When you are looking to purchase a North Cyprus apartment or villa, it’s important to budget for the costs of buying. Just as in your home country, the total bill for your new property purchase will always be higher than just the property price. At North Cyprus International (NCI) we want to help our buyers avoid any unexpected costs and stay stress-free! This article and chart should make it easy for you to calculate roughly what extra charges to expect as you travel the purchasing journey from that exciting reservation deposit day to actually having the keys in your hand.
Unlike some other countries, in North Cyprus the costs of buying vary depending on the type of property which you are about to purchase and whether there has been an owner before you who has already borne some of these costs. You should budget between 5% and 16% extra on top of the property value, with the lower figure applying to a property where most of the initial costs have been paid.
To help our customers understand how to budget the costs of buying, we have divided the types of properties into three types.
Resale and new-build properties in North Cyprus have different costs of buying!
- A “resale” or pre-owned property which is being purchased from a private individual. The title deed is in the individuals’ name and the VAT is paid. This may also be furnished.
- A “resale” or pre-owned property which is being purchased from a private individual, so may be furnished, but where that individual has not paid to take the deed into their name. The deed is either pending or still in the developer’s name. In this case, VAT will usually be payable by the buyer, even if the seller has already paid it once before. This is still counted by the government as a “professional sale”.
- A new build key-ready or under construction property being purchased from the developer. VAT at 5% is ALWAYS due to the government on such a property, but not until you take possession. You will obviously also have the costs of furnishing and equipping the property.
List of possible costs of buying
- Legal Conveyancing Fees (payable up front)
- 0.5% Stamp Duty to the government (always due)
- 5% VAT to the government (if not paid, or due again)
- 3 or 6% tax to transfer the deed into your name (you choose when to pay this – 3% only applies to your first purchase)
- “Transformer fees” usually payable on new build properties to the developer
- Air conditioning machines (if not included)
- Furniture (if not included)
- White goods (if not included)
This list does not include your first payment for any site-management fees which may be due. There will be extra costs associated with taking out a bank mortgage which is NOT covered in this chart. For our mortgage costs, please see North Cyprus Mortgages.
COSTS OF BUYING BASED ON A PURCHASE OF £100,000.
|TYPE OF PROPERTY|
|1. Resales Title in Owner’s name, VAT Paid (“private sale”)|
|2. Resales – Title not in owner’s name (still counted as “professional sale”)|
|3. Brand new properties (counted as “professional sale”) – always unfurnished (furniture packs available to purchase)|
|TYPE OF COST|
|Legal Fees (usually around £1,500 and paid up front in TRNC due to most customers being overseas residents)||£1,500||£1,500||£1,500|
|Stamp duty at 0.5% payable immediately on registration of contract||£500||£500||£500|
|VAT at 5% payable soon after purchase||NOT DUE AS PAID – private sale||£5,000 – due as professional sale||£5,000 – due as professional sale|
|Transfer of title deed into your name when deed is ready 3% (you can do this whenever you wish once it’s ready)||£3,000 (when you want)||£3,000 (when you want)||£3,000 (when you want)|
|“Transformer fees” – this is your share of the whole site cost of putting electricity and water to the site – due on brand new properties||NOT DUE||NOT DUE||Varies from £1,000 to £2,000|
|Air Con Units||Usually installed||Usually installed||Around £300 – 400 each – you will need at least two say £700|
|White goods (fridge, cooker, hob, extractor, washing machine, dishwasher if needed)||Usually included||Usually included||£1,000 upwards|
|Furniture||Sometimes included||Sometimes included||At least £3,000|
|APPROX TOTALS||£5,000||£10,000||Upwards of £16,000|
If you would like to have a projection drawn up of the probable costs of buying any of our North Cyprus International (NCI) properties just contact us either by
- live chat on the website northcyprusinternational.com,
- by Whatsapp on +44 7799 212425,
- ‘phone +44 207 112 8086 or +90 548 861 0600
- or email: firstname.lastname@example.org.
One of our professional staff will be glad to talk you through the costs associated with the property you have in mind. We look forward to hearing from you.