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Faq
BUYING PROPERTY IN THE TRNC-FREQUENTLY ASKED QUESTIONS
I am not a citizen of the TRNC but I want to purchase two properties in the TRNC?
How can I do this?
You can sign the contract of sale for the two properties in your 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. Please ask us for more detailed advice on trusts and companies.
Can my spouse and I purchase one property each?
No. Husband and wife are counted as one household and the current property restrictions are one property per household.
How long will the purchase permissions process take and what does it involve?
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.
Do I need to wait for my purchase permission before I can move into my property?
No. Once your property is complete, you will be able to take possession of your property and move in.
Can I sell my property before I obtain my purchase permission?
This depends on the terms of your contract of sale. As standard practice at Naomi Mehmet & Partners, we always try to negotiate with the vendor to insert a clause allowing you to sell the property before taking title. We 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 also has taxes advantages as taxes are only payable when a transfer of title takes place.
What taxes are payable on the purchase and when are these payable?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.The rate of tax are as follows:· Land Registry Transfer Fee - 6%. However, every person has a once in a lifetime exemption to reduce this tax to 3%. If you decide to use your option right, you will pay 3% · VAT- 5% There is also a new regulation governing stamp duty on property purchases. The Tax Office is now requiring the contract of sale to be presented prior to transfer for title and for stamp duty to be paid. Stamp duty is payable at 0.5% of the contract price if paid within 1 month of the contract date. If it is not paid within this time, it increases until after 6 months, it becomes 1.5% of the contract price.For more detailed information on taxes, please ask us for a copy of our guide to the taxes payable on property transactions.Email :
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Telephone: +90 392 815 1097Fax: +90 392 815 9369
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