Terms to purchase a property

Investment is one of the most important and vital factors in a country. The investors commonly have questions on their mind like how to obtain a residency either through buying a property or by registering a company. The other question which comes to mind when buying a property could be the economic future of the island and whether you can sell your property with profits or not.

Regarding the numerous questions about culture and way of life in Cyprus that most of the buyers doubt and ask, it is notable that from 2014 up to now, the number of immigrants including students and families had 30% increase. Due to the potential of island in investment and due to the geographical and strategic situation, most investors have come to this country. Because of the economic stability compared to neighboring countries, the prices are favorable and it makes the northern Cyprus a reliable investment base.

The remarkable thing is that, according to the decision of the government of the north Cyprus, every foreign person can only buy one property or land, up to maximum of 6,000 meters. If you want to buy more than the limit, you simply have to register a company in this country.

There is no need to establish a company to buy a property in northern Cyprus so the administrative process and legal process of buying property on the island is very simple. The process will start with the payment of 30% of total amount, and then the house or the customer will register property in question. It is possible to do the stages of residence in two weeks. All existing projects with pay_as_you_go payment options from 2_5 years will be available for customers.

  • Selection of the property and agreement with the seller regarding the price
  • Payment terms and conditions
  • Selection of the legal representative
  • Receipt of the certificate of accommodation from the police station
  • Draft the contract of purchase of the property by the attorney and receiving confirmation from purchaser
  • The contract includes terms such as ( price, terms of payment like instalments as well as the date of completion of payment) and other options of the property

It should have noted that the attorney examines the property deed and ensures that there is no mortgage or no demand or debt on the property. The billing of all legal costs and taxes payable by attorney to the buyer is as follows:

  • The costs of arranging and signing the contract
  • The cost of the tax stamp will be 0.5% of the price specified in the contract
  • The attorney will do the official registration of the contract in the real estate registry
  • The attorney will apply the purchase license in the name of the buyer by proving that there is no certificate of abuse

 

How to set up a property purchase contract in northern Cyprus

Setting up a property contract in north Cyprus, like other countries, requires legal procedures based on legal documents. In comparison with other countries, the process is easier. In the first step, an advanced payment must be paid to the seller, depending on the value of property and it is usually between 400 and 1000 £.

After 3days to 2 weeks, after paying the prepayment by the buyer, a sum of 25_30 % of the total amount of the contract is concluded. This contract is set up in two versions in English, one belonging to the buyer and the seller owns the other. The contract will file along with other documents including general land register sheets, official registration dates, owner and proprietor identity documents, registered documents and a passport of the buyer at the real estate registration office in the northern Cyprus.

Official registration of property purchase contract

After conclusion of the contract between two parties, the legal producers for the purchase of the property must made within a maximum of 21 days. Because after purchase of the property, the owner will be the owner of the land in addition to the building, the north Cyprus government is responsible for addressing this issue, and the owner must pay the taxes to tax office. The taxes are the tax stamp with amount equal to 0.5% of the total purchase price. Then they must pay to the property and land office, the amount of 15£ in order to register property in the name of the buyer

Obtaining a residence

After acquiring property in north Cyprus, the stages of obtaining a residence will be as follows:

First step is to pay taxes equal to 0.05% of the total amount of the purchased property. The next step is to open a bank account with minimum balance of 25,000₺.

After registration of the property in immigration department, also after preparation of result of blood test, in order to verify and ensure health of the applicant during first three weeks of the initial residence, a residence certificate of six months period is given. After the six months passed, a residency certificate of one-year will be given to the applicant.

Regarding the cost of living, it is worth mentioning that the cost of a six-month residence is 170₺ and the annual cost is 340₺. The remarkable thing for immigrants is that if you buy a property and register a company, after six years the citizenship card of Cyprus will present to you

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