Property Taxes and when they are payable updated 26 November 2012

Unless otherwise stated all taxes are payable in Turkish Lira.

Tax Rate Paid to: Payable:
Stamp Duty 0.5% of contract price Local tax office Must be paid before sales contract is registered at the District Lands Office, which is 21 days from date on contract.  Advice is to pay it immediately.
KDV (VAT) 5% of contract price Vendor (if they are classified as professional sellers) By law KDV is payable when the buyer takes possession of the property.  You must get an official receipt for the payment stating that it relates to KDV at 5% of contract dated ddmmmyyyy. You will need to produce this receipt at title transfer time.
Emlak Tax 1 TL per square meter of covered area of property Local Belediyesi Annually from April to March. By law this is payable by the registered owner.  As many do not pay it is recommended that you pay it from the date you take possession.  Visit the Belediye with your stamped sales contract and a copy of your passport. You will need a current receipt for title transfer.
Purchase Tax 6% of contract price or market value, whichever is the highest. There is currently a one-off 50% discount on this tax. See Cyprus Today below Local Land Registry via their recommended bank At title transfer time.
Municipality Tax 1% of the Purchase Tax figure ,i.e. 1% of the 3% value. Local Land Registry via their recommended bank At title transfer time.

Cyprus Today 24 November 2011 Tax victory for foreign homebuyers

Minutes of meeting February 2008

Exchange Rates (supplied by the Tax Office):

Year contract signed

TL

2004 2.6180
2005 2.4601
2006 2.7302
2007 2.6473
2008 2.3944
2009 2.3240

NOTE 1:  Vendors who are classified as professional sellers must pay a 4% portion of their Stopaj Tax at 4% before title can be transferred.  Many are asking buyers to pay this on their behalf.  If you do accept to pay this please pay it directly to the Tax Office who deals with your vendor.  The payment receipt is required by the Land Registry at title transfer time. Do not give your vendor or anyone else a copy of the receipt.

NOTE 2:  Amateur sellers (those who sell less than 3 properties in a year) are exempt from KDV and their stopaj tax is 3.5%

NOTE 3:  First time sellers can apply for a tax exception which means that no KDV is payable by the buyer and no stopaj tax payable by the seller.  However, if the contract price is more than their original contract they may be liable for capital gains tax on the difference between their original contract price and the selling price.  When your buyer has permission to purchase please visit the Tax Office to request your first time buyers exemption. At that time you will be informed if if tax is payable by you.

Please read:

KDV

Minutes of 22 February 2008 General Meeting with guest speaker Tax Consultant Göksel Saydam

Back to Information