney is issued — usually directly at the lawyer’s office or at a notary’s office.

4.3. Signing the purchase and sale agreement

After a legal review of the objectдоговор купли-продажи, a Contractof Sale is prepared of Sale, which specifies:

• Price and payment procedure.
• Delivery dates (if it is a new building);
• Liability of the parties;
• Conditions for furniture, appliances, communications and guarantees;
• Title transfer procedure.

The document should be written in English, with a translation into Russian if necessary. After signing the contract, it is registered in the Land Registry(Tapu Office).

4.4. Registration of the contract and payment of stamp duty

Within 21 days from the date of signing the contract, you must payStamp Duty-0.5% of the amount in the contract. After payment, the contract is registered in the land cadastre, which officially secures the buyer’s rights to the object (even before receiving the title).

Important: only after registration, the buyer receives legal guarantees, and the object is “assigned” to them at the state level.

4.5. Submission of documents for permission from the Council of Ministers

If the buyer is a foreign citizen, the lawyer submits documents for obtaininga purchase permit (Permission to Purchase). The package includes:

• a copy of the agreement.
• a certificate of non-criminal record (with translation and apostille);
• passport;
• the application form.
• documents on financial viability.

Waiting time:

From 6 to 12 months, depending on the season, traffic and complexity of the object.

At the same time, the buyer can already own, use and lease the object.

4.6. ObtainingTitle a Title Deed)

After approval by the Council of Ministers and full payment of the property, the buyer (or attorney by proxy) submits documents to the Land Registry for transfer of title to the property (Tapu).

At this stage, you will be paid for:

• Остаток по Transfer Fee balance (transfer fee) — the second part of 6%;
• VAT (if it was not paid earlier);
• If necessary — notary or cadastral fees.

After processing the documents, the owner receives a Tapu-a document confirming that he has become the official owner of real estate in Northern Cyprus.

4.7. Additional actions after the transaction

After receiving the title, we recommend that you:

• Register with the tax service and the municipality.
• Connect utilities (water, light, Internet).
• Insure your property (optional, but recommended).

Brief summary of the stages

Stage	Approximate terms	Who is responsible
Object selection, negotiations	1-7 days	Buyer
Appointment of a lawyer	1 day	Buyer
Signing the contract	1-2 days	Lawyer + seller
Stamp duty payment and registration	up to 21 days	Lawyer
Applying for a permit	after registration	Lawyer
Waiting for a permit	6-12 months	TRNC State
Transfer of title and final taxes	1-2 weeks	Lawyer + cadastre

Thus, with proper support, the process of registration of real estate in Northern Cyprus can be completed quickly, safely and without unnecessary risks. And then — just enjoy life by the sea, vacation or a stable income from renting out your property.

In the next section, we will summarize the results and give final recommendations for customers.

5. Conclusion

Buying a property in Northern Cyprus is a real opportunity to combine comfortable living, stable investment and enjoying the resort lifestyle. It combines a mild climate, stunning views, affordable housing prices and favorable tax conditions, which makes the region especially attractive for foreigners.

However, as with any real estate transaction abroad, it is important to understand all the mandatory payments, legal nuances and features of the legislation. A properly calculated budget should include not only the price of the property, but also stamp duty, VAT, transfer of ownership, as well as related costs — legal services, connection of communications and municipal fees.

Special attention should be paid to the following points:

• foreign buyers need to obtain a permit from the TRNC Council of Ministers;
• it is important to check the status of the title and avoid suspicious objects.
• do not skimp on a lawyer — an experienced lawyer will protect your interests at every stage of the transaction.

Despite the bureaucratic procedures and certain expectations, it is absolutely legal, transparent and safe to make a transaction in Northern Cyprus. As a result, you become the owner of real estate in a region that is actively developing, attracts more and more tourists and investors every year, and offers a high-quality standard of living by the sea.

If you consider buying a property as a step towards change, recreation or a stable source of income-Northern Cyprus definitely deserves your attention. And knowing the entire tax structure and registration rules, you can take this step confidently and at no extra cost.