The taxation scheme for real estate and transactions with it is not complicated enough.
- When buying, you must pay a stamp duty of 0.5% of the cost. This must be done within one month after signing the contract of sale.
- Within one year after putting the object into operation, it is necessary to pay VAT 5% of the cost
- After putting the object into operation and full payment under the contract of sale, the owner has the right to receive a title to the right of ownership, this is another 12% to the state treasury.
- Also, in Northern Cyprus there is an annual property tax. The amount of the payment depends on the size of the property. Depending on the exchange rate, the cost is about 0.3 € per 1 square meter per year.
- If you want to rent out your property, this is also allowed, without registration of a commercial activity. The tax will be 10% of the rental price.
