Taxes when renting the property
If you want to rent out a property in Northern Cyprus, you have to pay tax, i.e. 10% of the profit (the difference between the rental income and the costs incurred). If the owner rents an apartment for 2000 euros per month, the tax is calculated as follows:
2000 euros x 12 months = 24,000 euros rental income
The payment for the property management services (mostly property developers) and repair work as well as the maintenance fee must be deducted from this amount:
24,000 – 500 – 500 – 1000 = 22,000 euros
You have to pay a tax of 10% of the resulting amount:
22,000 x 10% = 2200 euros
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