Property tax in Northern Cyprus

Today, tax is one of the main sources of income for the government, which is widespread in all countries. It doesn’t matter where in the world the people living in the country are, the tax of a country collects a certain amount of tax from its citizens based on its criteria. But since North Cyprus is currently one of the most popular countries for Iranians and many people are interested in living in North Cyprus, we plan to deal with property taxes in North Cyprus.

But why property tax in North Cyprus? Or, more simply, why should we talk about property taxes? Well, you certainly know that buying a property in North Cyprus has many advantages. For this reason, buying and selling property in this country is booming. The government of Cyprus has exactly this real estate market and has created a good source of income for itself by collecting property tax in North Cyprus.

Now, in this article, we are going to get important information about this important issue by examining the property tax in North Cyprus. Knowing this will help you to be fully familiar with property taxes in Northern Cyprus in case of migration.

Types of tax practices

Types of tax practices
Tax principles of Northern Cyprus

Each country has different rules and conditions for taxing its people. Tax laws in Northern Cyprus are tax laws. In this way, whoever has more income has to pay more to pay taxes. On the other hand, taxes on property, occupation, etc. are specified in categories and with the following percentages:

Business tax

Business tax is one of the primary sources of revenue for the government of Northern Cyprus. In this type of tax, individuals must pay taxes to the government according to their occupation. Business tax is around 10%. In this way, individuals must give about 10% of their business to the government. Of course, the important thing about this issue is that immigrants who registered in North Cyprus are exempt from paying taxes.

income tax

Another booming source of revenue for the government is income tax. In this type of tax, anyone who is a resident of North Cyprus must pay about 10-37% of their income to the government. It doesn’t matter what kind of income this is, the government generally collects a certain amount of people’s income as taxes.

The important thing about this issue is that the higher the income of individuals, the higher the amount of government tax on their income. For example, someone who earns 30,000 euros per month is required to pay more taxes than someone who earns 15,000 euros.

Property tax

The most important type of tax that we will mention fully in this article is the property tax in Northern Cyprus. This type of tax must be paid annually. The amount of this tax is 1.25 lira or about 0.2 euro. If you sell a property for the first time, you do not need to pay capital gains tax, but if you have a history of buying and selling the property several times, you need to pay about 3.5% to the government for selling the property.

Why does the North Cyprus government collect different taxes from the people?

At the beginning of the article, we stated that taxation is considered as one of the best ways to generate revenue for the government. In fact, by collecting taxes from the people, the government provides a good income for itself and on the other hand, provides better services to the people. But the question that arises at this stage is why the government should collect taxes from the people to provide services and facilities to the people?

As tax can be a good source of income for the government, it is also a provider of government budget. In fact, in many cases, the government may not have enough funds to provide facilities and services. But it can compensate its financial deficits by receiving taxes and provide better facilities and services to its citizens.

Rental property income tax

Rental property income tax
Other taxes in Northern Cyprus

Property tax in Northern Cyprus is only one of several ways of taxation by the government of this country. In fact, the North Cyprus government collects taxes from the people using the following methods:

Value added tax
Stamp duty tax
Transformer charging tax
Document transfer fee tax
Income tax on rental properties
Property tax in Northern Cyprus

As we mentioned in the previous parts, property tax in Northern Cyprus is one of the easiest ways to generate income for the government. In this method, when selling his property, the owner must pay all the debts related to the municipality and pay about 3.5% to the government. This fee is for property tax in Northern Cyprus. There is also another aspect of property taxes in Northern Cyprus where the owner has to pay the government about 0.2 euros per year.

But the two points that we mentioned in the previous section are the tax on the cost of transferring the document and the tax on the rental property income. Both of these items are considered as property taxes in North Cyprus. And the transfer fee tax has increased from 3% to 6% in 2024. Therefore, the owner must pay about 6% of the property’s money to the government for property taxes in Northern Cyprus.

Another type of property tax in Northern Cyprus is the rental property income tax, which is the same as income tax. In this way, the owner must provide the government with between 10 and 37 percent of his income from the rent of his property.

Are the tax laws in Cyprus the same for everyone?

The government of Northern Cyprus has in many cases passed simple rules for its expatriates. property tax in

Northern Cyprus or other tax practices, like the rest of the laws, have many benefits for expats. For example, immigrants who have established a company in Northern Cyprus are exempt from paying business tax. In general, it cannot be said that the tax laws in Cyprus are the same for everyone. But in general, the country of Northern Cyprus collects taxes from all the people of its country in any stratum.

Of course, it should be noted that the same non-uniformity of tax laws has drawn the attention of other people to the living conditions in Cyprus. In this way, the government supports those who invest in North Cyprus or buy property, in addition to passing tax laws, it also creates a suitable environment for them.

Tax on document transfer fee

Tax on document transfer fee
final word

Property prices in North Cyprus are not so high that property and house owners are unhappy with their value. Because this total amount should be spent on providing services and improving living conditions in North Cyprus. So, if you are looking for a country for your residence and immigration, where you don’t have to pay unbelievable space taxes when buying property, North Cyprus is the best option. Because property tax in this country is very fair and can be paid for property owners. So, for more information, be sure to contact our consultants at Zahourian Company.