North Cyprus As a Lifestyle Destination
Why is Northern Cyprus such a popular ‘Lifestyle Destination’?
The rising popularity of sunny Cyprus among the most discerning of real estate enthusiasts and relocating families/businesses can be attributed to a number of factors. It has always been a great destination because of its sunny climate, rich history, the wealth of entertainment options, spectacular landscapes and the general warmth of the locals.
Purchasing a home in Northern Cyprus is quite straightforward. On finding the right property and agreeing on the price, the vendor and purchaser sign a preliminary agreement binding such vendor to sell and the purchaser to acquire the property on terms and conditions agreed upon subject to good title and the issue of relevant permits. Some places like Kyrenia and Famagusta, although attracting higher prices offer superb rental returns, given that they are tourist meccas all the year round.
North Cyprus is not just about beaches and tanning, eating good Mediterranean food and enjoying the crystal clear waters. Cyprus is a country with a rich history once inhabited by the Assyrians, Egyptians, Persians, Romans, Arabs, Knights Templar, Lusignans, Venetians, Ottomans and the British with hundreds of traditions and so many cultural sights. Meeting the warm and proud people of Cyprus can give you a clue on the meaningful history and civilization.
The Education System
The educational system is first rate with a good selection of private, international and public schools. The Island could also be said to offer a multilingual service as most Islanders speak English and native Turkish language.
The Best Experience Ever
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The Health System
You could say this is writing for the record, for the North Cyprus history books. It will certainly be documented elsewhere but we felt it necessary, for our own memories, to write about the period in time where life stood still for the world. North Cyprus will not get much attention for its efforts to defeat Covid-19 on the world stage, so we will shout about it here!
Now if that were not enough Cyprus also one of the most attractive tax systems in the world. Investors can take advantage of a relatively low level of taxation.
Taxes on the purchase of a real estate by foreigners in Northern Cyprus:
- Stamp duty– the tax, which is paid while registering the contact of sale to the Tax Office. The tax should be paid, and the contract should be registered within 21 days from the date of signing of the contact of sale. The fee is 0.5% from the sale price stated in the contact of sale.
- VAT– The amount payable to the Vendor is 5% of the value of the purchased property, stated in the contact of sale.
- Transformer charge– the amount depends on the purchased object. It includes the provision of electricity and water communications.
- Annual property tax – It is calculated, basing on the rate of 1.25 Turkish Lira per 1 sqm. of covered area of the property. It is payable to municipality.
- Costs and Taxes payable during Transfer of Title Deeds
- – The transfer fee which is payable to Land Registry Office
- – The capital gains tax which is payable to the Tax Office
- – The VAT which is payable to the Tax Office
The Capital Gains is usually payable by the vendor and the transfer fee is usually payable by the purchaser (although this can be varied by the parties in the Contract of Sale). VAT, however, is subject to the terms of the Contract of Sale agreed between the parties (i.e. whether or not the sale price includes or excludes VAT).
The transfer fee payable is 6% upon Land Registry’s valuation of the property purchased with the option to pay 3%. Once this option right is used, the fee payable is 6% for future transfers.