Property taxes in the TRNC

Buying real estate in the TRNC involves not only the cost of the apartment or villa, but also a number of mandatory payments.

VAT on real estate purchases

When purchasing new real estate directly from a developer, a 5% VAT (KDV) applies. As a rule, it is not always included in the initial price quoted by the developer, so this payment must be specified in advance in the contract. On the secondary market, VAT is generally not charged.

For example, if a new apartment costs £150,000, the VAT will be:

£150,000 × 5% = £7,500.

Payment upon transfer of title

One of the most significant payments for foreign buyers is the Transfer Fee—a fee for the transfer of title (Koçan).

For foreign buyers, the rate is 9% of the property’s value. The first 6% is paid when the contract is registered with the Land Registry, and the remaining 3% is paid upon registration of the transfer of title.

For example, when purchasing a property for £150,000:

£150,000 × 9% = £13,500.

Stamp duty

Another mandatory payment is stamp duty. The rate is 0.5% of the property’s value as stated in the contract.

For example, when purchasing a property for £150,000:

£150,000 × 0.5% = £750.

The fee must be paid within 21 days after signing the contract, as the rate may triple if payment is late.

Capital gains tax upon the sale of real estate

It is important for investors to take this into account if the property is purchased with the intention of reselling it, since in such cases the tax liability falls on the seller, not the buyer.

The rate is 2.8% of the transaction value for a private seller and 4% for a professional seller or developer. Professional sellers include, in particular, companies and individuals for whom real estate transactions constitute a business.

For example, if a private individual sells a property for £200,000, at a rate of 2.8%, the calculation would be:

£200,000 × 2.8% = £5,600.

Annual property tax

The owner is also required to pay the annual property tax.

The rate is £0.2 per square meter of floor area per year. For example, if an apartment has a floor area of 100 m², at a rate of £0.2/m², the annual payment will be:

100 × £0.2 = £20

Additional expenses to include in your budget

In addition to taxes themselves, buyers should factor in related fees.

Legal services. A lawyer’s fees can cost around £1,000–£1,500. A 16% VAT is added to this amount for legal services.

Electricity connection. New properties may require a separate infrastructure or transformer fee, which is approximately £1,000–£2,000 (the exact amount depends on the project).

Notary fees. Document certification is also paid separately: £15 per document.

How much should you add on top of the property’s purchase price?

To get a sense of the budget, let’s consider an apartment priced at £150,000.

If it’s a new property, the following costs may be added to the purchase price:

• 5% VAT — £7,500;
• Transfer Fee — £13,500;
• Stamp Duty 0.5% — £750;
• legal fees — approximately £1,000–£2,500+;
• connection of electricity and utilities;
• notary and other administrative fees.

Therefore, buyers should expect to add approximately 8–20% of the property’s value to their budget.