Turkish Republic Northern Cyprus (TRNC) government is proposing to increase property taxes on foreign real estate investors to 12% as a result of a surge in property prices and foreign investors in the country. The proposal, however, has faced resistance from the real estate industry, which argues that the tax hike would hurt the local economy.
At the same time, the government is also facing a growing problem with illegal property providers who call themselves agents, but are actually selling houses to developers without making proper tax payments. This is causing the government to lose hundreds of millions of dollars in potential revenue.
The situation is complicated, as the government tries to balance the interests of the real estate industry and the need to address the problem of illegal property providers and tax evasion. The government is reportedly engaged in ongoing discussions and negotiations with the Estate agents association and construction industry, as well as working to crack down on illegal activity and ensure that proper tax payments are made.
For some main reason for decision made because of fast rising house prices having negative impact on local homebuyers.
The fast-paced increase in house prices is having a negative impact on local homebuyers, according to real estate experts. The rising prices are making it more difficult for local residents to enter the housing market, leading to concerns over affordability and the impact on the first time local buyers.
Data shows that the average cost of a home has risen significantly in many cities in 2022, with many local buyers struggling to keep up with the pace of the increases. This has led to a growing sense of urgency among experts to address the issue and find solutions to protect local homebuyers.
Despite the challenges, the government remains committed to creating a stable and attractive environment for foreign investors, while also taking steps to ensure that the local residence, economy and taxpayers are protected. The outcome of the ongoing discussions and negotiations remains to be seen, and will likely have a significant impact on the future of the real estate market in Northern Cyprus.
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