Additional Costs When Buying Property in Northern Cyprus

• Stamp Duty and Property Cost Calculation
• VAT and Title Transfer Tax
• Transformer Fee and Infrastructure Payments
• Legal Services and Other Mandatory Expenses

Stamp Duty and Property Cost Calculation

When purchasing real estate in Northern Cyprus, you must consider the stamp duty — 0.5% of the value stated in the contract. Payment is made at the tax office during contract registration.

Important: the total property cost includes more than just the price per square meter. The contract may include additional items, such as equipment worth £15,000 or property maintenance. Maintenance is accounted for annually, which significantly increases the total amount.

VAT and Title Transfer Tax

Additionally, the buyer should consider:

• VAT — 5% of the cost or as specified in the contract. Payment can be made as a lump sum or within a year after receiving the keys.
• Title transfer tax — 12% of the property value. Of this, 6% is paid at contract registration, and the remaining 6% upon transferring the title to the buyer’s name after obtaining government approval.

Transformer Fee and Infrastructure Payments

Infrastructure expenses should also be considered:

• Transformer fee — £1,500–5,000 depending on the property, paid to the developer.
• Deposit to Kibtek and water connection — up to 20,000 lira.

Legal Services and Other Mandatory Expenses

Legal support for the transaction is extremely important:

• Legal services — £1,500–2,500, paid when signing the contract.
• These expenses ensure the legal security of the transaction and proper processing of all payments.

Each additional expense item must be considered in advance to avoid unforeseen costs when purchasing property.