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All property sales transactions in Northern Cyprus are normally conducted in
British Pounds Sterling.
- Purchase Tax in North Cyprus is now 3% and is calculated on the nominal value
of the property as assessed by the Land Registry Office (LRO). The LRO
valuation is not directly related to the market value and is typically around
60-75% of the purchase price. (This assumes that the buyer is exercising their
one time option to pay this rate.)
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VAT (KDV) of 5% of the LRO valuation is currently payable to the LRO on
transfer of title, if the vendor is a company and if the buyer's application to
purchase was submitted after Jan 1 2005. Applications entered prior to this are
payable at 5% of the LRO valuation. (Note: The new government has committed to
review this rate in the near future)
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Legal service costs are normally a fixed price of £1000 or as negotiated
with your solicitor. This service normally includes land search, drafting the
purchase contract and application to Council of Ministers for permission to
buy.
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Most property purchases in Northern Cyprus require a connection fee to be paid
to the electricity and water utilities based on the cost of connection. Allow
£500 but check that this is itemised in the contract.
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We can recommend several reliable lawyers that offer a complete service.
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Purchase Tax and VAT are not normally included in the purchase price.
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