Below is an approximate example of the additional costs that you can expect
when
investing in a property in Northern Cyprus. The figures have been calculated
using a valuation figure of £100,000.
-
Purchase Tax of 3%: £100,000 x 3% = £3,000
[Purchase Tax is 3% for the first purchase only. For second and after Purchase
Tax is 6%. Purchase Tax is payable on transfer of title. Purchase Tax is based
on the Land Registry’s valuation (assessment) of the property. Assessed value
is usually considerably less than (around 60% of market/sale price) the selling
price since only bricks, mortar and size of land are taken into consideration,
not fixtures and fittings.]
-
VAT (KDV in Turkish) of 5%: £100,000 x 5% = £5,000
[VAT is also payable on transfer of title]
-
The costs of the electricity meter, water meter, and charge levied by the
Telecommunications Office for connection of telephone lines sum up to
approximately £280. (Gas (LPG) is bottled in Northern Cyprus)
-
Charges for provision of sewerage/drainage facilities: Currently at £460
approximately per immovable property (eg per apartment)
-
Solicitor’s (legal) fees are around £1,000
[Legal Fees usually include search, preparation of sales agreement, application
to buy from the Council of Ministers and transfer of title at District Lands
Office services]
-
Municipality Fees: 1% x £3,000 = £30
[1% Municipality Tax on 3% Purchase Tax]
-
TOTAL £9,770 (9.77% of purchase price or valuation, assuming that the two
amounts are equal)
|
