Why buy property in Northern Cyprus?
Many property owners in Northern Cyprus are unaware of the major legal changes that have taken place in Northern Cyprus property market over the years, and these changes have now made Northern Cyprus a very safe place to buy a home and invest in Real Estate market. The Real Estate market in other countries, such as Middle East, Scandinavia, United Kingdom and Europe, often operates in very different ways from Northern Cyprus and has a completely different history.
We look forward to answering our clients’ questions about buying property in Northern Cyprus and reassuring them about legal issues.
Northern Cyprus is the new focal point of the large Mediterranean Real Estate market. Citizens of UK, Eastern and Western Europe, Scandinavia and Middle East are increasingly investing in villas or apartments in Northern Cyprus.
The Turkish Republic of Northern Cyprus is gradually becoming one of the most popular investment regions in the Mediterranean. In this article, we are going to look at what are the reasons for investing in Northern Cyprus.
These days, number of people who are interested in buying an apartment and property in Northern Cyprus is increasing. One of the most important reasons for thas is the ease of legal procedures. In 2022, the country of Northern Cyprus was selected by FORBES Magazine as the best destination for investing and buying Real Estate. The other good news is that as an investor, you can get residence in this country. Buy property in Northern Cyprus
Buying a property or apartment in Northern Cyprus will bring you many benefits. Some of them include:
- Reasonable prices for property and apartments compared to other countries in the Mediterranean.
- Obtaining temporary residence in this country, by paying one third of the total amount of property or apartment.
- Existence of financial and psychological security in this country.
- Low taxes in this country.
- high security.
1- Possibility of joining the Eurozone
Northern Cyprus is not yet a member of the European Union. All property prices in Northern Cyprus are pegged to the British pound and thats a common international currency in the country. Northern Cyprus is a place where shops and restaurants also widely accept the pound as well as Turkish Lira. In contrast, property in many other Mediterranean destinations, such as Spain, Greece or Southern Cyprus, is all priced in Euros and the unstable economic nature of Greece and Southern Cyprus discourages investors from investing in these countries. In Northern Cyprus, investors are actually buyers of a different lifestyle in the world. While their cost of living is low and mainly in Turkish lira and its also very affordable for them to buy a property.
There are two major airports on the island of Cyprus. One of them is Arjan Airport in north and the other is Larnaca Airport in south of Cyprus. Visa-free travel to Cyprus is possible only with a European passport or a Schengen visa via Larnaca Airport. While Arjan Airport in Northern Cyprus does not require a previous visa, its flight are cheap through Turkey.
3- Enter with any passport
Holders of almost all passports in the world can enter or live in Northern Cyprus without a prior visa. Buy having an address, you can easily apply for a residence permit in Northern Cyprus, which takes 21 days to obtain. This annual stay can be extended if you can prove your financial ability every year and you do not have a contagious disease.
4- Easy residence permit
Property owners in Northern Cyprus can easily apply for a residence permit in the country. It takes about 3 weeks to receive this stay. The residence permit of Northern Cyprus must be renewed every year and after living in this country for about 7 years, you can apply for citizenship of this country. Buy property in Northern Cyprus
5- Cost of living is cheaper than Southern side
In general, Northern Cyprus is much cheaper than Southern Cyprus. The main reason for this, is the use of Turkish Cypriot Lira against Turkish Lira, which is much lower than the euro (used in southern Cyprus). The Turkish lira is used by tourists and people living in Northern Cyprus. Cost of restaurants, beach clubs, car rentals and etc. is not only not cheap, but hotels in Northern Cyprus often offer better quality than hotels in the South.
6- Lower property prices compared to Southern Cyprus
Price of a property in Northern Cyprus is much cheaper than a property with similar standards in Southern Cyprus and most other Mediterranean countries. Homes in Northern Cyprus are also more unique and offer more special beach spaces. In southern Cyprus and in top cities such as Limassol and Nicosia, buying a typical beachfront apartment costs at least 140,000 euros.
7- Capital growth
Property prices in Northern Cyprus have risen significantly over the past few years. On average, the annual price per square meter of a house in Northern Cyprus increases by 10%. The most profitable strategy can be to buy a property at the zero stage of construction because the builder sells it at the lowest possible price. On average, the value of a property increases by 30% from the start of construction until the final realization of the project.
8- Affordable rental of Real Estate
Residential real estate in Northern Cyprus is becoming more expensive every year. In addition, renting a home during holidays or during regular season may provide the landlord with a return of up to 10% per annul. Currently, maximum profit is from short-term rents, and with proper management, property owner can earn up to 15% of the value of his property annually from short-term rent alone. Buy property in Northern Cyprus
9- Mediterranean climate
Northern Cyprus has an average of 340 sunny days a year and offers the warmest winter temperatures in all of Europe. The beaches of Northern Cyprus have the best water quality in all of Europe and 99% of the beaches of this country have the highest water quality and 300 sunny days a year
Northern Cyprus is an ideal tourist country where cloudy days are very rare. The beach tour season in cities of Northern Cyprus lasts from the end of April to end of October. In the hottest season, Mediterranean Sea warms up to +32 degrees. This means that you can rent a house almost all year round, and if you really love warm countries, you will definitely love Northern Cyprus.
10- Pristine and untouched nature
Pristine nature of Northern Cyprus is fascinating for property buyers. Many villa and apartment complexes in Northern Cyprus have easy access to the beach. Nightlife with a variety of restaurants and large casinos is one of the special attractions of this area. Even many of the houses in the city center have a unique view of mountains. The East Coast in Famagusta region and the Carpathian Peninsula has very clean long sandy beaches, while the west coast also has some interesting facilities for water sports.
Northern Cyprus offers a unique mix of history, unique cuisine, Turkish and Greek culture, classical music and other festivals. Culture lovers can visit ancient castles, tombs and places for thousands of years old, including Greek temples, Roman cities, Persian palaces, crusader castles and more in this beautiful country.
12- High number of prestigious universities
Northern Cyprus has long been a country with advanced universities and a high number of students and very important scientific place in the world. In recent years, number of active universities has increased to 18, and the number of active students in Northern Cyprus has exceeded 100,000, an increase of 12 to 15% each year.
13- High security and low crime statistics
Cyprus is one of the safest countries in the world and is proud to rank fifth among 106 countries surveyed for the safest countries in the world. In addition, North Cyprus is the first safe country in the world to live and travel among countries with a population of less than 5 million. There are rumors that crime and lawlessness are prevalent in Northern Cyprus, but the statistics are the opposite. For the whole of 2018 in the northern part of the island, only 8 thefts occurred and no more serious crimes were recorded. This rate is several times lower than in neighboring Cyprus or Greece.
For example, car owners do not install anti-theft security systems, and most residential complexes are not protected because they are not needed at all. You can live in complete security by living in Northern Cyprus.
14- Expansion of tourism
New figures from the Northern Cyprus government show a significant increase in tourism in this country. The number of tourists from different parts of the world, including Europe (France and Germany) has increased by 25%, North America by 15%, Scandinavia by 50% and even Chinese tourists by 18%.
15- Construction boom
Northern Cyprus has been in isolation for more than 30 years, and this long isolation ended with a ruling by the European Court of Human Rights. Since 2010, land problems have been definitively resolved and construction and home buying booms have begun in Northern Cyprus.
Several large investors came “all at once” to the northern part of the island, and this had a profound effect on both individual construction and the construction of hotel complexes. In Northern Cyprus it is much cheaper than similar buildings in the Republic of Cyprus and Greece.
16- Possibility to pay installments
Its not necessary to pay the full cost of buying a property in Northern Cyprus in one place. Its always possible to pay interest-free installments for several years or to issue a long-term mortgage loan. At the same time, there is no need to provide irrational documents or guarantees. Its enough to have a foreign passport and the desire to buy a house in Northern Cyprus. Although working conditions in Northern Cyprus have been very easy, the government has always paid close attention to the issues that people face when entering the country.
17- Lots of casinos
Its clear that casinos and gambling houses are practically banned in some part of Europe. In this respect, Northern Cyprus is an exception to this rule. Almost every large hotel (4 or 5 stars) has its own casino with the highest level. However, in many ways, this is due to the constant influx of tourists from neighboring countries who want to play casino but are able to travel to Monte Carlo or They are not Macau, he justifies.
Reasons to invest in Northern Cyprus
The island of Cyprus is the third largest island in the Mediterranean Sea, located in east of the sea. Where the trade routes of three continents of Europe, Asia and Africa intersect. Total area of the island is 9,251 square kilometers and the area of Turkish Republic of Northern Cyprus is 3,242 square kilometers. Nearest neighbor is the Turkey, located 65 km north of the island. The island of Cyprus is also located 100 km west of Syria and 420 km north of Egypt.
Lefgosha is the largest city in Turkish Republic of Northern Cyprus (TRNC). Famagusta, Iskele and Kyrenia or (Girne) are other important coastal and port cities. Due to political situation in Northern Cyprus, all international flights are operated via Turkey and cities of Istanbul or Ankara. Also there are ferry routes from port of Mersin and city of Alanya in south of Turkey, often to the port of Kyrenia in Northern Cyprus.
In Turkish Republic of Northern Cyprus, political system operates as a multi-party democracy. President is the head of state and is elected by general election every five years. Official currency in North Cyprus is Turkish Lira. It is possible to keep foreign currencies such as dollar, euro and british pounds and save these currencies in banks and use them as a means of exchanging and expressing payment figures and contracts for individuals and legal entities. North Cyprus, like the rest of Europe as well as Turkey, has an advanced banking system. In addition to “Central Bank” and “Development Bank“, there is 21 commercial banks and 7 international units.
Economy of Northern Cyprus
Despite a lack of accurate international knowledge of this country’s statistics, the North Cyprus economy is performing well and growing significantly. Per capita income of Northern Cyprus for the past 5 years was $15 million. It earns about $400 million from tourism and another $400 million from higher education and universities. There is also strong investment in Real Estate, with home buyers investing heavily in unique beachfront villas, mostly from northern Europe and Middle East. More than a thousand Britons visit Northern Cyprus during summer months. Invest in Northern Cyprus
The country’s main exports are dairy products, raw and processed citrus fruits, poultry and potatoes. In 2019, Northern Cyprus exports amounted to nearly $130 million. Industrial tourism is rapidly growing and improving in Northern Cyprus. In Northern Cyprus since 1978, due to island’s location, tourism activities are considered vital to the country’s economy.
Investment policy in Northern Cyprus
The main goal of investment policy in this country is to accelerate economic development, increase competitiveness with economies of other countries, mobilize potential resources, increase the efficiency of private enterprises in economy and encourage foreign investors to invest in this country. Invest in Northern Cyprus
North Cyprus has many opportunities for start-up tourism, service and Real Estate companies and foreign investment. A strong banking system, an increase in number of international tourists and students, trained staff and corporate tax break opportunities have greatly benefited entrepreneurs.
For those who want to start a profitable business in North Cyprus, there are four options each set for different purposes and with different tax liabilities:
1- Establish a local company
2- Establishment a branch of a foreign company
3- Establishment a company in free trade zone
4- Establishment an international trading company
Investing in partnerships with foreign and local companies is actively supported by the government with many benefits and incentives, Including full protection of private property rights. There is no difference between citizens and foreign nationals regarding such rights and all of them are guaranteed by the constitution.
The main reasons for buying property and investing in North Cyprus
1- Very reasonable property prices:
Currently the Real Estate market in North Cyprus offers the best prices among the Mediterranean countries. Prices for Real Estate starts at 47,000 GBP for an apartment and nearly 100,000 GBP for a villa. Luxurious apartments and penthouses with the best conditions with a price of about 180 thousand British pounds and very stylish villas up to 250 thousand pounds, which is much lower than prices of similar properties in other parts of the world.
2- Annual property price growth:
Annual growth of property prices in Northern Cyprus is about 15 to 20% and that is more true for pre-sold properties. Also due to the high desire of citizens of other countries to stay and invest in North Cyprus, demand for property is increasing every year and price of property and houses increases in proportion. Invest in Northern Cyprus
3- Receipt of definite inherited property document:
One of the biggest benefits of investing in Northern Cyprus is getting a definitive, lifelong single-deed document in the name of foreign buyer. Under Cypriot government law, the title deed is the same for foreign investors and people of Cyprus. Even after the buyer dies, property will be inherited in full accordance with the law or will be executed according to the deceased registered will. The government of Cyprus, unlike countries such as Georgia, Turkey and etc., will not have any share of the property of foreign buyers.
4- Simplicity of administrative process and obtaining residence permit:
There is no need to establish a company to buy property in North Cyprus. Administrative and legal process of buying property on the island is very simple. As in most projects, by paying 33% of total amount of property, the house or property is registered in the name of customer and it’s immediately possible to complete the accommodation process, which lasts a maximum of three weeks. Also, process of concluding a property purchase contract in North Cyprus is very simple and foreigners can easily have definitive and 100% ownership of the purchased property. In addition, purchase contract is prepared in three versions (buyer, seller, lawyer) in both Turkish and English languages and all versions have equal executive power. It should also be noted that the deed of inherited property (similar to that not seen in countries such as Dubai, Greece, Armenia and European countries) is given to the buyer. The Immigration Police in North Cyprus, based on the property registered in your name, conducts the process of your residence and also your family. So, legally this work is done very carefully and under full supervision of the law, which is a good platform for encouragement and benefit. Provides foreign investors from various European countries, Russia, England and Middle East. Invest in Northern Cyprus
5- Terms and facilities for payment of Cyprus projects:
Ctop Group has made payment terms very easy, so that investors in most projects can pay 33% of property price and pay the rest in several-year interest-free installments or even with 9% interest for up to 6 years. Such conditions make it easier for customer to pay, regardless of how the payment is paid in installments or in cash, the conditions for obtaining residency are the same. For customers with cash payment, special discounts and facilities such as provision of some kitchen appliances and… are considered as gifts by company.
6- Easy accommodation conditions in Northern Cyprus:
Applicants for immigration or long-term residence in North Cyprus must apply for a residence permit. To obtain residency through the purchase of a property in Northern Cyprus, after completing the initial stages of purchase contract, you must take the relevant documents with our representative to the tax and registration offices and register the property in the name of buyer or buyers. The issuance of residence for individuals is in no way subject to the permanent presence of persons in North Cyprus and compulsion to live here. The buyer can leave or enter Northern Cyprus at any time. Similarly, some people leave Cyprus after buy a property and obtain a residence permit. Perhaps they leave the house for annual rent. Invest in Northern Cyprus
7- Obtaining permanent residence in Northern Cyprus:
After receiving an annual residence permit in North Cyprus and extending it for 5 years (with the need for continuous living and presence in island mor than 300 days a year), foreigners will have right to receive a permanent residence card for themselves and their family.
8- One of the safest countries in the world :
According to statistics of international organizations, North Cyprus is ranked first among the small countries with global security and cleanliness of environment. And according to the world statistics of 2021, it is ranked fifth among all countries in the world in terms of social security, crime and optimal living conditions.
9- Political and economic growth of Northern Cyprus:
The country of Northern Cyprus is separate from the Southern Cyprus, but due to actions and negotiations, as well as various political issues and political situation of two countries, in future we will see an agreement and unification bitween two countries. Given the above, it’s obvious that this is an ideal opportunity to apply for residency through investment and purchase of property, in the near future (both before and after the agreement) will be profitable.
One of the main reasons people choose Northern Cyprus is its very mild and temperate climate. Clean and suitable climate has made life on this beautiful island enjoyable. Cyprus has one of the healthiest and best climates in Mediterranean region with an average of 300 sunny days a year, which is why the island welcomes travelers from all over the world all year round. Temperature in most months is between 15 and 27 degrees Celsius.
Among tourists, the Mediterranean has always been known for its charming and beautiful beaches. The island of Cyprus also enjoys this Mediterranean gift, and the magical beaches of this region, with their magical clear water and sparkling sands, capture the hearts of all tourists. Calm sea and golden sands provide a beautiful and pleasant place for swimming, sunbathing and water sports.
In Northern Cyprus there are countless entertainments for adults as well as children. 5-star hotels provide unlimited recreational facilities for everyone, as well as restaurants and nightlife. All are available to everyone, even those who do not stay in hotel. Leisure centers and bowling alleys, cinemas as well as countless historical sites that you will not be satisfied with. At the same time, One of the most important attractions is the coastal island with golden sands and a huge variety of beach and sea recreation. North Cyprus is also one of the most popular areas for diving enthusiasts around the world due to its excellent water depth and unparalleled diversity of aquatic species.