| NMP Pledges Support for the SOS Children's Village 'Secret Santa' Appeal |
| 2011-12-06 |
NMP has teamed up with the Cyprus Today newspaper to support the 'Secret Santa' campaign to provide the children of the SOS Children's Village in Nicosia with Christmas presents. NMP has set aside a budget of £1000 from our charity account generated from the interest on our client account to purchase one present for each of the 66 orphans who live permanently in the SOS Village. NMP is proud to be supporting such a worthy cause and hopes that this Christmas will be the happiest yet for all of the children in the SOS Village.
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| Council of Ministers Votes to Extend the Life of the IPC |
| 2011-11-03 |
The Council of Ministers has voted to extend the life of the TRNC Immovable Property Commission (IPC) which was set up to process claims by Greek Cypriots in respect of their properties in the North. The deadline for submitting applications to the IPC was set for 21st December 2011, but has now been extended by a further two years.
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| Changes to the Taxes Payable on Transfer of Title |
| 2011-11-03 |
The Council of Ministers has taken a decision to remove the once in a lifetime option to reduce the Land Registry transfer fees payable on transfer of title from 6% to 3% in respect of all non-TRNC citizens. This decision took effect on 12th October 2011 and is now being implemented. Therefore, with immediate effect, all future transfers of title, including those relating to Contracts of Sale signed, stamped and registered at the Land Registry before 12th October 2011 when the change was introduced, will be subject to the new rules and all transfers of title which have been carried out since 12th October 2011 will be recalled by the Land Registry and the purchasers will be required to pay the difference in the Land Registry transfer fees, otherwise their title deeds will not be issued.
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| North Cyprus Disneyland |
| 2010-10-28 |
According to recent press articles, North Cyprus is to receive its own ‘Disneyland’ style theme park. A piece of land in the Guzelyurt area belonging to the Government has been set aside for the project which it is estimated will cost £140 million. Work is due to commence in November 2010 and the project is expected to be completed within 2 years. The project is a joint venture between American, Turkish and British investors, including the owner of the Mercure hotel.
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| Yesilirmak Crossing Opens |
| 2010-10-28 |
On 14th October 2010, the long awaited ‘Yesilirmak’ crossing (known as ‘Limnitis’ in Greek) between North and South was officially opened by the leaders of the two sides of the island in an official ceremony. This brings the total number of border crossings between up to 7.
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| Cyprus' Richest Man Applies to the IPC |
| 2010-10-28 |
It has been reported that one of Cyprus’ richest men has submitted an application to the Immovable Property Commission (IPC) in the North, claiming the sum of €114 million for the properties which he lost in 1974. Andreas Lordos claims to have owned 5 hotels in the Maras area together with 10 apartments, 5 shops and 5 plots of land. This claim represents the highest value claim submitted to the IPC to date. Many Turkish Cypriots see this as a positive step in the peace process, taking the view that a future solution will be easier to find if more property disputes can be resolved through the IPC. The number of applications submitted to the IPC this year has dramatically increased as many Greek Cypriots are losing faith in the prospect of a comprehensive settlement to the Cyprus problem and as the current deadline for submitting applications to the IPC of 21st December 2011 is fast approaching.
As a firm, we are handling a number of applications to the IPC. You can find more information on the procedure on our Information and Guides page.
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| Government to Introduce New Law on Separate Title Deeds |
| 2010-03-24 |
The TRNC Government is currently in the process of passing new legislation which will enable separate individual title deeds for properties being built on complexes to be issued as soon as the project commences. The draft bill has been approved by the Council of Ministers and has been passed to Parliament for approval before becoming law. The current proposals would mean that purchasers of off-plan properties in Cyprus would be able to take title to their property immediately on purchasing before the construction has even started. This would help to ease the current problems which may purchasers are experiencing with rogue builders who are refusing to hand over title deeds to completed properties or demanding additional payments from purchasers for the title deeds or who have taken out mortgages over properties preventing the transfer of title from taking place.
The Government also hopes that this will pave the way for a new ‘mortgage’ system to be introduced into the TRNC to allow banks to provide mortgages to purchasers. Mortgages on off-plan developments are not possible under the current system because purchasers are unable to take title until the construction is complete when the separate title deeds are issued. Issuing title deeds at the start would allow purchasers to take title and finance the purchase through a mortgage from the bank which can be registered over the purchaser’s own individual title deed for the property. It is hoped that this new legislation will help to ease the current downturn being experienced in the construction industry.
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| ECHR endorses the TRNC Immovable Property Compensation Commission |
| 2010-03-09 |
The E.C.H.R. in its recent judgment in the case of Demopoulos v Turkey has ruled that the T.R.N.C. Immovable Property Commission (IPC) does constitute an effective local remedy for Greek Cypriot property claims. This means that Greek Cypriots must refer their claims to the IPC and must have exhausted this as a potential remedy before they can file a case against Turkey in the E.C.H.R. Although the decision of the E.C.H.R. cannot directly affect the ruling of the ECJ or the UK Court of Appeal in the Orams case, a recent article in the Cyprus Mail argues that the IPC may be a more favourable option for Greek Cypriots wishing to obtain compensation for their properties in the North and this may result in an increase in the number of property disputes which are resolved in this way. You can read the full text of the article in the Cyprus Mail by following the link below http://www.cyprus-mail.com/cyprus/gloom-over-talks-makes-ipc-applications-more-likely/20100314
You can find further information on the workings of the IPC in our Guide to Applying to the Immovable Property Commission and the Cyprus Today article available for download in our Information and Links section. Naomi Mehmet & Partners are pleased to confirm that we are now accepting cases in the IPC.
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| UK Court of Appeal gives Judgment in the case of Apostolides v Orams |
| 2010-03-09 |
On 19th January 2010, the UK Court of Appeal gave its ruling in the case of Apostolides ve Orams. The Court of Appeal followed the recent ruling of the ECJ and rejected Mr. and Mrs. Orams’ claims that the enforcement of the judgment was contrary to public policy. The Court of Appeal also rejected Mr. and Mrs. Orams’ claims that the President of the ECJ at the time when the ruling of the ECJ was given, Judge Skouris, was biased. The question which everyone is asking is how will this decision affect the current peace talks between the two sides and can the Cyprus problem really be solved through individual cases? Commentaries on this point can be found on http://www.cyprus-mail.com/opinions/apostolides-big-win-might-just-become-our-big-loss/20100214. Also, further information on the background to this case, can be found in our article on the Orams Case available to download in the Information and Links section of our website.
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| NMP supports 2nd 'Balls to Cancer' Charity Calendar |
| 2009-09-10 |
NMP are delighted to be the main sponsors of the second ‘Balls to Cancer’ testicular cancer awareness charity calendar in association with the Cyprus Pumas Rugby Club and the Help Those with Cancer Association (Tulips). The inspiration for the calendar initially came after Av. Naomi Mehmet’s husband, Hakan Temizyurek, was diagnosed with testicular cancer in early 2008. After receiving treatment in Turkey and returning to Cyprus, Naomi and Hakan realised that there is very little information available in Cyprus about testicular cancer - very few men are aware of the early warning signs and how to check themselves - so they decided to take action to raise awareness and the 2009 calendar was produced. The 2009 calendar raised around 10,000TL for the Help Those with Cancer Association (Tulips) and the Help Those with Cancer Association (Tulips) has reported an increase in the number of people contacting them who have been diagnosed with testicular cancer – many of whom had been suffering with symptoms for some time, but had been too embarrassed to discuss these before this campaign was launched. This year’s calendar is, once again, being produced in association with the Cyprus Pumas Rugby Club whose players are the models in the calendar. Rugby is a central theme in the calendar because it is a sport which is popular amongst young men between the ages of 18-35 - the age group which is, statistically, most likely to be affected by testicular cancer. The players posed naked for the calendar, which features very tasteful, but slightly risqué, semi-nude black and white pictures, in order to help men to realise that testicular cancer is not a subject to be embarrassed or ashamed about. The calendar will, once again, provide important medical facts and advice for men about testicular cancer. However, the style of the 2010 calendar is very different to the 2009 calendar, with more sophisticated, sultry and subtle photos and many new faces. The calendar will be launched on Sunday 27th September 2009 at the Pia Bella Hotel in Kyrenia between 12.00-18.00. The launch day will be a fun day for all of the family and will include a ‘Pumas’ fashion show, dance shows, live music, face paining, bouncy castle, raffle, tombola, children’s games and much more. In addition, the calendar will be on sale at the launch day and the models who posed for the calendar will be available to autograph their photos! All proceeds raised on the day and all proceeds from the sale of the calendars will be donated to the Help Those with Cancer Association (Tulips). After the launch day, the calendars will be on sale at our office.
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| Deadline for Transfer of Title at Reduced Rate Extended Again |
| 2009-06-24 |
The official deadline for completing transfers of title at the reduced rate of tax has been extended until 31st December 2009. This is good news for hundreds of purchasers who are still trying to process the paperwork required to complete their transfer in time.
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| Reduction in Taxes Payable on Transfer of Title |
| 2009-01-21 |
The TRNC Government has introduced an option, which is exercisable for a limited period only, for the land registry transfer fees (usually payable by Purchasers) to be paid at a reduced rate of only 25% of the usual rate. The land registry transfer fee is usually payable at the rate of 6% of the sale price of the property, although everyone has a once in a lifetime option to reduce this to 3%. The Government has now reduced this further so that the rate will be only 0.75% of the sale price. This is a substantial saving for Purchasers. The reduction does not, however, apply to VAT which is 5% of the sale price. The Government has also announced a similar reduction to the capital gains (stopaj) tax which is usually payable by Vendors. This has been reduced from the usual rate of 6.25% to 4% for the same limited period of three months. We are currently in the process of contacting all clients who might be able to benefit from this tax reduction. You can only benefit from this if you meet the following criteria:
1. You have received your permission to purchase from the Government. If you require information on this, please contact our designated Purchase Permit Processor, Ozden Buzcu, on ozden@nmplegal.com and
2. Your Vendor is ready to transfer title. Even if you have received your permission to purchase, it might not be possible to carry out transfer of title if the parcelisation process has not yet been completed. Parcelisation is the process by which separate individual title deeds are issued for each plot on the site. The completion of this process is the responsibility of the Vendor. It can be a lengthy process as the application has to pass through a number of public offices. It is usually only completed after all of the construction work is fully completed and the constructions have been inspected by the planning authorities and received their ‘final approval’. Obtaining final approval can take a few months from the completion of the construction work, and parcelisation can then take a few months thereafter. Your Vendor will be tracking the application through the relevant authorities and you may contact your Vendor for an update on progress. It is not possible for us to pay the taxes now at the reduced rate if all of the paperwork is not ready. The taxes have to be paid on transfer of title. If we receive confirmation from your Vendor before the deadline expires that the parcelisation has been completed, we will notify you. We will be contacting all Vendors to discuss whether the Vendor can apply for a ‘partial final approval’ so that the completed constructions can receive their ‘final approval’ without the need to wait for the whole site to be completed and then it may be possible for the Vendor to transfer a ‘shared title’ to you until the separate individual title deed for your plot is available. A shared title deed is good title – it does not in any way mean that you do not have ownership of your property – it is just that you own a share of the freehold of the whole site, such share corresponding to the area of the site which your property occupies. Once you receive a shared title deed, eventually, when the separate individual title deeds are issued, the separate individual title deed for your plot will be automatically registered in your name. This will not require further taxes to be paid or procedures to be completed. It is not always possible or practical to transfer a shared title. The first problem is the calculation of the share. If your site consists of a large number of properties or if the properties are of varying sizes/types e.g. a mixture of apartments and villas or with different internal areas and numbers of bedrooms, the shares will have to be calculated according to the exact meter square area of the property over the total meter square area of all buildings on the site. Changes cannot subsequently be made so an incorrect calculation resulting in an incorrect share being transferred could cause very severe problems. In addition, once you own a share of the freehold, the Vendor may require a power of attorney from you as he will require your signature as a ‘co-owner’ of the site to complete the parcelisation works and transfer the other shares to the other Purchasers. For these reasons, Vendors usually tend to prefer to wait until all of the formalities concerning final approval and parcelisation are fully completed before transferring title to avoid any such complications. Therefore, this might not be an option which is open to you. We should stress that it is in the Vendor’s best interests to speed up the parcelisation process where possible or to try to consider transferring a shared title as the Government has applied similar tax relief to the taxes payable by the Vendor for the same limited period. However, there will be situations where this simply isn’t possible. Please rest assured that we will explore all possibilities for carrying out transfer of title within the deadline to allow you to benefit from the tax relief. However, we cannot be responsible for any delays beyond our control which prevent the transfer taking place before the expiry of the reduced tax rate. Typically, your Contract will include a clause putting an obligation on the Vendor to carry out the parcelisation within a reasonable time or to complete the transfer of title within a certain time period. Failure to do this could constitute a breach of Contract on the part of the Vendor and could entitle you to take litigation against the Vendor. If you are not prepared to accept that it is not possible to carry out transfer of title within the deadline given by the Government and wish to take this matter further, your only option will be to consider litigation against the Vendor. If you require further information about taxes, please download our free Guide to Taxes which is available on the Information and Links page of this website.
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| Reduction in Inheritance Tax |
| 2009-01-21 |
A new Inheritance Tax Law is in force. Inheritance tax was reduced to 1% with a threshold of over 20 times the annual minimum wage in force in the year of death. This means that presently estates over around £100,000 will be subject to Inheritance Tax. At 1% on the part over £100,000. Inheritance tax in the UK is payable at 40% on an estate above a threshold of (presently) £312,000. Therefore, investment in Northern Cyprus is highly attractive in terms of estate and succession planning.
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| Non-citizens can now own areas of land up to 5 donum. |
| 2009-01-21 |
The Acquisition and Long Term Lease of Immovable Property (Aliens) Law came into force late in 2008 which allows (inter alia) foreign purchasers to purchase up to 5 donum of land provided there is only one dwelling on that land. This means there is now no need for foreign purchasers to nominate anyone else or to go to the expense of forming a local company to take title to a property where the garden area is larger than the previous 1 donum maximum area allowed. It should be noted, however, that an application to build further properties on the land at a later date will not be accepted. This law has therefore made larger properties generally situated on land over 1 donum in size more accessible to foreign purchasers. The law also provides the right for a purchaser to apply for a long leasehold title.
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| Change to VAT Laws |
| 2009-01-21 |
There have been changes recently to the procedure for the payment of VAT (KDV in Turkish) on the purchase of property in Northern Cyprus.
Previously, it was customary for VAT to be paid on transfer of title to the property into the name of the purchaser. However the Tax Office has recently issued a directive to all construction companies stating that VAT must be collected on completion of the construction and delivery of possession of the property to purchaser instead of transfer of title. This directive has been issued relying on a very old VAT law which has rarely been enforced by the Tax Office in the past.
In line with this directive, many vendors are therefore now invoicing their clients for VAT, which is currently 5% of the purchase price of the property, on completion of the construction. Many people have criticised this new directive by the Tax Office because they fear that if the VAT is paid by a purchaser to a construction company on completion, the construction company may not account to the Tax Office for it. On transfer of title, the Tax Office requires proof that the VAT has been paid before it will allow transfer of title to take place. If the construction company has not paid this money to the Tax Office, the purchaser may not be able to take title without this being paid. Some pressure groups are lobbying the Government to try to change this practice so that VAT can be paid directly by the purchasers to the Tax Office on completion of the property instead of to the construction company to ensure that there is no risk of the construction company failing to account to the Tax Office for the VAT. However, this is not possible at present.
We are currently advising our clients only to pay VAT to the construction company in return for an official invoice (known as a ‘fatura’ in Turkish) from the construction company. This should bear the stamp of the Tax Office on it and should state the amount paid. Once a construction company has issued an official invoice, it must account for that money to the Tax Office. The invoice should be retained by the purchaser or their lawyer to produce to the Tax Office on transfer of title. If payments of VAT are made on possession to a construction company through our client trust account, we will ensure that the invoice is obtained and held on file.
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| New multi-lingual website under construction |
| 2008-07-29 |
Due to the ongoing increase in our client base and our expansion into other jurisdictions, Naomi Mehmet & Partners is working on a new multi-lingual website for which will provide information in English, Turkish, German, Russian and French. We now employ staff who are fluent in all of these languages.
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| NMP forms associations with law firms in Istanbul and London |
| 2008-07-29 |
In order to provide our clients with a better international service and to ensure that our clients with interests both in Northern Cyprus and in other countries and clients with cross-border issues can benefit from expert local knowledge and professional advice in both jurisdictions, Naomi Mehmet & Partners has formed reciprocal links with well known UK law firm, Duncan Lewis, and a firm of lawyers in Istanbul, Vulas and Uzun Law Office
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| A new bespoke software has been installed at NMP |
| 2008-05-05 |
Naomi Mehmet & Partners is pleased to announced that it is the first law firm in Northern Cyprus to have a bespoke, tailor-made software package installed by a UK based software company which is one of only fifteen firms approved and accredited by the Law Society of England and Wales to provide software to the legal profession. This new software will enable us to provide an even more efficient service to our clients using the highest level of technology including on-line case tracking and automatic SMS text messaging. It will also ensure that our firm is fully compliant with the Law Society's Solicitors Accounts Rules. In order to implement and install the new software and to provide our staff with training in the use of the new software, our office will be running a limited service only during the weeks 5th-9th May 2008 and 2nd-6th June 2008. You can read the full report of our software installation project on http://www.dpssoftware.co.uk/newsletter/June08.htm
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| NMP opens new Famagusta Office |
| 2007-10-05 |
Naomi Mehmet & Partners is proud to announce the opening of its new Famagusta office. Conveniently located within walking distance of the Famagusta District Courts and Land Registy, the new office will now be providing the same first class level of service to our clients in the Famagusta area. The opening party which was held on 26th May 2007 was a great success and the new office attracted very positive feedback.
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| NMP holds a summer party at the new Malpas Hotel |
| 2007-10-05 |
Naomi Mehmet & Partners held a summer party on the roof terrace of the recently completed Malpas Hotel in Catalkoy on 4th August 2007 to celebrate the second anniversay of the formation of Naomi Mehmet & Partners and to celebrate the marriage of the founder of Naomi Mehmet & Partners, Advocate Naomi Mehmet LL.B. to Mr. Hakan Temizyurek. Naomi's wedding was held on 9th June 2007 at the Kybele in Bellapais and the reception was at The Colony Hotel in Kyrenia. The wedding was a small wedding with only family and close friends attending. However, Naomi also wanted to celebrate her marriage with her business colleagues so it was decided that a joint party to combine this with the second anniversary of the firm should be held. The evening was a huge success with over 100 guests.
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| New Offices for NMP |
| 2005-09-15 |
Naomi Mehmet & Partners are pleased to announce that we have moved offices. Our new office will provide us with much more space and a much more comfortable environment in which we can work with our clients. Our new office also has the advantage of being much closer to the District Court of Kyrenia and the District Lands Office. Our new contact details and a map providing directions to our new office can be found in the 'Contact Us' section of our website. We look forward to welcoming you all at our new office in the near future.
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