VAT and other costs
Posted: Mon 25 Oct 2021 8:19 pm
If buying a property where the deeds are ready to be transferred, what is the rate of VAT and what are the other costs involved apart from the usual lawyers fees?
Taken from infonorthcyprus :
Costs of Purchasing a Property
In North Cyprus the costs of buying vary depending on the type of property you purchase. If you purchase a new property you will need to pay taxes/Connection fees which are not applicable if you purchase a ‘second hand’ property where the previous owner will have already paid these costs.
When considering the cost of Purchasing a Property there are 3 main types :
⦁ A “resale” or second hand property purchased from a private vendor. The title deed is in the individuals’ name and the VAT is paid.
⦁ A “resale” or second hand property purchased from a private vendor, where the vendor has not taken the title deed into their name. This may be because the title 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 type of purchase is generally considered 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 payable to the tax office on all new property, but not until you take possession.
If you purchase a ‘second hand / pre-owned’ Property you should budget approx. 5% for purchase costs in addition to the price of the property. If you purchase a property where the vendor has not taken the title deed or a brand new property the additional costs may be up to 16% of the property value.