Properties in North Cyprus: things to consider
North Cyprus Property is becoming the most coveted property in the Mediterranean. This allure of this beautiful, mostly unstable island is starting to catch everyone’s attention. Whether you are looking for a retirement home or a holiday home, it is important that you understand what is involved, both in terms of time and money, before making the decision to purchase property in North Cyprus. Once you’ve visited this enchanted island where mountain and sea combine for a magical taste of modern life and ancient culture, you’ll find that time and money are well worth a little taste of paradise.
The first thing is to learn about the types of property deeds in North Cyprus. There are several types of scripts. The reason for this stems from the war that occurred in 1974 and the resulting settlement of the north side of the island. Foreigners can only buy one donum (1,600 square yards) of land. Some purchases must be approved by the Council of Ministers. While this approval process can take up to six months, a person can take possession of the land before the process is complete. Types of deeds include: Pre-1974 Foreign Ownership, a rare deed but does not need Council approval; owned by pre-1974 Turkish Cypriots, the most common type and requires Council approval; TRNC Freehold Document, a deed given to southern refugees in exchange for the property they left behind; the only land that is considered unsafe to purchase with this type of deed is land that was given to military personnel in exchange for services. ; and pre-1974 Greek Cypriot, a deed that has been assigned to property that does not have a title, usually comes on the market at very low prices and is not considered safe to buy. The best way to handle the deed situation is to hire a solicitor (attorney) to make sure the land you are buying has a clear and secure title.
You should also familiarize yourself with the additional costs involved in buying property in North Cyprus. These fees may include attorney’s fees; a purchase permit; VAT (KDV) – 5% tax payable to the Revenue and Taxation Office; 0.5% Tax on Documented Legal Acts payable to the Registry Office; local taxes; and the usual utility connection fees.