H & A
H A S İ İ P O Ğ L U A K B İ İ L E N & P A R T N E R S
P A R T N E R S
The Guide is prepared to give general information on Turkish Republic of Northern Cyprus Legal
System and practice by Hasipoglu Akbilen & Partners Law Office and it does not constitute legal advice or a legal opinion.

GUIDE TO TURKISH REPUBLIC OF NORTHERN CYPRUS LEGAL SYSTEM
HASIPOGLU AKBILEN & PARTNERS LAW OFFICE, ATTORNEYS AT LAW
INSIDE THE GUIDE
Buying a property in TRNC can be a complicated and strenuous procedure for those who are not familiar with the law and legal procedure. At HA & Partners we pride ourselves with the benefit of many years of extensive experience in the conveyancing procedures for the sale and purchase of both residential and commercial property in North Cyprus.
After the division of the island, in 1974, North Cyprus has developed its own rules and regulations and a different legal system has been constituted by the Turkish Cypriots in relation to the conveyancing procedure. The first issue which has to be clarified is the type of title deed as there are different kinds of deeds under North Cyprus legal system. The property alternatives with different deed types are as follow: a) Turkish Cypriot or other foreign ownership pre- 1974: these type of title deeds are considered as wholly safe b) Greek Cypriot owned pre 1974: TRNC Freehold also called Esdeger or Exchange
Land. This is land that was given to Turkish Cypriots by the TRNC Government in exchange for land that they lost on the south side when the island was divided. Based on 1983 TRNC Constitution, all the deeds are rectified and named as TRNC deeds and are freely transferable to foreigners c) Grant Title Deeds: TRNC TMD Land is land that was given to mainland Turks as a reward for their military services.

d) Leasehold – Properties owned by the TRNC Government who will grant long-term leases of 49 years
Prior to purchase, ALWAYS :
 Make a physical inspection of the property
 Check location, access, boundaries
 Ask for a copy of the title deed


Check the sheet plan, plot references and the site plan,
 Look at the site plan and ascertain from it its shape and boundaries,
Check whether construction permissions have been obtained (from State Planning
Office)
 Undertake a land search to determine who the legal owner is and whether there are any encumbrance or liens on the property (from Land Registry),
 Always sign a legally binding contract before making any payment.
 Always instruct a lawyer to assist you throughout the conveyancing procedure
There are four main taxes involved in any property sale and purchase transaction these taxes are:

Capital gains tax

V.A.T.

Transfer fee

Stamp duty
Capital Gains Tax
Capital Gains Tax (Stopaj) which is payable to the Tax Office is generally payable by the
Vendor although this can always be varied by the parties by an express clause in the
Contract of Sale.
The Tax Office requires a copy of the Contract of Sale to be presented to it prior to transfer of title. It will then calculate the Capital Gains Tax based on either the Assessed Value or the Contract value, whichever is the highest.
V.A.T.
The Tax Office requires a copy of the Contract of Sale to be presented to it prior to transfer of title. It will then calculate the VAT based on either the Assessed Value or the Contract value, whichever is the highest. V.A.T is currently 5% of Assessed Value or the Contract
Value.

The payment of VAT depends on whether or not the transaction is subject to VAT.
This depends on whether the Vendor (the person who has title to the property not simply contractual ownership or possession of the property) is deemed by the Tax Office to be a
‘Professional Vendor’ (i.e. whether the transaction is of a commercial nature or for profit). If the Vendor is deemed to be a Professional Vendor, the transaction will be subject to VAT.
If the Vendor is a private individual, not a Professional Vendor, the transaction will not be subject to VAT.
If the transaction is subject to VAT, who will actually pay the VAT depends on the terms of the Contract of Sale.
Transfer Fee
Transfer Fee which is payable to Land Registry Office just before transfer of title takes place is usually paid by the purchaser and is is currently 6% of the property assessed value or the contract price whichever is the highest. Everyone is entitled to a once in a lifetime exemption to pay 3%.
The Land Registry will view the Contract of Sale before transfer of title to assess the value of the property and will calculate the Transfer Fee on the higher of either the assessed value or the Contract price. The Transfer fee is generally payable by the Purchaser, although this can always be varied by the parties by an express clause in the Contract of Sale.
Stamp Duty
Stamp duty which is payable to the Tax Office and is calculated on the contract value of the property . Generally Stamp Duty is payable by the Purchaser, although this can always be varied by the parties by an express clause in the Contract of Sale.
All Contracts of Sale must be registered at the District Lands Office within 21 days of being signed and it is now compulsory for the Stamp Duty to be paid at the rate of 0.5% before registration can take place.
At HA & Partners our English speaking lawyers offer independent and professional services to our clients wishing to purchase immovable property and assist and facilitate secure and efficient transactions from preliminary investigations to post completion stage.
At the initial meeting we will obtain the particulars of the property you have chosen to purchase and look at any informal agreements you have made with the vendor regarding the purchase price, payment schedule and any items included in the sale. We will explain the procedure that you will need to follow including the taxes and fees you will need to pay and recommend that a lawyer is appointed to carry out the preliminary investigations on your behalf to ensure the transactions are carried out securely and efficiently.

Should you request that we liaise with the vendors and authorities on your behalf we will discuss our engagement principles and provide a document outling the legal services we will undertake for you. Should you wish to instruct us to carry out the conveyancing procedure we will ask you to sign a retainer and possibly take a power of attorney from you to ensure that we can act on your behalf if you will be away from TRNC for a long period of time.
The general principles of our services are outlined below:- a) In order to protect your rights and interests we will prepare a Contract of Sale tailored to your specific requirements identifying the particulars of sale, the completion dates, responsibilities of both parties and default penalties and compensation clauses. The contract will be given to you and the vendor for review and if both parties are satisfied with the contents the contract will be signed. b) We will undertake a land regisrty search at the relavant Land Registry Office in order to confirm that the seller is the registered freehold owner of the immovable property, that the property is free from any liens, charges or encumbrances. We will analyse the documents and check that the relavant building permits, construction permissions and approvals have been obtained. c) Once we are satisfied with the results of the search we will proceed to register the
Contract of Sale at the District Land Registry office. It is compulsory for the registration of all contracts of sale for the purchase of immovable property at the
District Land Registry office within 21 days of the contract being signed and for the stamp duty to be paid at the rate of 0.5% of the property value before registratıon can take place. Registering the contract ensures that you are protected from the property being sold or transferred to a third party and from any subsequent liens being placed on the property. d) Under the laws of the TRNC non-TRNC Citizens are entitled to take title to only one property up to a maximum area of 5 donums per household providing that the property only consists of one dwelling (unless you form a company or constitute a trust with a local person). The Immovable Property Acquisition and Long term Lease
(Aliens) Law (52-2008) of Turkish Republic Northern Cyprus (TRNC) requires that every non-TRNC citizen has to obtain Permissıon to Purchase from the TRNC
Council of Ministers before the title to the property can be registered in their name.
At H&A Law Offices we will make the applicatıon for a purchase permit on your behalf. e) The Council of Ministers will carry out relavant searches these include land searches, military searches and immigration authorities searches. The Council of Ministers will also need to be satisfied that you are of good character and have no criminal records.
Provided that these are satisfactory permission to purchase wıll be granted. We will notify you once your permission has been granted and we will complete the necessary land registry valuation forms. The taxes due on completion will be paid and we will then instigate the transfer of the title deeds into your name.
The obtainıng of permission to purchase is a long procedure and can take up to two years or longer but this does not mean that you wıll be unable to take possession your new property

once the contracts have been exchanged. At HA & Partners our staff will always be on hand to deal with any queries you may have and we will assist you at every stage of the process to ensure that you have the satisfaction of enjoying your property without having to worry about the legal procedures.
HA & Partners have been providing excellent services to its clients since 1978 and specialises on residential and commercial property investments. Please do not hesitate to contact us should you need further information.
HASIPOGLU-AKBILEN & PARTNERS LAW OFFICE FIRST CHOICE IN
RESIDENTIAL & COMMERCIAL PROPERTY .
FOR ADVICE & FURTHER INFORMATION EMAIL info@lawyercyprus.com
Kyrenia Office
17 Namik Kemal Street
Kyrenia
North Cyprus
Telephone No.: + 90 392 444 84 85
Fax No.: + 90 392 815 72 56
Mustafa Akbilen (Partner)
E-mail: makbilen@lawyercyprus.com
Oguzhan Hasipoglu (Partner)
E-mail: oguzhan@lawyercyprus.com
Irem Mustafa Soker (Partner)
E-mail: msoker@lawyercyprus.com
Information: info@lawyercyprus.com
Web: www.lawyercyprus.com
Nicosia Office
19 Mahmutpasha Street
Nicosia
North Cyprus
Telephone No.: + 90 392 227 26 20
Fax No.: + 90 392 228 5771