F.A.Q's about Purchasing Property in North Cyprus.
Q
I am not a citizen of the TRNC, but I want to purchase two properties in the TRNC?
A
You can sign the contract of sale for the two properties in your own name; however, you can only apply for purchase Permission for and take title to one property. Therefore, you will need to find a nominee (this person should be a friend or relative or someone you know and trust) to take title to the property and hold the property on trust for you or you will need to set up a TRNC company.
Q
What protection do I have between signing my Contract of Sale and receiving the Title Deeds?
A
In addition to your rights under the Contract of Sale under the general principles of Contract Law, since January 2008, it is now possible to register your Contract of Sale at the Land Registry. This formally registers your interest in the property and prevents any dealings with the property without your knowledge and consent i.e. it will prevent the vendor from selling, transferring or mortgaging the property without your consent.
Q
Can my spouse and I purchase one property each?
A
No, Husband and wife are counted as one household and the current property restrictions are one property per household.
Q
How long will the purchase permission process take and what does it involve?
A
This process can take some time - current estimations are around two years. The process involves searches being taken from the Land Registry, the Immigration and the Military.
Q
Do I need to wait for my purchase permission before I can move into my property?
A
No, Once your property is complete you will be able to take possession of your property and move in.
Q
Can I sell my property before I obtain my purchase permission?
A
This depends on the terms of your contract of sale. As standard practice solicitors, always try to negotiate with the vendor to insert a clause allowing you to sell the property before taking title. They would then simply prepare an assignment of contract to be signed between you, the vendor and the new purchasers assigning all of your rights and obligations under the contract to the new purchasers. Selling before taking title also has tax advantages as taxes are only payable when transfer of title takes place.
Q
What taxes are payable on the purchase and when are these payable?
A
Taxes are usually payable right at the end of the transaction after your purchase permit has been granted and the title deeds are being transferred into your name. However, some vendors require VAT to be paid on the sale price at the date of delivery of possession of the property.
Please see Guide to Taxes in North Cyprus.
The Partners Abroad team are available to answer any questions that you may have about buying property in North Cyprus . The above is only a guide to buying property and we always recommend that you seek Legal Advice before you enter into any agreements.
