North Cyprus Property Tax

Property in North Cyprus is taxed as follows:

• New build properties in North Cyprus are charged a VAT of 15% at the time of transfer of property title.
• A purchase tax of 3% is levied upon the transfer of property title and the basis for this is the registration value of property.
• Local council tax 1% of 3% is payable to Belediye (Local Council).
• There is no Capital Gains Tax in North Cyprus on buyers of property.
• If you are selling property for the first time then again you are exempt from Capital Gains Tax, as per Tax Laws of Northern Cyprus. According to the Capital Gains Tax, every individual or a household is exempt of Capital Gains Tax once in lifetime on the sale of one property or land provided it is less than one DONUM ( please refer to North Cyprus land sizes).
• If you are not a first time seller of property; local or foreign, Capital Gains Tax in Northern Cyprus is applicable at the rate of 3.5% for property sales. But this tax is valid only for a maximum of 3 property sales per annum.
• If you are a professional property vendor and makes sales of more than 3 properties the Capital Gains tax is 6.25% on every property after the first three sales.
• No Capital Gains tax is applicable if you resell the property in North Cyprus without the title changing to your name; an example in this case can be Off plan property. But in such a case a stamp duty of 0.5% is levied and is payable within the first month.

For more information on title deeds please refer to North Cyprus title deeds.