Buying a house in TRNC

billybob


Joined: 29/03/2008
Posts: 576

Message Posted:
29/04/2008 08:33

Just somthing to warn new people about who are wanting to by new places in cyprus, be ready to pay nearly 22% more than the purchase price here which is a lot of moneys

stamp duty .5% to 1.5%

tax and land registry 17.5%

Bank charges and lawers fees, conection to elec and water

Alot of money so you need to know

Bowman


Joined: 02/05/2007
Posts: 256

Message Posted:
29/04/2008 10:17

billybob,



These fees are terrible if true! How do you come to the 17.5% land registry fee. I thought it was 8.5%, 3.5% sales tax and 5% KDV if it is a new build?

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
29/04/2008 12:38

Hi billybob,



Your posting is important. WE WERE NEVER TOLD BY OUR ADVOCATE DESPITE PAYING HIM £1000............. up front!



As I now understand it......



1 .5% Stamp duty within 30 days (or penalty up tp 1.5%.)

2 3% or 6% Transfer tax ( non professional seller 3%)

3 KDV (VAT to you and I) 5% on hand over of keys(when is still disputed)

4 Electricity account 540 YTL deposit.

5 It is a minefield over who pays for Electric and water infrastructure on your site and it needs to be CLARIFIED and DETAILED on your contract.

6 There is a further tax (about £1000) that I still do not understand.



At best therefore on a £100,000 villa a minimum of £10,000 if you are one of the lucky ones.



Some have been given bills of thousands for water and electricity infrastructure, and your builder will not hand over your Kochan until you pay it! Try suing? How long will you live.?



CAVEAT EMPTOR



wynyardman

marik


Joined: 15/12/2007
Posts: 88

Message Posted:
29/04/2008 13:27

Hello Bowman u ansered it you self land registry fee is broke down as you say but it totals 22% all the same no matter how u read it, i said tax and land registry so tax is kdv and sale tax lol

marik


Joined: 15/12/2007
Posts: 88

Message Posted:
29/04/2008 13:31

Hi Cem (billybob) is right it is the taxes that are a worry as most sales people do not explain or did not explain at the time of purchase and this is where people tend to get the shock when confronted with these extra costs.

He has his own desk and computer but chooses to use mine - silly sod

andre 514


Joined: 31/03/2008
Posts: 1163

Message Posted:
29/04/2008 14:16

hi billybob,



yes it is basically true there are various costs and taxes

people do not always fully take into account

of course you pay vat in most european countries,

and buyers of french property expect to allow at least 20% extra

for taxes, transfers and fees

you have to research it all very thoroughly beforehand



on the credit side, property in north cyprus is very good value

for money and there is lots of choice at the moment...

expect to save 30% on the south and it's 65% cheaper than spain,

and much less built-up



andre







andre

Ian02


Joined: 26/04/2008
Posts: 25

Message Posted:
29/04/2008 15:28

Thanks for pointing this out billybob.Have been reading this forum for about 6 weeks and found the information posted here on various subjects invaluable.Coming out for two weeks in one months time,hoping to view a few properties.Obviously adding 22% to the price somewhat affects my target zone.

Ian02


Joined: 26/04/2008
Posts: 25

Message Posted:
29/04/2008 19:04

Are charges and taxes the same for both new and pre owned properties?

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
29/04/2008 19:40

Don't forget though Ian02 that it could be years before you pay the VAT and Land Transfer Tax as it takes at least 2 years for Permission to Buy and then it's a stick your finger in the air job how long it takes after that to get your Kocan. So you can put some money in a high interest account here for about 5 years and then pay the taxes out of the interest!!

andre 514


Joined: 31/03/2008
Posts: 1163

Message Posted:
29/04/2008 22:58

joandjelly,



my exact feeling:

I'd not look forward to having to find all this money

and the further away the better!

obviously there are many who have documentation problems

and worry they cannot ever get their hands on the deeds

but if things are in order, the fact that you can still sell

under "contract law" offers some flexibility...

after all the main run of european countries require vat on house sales

and I know that in malta you also need official permission

from the council of ministers to buy...

except that if you listen to the experts we are all facing a decline

in property values for some years ahead

who knows?

previous times this happened, in '71-'74 and '90-'94 for example

you would think it was the end of the world

although those who were overstretched suffered very badly

but the recovery when it came was phenomenal

this is an example of how north cyprus

is influenced by world factors nonertheless

if there is ever to be some sort of agreement

and the other side can actually be held to account over it this time

everything will take off

provided it's not just some geezer arriving back in a plane

and flapping a piece of paper about and promising peace in our time

more likely IMHO is that the longer the status quo continues the more confidence people will have "that's the way it is"

to use an elvis metaphor, and act accordingly



andre

Ian02


Joined: 26/04/2008
Posts: 25

Message Posted:
30/04/2008 11:45

Thanks for the information guys.So its slightly cheaper to buy a resale property then because you dont pay the 5% KDV?

rtddci


Joined: 29/12/2007
Posts: 842

Message Posted:
30/04/2008 17:16

And beware the vendor who (IF you get PTP), then decides he wants a few thousand £ more just to sign over the Kocan.

andre 514


Joined: 31/03/2008
Posts: 1163

Message Posted:
01/05/2008 10:19

hi ian,



until this year a resale was theoretically costlier than off-plan



I know of a bloke who bought three flats off-plan for 55k each

then sold them for nearly 100k each a year later



idea is that by helping the developer/builder with finance/risk,

you get a chunk off the price it would be otherwise be

also, you have some choice over colours, spec.. etc etc

and in any time of rising values you get your foot in the door early

finally you may particularly want a specific property or development

by general agreement these days may be over...



but it is not a simple choice of off plan or re-sale

for example, a lot of developers retain finished but unsold stock

or at least nearly finished etc

did any reseller have their kocan, you check permissions/title,

you can have a survery done (why not?)



as regards what extras are involved with a pre-owned property,

I don't really understand, (can somebody explain please?)

but at least parts of it are "negociable"



andre

Aeyeofspirit



Joined: 01/05/2008
Posts: 34

Message Posted:
02/05/2008 10:34

Oh hell - forgot about the costs - my visions have been reduced - still a mortgage could help overcome that (for me at least) unless mortgage rates are too high