Frequently Asked Questions
We get many questions from our customers. Here we have collected the most common questions with answers. Hopefully, the answer to your question is here. Otherwise, you are of course welcome to contact us here with your questions or comments.
The Immovable Property Commission (IPC) was created by the European Court of Human Rights in 2005 to provide a local solution for land or compensation requirements to Greek Cypriots. Previously, their only opportunity was to turn to the “European Court of Human Rights” (ECHR), which was unnecessarily costly and time consuming for both the court and the plaintiff.
IPC has its office in Nicosia and its operations officially started on March 17, 2006.
In addition to providing a solution for the plaintiff, it has also led to providing complete protection for buyers of real estate in the north.
The ECHR has established that it is a final and effective solution to the Cyprus problem. Landowners can receive either financial compensation or compensation with other land (if the property has not been improved or transferred to another).
IPC has successfully contributed to an overall solution of land issues in northern and southern Cyprus.
In addition, the IPC has successfully managed the exchange of land between Turkish and Greek Cypriots, which reduces the economic burden for IPC.
A study by ECHR of all decisions on land issues provides total security and protection for buyers of real estate in northern Cyprus. Buyers are also protected and can feel completely confident in the fact that ECHR is the supreme court and its decision is final and can not be appealed.
Non-citizens have the right to own land / land (only one) of max 5 donum (1 donum = 1339 square meters) per household. If you wish to own more land or more real estate, or a property larger than 5 donum, you need to find a person you trust who can own the property in his name or register a company that owns real estate.
Can my husband and I buy a property each?
No, husband and wife are counted as a household and current property laws say only one property per household.
Yes, you can sell your property before you have received your title deed
No, when your property is ready, you will be able to take possession of your property and move in.
This depends on whether you are an individual or a professional seller. Each individual has the opportunity to use tax-free sales at any time in his life. If you make use of this, you will not have to pay a profit tax. On each subsequent sale, you will pay 3.5% profit tax, based on the fact that you do not sell more than 3 properties during that year. If you sell more than 3 properties in one year, you count as a professional seller and pay 6.25% profit tax.
If you sell the property for more than you bought it, you will still have to pay a profit tax. If the team has not changed your name, it is still in the last seller’s name. The name of the team speed determines who needs to pay a profit tax. Since the previous seller will not want to pay for more profit than it had, it will be written to a clause in the contract that points to this. You will therefore be paid a profit on your part of the profit.
As a European citizen, you can borrow from a North Cypriot bank 50% of the purchase price at an annual interest rate of 6-8%. This only applies to real estate with registered landlords (not “off-plan” real estate and real estate under construction). To be granted loans, you must meet certain requirements from the bank, including fixed income from your home country.
The most common thing is to lend a possible. property in the home country for property abroad. This means taking a loan on an existing mortgage loan with significantly lower interest rates than a North Cypriot bank offers.
For buildings that are off-plan, under construction, or new production, construction companies offer a financing plan, often called “in-house loan” or “payment plan”. This varies between the companies but usually, you pay 25-30% of the purchase price when signing the purchase agreement and the remainder in installment for 3-5 years without interest or at a lower interest rate than the bank.
If you are a citizen of an EU country with at least 6 months left before the passport expires, you will get into Northern Cyprus. When you arrive at Ercan Airport in the north or when you cross the South and North border you will receive a visa in your passport. There is no cost for this. Normally you can stay in the country for 90 days per visit.
There are several passages along the border where you can take you between the Turkish Republic of Cyprus and the Greek Republic of Cyprus. The main passage is in Nicosia at Ledra Palace and Metehan and at Famagusta. EU citizens can cross the border with a valid passport, while other citizens need to contact the Greek Embassy in their home country. Your passport will be checked on both sides of the border. There are restrictions on what and how much you can import / export. E.g. There are restrictions on alcohol, cigarettes, etc. Getting across the border is very easy. If you drive by car, you will need insurance that can be purchased at the border. One month costs about £ 25. (You need insurance for each side).
The currency is in Turkish Lira. The exchange rate is liquid but stable. Euros, US Dollars, and English Pounds usually also pay. If a possible exchange is usually paid back in Turkish Lira. Generally speaking, it is most advantageous to trade with the Turkish Lira.
All property purchases are made in English Pounds. Attorney fees and taxes on the purchase of the property are also made in the English Pound.
After you find the property you would like to buy, you should appoint a lawyer to do the due diligence and contracts. The lawyer will take care the transaction for you and make sure that you have a smooth process.
You do not need to come to Cyprus at all during the conveyancing process. We can deal with almost everything for you.
It depends on the reason why the property does not have title deeds. Read our article for more information on why a property in Cyprus may not have a title deed and how to decide if it is ok to proceed.
There are a few considerations about this. The estate agent profession is regulated in Cyprus. A regulated estate agent’s fees are deductible from capital gains tax calculations (on the profits from the sale) as a recognizable expense. Other than that you should look for someone who has sold properties in the area where your house or apartment is situated before and you enjoy working with.
Typically, most conveyancing transactions in Cyprus take anywhere from 3 to 6 months. We conclude most of our straightforward transactions in around 30-45 days. With our innovative Fast Conveyancing Initiative, we can do the conveyancing in 10-15 days or even less on certain occasions. Timing depends on the availability of funds, the cooperation of the involved parties (buyer, seller, and their lawyers), and the date on which the seller wishes to vacate the property.
Typically the Estate agents’ fees are 5% plus VAT and these are paid by the seller of a property. If you are a buyer of property it may not make a difference whether the agent you use is a registered estate agent or not. If you are a seller of the property, you must be aware that the commission paid to a registered estate agent is deductible from any Capital Gains Tax you may have to pay due to the sale if you are making a profit. Commission paid to a non-registered estate agent is not tax-deductible.
The reservation deposit usually takes the property off the market for a period of around 30 days (or as otherwise agreed) to allow for searches to be carried out and the transfer of further funds for the signing of contracts.
Typically, a property buyer who backs down after paying a deposit loses the deposit. The Seller however may agree to return the deposit back but this is unlikely in most circumstances.
The following is an indicative list of the things you may have to pay when you are selling your property in Cyprus Legal fees, VAT and disbursements (e.g. for the certification of documents), Any outstanding mortgage/ loan balances to utility authorities, local authority taxes (e.g. refuse and sewage) and management committee (if in a building block or project with communal areas)Agent’s commission Immovable Property Tax (IPT) if you held the property during 2014-2016 In addition, the law provides that every seller of property must deliver an Energy Efficiency Certificate but some buyers don’t insist on this.
This makes the transaction much easier and faster as buyers or sellers don’t have to be in Cyprus for the duration of the transaction.
Yes you can. We will explain how you can do this at the start of a transaction.
Depending on the specific bank’s requirements we have a list of documents that we will give you and we will assist you in the process.
Yes if both the seller and the buyer of the property agree.
This is risky as you and the developer have conflicting interests; you wish to buy for less and with better terms for you while the developer wishes to sell for more and with better terms for him.
You should. Very often the legal terminology and drafting is not easy for a non-professional to understand. In addition to what is written in a contract, one should note that omitting important information can also be very detrimental.
The process of property development, starts with an application for the division of the land in order to become a plot suitable for construction. Then a planning and a building application must be obtained prior to start building. As soon as the construction finishes, the authorities will examine that construction has been made according to the licenses and that all terms of the licenses have been observed and if everything is ok they will issue the final approval certificate. The separate title deeds for each property are issued after the final approval certificate. For more information as well as the reasons that complications may arise
This depends on the reason the title deeds have not been issued, the price and the reason for purchase.