North Cyprus-TRNC Guide to Property Taxes

The percentages levied for each of the three types of tax are shown below:

TRANSFER FEE

The transfer fee is 6%. However, every person has a once in a lifetime option to reduce this to 3%. If a purchaser elects to use this option on the purchase, he or she will only pay 3%. Once this option right has been used, the transfer fee payable on all future purchases by that person will be 6%.
 

VAT FOR PROPERTY TRANSACTIONS

5% of either the assessed value or the sale price.
 

CAPITAL GAINS TAX

The rate will be 3.5% payable by the Vendor.
 

STAMP DUTY

This is 0.5% of the contract price provided this is paid within 1 month of the date of the contract. If it is not paid within this time, the rate increases in stages until after 6 months it becomes 1.5%.
 

FREQUENTLY ASKED QUESTIONS

Vat for Property Transactions

Capital Gains Tax

Will I have to pay Capital Gains Tax on my purchase?
Capital Gains Tax is usually paid by the Vendor, unless otherwise stipulated in your contract.

Will I have to pay Capital Gains Tax on the sale of my property? If so, how much will this be?
This depends on whether you are a private individual or a professional vendor. Every private individual has a once in a lifetime tax free sale option (for a house and land not exceeding approximately 1 donum). If you use this option, you will not be liable to Capital Gains Tax on that sale. On any further sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, therefore qualifying you as a professional vendor.
For professional vendors, there are no tax exemption rights. Capital Gains Tax is payable on every sale at a rate of 6.25%.

What if I sell my property before taking title? Will I still have to pay Capital Gains Tax? 
Some Vendors will insist that Capital Gains Tax will be paid by you on any profit made from the sale. They will pay their Capital Gains Tax on the original selling price only.

Taxes ……………