Once an offer is made on a property, it is normal to pay a deposit of between CY£1,000 and CY£2,000. Upon signing the contract the purchaser pays 20 to 30% of the value of the property, and the balance thereafter. Officially, permission to buy a property in Cyprus must be sought in writing from the Council of Ministers. The procedure is something of a formality and you make take possession of the property while awaiting official permission. The title deeds are transferred into the buyer´s name by registering the papers at the land registry office, either in person or through a power of attorney.
 
Legal
The legal system in Cyprus is based on the British legal system, as is the land registry. Transfer taxes on the purchase of a property are 3% on the first CY£50,000, 5% on CY£50,001 to CY£100,000 and 8% on CY£100,001 and over.
 
Stamp duty is levied at CY£1.50 per CY£1,000 on the price, up to the value of CY£100,000 and thereafter at CY£2.00 for every additional CY£1,000.
 
Annual property tax is charged at 2 to 3.5% of the market value of the property. In the case of individuals, however, the first CY£100,000 of the house value is tax exempt.
 
The legal fees are approximately CY£500 and cover the review and alteration, if required of the Sale Agreement, revision of the General Agreement (which regulates the use of common areas, where applicable) and submission to the land registry for specific performance.
 
Southern Cyprus
Currency
The Cyprus Pound is the currency in Cyprus, and has been used since 1879.
 
Northern Cyprus
Currency
In North Cyprus you can pay with several hard currencies such as UK sterling, Cyprus pound, US dollar or Euro. All these currencies may be used in shops, hotels and restaurants, or can be easily exchanged. Sterling (GBP) is the best form of currency.
 
Travellers Cheques are accepted and easily exchanged in banks, exchange bureaux and hotels.
 
Credit Cards and ATMs are widely acceptable and practical, you can pay with them in many stores, restaurants, supermarkets or petrol stations. From ATMs (automated teller machines) cash can be withdrawn at any time, although with some bank charges applied.
 
Banking
North Cyprus is well served by commercial banks, most of which are branches of, or susidiaries of, the major banks operating in Turkey. There is also an HSBC in Kyrenia.
 
It is easy to open an account and you can open accounts in TYL or Sterling or both. Transfering money from the UK typically takes three days. Recently the banking sector has started to expand its range of financial services, although banks do not have the wide portfolio of financial products which one is accustomed to in the UK.
 
Southern Cyprus
Mortgages
Based on the valuation or purchase price (whichever is lower) of your Cypriot property, it is possible for you to take a loan for up to 70% of its value in all major currencies, for the purpose of purchasing a new property or re-mortgaging an existing one for home improvements (a re-mortgage for any other purpose will be looked into on a case by case basis).
 
The minimum loan that will be considered is £20,000 and the maximum is CYP 150,000 over a repayment period of no more than 30 years. This is available to individuals up to the age of 65 . Current interest rates as at 11 th July 2003 are from approx 2.00% + LIBOR.
 
Northern Cyprus
Mortgages
North Cyprus Financial Services, are able to arrange mortgages with lenders based in the UK secured only on the property here in the TRNC. There is no distinction between title deeds (Turkish, Esdeger, TMD) and both completed properties and new builds may be financed. Currently advances of up to 70% of new builds and 80% of finished products may be advanced at rates of 2% above UK base, all subject to status. The life of the mortgage may extend up to twenty years.

Northern Cyprus
Purchasing A Freehold Property Process:-

• When you have decided on a property, agree a price.
• Arrange a meeting with your appointed solicitor who will draw up contracts stating the terms of the sale ie: price, timescale, vendors & purchasers details, stage payments etc.
• When both parties happy with contract vendor & purchaser sign.
• Purchaser pays 20% deposit
• Purchase permit is applied for by your solicitor to the Council of Ministers which takes approximately 12 months. Once purchase permit has been received the remaining balance is due from purchaser.
• When the vendor receives the final payment the Title deeds will be signed into the purchaser name and the sale is officially completed.
• If purchasing a leasehold property the whole process is much the same as purchasing a freehold.
• The exception being you apply either directly or via your solicitor to the Minister of Tourism who will grant the lease rather then applying to the Minister of Interior for a freehold property.

Purchasing A Leasehold Property Process:-

• When you have decided on a property, agree a price.
• Meeting with your appointed solicitor for drawing up of the contracts in which both vendor & purchaser must sign. Application to Minister of Tourism applied for.
• Deposit of 10 - 20% is held for the vendor.
• Once application has been granted the sale can continue to completion with the balance remaining being paid and the lease being transferred into the purchaser's name.

Land
Land in Northern Cyprus is measured in donums. 3 donums equals 1 acre, 1 donum equals 1338sq metres. Foreigners are limited to 1 donum per person or 1 house (husband and wife count as one unless they have different surnames).
 
Extra Costs:-
In line with the rest of the world there are some additional costs involved when purchasing a property in North Cyprus.
 
They are as follows:

• Solicitor - £1200 - This is a one off fee for the conveyance work.
• District Land Office (DLO) - 6% of the estimated value of the home, this is usually lower than the sale price and is based upon the cost to replace the building.
• KDV (vat) - 5% This is a one off cost which the majority of the builders in Northern Cyprus include this in the purchase price but this must be stated in the contract.
• Council Tax - 1% - This is a one off cost at time of purchase, with no further payments of council tax in the future.
• Mains connections - Electricity £500 & Water £200 - Approximately