Taxes in Northern Cyprus are strictly regulated by the law of the Turkish Republic of Northern Cyprus (TRNC).

When purchasing property in Northern Cyprus, you have to pay the following taxes in stages:

1. Stamp Duty.
Stamp Duty (the state fee for the stamp) is a mandatory tax, payable to the Tax office for the registration of the Contract of Sale in the Land registry. This fee is to be paid within 21 days from the date of signing of the Contract of Sale. The amount of the fee is 0,5% of the value of the acquired property object, specified in the contract. The payment is made at the stage of signing of the contract.

2. VAT.
The amount of VAT is 5% of the value of the property specified in the contract of sale and is payable within 3 months before the keys are received.

3. Transformer charge.
The amount of the transformer fee varies depending of the purchased object, including the provision of electricity and water communications as well as the telephone lines (approximately £3,000). It is payable within 3 months before the keys are received.

4. Transfer fee.
The transfer fee must be paid to the local Immovable Property Commission before transferring the Title Deed to the buyer's name. The amount of the fee is 12% of the property acquired value and is calculated on the basis of the estimated value. 

Payment for foreign citizens is divided into 2 stages: 6% must be paid upon the property registration, and the remaining 6% must be paid just when transferring the Title Deed to the name of a new property owner.

Now, let's consider the taxes on the maintenance of the acquired property.

1. Annual property tax.
The amount of the tax depends on the area of the acquired property and is calculated based on the rate of 3TL (0,10 usd) per each sq. m. of the covered area of the property annually (area of the open terraces is not included).
You have to pay this fee after obtaining the Title Deed, once a year in the municipality at the place of residence.

2. Annual tax on cleanliness.
The tax on maintaining cleanliness includes cleaning roads, garbage disposal, processing plants from insects. The fee is a fixed amount of 220TL (regardless of the property type and the residential complex).

Additional information on taxes:

•  Income tax on rented properties.
If you let out your apartment, you must pay the tax at the rate of 10% of the rental fee.

•  Capital Gains Tax
This tax is analogous to the Income Tax and, generally, is payable by the vendor of the property when selling the property object. The amount to be paid is 2% of the contract value of the property.