According to the Decree no. 32/2024 issued by the TRNC Council of Ministers and published in the Official Gazette on 15th of August 2024, the vendors and foreign purchasers who have obtained permission to purchase, but have not been able to take the title deeds due to separate title deeds not being issued, are granted further 60 business days starting from 19th of August 2024 to settle their taxes. These taxes include the Transfer Fee, VAT (if applicable), and Stoppage Tax.
The payment of the Transfer Fee at the rate of 6% (for those who has their contracts registered after 10th of February 2023) or 12% (for those who had their contracts registered before 10th of February 2023) and 5% VAT (if the vendor is professional) are the responsibility of the purchaser, while the vendor is responsible for paying the stoppage tax at a rate of 2.8% or 4%(if the Vendor is professional).
The Tax Office and District Lands Office have introduced a procedure that allows for the payment of taxes on the condition that, once the separate title deeds for the properties in question are issued, title deed will be issued directly in the purchaser’s name.
To proceed with the payment of the above-mentioned taxes, an application together with a copy of the contract of sale and Council of Ministers decision have to be lodged with the District Lands Office, and upon valuation being approved by the Valuation Department, the payment of the taxes will be made accordingly.
If you require further assistance, please send your request to info@erginellaw.com or call +90 533 868 0550