Taxes in Northern Cyprus are strictly regulated by the law of the Turkish Republic of Northern Cyprus

Taxes in Northern Cyprus are strictly governed by the law.

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

1. Stamp Duty.

The Stamp Duty (state fee for the stamp) is mandatory and has to be paid to the Tax Office for the registration of the Contract of Sales with the Land Registry no later than 75 days from the date of signing the Contract. The amount of the duty is 0.5% of the value of the property specified in the Contract. Payment is made at the stage of registering the Contract.

2. VAT.

The VAT rate is 5% of the value of the property specified in the Sales Contract. Payment is made upon receiving the keys.

3. Transformer charge.

The amount of payment varies depending on the property being purchased, including the connection of electricity and water supply, as well as telephone lines (approximately £3,000). Payment is made 3 months before receiving the keys.

4. Transfer Commission Fee.

The transfer commission fee has to be paid to the local Land Committee before the Title Deed is transferred to the buyer’s name. The amount of this fee for foreign citizens (except for citizens of the Republic of Turkey) is 9%* of the value of the property, calculated based on the value specified in the Sales Contract or the appraised value at the time of tax payment.

The payment of the fee is made in 2 stages:

The first part is paid when registering the Sales Contract with the local Land Registry;
The second part has to be paid no later than 75 days after the issuance of the permission for the Title Deed transfer to the buyer’s name issued by the Council of Ministers.

According to Decree 19/2025 dated May 15, 2025, the following payment scale for the transfer commission fee has been approved:

For foreign citizens (except for citizens of the Republic of Turkey):

First property: Stage 1 – Contract registration 6%, Stage 2 – Title Deed transfer 3%
Second property: Stage 1 – Contract registration 3%, Stage 2 - Title Deed transfer 6%
Third property: Stage 1 - Contract registration 3%, Stage 2 - Title Deed transfer 6%

For citizens of the Republic of Turkey:

First property: Stage 1 - Contract registration 3%, Stage 2 - Title Deed transfer 3%
Second property: Stage 1 - Contract registration 2%; Stage 2 - Title Deed transfer 6%
Third property: Stage 1 - Contract registration 3%; Stage 2 - Title Deed transfer 6%
Fourth property: Stage 1 - Contract registration 3%; Stage 2 - Title Deed transfer 6%
Fifth property: Stage 1 - Contract registration 3%; Stage 2 – Title Deed transfer 6%
Sixth property: Stage 1 - Contract registration 3%; Stage 2 - Title Deed transfer 6%

Attention! According to Law 39/2024 dated May 21, 2024, and the amendments made by Decree 19/2025 dated May 15, 2025, foreign citizens are allowed to acquire ownership of the following types of real estate in the territory of the TRNC in the following quantities:

For foreign citizens (except for citizens of the Republic of Turkey):

One plot of land of 1338 m²; or
3 (three) apartments; or
One detached house with a plot not exceeding 3300 m²; or
2 (two) two-story villas in a complex.

For citizens of the Republic of Turkey:

One plot of land of 1338 m²; or
6 (six) apartments; or
One detached house with a plot not exceeding 3300 m²; or
3 (three) two-story villas in a complex.

Now, let's learn about the taxes for the maintenance of already acquired real estate.

1. Annual property tax.

The amount of the tax depends directly on the area of the acquired property, calculated at the rate of 7.15 Turkish Lira for each square meter of covered area per year (open terraces are not included in the total covered area). This fee has to be paid after receiving the Title Deed once a year in the municipality of the place of residence.

2. Annual tax on cleanliness.

This tax is for maintaining cleanliness. It includes road cleaning, garbage disposal, and pest control. The fee is a fixed amount of 562 Turkish Lira per month (regardless of the property type and residential complex).

Additional information on taxes:

• Tax on Rental Income

If you rent out an apartment, you must pay a tax of 10% on the rental price.

• Capital Gains Tax

This tax is analogous to Income Tax and is generally paid by the seller when selling the property. The amount due is 2% of the Contract value of the property.