Taxes and fees

📌 1. Tax system TRNC
Northern Cyprus has its own tax system, independent from Southern Cyprus or the EU.

The tax authority is the Department of Revenue and Taxation TRNC (Vergi Dairesi).

The legal framework is based on British and Turkish models with local adaptations.

📌 2. Income tax

✅ Individuals

TRNC residents (stay >183 days per year) pay tax on their worldwide income.

Non-residents pay tax only on income sourced from TRNC.

✅ Income tax rates (approximate)

Income up to 14,000 TL: 10 %

14,001 – 24,000 TL: 15 %

24,001 – 40,000 TL: 20 %

40,001 – 60,000 TL: 25 %

Above 60,000 TL: 30 %
(Rates may slightly change annually)

📌 3. Income tax from property rental
Income from renting property in TRNC is subject to tax:

13 % (residents and non-residents), either withheld at payment or declared in the tax return.

Some new developer projects offer legally optimized contracts, always consult a lawyer.

📌 4. Property tax
Paid annually to the local municipality (Belediyesi).

Rate: approx. 1 – 2 TL / m² / year, very low compared to the EU.

📌 5. Transfer fee
When transferring the title deed to the buyer, a Transfer Fee is payable:

3 % (first purchase by the buyer)

6 % (each subsequent purchase)

Paid at the Land Registry Office before issuing the title deed.

📌 6. VAT – KDV
For purchase of a new property from a developer:

5 % of the purchase price (residential properties).

Higher rates apply for commercial properties.

📌 7. Stamp Duty
Payable at signing of the sales contract:

0.5 % of the purchase price (if paid within 21 days of signing).

📌 8. Taxes and fees for companies
Corporate income tax (Corporate Income Tax): 23.5 %

VAT rates for goods and services: 5 – 16 % depending on the type of product or service.

📌 9. Social and health contributions
Mandatory for employees and employers:

Social Security + Provident Fund: total approx. 15 – 20 % of salary (employer + employee share).

Health insurance: mandatory for all employees and resident permit holders.