I am not a citizen of the TRNC, but I want to purchase two properties in the TRNC? How can I do this?
You can sign the contract of sale for the two properties in your own name; however, you can only apply for purchase permission for and take title to one property. Therefore, you will need to find a nominee (this person should be a friend or relative or someone you know and trust) to take title to the property and hold the property on trust for you or you will need to set up a TRNC company. Please ask your solicitor for more detailed advice on trusts and companies.
Can my spouse and I purchase one property each?
No. Husband and wife are counted as one household and the current property restrictions are one property per household.
How long will the purchase permission process take and what does it involve?
This process can take some time – current estimations are around two years. The process involves searches being taken from the Land Registry, the Immigration and the Military.
Do I need to wait for my purchase permission before I can move into my property?
No. Once your property is complete, you will be able to take possession of your property and move in.
Can I sell my property before I obtain my purchase permission?
This depends on the terms of your contract of sale. Your solicitors prepare an assignment of contract to be signed between you, the vendor and the new purchasers assigning all of your rights and obligations under the contract to the new purchasers.
What taxes are payable on the purchase and when are these payable?
Taxes, apart from stamp duty which is payable within 21 days of the date of the Contract, are usually payable right at the end of the transaction after your purchase permit has been granted and the title deeds are being transferred into your name. However, some vendors require VAT to be paid on the sale price at the date of delivery of possession of the property.
The rates of tax are as follows:
- Land Registry Transfer Fee – 6% ( 3% on first purchase). However, every person has a once in a lifetime exemption to reduce this tax to 3%. If you decide to use your option right, you will pay 3%.
- VAT – 5%
- Stamp Duty – 0.5%