Frequently Asked Questions
1.EŞDEĞER KOÇAN (EXCHANGE TITLE): In 1974, Turkish Cypriots who had to migrate to Northern Cyprus by leaving their real estate in South Cyprus, were given equivalent real estates by the TRNC government in return for the real estates they left in the Greek side. The Turkish Cypriots who have received their equivalent real estates have signed the documents on the grounds that they have waived their land in the Greek part of Cyprus and obtained the substitute real estate from the TRNC state. Eşdeğer Koçan (Exchange Title) is considered safe and all kinds of buying / selling can be done.
2. TRNC title
TÜRK KOÇANI: It is the type of title deed for the houses, land and workplaces owned by Turkish Cypriots or foreign nationals before 1974. Turkish title is considered to be the most safe.
3. (TAHSİS) ALLOCATED TITLE: As a reward for success in the war by the TRNC government or people from Turkey to the country in 1974 after a settling of estates were given allocated land/property to sustain life. These are under the guarantee of the TRNC state and the owners have all ownership rights over property.
As foreign nationals cannot make land transfer transactions without obtaining the Property Purchase Permit, the sales contract, which has been disclosed to the tax office, is registered to the Land Registry Office and the right of ownership of the buyer becomes legal.
5% of the purchase price shall be taken as VAT, and 6% shall be taken as title transfer fee once the Permission to purchase is obtained and title can be transferred into the new owner’s name.
In the event of first purchase in TRNC, the transfer fee is reduced to 3% of the sales price of the purchased real estate. The rate is 6% for all persons who have used the discount right before (subsequent purchases).
The stoppage (sales) tax is paid by the seller to the Tax Office. The rate is 4.00% for profit-making resellers (contractors), is 2.8% for non-profit (owner-owned) sellers.
If the permission will be late; The contract will already be registered at the Land Registry within 21 days of contract signing, and the property can be re-sold under this contract without issue.