In this section, where you can find answers to all your questions about living or investing in Northern Cyprus, you will find summaries of the questions we encounter most frequently.
The most important issue before establishing a university in the TRNC is to establish a company that will provide education and training services. It is necessary to determine the name and the logo of the university planned to be established once the company is established and registered for educational purposes in the TRNC. After the completion of the establishment of the company and determining and approving the name and logo, an “Establishment Permit” must be obtained by an application to the TRNC Ministry of National Education, and “Permission to Start Education” must be obtained by an application to YÖDAK (Higher Education Planning, Accreditation, and Coordination Council). For more information and an appointment please contact our office.
It takes approximately 2-3 weeks to establish a limited company with foreign capital, and all transactions are followed by our office.
Every overseas citizen to be a director to the company must submit a letter of guarantee of 40,000.-TL with the 18-month term as a guarantee for tax liabilities to the TRNC Income Tax Office and provide a Tax Reliability Certificate in return.
All companies to be established in the TRNC must have at least 2 shareholders, 1 director and 1 secretary and a registered address within the TRNC.
The minimum capital for limited companies where overseas citizens will be shareholders in Turkish Liras is equivalent to 100,000.-USD. The required capital amount is blocked in our client’s accounts until the company is established and transferred to the account of the company once the registration process is completed. The Company is free to use its capital in line with the purposes of its establishment.
Foreign citizens who desire to establish a corporation in Cyprus, as well as those who will be shareholders in corporations, must contribute a capital of $100,000 or more. The required capital will be blocked in a client escrow account overseen by our Firm until the establishment of the corporation; following the registration of the corporation, this sum is transferred into the newly-established company’s account. The company is free to use this capital in accordance with the objectives stated during its establishment. It takes approximately two to three weeks to establish a corporation and this process is handled by our Firm. All corporations established in Cyprus must have a minimum of two shareholders, one director and one secretary.
The process incorporating a limited company starts with conducting a name search before the TRNC Registrar of Companies. A name search application for alternative names for the company is submited to the Registrar. Once the company name has been approved, the required documents for the formation of the company are prepared and gathered by your lawyer and submitted to the Registrar of Companies. The required documents for setting up a company in the TRNC are as follows:
For further information, please refer to our guide “the Foreign Investor’s Guide- setting up a company in North Cyprus”
All local limited companies to be established in accordance with TRNC laws must satisfy the following minimum requirements:
The minimum capital of a limited company to be incorporated with foreign shareholders must be the Turkish Lira equivalent of 25,000.-Euros. The sum of 25,000.-EUR or its equivalent must be deposited in a TRNC bank where it will be blocked until the company is formed. Once the funds are deposited, a block letter is obtained from the bank as proof that this requirement has been satisfied and presented to the Registrar of Companies. The funds will be relesead once the incorporation process is completed.
In order for a foreign person to be appointed as a director, the person concerned must obtain a “Tax Security Certificate” from the TRNC Tax Office and submit the same to the Registrar of Companies. The aforementioned “Tax Security Certificate” is issued by the Tax Office in return for the prospective director’s submission of a bank letter of guarantee in the amount of 100,000.-TL valid for a period of 18 months in favour of the Tax Office as security for any personal tax liabilities that may arise.
The area measurement units of donum, evlek and square feet are frequently encountered in the sale and purchase of immovable property in the TRNC. Please refer to the below conversion list in order to convert between different units of measuement:
1 Donum = 4 Evlek = 14,400 ft² = 1.338 m²
1 Evlek = 3,600 ft² = 334.5 m²
1 m²: 10.76 ft²
Registration formalities for a company which is intended to be established in TRNC is possible to be carried out by a legal representative on the condition that a duly certified POA to be given to your legal representative.
Since there are not any prohibitory provisions in the current legislation which restrict the use of name for the companies, the intended use for the company name is possible following the approval of company name search by the companies registrar.
The registration process for a company to be established in TRNC will take approximately one month following the submission of all necessary documentation and payment of the mandatory fees to the companies’ registrar.
It is possible for a foreigner to setup a company in North Cyprus. A limited private company can have a minimum of two shareholders.
A company setup in the “free port and zones” is the best option if you are working online and your customers are outside of North Cyprus.
There is no limit on the number of shares a company can have. If the company is a foreigner company, the minimum capital of the company should be the Turkish Lira equivalent of 25.000 Euro.
The eviction decision is a Court decision. If the tenant does not vacate the house despite this decision, you should apply for enforcement through the Court.
These conditions are regulated by law, and it is not possible for a landlord to evict the tenant except under these specified conditions such as: the failure of the tenant to pay the rent, the housing needs of the landlord or the landlord’s first-degree relatives, housing needs in a case whereby the property has been purchased by another person, if the tenant is acting contrary to the lease contract or any compulsory modification is required of the property. These cases are also subject to certain conditions within themselves and do not cause immediate eviction.
When renting your home, you must ensure to have the tenant assume the subscriptions required for bill payments such as electricity and water. In case the tenant appears to have moved out of a property without notice, you will not have the obligation to pay these debts, as the invoices are issued on their names. However, if this was not the case and the house was vacated without paying their bills, a lawsuit may be filed against the tenant, and enforcement may be chosen.
No. Because, even if the lease contract has expired, the tenant cannot be prevented from entering or be forced to leave the place rented under the contract without an eviction order from the Court.
If the tenant does not pay the rent to be paid within 7 days from the date of payment or make a legal payment offer, an eviction action may be filed.
If the rent to be paid is not paid within one week from the last day of payment or not offered to be paid, an action of debt or, if desired and by the required notifications, an eviction action may be filed.
When a contract is violated, the party that suffers from such a violation is entitled to compensation from the violating party for any losses or damages incurred as a result of the violation of the contract or those that naturally arise from the ordinary course of the issue or event, or which the parties know is likely to be the result of the violation.
This is subject to the terms of your Sales Contract and is only possible in case of a condition in your Sales Contract that allows you to sell your immovable property before taking over the transfer of the immovable property. In such a case, you may transfer all your rights and obligations under the contract to a new buyer by signing a transfer agreement where the owner, the new buyer and you will be the parties.
The stamp duty is paid at the rate of 0.5% on the amount written in the contract. Payment is made to the Revenue and Tax Office. If the stamp duties are not paid within 1 month from the date of the contract, the contract is subject to a maximum penalty of 1%.
After the sales contracts are signed, they are registered in the Land Registry Office the immovable property is located in. The registration must be made no later than 21 days from the date of the contract, and the stamp duty for the sales contract must be paid. Contract registration means recording on the land registry records that the immovable property subject to the contract is sold to the buyer specified in the contract. An immovable property with a registered contract cannot be transferred to another person or mortgaged without the permission of the recipient specified in the contract, and no attachment proceeding can be carried out related to the immovable property.
The title deed of the Vendor will be attached as an integral part of your Contract of Sale, showing the ownership of the property. Furthermore within the body of your Contract, there will be an essential condition for the Vendor to be either the owner of the Land or be the holder of the right to sell such land.
Having a registered contract lodged at the Land Registry gives you priority to receive what is owed to you or what should be refunded to you with priority. This way, you will have priority over the assets of the company against other creditors.
All details of the project will be added to your contract, such as the floor plans of your respective property. Furthermore most developers also provide a “Specifications” list of a ‘Technical Specifications’ list as a part of the Contract to show the materials that will be used for construction. The Vendor is obliged to follow the plans and specifications, otherwise they would be in breach of their contractual obligations.
A registered contract is the first proof of ownership. It shows that you own that particular property when someone goes and looks up for ownership of properties at the respective Land Registry office. You can also apply for temporary residency with your registered contract.
Yes you can sell your property even if the title deed is not in your name but you are only holding a registered Contract of Sale.
An assignment contract allows the original buyer on Contract to sell and/or assign their rights with respect to sale of a property. This allows the buyer to sell their property to a new buyer even if their name is not on the title deed.
In case of death, a probate will be set up for management of your assets and these assets will include the properties you own on Contract. If you like, you can draft a will to arrange the distribution of your assets.
Subject to the mutual consensus of the purchaser and the seller, all terms of a contract of sale can be amended even after its execution. It is important for the protection of the parties’ rights that such amendments to the contract terms are made in writing under an addendum agreement.
Registration of contract means the registration of the contract of sale in the Land Registry Office.
Contract of sale can only be registered in the land registry office following the 21 days from the date of signing and payment of stamp duties which is 1000/5 of the sale price.
Following the distribution and transfer of all movable and immovable properties of an inheritance among the heirs, the Estate Administrator shall submit a closing inventory to the registrar of inheritance, and the inheritance file shall be closed by getting the signatures of all heirs.
For the management of the assets of a deceased person, an Estate Administrator is appointed by a Court order to be issued by the Court. The Estate Administrator is appointed as the testamentary executor if one is determined by the will or as the closest person according to the degree of kinship in the absence of a will.
An estate administrator assigned to inheritance may be replaced by the Court upon the application and consent of the heirs if they are abroad or unable to perform their duties.
An Inheritance Order can be obtained by applying to the District Court at the last habitual residence of the deceased and submitting the necessary documents to the registrar of inheritance.
The management of the properties of a deceased person; for example, sale or transfer of immovable properties, withdrawals of deposits in the bank or car transfers are only possibleby an inheritance order.
In case of death, a probate will be set up for management of your assets and these assets will include the properties you own on Contract. If you like, you can draft a will to arrange the distribution of your assets.
No. Once the construction of your house is completed, there is no time limit in taking over possession and moving in.
Yes. Until recently, married couples were considered as one person, and although their acquisition rights were limited to only one immovable property, according to the new practice, married couples are considered independently of each other, and each spouse has the same acquisition right.
Overseas citizens have the right to buy 1 house (1 apartment flat or 1 house or 1 villa) located on a piece of land not exceeding 5 donums not exceeding 1 donum within the borders of Northern Cyprus.
All overseas buyers who are not citizens of Northern Cyprus are required to get permission from the TRNC Council of Ministers in order to register any immovable property in their names. The application is submitted to the Ministry of Interior with a form to be obtained from our office, your passport copy and criminal record, and all transactions are followed by a lawyer from our law office.
Persons outside of Cyprus or those who do not personally follow the proceedings may provide their attorneys with a ‘power of attorney’ and carry out the necessary action for the acquisition of the property in question.
In order to register a real estate in their name, buyers who are not citizens of Northern Cyprus need an approval from the cabinet (of ministers). Our office will follow up all related matters with the Ministry of Interior, where the application is submitted, with your provision of a form (available at our office), a copy of your passport and security clearance.
Individuals who are located outside of Cyprus or those who do not get involved in such follow-up personally can provide their attorney with a warrant of attorney, thus enabling the performance of all related tasks by the attorney.
The stamp duty corresponds to 0,5% of the sale value stated in the contract. Payment must be done at the Payment, Income and Tax Department (Ödeme, Gelir ve Vergi Dairesi). If this duty is not paid within one month of the contract date, a maximum stamp duty fine of maximum 1% applies.
After sales contracts are signed, they are registered with the local deed office. Such registration must be performed within no later than 21 days following the sale and can only be completed if the stamp duty of the sales contract has been paid. The registration of the contract results in the recording of the real estate’s sale to the buyer, as specified in the contract. A real estate with such a record on file cannot be transferred to another party, mortgaged, or even be subject to an injunctive order or repossession without the buyer’s consent.
Following precedents, laws and set up of establishments backed up by the EU, there no longer remains any difference between Turkish and Exchange title deeds. Regardless of what type of title deed is help, the holder is the owner.
Post-1974 war, some Turkish Cypriot land is left at the South side of the border and Greek Cypriot land at the Northern side of the border. To settle disputes arising from reclaiming these lands, two states co-established the ‘Immovable Property Commission’ supported by the EU. The job of this commission is to receive and evaluate such claims. A land that you own or have a house on cannot be reclaimed. The commission deals with these issues by paying compensation to the claimant. You will not be required to make any payment towards this compensation.
The way of obtaining an information regarding an immovable property located in TRNC is possible by virtue of a search application which will be made by an advocate following the payment of mandatory fees to the District Lands Office. District Lands Offices do not have an online system for an immovable property located in TRNC.
It is possible to obtain information whether your immovable property or any immovable property which you intend to purchase has a right of way by virtue of a search application which will be made by an advocate following the payment of mandatory fees to the District Lands Office.
If you have lost your original title deed for your immovable property, it is possible to obtain the original by making an application in person or via your legal representative to the District Lands Office where your property is located by paying the mandatory fees to the District Lands Office.
It is possible to register a contract of sale if there is more than one person as the purchaser in a written contract of sale.
It is not required to be personally present at the District Lands Office for buying or selling process. It is possible to effect this process via your lawful representative.
Trust deeds are executed which specify that the beneficial and true owner of any such property is the beneficiary. Any violation of such deed causes the trustee (person holding the property on trust for the benefit of the beneficiary) to be liable in damages.
A foreigner is currently allowed to purchase and hold the legal title of one property. It is possible to purchase more properties only through a trust.
Under the current law, any real person or legal entity that is not a citizen of the TRNC can only purchase one (1) immovable property under their own name.
Every person that is not a TRNC citizen must make a permission to purchase application to the TRNC Ministry of Internal Affairs in order to be able to take the title of an immovable property into their own name. One of the documents to be provided within this application is a criminal record of the purchaser of the property, from the local authorities of the purchaser’s passport/ID card issuing country, indicating that the purchaser does not have a criminal background.
Provided that the person(s) to be named as purchaser on the contract of sale do not already have a contract of sale or title deed registered to their name, an immovable property can be jointly purchased by multiple persons. This person can be your spouse, partner, child, business partner or any other person of your choice.
Subject to the mutual agreement of the original buyer and the original seller, a property purchased through a contract of sale can be sold to a third party at any given time after the execution of the original contract of sale. In the event that the title deed of the subject property is already registered to your name, you can sell the property at your sole discretion to anyone at any time without being subject to the developer’s consent.
Techincally No. If the title deed is not registered in the name of buyer, then buyer has no right to transfer the title deed. However, buyer can still assign his/her rights under the contract of sale to a third party. If the contract of sale is registered in the land registry office, the registration can only be revoked with the letter of consent and/or confirmation given by buyer.
If a seller is deemed to be a professional, then seller should pay 4% of capital gains tax. If a seller is not a professional, then seller will only be liable to pay 2.8% of capital gains tax.
Seller has also a right to be exempt from taxes which is limited for the sale of one land and one house. If a seller is deemed to be a professional then, buyer is liable to pay 5% VAT. Besides, Buyer should also pay 6% of transfer fee.
If a seller, regardless of whether real person or legal entity has sold more than 3 immovable properties within a year, then a seller is deemed to be a professional.
When you a can use the right of exemption ?
Seller has only a right of exemption if she/he/it is not deemed to be a professional and if it is the first sale and/or never has been used the right of exemption before, then seller can use this right to be exempt of capital gains tax. However, the right of exemption is limited with the sale of one land and one house.
If a buyer is buying an immovable property for the first time and/or if the buyer has never used his right of exemption and also is a real person then, buyer can use his right to reduce the transfer fee to 3% of sale price provided that seller is not deemed to be a professional. Similarly, the right of exemption of buyer is limited with the sale of one land and one house.
If a will was caused to be written by force or by leaving the testator under the excessive influence or by deception, the will or any part thereof shall be invalid.
There is only one exception to this. No limitations on wills shall apply to a person born in the United Kingdom or whose father was born in the United Kingdom or any member of the Commonwealth, regardless of whether the habitual residence of the deceased is in the TRNC.
There are some limitations to wills. These are:
a) If there are a spouse and a child or a spouse and a child and their lineage, or if there is a child or the lineage of the child without a spouse, the amount shall not exceed one-third of the net worth of the inheritance;
b) If a spouse or father or mother leaves a will but the child or the lineage of the child does not, the amount shall not exceed half the net worth of the inheritance;
c) If neither the spouse, the child, the lineage of the child, neither the father nor the mother leaves a will; the inheritance can be certified as a whole.
For a will to be valid, it must be in writing and signed by the testator at the bottom or at the end, and the will must be signed in the presence at least two witnesses. If the will has more than one page, each page must be signed or initialled by the testator and the witnesses or by others on their behalf.
Being in good mental health and being over 18 years of age is considered as sufficient criteria to leave a will.
Wills are made in writing and in the presence of 2 witnesses and are registered in the Inheritance Department of the Court. Commonwealth citizens are exempt from the restrictions set out in Law on Wills and Inheritance and may determine the person of their will as their heir, regardless of whether or not they are linked by blood. All citizens except those of the TRNC are subject to the requirements of Law on Wills and Inheritance. For more information and an appointment please contact our office.
Wills are drafted in writing and before two witnesses, followed by a recording at the estate section of the court. Citizens of Commonwealth nations are exempt from the limitations put forth in the Will and Inheritance Law, and can thus designate any individuals as legal inheritors, regardless of whether these individuals are related. Citizens of all other nations, including those of Republic of Turkey as well as Republic of Northern Cyprus, are subject to the conditions put forth in the Will and Inheritance Law. For further information and to make an appointment, please contact our Firm.
In case of death, a probate will be set up for management of your assets and these assets will include the properties you own on Contract. If you like, you can draft a will to arrange the distribution of your assets.
No. 1 CC Towers Girne North Cyprus via 99300 Turkey
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