Taxes and Fees Related to Real Estate Purchase in TRNC

Taxes and Fees Related to Real Estate Purchase in TRNC

05

July

2024

16:32

Deed Title Fee

When you buy a real estate in TRNC, you must pay a title deed fee during the title deed transfer process. The title deed fee is calculated as a percentage of the sales price of the real estate, excluding VAT. The rate is usually shared between the buyer and the seller, but there is no clear rule on this and it depends on the agreement between the parties.

VAT (Value Added Tax)

KDV

Another cost applied to real estate purchases is VAT. In TRNC, the standard VAT rate applicable to newly built residences is charged as a percentage of the sales price. VAT is not applicable for second-hand housing purchases.

Stamp Duty

When signing the contract, a stamp duty calculated on the purchase and sale contract must be paid. Stamp duty is determined as a percentage of the value of the contract and is usually required for the transaction to become official.

Real Estate Commission

If you are purchasing real estate through a real estate agent, you will have to pay a real estate commission. This fee is usually calculated as a percentage of the property's sales price and may be shared between the buyer and seller.

Municipal Tax

Real estate owners are obliged to pay an annual municipal tax on the property they own. This tax varies depending on the location and size of the property.

Electricity and Water Connection Fees

Electricity and Water Connection Fees

When you buy a new home, you should also consider the connection fees for basic services such as electricity and water. These fees are determined by the institutions to which the service will be connected and are usually charged as a fixed fee.

Although buying real estate in TRNC offers many advantages, it is important to understand the financial aspects of the process well. The taxes and duties mentioned above may significantly affect the total cost of the transaction. Therefore, before making a real estate investment, it would be useful to carefully evaluate all financial obligations and obtain legal or financial consultancy services when necessary.

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