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Purchase Process in Northern Cyprus

Below is the standard purchase process in Northern Cyprus and issues that may affect the purchase:

• A solicitor compiles a contract detailing the exact terms of the sale; price, timescale to completion, vendors details, purchaser's details, and any special conditions.
• All paperwork must be signed and witnessed by both the vendor and the purchaser.
• A Purchase Permit, applied for by the appointed solicitor, must be obtained from the Council of Ministers. A minimum period of 4 to 5 months should be allowed for this, and should not impede moving into the property.
• Upon receipt of the Purchase Permit, the remaining balance of the purchase price is required to be paid. If completion takes place before receipt of the Purchase Permit the remaining balance minus 5% to 10% (for purchaser's security) should be paid.
• Upon payment of the outstanding balance, the vendor signs over the title deeds.

The cost of a standard property purchase in Northern Cyprus includes the following:

• A 3% purchase tax is payable upon transfer of title.
• Capital Gains Tax is exempt on the first time sale of a property. After the first sale, Capital Gains Tax is levied at 3.5% of the property price for both locals and foreigners. However, this tax rate is only applicable up to a maximum of 3 sales per year.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.

Read more about Northern Cyprus property tax and mortgage and the property purchase process.