FAQ

INFORMATION & GUIDANCE

Useful INFORMATION & GUIDANCE

Regardless of whether you are looking to acquire a private or a commercial immovable property in Northern Cyprus, it is our firm’s priority to provide you with the best possible service and to see you through every step of the process. We ensure that you are well cared by us, whatever may come up. Additionally, when buying immovable property in Northern Cyprus we want to ensure that our Client’s purchase proceeds without any unexpected surprises by knowing a few basic facts:

Under the new laws of the Turkish Republic of Northern Cyprus, non- TRNC citizens are entitled to take title to only one property. If the property purchased is a plot of land, this plot of land must not exceed the size of 1 donum, however, if the Property is a dwelling, the plot of land it is based on must not exceed the size of 5 donums, providing that the property only consists of one dwelling. Under the government previous policy, spouses were considered as a single household and were only entitled to purchase one property between them. However, officials at the TRNC Ministry of Internal Affairs have confirmed that this policy has been changed and that spouses can now individually purchase one property each.

….

The conveyancing procedure starts with an initial meeting with the lawyer to give information about the Property you have chosen; details of the Property, price of the property, payment schedule, any informal or verbal agreements you have reached with the Vendor such as extra items provided within the sale. At this stage, we also arrange for you to sign a special Power of Attorney; which only authorises us with the power of purchasing immovable property on your behalf in north Cyprus, to ensure that we can finalise the purchase and act on your behalf, while you have returned back to your home country.

Then a Contract of Sale will be prepared that will be designed to ensure that your interests are protected as far as possible. Once all parties (the Seller and the Buyer) have approved the draft contract it will be signed and exchanged. Every page including the appendixes should be initialed and the Contract of Sale should be signed in the presence of at least 2 witnesses. You should retain one copy of the original Contract of Sale and keep it safe. Please pay attention to inspect the specifications attached to the Contract, as any verbal agreement prior to or subsequent to the Contract of Sale shall be deemed to be not included in the agreement.

Under law 38/07, contracts must be deposited with the Land Registry Office within 21 days of the contract date and it is now compulsory for the stamp duty to be paid at the rate of %0.5 before registration can take place. Once the contract of sale is registered, the property is protected from being sold to any other third party and the Contract will take priority over any subsequent encumbrance.

The next stage will then be arranging your application to the TRNC Council of Ministers, for the necessary permission to be granted to you in order for the title deed of the Property to be transferred and registered in your name, since any purchase of any immovable property by non – TRNC citizens must be sanctioned by the Council of Ministers under the Law 52/2008. A copy of your Contract, the Title deed, site plan, purchase permit application form filled by you and an original police clearance certificate obtained from the local police station at your residency should be provided to the Ministry of Internal Affairs along with your application. The permission granted by the Ministry of Internal Affairs is not required for entering into a contract but rather for transfer of title deed. Whilst processing your purchase permit application, the Council of Ministers will take searches from the land registry, the military and the immigration authorities. Provided that these are positive the permission will be granted. The permissions are granted in the majority of the applications with the main reasons for refusal in rare cases being due to the location and proximity to a strategic military installation or criminal history of the purchaser at the Interpol level. The permission process can take a long time to complete; the current estimation is around 4-6 months. However, this will not prevent you from moving into the property or leasing the property or possibly even selling the Property – as standard practice we usually make sure that the contract is assignable.

Once your purchase permission has been granted, all the necessary valuation forms will be filled out and provided to the Land Registry Office in order for your property to be evaluated. Depending on the valuation amount provided by the Land Registry Office, all taxes and costs payable for the transfer of title deed shall then be paid according to this amount and the title deed will be transferred and registered in your name(for the taxes due on transfer of title please refer to our guidance for Taxes for Property Transactions). If you designated us as your Legal Attorney for purchasing Property in North Cyprus, you do not need to be present at the Land Registry Office and we will attend and complete the transfer of title deed on your behalf.

Once the construction of your Property is finalized and you are able to take delivery of your house, if it is not finished within the scope of your contract, you may refuse to take delivery. Should you wish to take delivery of the house subject to completion of missing/defective work thereafter, you must obtain a signed undertaking from the Vendor to make sure that taking delivery does not amount to forbearance. You can move into the Property under your Contract of Sale and no additional documentation is necessary. Please make sure that you keep all your receipts/bank receipts for the payments made under the Contract.

 

There are 3 main taxes involved in any property sale transaction (different taxes apply to gifts of property). These taxes are:

  • – The transfer fee which is payable to Land Registry Office
  • – The capital gains tax which is payable to the Tax Office
  • – The VAT which is payable to the Tax Office

 

The Capital Gains is usually payable by the vendor and the transfer fee is usually payable by the purchaser (although this can be varied by the parties in the Contract of Sale). VAT, however, is subject to the terms of the Contract of  Sale agreed between the parties (i.e. whether or not the sale price includes or excludes VAT).

The amount of tax levied depends on whether or not the vendor is a ‘professional vendor’ (i.e. whether the transaction is of a commercial nature or for profit). The table below indicates the percentages levied accordingly. The percentages for all three types of tax are percentages of assessed value of the property which is carried out just before transfer of title takes place. The valuation assesses the property in the state it is in at the date of the valuation i.e. if there is a new construction on the property, this will be included in the assessment of the value of the property.


 Vendor’s Band:Transfer Fee:Capital Gains:VAT:
Private Individual6%3% (with option right)0% on first sales
3.5%
0%
Professional6%3% (with option right)6.25%5%

TRANSFER FEE

The transfer fee payable is 6% upon Land Registry’s valuation of the property purchased with the option to pay 3%. Once this option right is used, the fee payable is 6% for future transfers.

VAT FOR PROPERTY TRANSACTIONS – Frequently asked questions

VAT is levied only on sales where the vendor is a ‘professional vendor’. Who is a ‘professional vendor’?
A professional vendor is a limited company or a person who has sold more than three properties within one year or a person who is deemed to be in the business of construction or real estate and is deemed to be a professional vendor.

What is the rate of VAT?
The rate of VAT is 5%.

Will I have to pay the new increased rate even though the rate was lower when I signed my Contract?
Unfortunately, the VAT is payable at the rate in force when the transfer of title takes place. Even if you signed your contract and/or took possession of your property before the VAT rate was increased, if the title to the property has not yet been transferred into your name, you will pay VAT at the new rate when this transfer takes place.

Will I have to pay VAT on my property purchase?In determining whether you will be liable to pay VAT on your property purchase, you need to establish the following:

  • – whether the vendor is a professional vendor as defined above
  • – whether your contract requires you to pay the VAT. Where the contract does not expressly mention VAT, it is our opinion that the purchase price shall be deemed to be inclusive of VAT.

CAPITAL GAINS TAX – frequently asked questions

Will I have to pay Capital Gains Tax on my purchase?
Generally, no. Capital Gains Tax is usually paid by the Vendor, unless otherwise stipulated in your contract.

Will I have to pay Capital Gains Tax on the sale of my property? If so, how much will this be?

This depends on whether you are a private individual or a professional vendor (as defined above):
Every private individual has a once in a lifetime tax free sale option (for a house and land not exceeding approximately 1 donum). If you use this option, you will not be liable to Capital Gains Tax on that sale. On all subsequent sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, making you a professional vendor.

For professional vendors, there are no tax exemption rights. Capital Gains Tax is payable on every sale at a rate of 6.25%.

What if I sell my property before taking title? Will I still have to pay Capital Gains Tax?

Capital Gains Tax is not payable if you sell the property before taking title by doing an assignment of contract. However, you will have to pay stamp duty on the contract, which is charged at 0.005% of the contract value, if you pay within 1 month of signing the Contract of Sale. This amount is multiplied by 2 if you pay within 2 to 6 months of signing the Contract and is multiplied by 3 if you pay after this period.

This depends on whether you are a private individual or a professional vendor (as defined above): Every private individual has a once in a lifetime tax free sale option (for a house and land not exceeding approximately 1 donum). If you use this option, you will not be liable to Capital Gains Tax on that sale. On all subsequent sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, making you a professional vendor.

For professional vendors, there are no tax exemption rights. Capital Gains Tax is payable on every sale at a rate of 6.25%.

What if I sell my property before taking title? Will I still have to pay Capital Gains Tax?


Capital Gains Tax is not payable if you sell the property before taking title by doing an assignment of contract. However, you will have to pay stamp duty on the contract, which is charged at 0.005% of the contract value, if you pay within 1 month of signing the Contract of Sale. This amount is multiplied by 2 if you pay within 2 to 6 months of signing the Contract and is multiplied by 3 if you pay after this period.

Property Tax

While transferring title deed must make sure that you do not owe any Property Tax.

Property Tax is payed annually to the municipality and it is calculated by time 1,5 TL for each m2. Purchasers are liable to pay Property Tax starting from the day they receive the possession of the property.

 

There are 3 main taxes involved in any property sale transaction (different taxes apply to gifts of property). These taxes are:

  • – The transfer fee which is payable to Land Registry Office
  • – The capital gains tax which is payable to the Tax Office
  • – The VAT which is payable to the Tax Office

 

The Capital Gains is usually payable by the vendor and the transfer fee is usually payable by the purchaser (although this can be varied by the parties in the Contract of Sale). VAT, however, is subject to the terms of the Contract of  Sale agreed between the parties (i.e. whether or not the sale price includes or excludes VAT).

The amount of tax levied depends on whether or not the vendor is a ‘professional vendor’ (i.e. whether the transaction is of a commercial nature or for profit). The table below indicates the percentages levied accordingly. The percentages for all three types of tax are percentages of assessed value of the property which is carried out just before transfer of title takes place. The valuation assesses the property in the state it is in at the date of the valuation i.e. if there is a new construction on the property, this will be included in the assessment of the value of the property.


 Vendor’s Band:Transfer Fee:Capital Gains:VAT:
Private Individual6%3% (with option right)0% on first sales
3.5%
0%
Professional6%3% (with option right)6.25%5%

TRANSFER FEE

The transfer fee payable is 6% upon Land Registry’s valuation of the property purchased with the option to pay 3%. Once this option right is used, the fee payable is 6% for future transfers.

VAT FOR PROPERTY TRANSACTIONS – Frequently asked questions

VAT is levied only on sales where the vendor is a ‘professional vendor’. Who is a ‘professional vendor’?
A professional vendor is a limited company or a person who has sold more than three properties within one year or a person who is deemed to be in the business of construction or real estate and is deemed to be a professional vendor.

What is the rate of VAT?
The rate of VAT is 5%.

Will I have to pay the new increased rate even though the rate was lower when I signed my Contract?
Unfortunately, the VAT is payable at the rate in force when the transfer of title takes place. Even if you signed your contract and/or took possession of your property before the VAT rate was increased, if the title to the property has not yet been transferred into your name, you will pay VAT at the new rate when this transfer takes place.

Will I have to pay VAT on my property purchase?In determining whether you will be liable to pay VAT on your property purchase, you need to establish the following:

  • – whether the vendor is a professional vendor as defined above
  • – whether your contract requires you to pay the VAT. Where the contract does not expressly mention VAT, it is our opinion that the purchase price shall be deemed to be inclusive of VAT.

CAPITAL GAINS TAX – frequently asked questions

Will I have to pay Capital Gains Tax on my purchase?
Generally, no. Capital Gains Tax is usually paid by the Vendor, unless otherwise stipulated in your contract.

Will I have to pay Capital Gains Tax on the sale of my property? If so, how much will this be?

This depends on whether you are a private individual or a professional vendor (as defined above):
Every private individual has a once in a lifetime tax free sale option (for a house and land not exceeding approximately 1 donum). If you use this option, you will not be liable to Capital Gains Tax on that sale. On all subsequent sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, making you a professional vendor.

For professional vendors, there are no tax exemption rights. Capital Gains Tax is payable on every sale at a rate of 6.25%.

What if I sell my property before taking title? Will I still have to pay Capital Gains Tax?

Capital Gains Tax is not payable if you sell the property before taking title by doing an assignment of contract. However, you will have to pay stamp duty on the contract, which is charged at 0.005% of the contract value, if you pay within 1 month of signing the Contract of Sale. This amount is multiplied by 2 if you pay within 2 to 6 months of signing the Contract and is multiplied by 3 if you pay after this period.

This depends on whether you are a private individual or a professional vendor (as defined above): Every private individual has a once in a lifetime tax free sale option (for a house and land not exceeding approximately 1 donum). If you use this option, you will not be liable to Capital Gains Tax on that sale. On all subsequent sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, making you a professional vendor.

For professional vendors, there are no tax exemption rights. Capital Gains Tax is payable on every sale at a rate of 6.25%.

What if I sell my property before taking title? Will I still have to pay Capital Gains Tax?


Capital Gains Tax is not payable if you sell the property before taking title by doing an assignment of contract. However, you will have to pay stamp duty on the contract, which is charged at 0.005% of the contract value, if you pay within 1 month of signing the Contract of Sale. This amount is multiplied by 2 if you pay within 2 to 6 months of signing the Contract and is multiplied by 3 if you pay after this period.

Property Tax

While transferring title deed must make sure that you do not owe any Property Tax.

Property Tax is payed annually to the municipality and it is calculated by time 1,5 TL for each m2. Purchasers are liable to pay Property Tax starting from the day they receive the possession of the property.

Application of permission to purchase for non-TRNC citizens requires a certificate of criminal history obtained from your home country to be submitted with your application (Please refer to our Guidance on Purchasing Property in TRNC for a detailed information on immovable property purchase in TRNC). You must visit your local police station to obtain this in your country of origin. Unless you obtain it from the local police station of your home country, you should make enquiry at the consulate in your country of origin for information on how to obtain it. If you reside in a country, which you do not originate, you must make your application to the appropriate authority in your country of origin.

Once you obtain the certificate of criminal history, it needs to be provided with TRNC Ministry of Interior within 6 months from the date of it, since the Ministry of Interior requires a certificate of criminal history up to date. The Ministry of Interior only accepts the certificate of criminal history in a hard copy with original stamp of the relevant authority (electronic documents is not accepted). If this document is provided in a language other than Turkish, English or Russian, you must have this translated into Turkish or English and duly certified as correct and true translation by a Notary.

You need to send the certificate of criminal history to us by courier. We advise you to use DHL courier service since they have local offices here, in TRNC. Please do let us know once you send it, in order for us to trace it at this end.

Our postal address:
Post code 99300
Eylem Şakir & Associates Law Firm
Semih Sancar Caddesi No.69
Gold Tower No.8,
Girne,
Mersin 10,Turkey.

Please also do reference to Ercan Airport (ERC) as the final airport of dispatch.

DO NOT REFERENCE OR MENTION ON THE ENVELOPE CYPRUS OR NORTHERN CYPRUS!

We will confirm, once we receive your mail with a criminal clearance certificate.

Subsequently, we will prepare relevant application and all the required documents on your purchase and then submit them for consideration to the Ministry of Interior on your behalf.

We will inform you once the permission in your name is granted by the Council of Ministers. Once you obtain this permission the title to the immovable property can be transferred to you.

PLEASE NOTE THAT FAILURE TO PROVIDE US WITH YOUR CERTIFICATE OF CRIMINAL HISTORY WILL RESULT YOUR PURCHASE PERMIT APPLICATION NOT BEING SUBMITTED, WHICH MEANS THAT YOU WILL NOT BE ABLE TO OBTAIN TITLE DEED OF THE PROPERTY YOU PURCHASED.

As soon as you decide to acquire a private or a commercial immovable property the next question you might have is how to get the resident permit in order to enjoy your property in any time of the year. Here our guidance will come handy. 

 

What we will cover in this guidance:

 

  1. Visa on arrival
  2. Visa types
  3. Resident permit/ Application process
  4. Short term residence permit
  5. Duration of the residence permit for foreigners who possess immovable property
  6. Family residence permit

 

  1. Visa on arrival.

Regularly you are granted a visa up to 90 days (depending on the purpose of your visit) upon your arrival, it is important to have proof that you will leave the country within the specified period and fulfil other conditions in the Regulation ( see Visa types granted by the TRNC A). 

Exception to this regulation: citizens of the republic of Armenia, the Federal Republic of Nigeria and the Arab Republic of Syria are required to obtain a visa from the TRNC Representative Offices abroad, by declaring the purpose of their visit.

No visa is required from those who have legal residence status or have a residence permit exemption.

The length of stay granted cannot exceed 90 days within a period of 180 days.

Important Note:  Check the Expiry date of your passport!

The regulations on Residence Permits and Visas, which entered into force on 23 October 2019, states that the citizens of the countries that have a representative office in the TRNC and the citizens of the EU countries must have a passport valid for at least 2 months and the citizens of the other countries mist have a passport valid for at least 6 months to be able to apply a visa upon arrival.

 

  1. Visa types granted by the TRNC

A) Tourist visa– for people who come to North Cyprus for a touristic visit and will stay in a hotel or another accommodation facility and those who rented a dwelling for this purpose and declare this, can be issued a visa for a maximum 30 days. However, if they can submit documents showing that a prior payment has been made for accommodation, a visa up to 90 days may be granted.

A visa up to 60 days can be granted to those who arrives in the country for the purpose of family/ relative visit and stay in relative’s house.

A visa up to 90 days may be issued to those who come for official visits, business meetings, conferences, seminars, meetings, festivals, fairs, exhibitions, sporting events, cultural and artistic events, health tourism and similar purposes.

 

B) Work Permit Visa– granted for a period of 30 days to foreigners who have come to the country with preliminary permit in accordance with the Law on Work Permits of Foreigners. The citizens of the countries who does not have an embassy, consulate or another representative office in the TRNC are required to have a passport valid for at least 2 years to be able to apply for a visa.

 

C) Business Establishment Visa– foreigners who come to the country for the purpose of starting a business can be issued a visa for a period of 30 days provided that they have the fund to start a business.

D) Residence Permit Visa

The following types of visas may be issued to foreigners who will enter the country in order to apply for one of the residence permits:

  • Visa for Family Residence Permit– foreigners who will apply for a family residence permit can be given a visa for this purpose up to 90 days upon their arrival.

 

  • Visa due to Ownership of Immovable Property– a visa can be issued up to 90 days for those who have a title deed document indicating that they own an immovable property.

 

  • Visa for Student Residence Permit Application– foreigners who come to the country to obtain a student residence permit may be granted a 60-day visa upon submission of a student registration or pre-registration certificate.

 

  • Visa for Judicial and Administrative purposes– those who come to the country upon the request or decisions of judicial or administrative authorities may be granted a valid visa for the term of their duty.

 

  • Visa for Scientific Research– those who come to the country for scientific research purposes may be granted a valid visa for the duration of the research.

 

  • Visa for Graduates from Universities in the Country– students who have studied and graduated from any of the two-year higher education programs or have studied at least 3 years in any of the four-year higher education programs in the TRNC can be granted a visa valid for 30 days.

3. Resident permit/ Application process

If you want to stay in North Cyprus for more than 90 days within a period of 180 days, you will have to apply for resident permit, the teps you will be going through:

1. Submit applications for a residence permit to the Immigration Authority of the District Police Directorate responsible for the area where you reside within 30 days after the commencement of the period granted with the visa given while entering to the TRNC.

Applications for renewal of a residence permit shall be made no earlier than 60 days and not later than 20 days before the expiry of the current residence permit.

2. The applications are first evaluated by the Immigration Authority of the District Police Directorate and then submitted to the Immigration Department within 10 days, with a reasoned opinion whether it is appropriate to grant a residence permit or not.

3. After the application is received by the Department, the applicant submits a clean medical report to the Department and if no further examination is required, a residence permit is issued at that time.

If the clean medical report is not delivered to the Department by the applicant within 30 days starting from the date of application, a short message is sent to the applicant stating that  his/ her application has been rejected and that he/she has to leave the country within 5 days will be considered as having stayed in the country without permission from the competent authorities and will be fined in accordance with the Law.

 

4. The information and documents required for each type of residence permit are determined by the Department and published on the official website http://icisleri.gov.ct.tr/.

In cases where possible, applications will be made through the official website of the Department.

 

4. Short-term Resident Permit

– is issued, each time, for a period of maximum 1 year. The duration of the short-term residence permit is decided based on the person’s request, reason and other issues related to residence permit. You are eligible to apply for a residence permit if you own immovable property or according to your income*.

*monthly income shall be equal to the total of 5 minimum wages or has the annual equivalent of that amount in a bank account. 

Who also can obtain a short- term residence permit:

  • The foreigners who came to the TRNC for scientific research or archaeological excavation;
  • The foreigners who came for to the TRNC for vocational training or an internship;
  • The foreigners who came to the TRNC for treatment of a medical condition that does not pose a threat to public health;
  • The foreigners who complete their higher education in a 2-year program or studied and graduated at least in three years from a higher education program that lasts four years or longer can be issued a one-time residence permit for maximum 6 months if the apply within 60 days of their graduation;

The yacht owners or leaseholders, who arrive within the context of yacht tourism, as well as the crew and the passengers can be issued short-term resident permit up to 6 months within a 12 months period provided that they have submit the relevant documents regarding the duration of their stay in the TRNC harbour where their yacht is anchored;

  • The foreigners who arrive for shooting a movie/ documentary can be issued short-term residence permit each time they apply for a period of maximum one year if the visa that they were granted in the first place proved to be not sufficient for shooting to be completed.

 

If you want to apply for the resident permit based on the ownership of immovable property you may be granted 1-year renewable resident permit for the first 3 years and thereafter 2-years renewable resident permit in the condition that you have obtained the title deeds registered on your name.

 

Criteria for residence permit for foreigners who possess immovable property in the TRNC:

He/ she must possess a house suitable for residence that is currently being used for this purpose.

If the Title Deed of a dwelling is divided into more than one share and one of the shareholders has been issued a short-term residence permit in accordance with this paragraph, no short-term residence permit shall be granted to another shareholder for the same dwelling.

In the event that the immovable property has been purchased through concluding a contract, it is required that the payment for at least one-third of the sale price has been made and the applicant must have applied for a permission to purchase from the Council of Ministers to acquire the immovable property.

If the immovable property has a title deed registered to the name of the applicant, the applicant is required to have an income equal to at least 3 monthly minimum wages; if the instalment are still being paid for immovable property that has been acquired through a contract, the applicant must have an income equal to at least three monthly minimum wages in addition to the monthly installment amount stated in the contract.

 

5. Family residence permit

Do you have kids or other family members and relatives you would like to spend time in North Cyprus? How can they get the resident permit if the immovable property is registered on you? In this case they can obtain family resident permit.

The person who is ready to cover the financial expenses of a foreigner who wish to come to North Cyprus for the purpose of family unity and whose name is registered in his/ her application for residence permit are considered as his/her sponsor. The persons who could be considered as a sponsor are: the TRNC citizens, residency permit holders, business permit holders, student residence permit holders and the foreigners who have been legally working in the TRNC at least for a year.

People who can receive family residence permit:

  • The sponsor’s spouse who is not a TRNC citizen;
  • His/her or spouse’s handicapped foreign children who is over eighteen;
  • The sponsor’s or his/her spouse’s parents, if the sponsor and his/her spouse is working and have children under 12 y.o.;
  • Student resident permit holders’ parents and spouses;
  • The children of foreigners residing in the TRNC who are not a student, not working, single and under 23 y.o.
  • The parents of the sponsor who is a citizen of the TRNC

 

Guidance on Making a Will in TRNC

Planning ahead in life always gives you benefits, as an old saying states that “If you are failing to plan, you plan to fail”. The inheritance law and regulations differentiate in each country. Many people who live permanently or temporarily in Northern Cyprus own estates, however they have a lack of information on inheritance procedures. In Northern Cyprus inheritance rules and regulations are mainly based on “Wills and Succession Law 1959”. It is not very difficult to make a Will in Northern Cyprus, as long as one follows the correct procedure. Many people believe that a simple handwritten Will is valid and sufficient, however it is not the case. If the required procedure is not followed the testator’s Will will be held invalid. This is an unwanted result as one may have wanted to leave his or her legal estate differently to a preferred benefıciary.



Why do I need to make a Will in Northern Cyprus?

Many people who live in TRNC either temporarily or permanently own a property, a car or a bank account, however there is a common misunderstanding that they believe after they pass away their spouse will inherit everything they own. However, according to Northern Cyprus’s “Wills and Succession Law 1959” where a person dies leaving a spouse and children, the spouse will receive only 1/6 of the property and the rest will pass on children or grandchildren. In case there are no children or grandchildren the spouse will receive ½ of the estate and the rest will pass to deceased’s siblings or parents or cousins up to 6th degree of kindered. If there are no living children, siblings, parents or nieces and nephews the spouse will inherit ¾ of the estate and the rest will pass to any relatives up to 6th degree kindered. Under TRNC law in the state of being intestate spouses receive less than they would receive in a divorce case. This is a very difficult position for a spouse whom may have shared many years of his or her life with their partner. Also unmarried couples are not entitled to claim any legal right from their partner’s estate. This rule applies to children born to unmarried parents who have no entitlement in the estate of their father. In addition Civil Partnership is not recognised in Northern Cyprus and the spouse will not be able claim legal entitlement under Northern Cyprus laws.


Do I need to make a Will in Northern Cyprus even if I have made a Will in my home country?

Most people believe that once they have made a Will in their home country it will be applicable in Northern Cyprus. The Will made might be valid in the country where the Will has been made, however it might not meet the jurisdictional requirements in Northern Cyprus. Once you have made a Will in another country, lawyers based in that country will not have sufficient knowledge of TRNC law and will not be able to provide you with accurate information. In some cases, in countries such as United Kingdom, people may pass all their assets by Will to one person who is not a relative, whereas that is not the case in TRNC. Any asset that you own in Northern Cyprus may be left to a kinder up to sixth degree.

In some cases the Will made abroad might be valid, however the probation process can be more complicated. The Probate Registrar may require additional conditions in order to prove the Will such as requiring a witness who attested the will to sign an affidavit. The deceased’s family may have difficulties reaching the witnesses if they are not professional solicitors, or the witness may have passed away before the testator. It is more cost efficient and guaranteed to make a Will in Northern Cyprus for your assets and property.



What do I need to make a Will in Northern Cyprus?

Once the Will is prepared according to the regulations in Northern Cyprus, it needs to be registered at the court by a registrar. At the registration process the testator has to be present with two witnesses. They have to sign each page in order to confirm that they have read the Will. There is also a stamp fee, which is due to be paid at the registration; the amount depends on the length of the Will. Lastly the registrar stamps and confirms the Will and secures it until the testator is deceased.

Divorce and matrimonial proceedings in TRNC are regulated by Family, Marriage and Divorce Act No. 1/1998. In TRNC the Family Law principles are based on protection of family structure and children.

The most frequent issues in the Law of Family we face are divorce cases. Our Law Firm often represents clients as a lawyer in divorce cases and works hard to reach the best result under the Law of Family and related regulations.

We can distinguish two main types of divorce procedure: agreed divorce and non-agreed divorce. First of all, we need to mention that in order to initiate agreed divorce both parties must have been married for the period of at least one year prior to the date when the case was filed. Should the parties agree on maintenance or other issues regarding their divorce the procedure concerning the agreed divorce can be followed and initiated. This procedure is less time and money consuming. Should the parties not agree on any issue related to the divorce, the procedure concerning non-agreed divorce should be followed. The issues related to the divorce can be: division of joint assets, custody of the children and/or maintenance, e.g.

 ESA Law Firm regardless the parties opt to proceed with agreed divorce and non-agreed divorce by taking utmost care deals professionally and separately with each delicate subject like the future of children, division of joint assets, payment of maintenance and/or compensation by one party to another. However, our law firm also provides solutions by analyzing the legal situation in the best possible way for the fields like marriage, legal situation of children born out of marriage, guardianship, obtaining protection order during divorce cases, custody / temporary custody, maintenance order.

Condition and documents required from a foreign shareholder to establish a company:

Minimum number of shareholders – two.

Minimum share capital of a limited company is 50,000 -EURO. Foreign shareholders’ share participation must be lodged with a TRNC bank (during the incorporation process which is estimated a week to ten days) and verified to the authorities with a letter from a bank confirming such. After completion of incorporation process this funds can be used at the shareholders’ discretion.

Please note that there are certain restrictions for 100% foreign owned and foreign controlled companies in acquiring property and land plots. They need a Council of Ministers approval for any property and land plot acquisition even for 1 donum. Under the new laws of the TRNC non TRNC citizens are entitled to take title to only one property up to maximum 5 donums per houshold providing that the property only consists of one dwelling.

Foreign nationals and/or investors who want to speed up this process or alternatively who want to buy more than 1 donum and/or bypass this requirement have to set up a limited company in which 51% of shares must belong to TRNC citizen. Furthermore TRNC citizens must be majority on the Board of Directors of the company (1 TRNC or 2 TRNC + 1 foreign). This issue is particularly important on the date of the land acquisition (It is advisable that the Board of Directors is established with the TRNC citizens in majority). After the acquisition the TRNC directors can resign. Our firm provides nominee director and secretary services.

In order to protect and alleviate the anxiety of the foreign investor, a Trust Agreement certifying that the shares are held in trust by the TRNC individual on behalf of the foreign investor together and a signed blank Share Transfer Certificate confirming that he undersigns to sell the shares to anonymous person or to the foreign investor himself shall be issued to the foreign investor. However, the foreign investor can not realize and/or register such transfer with the Company Registry as this would mean holding over 49% of the shares, but can transfer to another TRNC individual.

 Once a client provides all the required information a company can be registered within a week to ten days. In order to speed up this process we recommend to send us in advance a list of desired company names with 5-6 alternative options arranging them in order of preference, so that we can check the availability of the names submitted.

Tax application of real estate companies

 Property companies are taxed in a totally different manner than trading companies. These companies are liable to taxation only when they dispose/sell any part of their immovable property.

Unlike trading companies, property companies are liable to taxation even if they make a loss on disposal and/or even if the company has a trading loss. Tax on rental income is 10% on the gross rental income payable on the 15th day of the following months. This forms the final tax liability. Distribution of dividends after this tax of 10% is no liable to any further taxation. Real Estate tax is levied by the municipalities. The amount of tax is generally immaterial (1 TL per sq.meter + 25% (1,25 TL) if there is a pool.

Legal services provided by Eylem Sakir & Associates Law Firm

– Establishment & Registration of the company

– Trustee, nominee shareholders and directors, secretary services

– Drafting a trust deed and issuance of a blank share transfer certificate for investor protection (as mentioned above)

 – Advise on commercial transactions, structuring commercial agreements including resolving commercial disputes and assisting in formulating corporate structure, management and governance – Bankruptcy and insolvency litigation

 – Mergers and acquisition (local and abroad), capital rising, tenders

– In association with leading accountants and other business partners, advice on taxation levels, double taxation, estate and inheritance taxes, international tax planning and structuring for business

 – Drafting of contracts for purchase and sale of residential and commercial property, conveyancing, purchase permits, construction agreements, operating agreements, tenancy agreements, letting agreements, commercial lease

– Advising on long-lease from government, the construction industry on large scale projects and tenders We remain at your disposal for further information and clarification you may require on the above.

Requirements and general information in respect of registration of an International Business Company (IBC Company) in TRNC.

1. General Information:

i. Minimum number of shareholders is two.

ii. Shareholders must be of foreign origin and must not ordinarily reside in TRNC. TRNC citizens whose permanent place of residence is outside TRNC are also eligible to be shareholders.

iii. Minimum share capital is € 20,000,00 which has to be deposited at one of the local TRNC banks, prior to application. This money will be at your disposal once the company is incorporated.

iv. Application will be made by us, on your behalf, to the TRNC Ministry of Economy together with the Memorandum and articles of Association of the prospective IBC Company and the receipt verifying that the minimum share capital of € 20,000,00 has been deposited.

v. The IBC Company is liable to corporation tax only at the rate of 1% (previously 2,5%) of taxable profit, payable after the 5th month of the end of fiscal year. (i.e. not later than 31st May).

vi. The annual license fee of International Business Companies (IBC) is € 5,000,00 per annum. Annual license fee is payable on the following month of incorporation. There after at the end of each January.

vii. In the event of setting up an office, at least one of the employees must be a TRNC citizen.

viii. There is no tax on distribution of dividends. Furthermore, there are no exchange control restrictions on such distributions, subject to such distributions, being affected through official bank channels.

2. Documents to be provided by each shareholder:

i. The original Application Form in respect of forming an International Business Company.

ii. A notarized and/or apostilled photo-copy of his/her passport. If the original passport, together with a photo-copy is presented to the Registrar of Companies, then the need to notarise or apostille such document is not necessary.

iii. The original reference letter from an advocate or Commission of Oath practicing in the country where the shareholder resides, stating that the shareholder has no criminal record and is of good character and an original reference letter from a bank that handles the accounts of the shareholder stating that the financial standing of the shareholder is good.

iv. An original c.v. of the promoter.

v. A fresh dated original utility invoice (i.e. electricity, water, local telephone, etc.) to prove that the person is of foreign origin who lives abroad. The said invoice should have the same name and address details of the subscriber stated in the Memorandum and articles of Association.

 

3. In the event of founder member being an entity (corporation), the original notarized documents of the company will be required. Such documents comprise of:

i. The Memorandum and Articles of association

ii. The certificate of Incorporation

iii. List of shareholders showing type, number and value of shares held by each shareholder, nationality and address

iv. List of directors and secretary given names, address and nationality

v. A newly dated certificate from the Chamber of Commerce or Industry or any other related body that the company is presently active and in operation Documents that are not in Turkish or in English must be translated into any of the two above languages and notarized to certify that such translation is a true version of the original.

4. Appoint a local person as representative in TRNC to receive any notices and documents sent to the company by the TRNC authorities. This representative, who will be obliged to furnish any documents demanded by the Ministry, should be an approved auditor as per TRNC regulations or an advocate who is a registered member of the TRNC Bar. Where such a representative is not appointed, a TRNC citizen must be appointed as director.

5. A shareholder who does not wish to appear in person can appoint a trustee for this purpose. Such trustee can be a practicing advocate or accountant. However, the accountant so appointed can not be the auditor of the company at the same time. Trustee must pay an annual fee of € 500.00 each for this privilege. In such cases the identity of the ultimate owner is kept under strict secrecy with the Ministry of economy and can not be disclosed to anybody unless and until a court order is procured.

Free Zone Companies

The Free Port and Zone situated at Famagusta is considered to be an ideal place for all kinds of businesses and investments. Famagusta Free Port and Zone covering an area of 103.000 sqm, offers to foreign investors excellent opportunities for transit trade as well as manufacturing opportunities for middle-east and near-east countries.

Incentives:

  • All income derived from activities and operations undertaken by producers in the Free Port and Zone are exempt from Corporate and Income Taxes (including all kinds of trade, production and service).
  • All income and capital derived from operations are subject to free profit transfer without any limitations to the transfer size.
  • All kinds of operations including sale of goods to foreign countries and Free Port and Zone in North Cyprus as well as buying of goods are exempt from custom duties, VAT and indirect taxes. · All income derived from activities and operations undertaken by investors other than producers are exempt from Corporate and Income Taxes when the goods and services are not directed to the Turkish Republic of Northern Cyprus.
  • Permission to employ foreign expert, engineer and technical personnel.
  • All kinds of craft maintenance and repairment, manufacturing of goods, banking and insuranceservices, warehousing, exporting of the finished goods as well as manufactured goods are accepted facilities and operations. (Warehouses are available for transit trade activities).

 

Essential Documents and Required Information on the Formation of Companies in Famagusta Free Port Zone:

  • Pre-examination and approval of company name. Three alternative names would be determined by a client for application. For Example: Evren Export LTD.
  • Notarized Passport photocopy of the shareholders or original passport. Third party citizens have to notarize their passport photocopy at Turkish Republic Embassy.
  • Distribution of shares amongst shareholders (what percentage would be hold by each shareholder).
  • Notarized Passport photocopy of directors or original passport ( at least one person must be assigned as a director and he/she can be both director and shareholder). Third party citizens have to notarize their passport photocopy at Turkish Republic Embassy.
  • Notarized passport photocopy of company secretary or original passport (There must be sole company secretary and he/she can be also a shareholder). Third party citizens have to notarize their passport photocopy at Turkish Republic Embassy. For Example: If there are two shareholders, one can be a director and the other can be a company secretary
  • Clean criminal record received from internal security bodies of the country of origin of directors and shareholders.(except EU countries, Russia, USA)
  • Information on the operation, scope and objects of the company
  • List of all purchased/sold goods and services related with the scope of the company and estimated values.
  • List of international countries planned to build business relations. Import/Export countries should belisted separately.

 

Note: If the shareholders are legal persons rather than natural persons, essential documents would be different.

Procedures for company formation in Famagusta Free Zone Port

  • Initiation of company formation procedures
  • Applying for company name registration at the Registrar of Companies
  • Free Zone Pre-application will be undertaken by our company on behalf of client and files willbe sent to Council of Ministers
  • Following the approval of pre-application at the Council of Ministers, Memorandum of Association and Articles of Association will be sent to a client
  • Authorized capital of 100.000 USD (min. 100.000USD) will be blocked at one of the domestic banks. (100.000 blocked capital can be withdrawn from the bank without any hassle after completion of company formation. Company formation may approximately take one month)
  • Finally, registration to the Tax Authority will be done and company will become operative.

 

The Immovable Property Commission was set up under the Immovable Property Law (67/2005) in accordance with the rulings of the European Court of Human Rights in the case of Xenides Arestis v Turkey. The purpose of this Commission was to establish an effective domestic remedy for claims relating to abandoned properties in Northern Cyprus. The European Court of Human Rights, with decision on 1 March 2010 as to the admissibility of Demopoulos and Others v. Turkey found that Law no: 67/2005 provides an effective remedy and rejected the complaints of applicants for non-exhaustion of domestic remedies.

In the light of the European Court of Human Rights’ previous decisions in Arestis Xenides, the main rulings in Demopoules confirm that the Immovable Property Commission formed not only be considered as a ‘domestic remedy’ but was also in realistic provision for redress in current situation.

Xenides – Arestis case along with Demopolous case represents the Court’s most recent application of the pilot judgment procedure developed in 2005 ‘as a means of dealing with large group of similar cases that derive from the same underlying problems.

The Immovable Property Commission officially began its performances on 17 March 2006. The Immovable Property Commission examines claims for restitution, compensation and exchange according to the provisions of the law no 67/2005. Its considerations are based on the principles of bi-zonality and bi-communality which have been common elements of the 1977-1979 High Level Agreements as well as plans for a settlement of the Cyprus Issue prepared by the United Nations. It seeks to satisfy the legitimate claims of property owners without prejudice to the rights of the Turkish Cypriot Community.

The Commission with its local and foreign experts, acts as a court. As of 24 October 2012, 3912 applications have been lodged with the Commission and 276 of them have been concluded through friendly settlements and 7 through formal hearing. The Commission has paid GBP 83,276,225.- to the applicants as compensation. Moreover, it has ruled for exchange and compensation in two cases, for restitution in one case and for restitution and compensation in five cases. In one case it has delivered a decision for restitution after the settlement of Cyprus Issue, and in one case it has ruled for partial restitution. IPC seeks to be a just, fast, an effective remedy for property claims. In this way the Commission affirms to contribute to the comprehensive settlement of the Cyprus Issue.

In order to determine Inheritance tax a complicated calculation must be made. Every case should be considered on its own merit.

We are in a position to provide summary information of inheritance tax:

  • Allowance (tax free amount) is 20 times monthly minimum wage times 12. Minimum wage is currently 3,820 TL per month.

 

  • Inheritance tax exempt movable or immovable properties:

 

a) Properties and income attached to those properties that transferred to trust.

b) Bank deposits (savings or current accounts) only if joint accounts where each one has authority to withdraw separately.

c) Wages, salaries if will be inherited

d) Private goods like jewelries

  • Land and building valuations are obtained from Land registry Office
  • Bank Loans, creditors and other liabilities can be deducted from assets if proved by official evidence
  • Tax is %1 on net assets (assets less proven liabilities)

1.Main Taxes on the purchase of real estate by foreigners in TRNC:

  • Stamp duty– the tax, which is paid while registering the contact of sale to the Tax Office. The tax should be paid and the contract should be registered within 21 days from the date of signing of the contract of sale. The fee is 0.5% from the sale price stated in the contract of sale.
  • VAT– The amount payable to the Vendor is 5% of the value of the purchased property, stated in the contract of sale.
  • Transformer charge– the amount depends on the purchased object. It includes the provision of electricity and water communications.
  • Annual property tax – It is calculated, basing on the rate of 1.25 Turkish Lira per 1 sq.m. of the covered area of the property. It is payable to the municipality.
  1. Costs and Taxes payable during Transfer of Title Deeds

3 main taxes involved in any property sale transaction (different taxes apply to gifts of property). These taxes are:

  • The transfer fee which is payable to Land Registry Office
  • The capital gains tax which is payable to the Tax Office
  • – The VAT which is payable to the Tax Office

The Capital Gains is usually payable by the vendor and the transfer fee is usually payable by the purchaser (although this can be varied by the parties in the Contract of Sale). VAT, however, is subject to the terms of the Contract of Sale agreed between the parties (i.e. whether or not the sale price includes or excludes VAT).

The amount of tax levied depends on whether or not the vendor is a ‘professional vendor’ (i.e. whether the transaction is of a commercial nature or for profit). The table below indicates the percentages levied accordingly. The percentages for all three types of tax are percentages of assessed value of the property which is carried out just before transfer of title takes place. The valuation assesses the property in the state it is in at the date of the valuation i.e. if there is a new construction on the property, this will be included in the assessment of the value of the property.

 

Vendor’s Band:

Transfer Fee:

Capital Gains:

VAT:

Private Individual

6%

3% (with option right)

0% on first sales
3.5%

0%

Professional

6%

3% (with option right)

6.25%

5%

 

TRANSFER FEE

The transfer fee payable is 6% upon Land Registry’s valuation of the property purchased with the option to pay 3%. Once this option right is used, the fee payable is 6% for future transfers.

 


3.Inheritance Tax

In order to determine Inheritance tax a complicated calculation must be made. Every case should be considered on its own merit.

We are in a position to provide summary information of inheritance tax:

  • Allowance (tax free amount) is 20 times monthly minimum wage times 12. Minimum wage is currently 3,820 TL per month.
  • Inheritance tax exempt movable or immovable properties:
  1. a) Properties and income attached to those properties that transferred to trust.
  2. b) Bank deposits (savings or current accounts) only if joint accounts where each one has authority to withdraw separately.
  3. c) Wages, salaries if will be inherited
  4. d) Private goods like jewelries
  • Land and building valuations are obtained from Land registry Office
  • Bank Loans, creditors and other liabilities can be deducted from assets if proved by official evidence
  • Tax is %1 on net assets (assets less proven liabilities)

 

4.FOREIGN INVESTORS

TAX RATES

  • Personal Income Tax and Corporation Tax

All companies and other corporate bodies (except cooperative societies) are chargeable with Corporation Tax. Corporations which are registered in the state as «Local Companies» are chargeable with 10% tax on chargeable income.

Corporations which are «Foreign Companies» are also chargeable  at the rate 10% on chargeable income only derived from trade or other income in TRNC.

A corporation is «Locally Registered Company», where the central management and control of its business is in TRNC. For tax purposes, all profits of such companies, including profits from other countries are liable to Corporation Tax. For the avoidance of double taxation, a set off for similar tax paid abroad is allowed. Corporation tax is paid in 2 instalments – May and October of each year.

The corporations which are specified under the Corporation Tax Law have to withhold income tax at source at a standard rate of 15% on the net chargeable income after corporation tax is deducted. Companies (registered in the State) engaged in education and health facilities and engaged in industrial activities in the regions approved by the council of Ministes, withhold income tax according to the Undistributed Profit/ Paid Up Capital ratio. ( The ratio must not exceed the standard rate).

Foreigners operating in the field of transportation, including corporations, shall not be subject to withholding tax on taxable income to be ascertained under the provisions of the Corporation Tax Law and the Income Tax Law.

The net amount of earnings and revenues obtained from all sources within the borders of the TRNC in a calendar year depends on the Income Tax.

For permanent residents income arising within or outside the TRNC is subject to income tax, but for the avoidance of double taxation a set off for income tax paid abroad is allowed.

Before income tax is charged, allowances granted to individuals under Income Tax Law are as follows;

  • Contributions to Social Security Funds
  • Personal Allowance
  • Private Allowance
  • Wife Allowance
  • Child Allowance
  • Having more than 3 Children Allowance
  • Disability Allowance

 

Individuals are liable to income tax under a progressive tax system. The personal income tax is levied at the statutory rates ranging from 10% to 37%.

 Value Added Tax

Value Added Tax was introduced in 1996 as a Consumption Tax. Five VAT rates are applied in accordance with VAT rates regulation. Applied VAT rates are: 0%, 5%, 10%, 16% and 20%.

5.IBC Companies Incorporation

  • The IBC Company is liable to corporate tax only at the rate of 1% of the net profit after deducting depreciation and expenditures.
  • It is exempt from all kinds of direct tax such as VAT, stoppage tax, immovable property tax.
  • No inheritance or income tax that can result from transferring shareholding in the IBC. 
  • There is no tax on distribution of dividends. Furthermore, there are no exchange control restrictions on such distributions, subject to such distributions, being affected through official bank channels.

Free Zone Companies

All income derived from activities and operations undertaken by producers in the Free Port and Zone are exempt from Corporate and Income Taxes (including all kinds of trade, production and service).

All kinds of operations including sale of goods to foreign countries and Free Port and Zone in North Cyprus as well as buying of goods are exempt from custom duties, VAT and indirect taxes. All income derived from activities and operations undertaken by investors other than producers are exempt from Corporate and Income Taxes when the goods and services are not directed to the Turkish Republic of Northern Cyprus.

  • North Cyprus Free Trade Zone company is not subject to any Value Added Tax,
  • 0% Tax on Corporate Profits,
  • No withholding tax on Dividends paid from the company,
  • No Income tax for no resident shareholders (Residing in TRNC less than 183 days in calendar year).

 

 

 

 

frequently asked questions

ESA Law Firm was founded by Ms. Eylem Sakir in 2012 and since it’s inception it has maintained an unwavering commitment to trying cases and/or brokering favorable settlement agreements for our clients whenever possible.

Please call us at +90 533 8220569 and speak with a member of our staff who will schedule you a  consultation, at a time that is most convenient for you, with one of the firm’s lawyers.

Our business hours are 8:30 am to 6:00 pm Monday through Friday. However, please feel free to email us after hours.

Our areas of practice include Business Law, Intellectual Property/Technology Transactions, and Litigation.

 

Please see WHAT WE DO.

We have hourly fee that we charge for consultation. 

The rate of VAT is 5%.

In determining whether you will be liable to pay VAT on your property purchase, you need to establish the following:

  • Whether the vendor is a professional vendor as defined above
  • Whether your contract requires you to pay the VAT. Where the contract does not expressly mention VAT, it is our opinion that the purchase price shall be deemed to be inclusive of VAT.

Generally, no. Capital Gains Tax is usually paid by the Vendor, unless otherwise stipulated in your contract.

A professional vendor is a limited company or a person who has sold more than three properties within one year or a person who is deemed to be in the business of construction or real estate and is deemed to be a professional vendor.

Unfortunately, the VAT is payable at the rate in force when the transfer of title takes place. Even if you signed your contract and/or took possession of your property before the VAT rate was increased, if the title to the property has not yet been transferred into your name, you will pay VAT at the new rate when this transfer takes place.

This depends on whether you are a private individual or a professional vendor (as defined above): Every private individual has a once in a lifetime tax free sale option (for a house and land not exceeding approximately 1 donum). If you use this option, you will not be liable to Capital Gains Tax on that sale. On all subsequent sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, making you a professional vendor.

For professional vendors, there are no tax exemption rights. Capital Gains Tax is payable on every sale at a rate of 6.25%.

Capital Gains Tax is not payable if you sell the property before taking title by doing an assignment of contract. However, you will have to pay stamp duty on the contract, which is charged at 0.5% of the contract value, if you pay within 1 month of signing the Contract of Sale. This amount is multiplied by 2 if you pay within 2 to 6 months of signing the Contract and is multiplied by 3 if you pay after this period.

Once your North Cyprus property is registered in your name, we advise you to make a new will as your property in North Cyprus is not covered on your original will. ESA Law Firm can assist with preparing a new will for you.

According to the Northern Cyprus Law of Will and Probates, limitations have been placed on TRNC citizens in regards to how much proportion they can dispose to a beneficiary in their Wills. However, an exception has been given to foreign citizens. This means foreign citizens in North Cyprus do not have any limitations and they may leave 100% of their assets to any beneficiary they wish, even if this beneficiary is not their spouse or child.

There are no limitations on assets that can be put into a Will. We, as Eylem Şakir &Associates Law Firm advise our Clients to make a general Will, which covers all their assets in North Cyprus on the day of signing the Will and all other assets they will purchase in the future. This ensures that all assets will be disposed to the beneficiary/beneficiaries selected by the Testatrix/Testator.

Of course, there are certain conditions that must be met in order for a Will to be valid in Northern Cyprus. First of all, the Will must be in writing and must be signed by the Testatrix/Testator in the presence of two or more witnesses. The Will must also be signed by the Witnesses and if the Will is composed of more than 1 page, both the Testatrix/Testator and the Witnesses must sign the bottom of each page. Of course, such witnesses must be also of sound mind and must be above the age of 18. As ESA Law Firm, we assist Clients from the beginning to the end of the process. Once the Will has been drafted and you are happy to proceed, we assist you to the Courts of Law in North Cyprus, where you will sign the Will in the presence of the Court and your Will be sealed in an envelope and kept safe in Court.

Anyone who is of sound mind and above the age of 18 may sign a Will. However, we advise the Will to be drafted by a Law Firm, as there are certain conditions to be met in order for the Will to be valid.

You can sign the contract of sale for the two properties in your own name; however, you can

only apply for purchase permission for and take title to one property. Therefore, you will need

to find a nominee (this person should be a friend or relative or someone you know and trust)

to take title to the property and hold the property on trust for you or you will need to set up a

TRNC company.

i) Local company corporation and income tax cummulative rate is 23.5% and calculated on the net profits (net profit taxable income less allowable expenses)

ii) International business company (IBC) tax rate is 1% on the net profits (net profits definition is above). non citizens and non resident TRNC citizens can be shareholders. Can only trade outside TRNC. Best for transit trade.

iii) Famagusta Free Port Company (FPC) tax rate is 0,00 %. Can trade both outside and inside TRNC.Income generated from abroad are subject to zero tax rate.If there s income generated from TRNC then it is taxed like TRNC local company with 23.5 % tax rate.

a) Local Company income is subject to VAT. Rate depends on the trading activity (VAT rates are %0, %5, %16 & %20), corporation + income tax rate cumulatively is 23.5%.

b) IBC s are exempt from VAT, corporation and income tax rate cumulatively is 1`%. Dividends are also exempt from tax,

c) FPCs are exempt from VAT, corporation and income tax. Dividends are also exempt from tax.

d) Salaries are subject to PAYE (Pay as you earn. There are tax thresholds and personal allowances to be applied. Tax is based on the amount of earnings.

e) Pensions are exempt from tax.

f) There is no wealth tax.

g) Inheritance tax yes applies. It is kind of complicated calculation. Every case should be considered on its own merit.

But we are in a position to provide summary information of inheritance tax:

  • Allowance (tax free amount) is 20 times monthly minimum wage times 12. Minumm wage is currently 3,820 TL per month.
  • Inheritance tax exempt movable or immovable properties: a) properties and income attached to those properties that transferred to trust. b) bank deposits (savings or current accounts) only if joint accounts where each one has authority to withdraw separately c) wages, salaries if will be inherited d) private goods like jewelleries
  • Land and building valuations are obtained from Land registry Office
  • Bank Loans, creditors and other liabilities can be deducted from assets if proved by official evidence
  • Tax is %1 on net assets (assets less proven liabilities

Those who come to the country for touristic visits and will stay at a hotel or other accommodation facility and those who have rented an accommodation for this purpose, can be issued a visa for a maximum of 30 days. If they can submit documents showing that a prior payment has been made for accommodation, a visa up to 90 days may be granted.

 

Every day a person spends in the TRNC after their visa is expired, they’ll have to pay 20 euro(180 tl) per day for the first 3 months of expiration. After these 3 months you will get banned and won’t be able to come to the TRNC for some period of time and when you come, you will still have to pay the penalty, calculated in the way, written above.

 

a) Local Governmental insurance.

 

If you want to get health insurance in TRNC, all you need is your International passport and 500tl (~50 GBP). You should go to the Health Ministry and follow their instructions.

 

But also all the people in TRNC can get free emergency help in such situations:

 

Drowning

Traffic Accident

Suicide Attempt

Rape

Fall

Injury/ limb rupture

Electric shock

Freeze

Cold Shock

Heat Shock

severe burns

Serious Eye injuries

Poisoning

Serious allergy anaphylactic situations: Severe allergy or low blood pressure that may lead to impaired heart rhythm, respiratory tract obstruction.

All kinds of spinal fractures of the spine and lower extremity fractures, which cause large external or internal bleeding.

Decompression (diver’s disease) situation commonly known as ‘crippled by the bends’

MI, Arrhythmia hypertension crises: Heart attack, types of heart rhythm disorders that require urgent treatment, brain pressure, hemorrhage etc. rising to a degree that can lead to serious outcomes

Asthma crisis, acute breathing problems

Any situation that causes loss of consciousness

Sudden strokes

Serious general condition disorder

High fever: poisoning, infectious diseases, heat stroke, etc. If the average body temperature is 39.5 C or above.

Diabetic and uremic bleeding: conditions that may start from confusion caused by diabetes and kidney failure to complete loss of consciousness (coma).

Dialysis disease accompanied by general condition disorder

Acute abdomen: Perforation, hollow or knotted inflammation of hollow organs such as stomach intestine, etc. situations requiring urgent intervention.

Acute massive hemorrhages: Life-threatening internal or external bleeding, usually caused by trauma.

Meningitis, encephalitis, brain abscess

Renalcoholic: A condition that causes severe pain that may lead to urinary tract or kidney damage caused by renal calculus.

Acute psychotic pictures: Neurological or psychological discomfort.

Migraine and/or vomiting, loss of consciousness, headaches.

Discomfort due to delirium tremens.

 

 

b) International Health insurance.

 

For this type of insurance you don’t need to go anywhere. There is a plenty of insurance companies that will help you. Search it in google and choose the option for yourself. After that follow the instructions on the website of the company and feel safe.

 

The most basic package that we have found costs 1350 GBP per year and includes:

 

Hospital charges and surgery                                                    

Second opinion service                                                  

Virtual Doctor service                                                    

Emergency cover                                                

Medical evacuation and repatriation                                                    

Wide range of cancer treatment                                                           

Ambulance transport

 

3) Insurance by your airline company.

 

Every time a person flies somewhere, airline companies suggest them to buy an insurance. Most people use this way and it’s really easy.

The package of insurance and price depend on your airline company and options that you want to see, so you should ask your airline company before the flight and find it out.

 

 

 

 

 


Semih Sancar Caddesi,No.69,
Gold Tower,Office No.8,Girne
Phone: +90 533 8220569
Email: legalassistant@esalawfirm.com
Our Law Firm believes that clients' success determines our own. So we ensure both by collaborating with our clients to achieve their goals.
- Eylem Sakir

© 2020 All rights reserved.

By WebsiteCyprus.net