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TRNC GOVERNMENT ANNOUNCES PROPERTY TAX REDUCTION

The TRNC Government has announced a reduction in purchase taxes to be paid upon transfer of title deeds for a period of three months. This reduction which came into effect in January 2009 equates to a reduction of transfer taxes of 75% for purchasers. If your permission to purchase has been granted by the Council of Ministers your transfer taxes on your first purchase have now been reduced from 3% to 0.75% of your purchase price. If this is NOT your first purchase in the TRNC then your transfer taxes have been reduced from 6% to 1.5% of your purchase price. 5% VAT is still applicable if you have purchased from a developer/construction company/professional seller.

There has also been a 2% reduction in selling taxes for a period of three months from January 2009. Persons classed as private sellers now have a tax reduction from 3.5% to 1.5% of the selling price. Persons classed as professional sellers now have a tax reduction from 6.25% to 4.25%. For more information on these taxes and the status of your permission to purchase we recommend that you contact your legal representative.

Stephen Donaghy

Donaghy & Beyler Property Agents and Lettings