North Cyprus-TRNC Guide to Property Taxes in North Cyprus

There are four main taxes involved in any property sale and purchase transaction in the TRNC – Northern Cyprus.

These taxes are:

Purchaser's Transfer Fee

The transfer fee is Payable to the North Cyprus District Lands Office on transfer of title. Currently the rate is 6% of the District Land Office valuation. However, each person has a once in a lifetime option to purchaser a property at a reduced rate of 3%.

Vendor's Capital Gains Tax

Capital Gains Tax is payable to the Tax Office by the Vendor - currently 3.5% if the vendor is not a professional i.e. private homeowner not developer or construction company. Again each individual has a once in a lifetime option to sell one property without paying any taxes. If the Vendor is classed as a professional then the Capital Gains Tax rises to 6.25%. 

Vendor/Purchasers' VAT (KDV)

VAT (KDV) is payable to the Tax Office or to the Vendor only if he/she is considered a professional Vendor. All construction companies are professional so therefore VAT applies. However, a foreign national would not be considered a professional so if you are purchasing a resale property registered to a non TRNC Citizen then no VAT is applicable.  VAT is currently 5%

Purchaser's Stamp Duty

Stamp duty is payable to the Tax Office - currently 0.5% of the contract price if paid within 21 days from the date of signing rising to 1.5% if paid after this time.
Different taxes apply to gifts of property for no consideration and transfer of property between family members. 
 

All the above taxes are based on either the contract price or the District Lands Office valuation.

Apart from the Stamp Duty which needs to be paid within 21 days of signing contracts, the remaining taxes are usually paid on transfer of title which can take approximately two years to be granted.

Percentages levied for each of the three types of tax