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Taxes in Northern Cyprus when buying real property
When buying real estate in Northern Cyprus, you will consider these main types of taxes:
Transfer tax (3%), which stands for the transfer of ownership of land, it is paid to the Land Registry Office.
VAT (5%), which is paid to the Seller or the Tax Inspectorate unless the Seller in a private person.
Stamp duty (0.5%), which is payable to the tax office.
To calculate the transfer tax, the Tax office requires a contract of sale. And the transfer tax itself can be calculated at the contractual or assessed value (which will be higher).
According to the new regulation of 02.01.2008, all contracts of sale of real estate in Northern Cyprus must be registered with the Land Registry within 21 days from the date of signing the contract. Also, before registration of the contract, it is necessary to pay the stamp duty (0.5%). A stamp duty receipt will need to be submitted to the electricity department when you apply for the electricity meter.