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Once you have chosen the Eurocoast property that you wish to purchase and have agreed the price and terms you will need to use the following as a guide. At this stage a reservation deposit is paid to Eurocoast to secure the chosen property.
You will need to instruct a Solicitor to agree contract for terms of the sale, price, timescale and any other special conditions. The Solicitor will also carry out a search on the land to establish that there are no charges registered against the land and that it is free of any encumbrances.
Eurocoast and you are given a draft of the Contract to read and to ensure that we both agree & understand all the conditions. As with the UK It is always advisable to have independent Solicitors acting for each party.
You are required to pay the agreed first payment to Eurocoast, this can differ depending on the development or how near the property is to completion. And then follow the payment schedule as per the contract that has been agreed. We will supply regular progress updates for you.
The Solicitor applies for a Purchase Permit from the Northern Cyprus Council of Ministers.
Currently the Council of Minister are issuing Purchase Permits in arrears, running between 24 and 36 months from the date of application. However in the case that the property is completed before the Permission to Purchase Permit is granted the Purchaser may legally take possession and have full rights for the property.
Once the Purchase Permit the Title Deed of the land (Koçan) and the property can be transferred from the Vendors name into the name of the Purchaser of the property.
The Vendor is responsible for registering the whole of the property as per the plans onto the Title Deed e.g. the Title Deed may show that the land was agricultural land with trees and on transferring this land with a property the new Title Deed will read that the land has been developed and a description of the development will be added to the Deed.
Foreigners purchasing a property do not have to be a resident to be able to purchase. As a foreigner you have the right to live in the TRNC for up to 90 days before having to register and start the procedure for becoming a resident.
NOTE:
A foreigner can only purchase a maximum of one donum of land OR one apartment OR one villa.
LAND
The same procedure is required as above when purchasing land however once the Contract has been signed and the deposit has been paid, the balance due to Eurocoast is usually paid at that time.
TAXES AND SOLICITOR
At present the taxes payable to the Government on the transfer of the Title Deed from the Vendor to the Purchaser are as follows: (Based on the valuation of the Property by the Lands District Office which may not be the same as the Purchase Price)
1. Stamp Duty set at 6% although if you are a first time purchaser then the Government will allow a fifty percent discount.
2. Council Tax of 1% of the 3% above
3. VAT equal to 5% of the above valuation
Note: the discounted figure 3% stamp duty only applies to properties that have 200m2 or less closed area. Anything in excess of this will be charged at 6%.
4. Solicitor fees are usually £1300 this cost include all the necessary legalities for the completion of a property purchase.
PROPERTY TAX
Usually this is a minimal, annual fee paid to the Lands District Office and is calculated on the internal square metreage of the property.
CONTRACT TAX FEES
According to the TRNC laws all Contracts are stamped by the Tax Office on receipt of the contract tax which is 5/1000th of the Sales Contract.
For example: Sales Contract price: £ 99,000 x 5 ÷ 1000 = £ 495
POLICE CHECK REPORT:
A foreigner is required to contact there local police station and request a police check form that once filled in needs to be certified that this is the correct information and returned to the Solicitor as it will be required for the approval of Permission to Purchase.
DISCLAIMER
All the above figures were correct at the time of updating this information page and we will endevour to keep our information up to date.
However, the above figures are a guide only and for general information and should not be relied upon when entering into a Sales Contract.
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