Investment Property in Cyprus

Property purchase - North Cyprus

Freehold property

The process of purchasing property in the north of Cyprus depends on what sort of deed the property holds. The process for purchasing a freehold property will start with the terms of sale being set out in an original contract which is then signed by both parties. The buyer will often put down a deposit of around 10% at this stage.

Applying for permission

Permission is required from the Council of Ministers for purchase and the buyer’s solicitor will apply for this. On receipt of the permit, the buyer will make the rest of the payment for the property. If the property is bought off plan and the permit is granted before completion, the buyer will often retain around 5 – 10% of the value until completion, for their own security. When full payment has been made, the title deeds are transferred.

Purchase from a foreigner

The process of purchasing from a non-Cypriot seller is simpler, since the Council of Ministers’ checks have already been conducted. Therefore, once the original contract has been signed by both parties, the full amount is paid (or 90 – 95%, if the purchase is off plan, with the remainder paid on completion) and the title deed is signed over.

Leasehold property

If the purchase is of a leasehold property, the buyer will follow a similar process to that of the freehold purchase. However, the buyer will apply for a permit to the Ministry of Tourism rather than the Council of Ministers. This can be done directly or through a solicitor.

Ministry of Tourism permit

Once the original contract has been signed by both parties, the buyer will apply to the Ministry for a transfer of the lease. They will pay a 10% deposit which is held by a third party, and if permission is granted then the deposit will go to the seller, the remainder can be paid and the lease transferred.

Costs and taxes

The costs and taxes of purchasing a property in the north of Cyprus may differ according to circumstances. The following is a guide to these costs:

Stamp duty – payable at 6% of the property’s value according to the Land Registry (this may be different to the price paid for the property)
VAT – to be paid at 5% on professional new developments
Application for building permission – if required, payable at 2.5%
Purchase permit application – if required, will cost around CY£1,000
Contract of transfer – if required, will cost around CY£600