There are 4 different types of taxes paid when buying real estates in the TRNC.
VAT (Value Added Tax): This tax is paid by the buyer as 5% unless otherwise agreed. If the seller is not a professional for-profit company, VAT is not paid on a second-hand land and housing purchases.
Title Deed Transfer Fee: Unless otherwise agreed, 6% is paid by the buyer. However, if the buyer is a non-profit buyer, he/she can pay 3% title deed transfer fee with 50% discount only once in his/her life. In subsequent purchases, a tax of 6% is paid over the price approved by the land registration office.
Withholding: This tax is paid by the seller. A tax of 4% is payable if the seller is a for-profit firm and 2.8% if the seller is an amateur non-profit. Non-profit amateur sellers are exempt from this tax for once in their lifetime.
Revenue Stamp: In case of purchasing a house from a project with a future delivery date, the sales contract is registered with the land registration office. In such a case, a stamp fee is 0.5% of the sales price in the contract is paid to the tax office. Thus, the buyer's property right becomes legal.
Different taxes are applied in transfers by grant. Parental grants are 0.2%, Spouse-to-spouse 0.4%, Grandfather to grandchild grants 0.4% + withholding tax to finance.