Are there any limitations for foreigners purchasing immovable property in the TRNC?
First of all, any foreigner who wishes to purchase and register his ownership of an immovable property, has to obtain a permission from the TRNC Government.
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Are there any limitations to purchasing TRNC property?
Foreigners can only buy a flat, a house or a donum of land. Married persons are counted as one person and therefor can only buy one of these.
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Who will get the purchase permit and draw up the contract?
We acting as your Solicitors will obtain the purchase permit and draw up the legal contract in due corse.
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Do I/we have to register my/our contract?
According to the new law, all the sale contracts have to be registered at the appropriate District Lands Office. In private sales, one person to another, this contract may be exempt.
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Is there any time limitation for registering the contract?
Any new contract has to be registered within 21 days from the day of the signing.
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What are the taxes, fees and charges payable on the purchase or transfer of an immovable property?
Annual Immovable Property Tax, Stamp Duty, Capital Gains Tax Payable By Tax Withholding System, K.D.V. (V.A.T.), Transfer and Registration Fees, Municipality Fee, Fee For Title Deed.
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What is the meaning of Stamp Duty?
Each contract has to be stamped duly within a month from the day of the signing of the same. The purchasers, to make sure that their contract is registered at the District Lands Office, are paying this duty, which is 0.5% of the sale price.
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What is the meaning of Annual Immovable Property Tax?
This is a tax collected either by the Municipality or by the Tax Office annually. Tax is levied on the property dependent on the property location. Tax has to be paid by the registered owner, whoever is registered on the 1st day of January, and must be pa
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What is the meaning of Capital Gains Tax Payable by Tax Withholding System for Individual property owners?
Individual property owners have two exemption rights. These rights are to be used once in a lifetime; one is for a building site and the other for a house or a flat. If not exempt, the vendor has to pay 3.5% of the contract price.
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What is the meaning of Capital Gains Tax Payable by Tax Withholding System for professional owners and companies?
Professional owners and companies do not have any exemption rights. They have to pay 6.25% of the cortarct price.
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How much is the K.D.V. (V.A.T.)?
Purchasers buying property from a professional owner or a company have to pay 5% of the contract price as K.D.V. (V.A.T.)
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What is the meaning of Transfer and Registration Fees?
These fees are paid by the purchaser on the day of the transfer of the ownership from the vendor to the purchaser. Normally it is 6% of the contract price.
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Do the purchasers have any exemption rights when Transfer and Registration Fees are payable?
Yes, individual purchasers have an exemption right once in their lifetime, which allows them to pay half, when buying a building site and a house or a flat.
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What is the meaning of Fee for Title Deed?
On the day of the transfer, the purchaser has to pay a nominal fee, which is currently 13,50 YTL for each copy of the title deed.
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What is the meaning of "Kochan" (Koçan), "Taşınmaz Mal Koçanı", "Title Deed"?
"Kochan" is the registration certificate of an immovable property. It is also called as "Taşınmaz Mal Koçanı" and "Title Deed". It is prepared by the District Lands Office and gives a desctiption, shows the owner and any impediments.
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Do I/We need a will?
It is not always necessary. If no will is left, TRNC local laws will be applied. To change the situation you can make a will. There is no limitation for foreigners and they may dispose of their property by will, as they wish.
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Can a foreigner take a property as a guarantee, or collareral for a loan given by him?
No, a foreigner cannot give loan and cannot take a property as collateral. Unless he first obtains the approval of the Council of Ministers.
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