The Turkish Republic of Northern Cyprus (TRNC) is a new Mediterranean hotspot! Buyers and investors from the UK, Eastern and Western Europe, Scandinavia and the Middle East are increasingly investing in North Cyprus property.
Northern Cyprus is slowly becoming one of the most popular real estate investment destinations. Northern Cyprus is especially attractive for residents of those countries whose national currencies have weakened in recent years. Due to the currency crisis, there was an urgent need to save the rest of the capital in order to protect assets from future risks.
How you can benefit from a safe, low cost but fast growing property investment in Northern Cyprus in this unique non-Eurozone economic area with an international population. from around the world.
NORTHERN CYPRUS IS NOT IN THE EURO AREA
Northern Cyprus’ status outside the Eurozone, previously seen as a boost by many, has recently become a huge bonus and selling point for overseas property buyers. All property prices in Northern Cyprus are pegged to the stable pound sterling, which is the de facto international currency in the TRNC, where shops and restaurants also widely accept all major world currencies. In North Cyprus, investors and luxury property buyers have the “best of both worlds” – fixing the value of their property in a stable currency and at the same time enjoying a low cost of living (due to the favorable exchange rate against the Turkish lira), which makes the North Cyprus Cyprus is more than affordable.
Northern Cyprus offers an average of 340 sunny days per year and the warmest winter temperatures of any European region, while being warmer than Turkey.
There are two major airports in Cyprus: Ercan (Lefkosha) in the northern part and Larnaca Airport in the south of Cyprus. Any property applicant with a European or Commonwealth passport or a Schengen visa can enter free of charge through the Larnaca Airport Global Center which offers amazing connections around the world. Ercan Airport in northern Cyprus does not require a prior visa and is therefore ideal for non-Schengen citizens who can easily and inexpensively arrive via Turkey.
SAFETY AND LOW CRIME
A recent study by Value Penguin confirmed that Cyprus is one of the safest countries in the world. Cyprus is proud to be ranked 5th in the world out of 106 countries that were analyzed in the study of the safest countries in the world. In addition, Cyprus is the safest place to live and travel among countries with a population of less than 5 million people.
Yes, that’s right, almost every passport holder in the world can enter or live in Northern Cyprus without a prior visa. Moreover, almost every citizen can also buy property in the TRNC! Once you have an address, you can easily apply for a Northern Cyprus residence permit (preparation takes 21 days), which can be renewed annually if you can prove that you are able to support yourself financially and that you do not have infectious or serious diseases.
EASY TO GET A RESIDENCE PERMIT
Happy property owners in Northern Cyprus can apply for a residence permit in the country. However, if in the southern part of the island the minimum investment amount is 300,000 euros, then in the north there are no such requirements. The procedure is free and takes about 3 weeks. Homeowners over the age of 60 can live in Northern Cyprus without a residence permit. To apply for a residence permit, the property owner must open a bank account and replenish it with a certain amount (at the rate of $ 10,000 for each family member) to prove their solvency. The residence permit must be renewed annually. After 7 years of residence in the TRNC, you can apply for citizenship.
REAL ESTATE PRICES ARE LOWER COMPARED TO SOUTH CYPRUS
Real estate in Northern Cyprus is much more affordable than in Turkey and many other Mediterranean regions for the same level of real estate. It is also more exclusive and offers a unique island vibe. However, it is still very far from the level of Southern Cyprus. In South Cyprus, in the cities of the “first level” (Limassol, Paphos), ordinary one-room apartments by the sea cost at least 130,000 euros.
(If you get to Northern Cyprus, you will pay only 50,000 euros for the same object! The average price per m2 is from 1000 to 1200 euros. The average amount of real estate transactions in Northern Cyprus is 75,000 euros. Traditionally, about 80% of apartments in new buildings sold already at the initial stage of construction).
Over the past few years property prices in Northern Cyprus have risen significantly. Every year the cost of square meters increases by 10%.
(Property prices in Northern Cyprus are rising by 10% per year in key investment areas. In other regions, prices have been extremely stable. This is in sharp contrast to falling prices in other regions of the eurozone. The reason why property prices in Northern Cyprus have remained the same level so stable is that North Cyprus properties were built with private capital and NOT loans from the international banking system.Consequently, the North Cyprus property market was insulated from the global banking collapse).
The most profitable resale strategy is to buy an object at the zero stage of construction, when the developer sells it at the lowest price. After completion of construction (as a rule, this is a period of 1.5-2 years after the start of construction), the object is resold at the market price of the sold objects. Real estate value increases up to 30% due to the increase in capital from construction in progress to the final implementation of the project.
Price change * for one-room apartment, GBP (Northern Cyprus)
22 600 £
24 900 £
27 900 £
32 900 £
37 900 £
42 900 £
47 900 £
* Prices are indicated at the initial stage of construction in pounds sterling.
Low tax rate
Property tax in the northern part of the island of Cyprus is quite low. In the table below, we have mentioned the taxes and other fees that a foreign owner has to pay for a property.
Real estate purchase taxes
Stamp duty: Payment upon signing the contract of sale.
0.5% of the property value.
Value added tax – VAT: payment by the time you receive the keys from the developer.
5% of the value of the property.
Transformer charge: (electricity and water supply). Payment by the time you receive the keys from the developer.
(1,200 – 2,000 GBP) depending on the type of property.
Transfer fee, title acquisition
1% of the property value.
Installing an electricity meter
1100 Turkish Lira
Installing a water meter
400 Turkish Lira
Annual property tax *
1.25 Turkish lira (about 0.15 euros) per 1 sq.m.
Annual cleanliness tax *
100 Turkish Lira
Annual fee for the maintenance of the complex *
from 40 to 60 pounds (per month), depending on the residential complex.
Note: * means this payment is due annually.
INCREASED RENTAL YIELD
Commercial real estate in Northern Cyprus (shops, offices), like any other country, brings more income than housing. On the other hand, the risks are higher, and it will require a fairly solid investment. Not every investor can afford it.
Residential real estate in Northern Cyprus is becoming more expensive every year. In addition, by offering holiday homes for rent, the owner can receive 10% per annum. The most popular are studios and apartments with 1 or 2 bedrooms.
The maximum profit at the moment brings short-term rent. With effective management, the owner of such property earns up to 15% per annum.
NORTHERN CYPRUS IS UNTAPPENED NATURE
The untouched natural charm of the traditional villages and the beautiful welcoming nature of the Turkish Cypriots are very attractive to property buyers. Against the background of many villas and residential complexes in Northern Cyprus, the Beshparmak (Five Fingers) mountain range quickly rises, which descends to the beaches of the northern coast.
TRNC real estate investors have the choice between urban properties with easy access to Kyrenia’s charming harbor with its Monte Carlo style nightlife, restaurants, casinos and yachts, or seafront or mountainside properties in a village or countryside surrounded by fields, olive trees. or carob groves and local flavor, but many are only 20-30 minutes away from the bustling city. Even many houses in the city center in Northern Cyprus have mountain views and a view of St. Hilarion’s Night Castle located on the mountain tops beyond Kyrenia.
Untouched nature is always close to the owner of a property in North Cyprus, whether you choose the north, east or west coast as your preferred location. The popular east coast near Famagusta and the pristine more remote Karpaz Peninsula offer the long sandy beaches of North Cyprus, while the less developed west coast is great for water sports and kite surfing, fueled by tailwinds from this side of Cyprus.
Whatever environment you love, you will find it in Northern Cyprus. The popular east coast near Famagusta and the pristine more remote Karpaz Peninsula offer the long sandy beaches of North Cyprus, while the less developed west coast is great for water sports and kite surfing, fueled by tailwinds from this side of Cyprus. Whatever environment you love, you will find it in Northern Cyprus.
The popular east coast near Famagusta and the pristine more remote Karpaz Peninsula offer the long sandy beaches of North Cyprus, while the less developed west coast is great for water sports and kite surfing, fueled by tailwinds from this side of Cyprus. Whatever environment you love, you will find it in Northern Cyprus.
NORTHERN CYPRUS IS A RICH CULTURE
Northern Cyprus offers a unique combination of history, great cuisine, Turkish culture, classical music and other festivals. Where else in the Mediterranean can you find, in such close proximity, annual classical music festivals?against the backdrop of the mesmerizingly beautiful Bellapais Abbey, unique Turkish Cypriot cuisine with a wide selection of world-class restaurants in North Cyprus, traditional crafts and other local festivals, and a rich history of ancient castles, tombs and sites dating back thousands of years, including Greek temples, Roman cities , Persian palaces, Crusader castles and much more! In addition, the natural beauty of the Karpaz wilderness and the Besparmak Mountains that rise beyond Kyrenia, the “pearl of the Mediterranean”, makes most first-time visitors to Northern Cyprus realize that they have unwittingly begun a love affair that will be their whole life. long passion.
SIGNIFICANT GROWTH IN THE NUMBER OF UNIVERSITIES AND ACTIVE STUDENTS
Northern Cyprus has long been a country where the education sector has been a very important place with its advanced universities and the number of students in the field of education. In recent years, the number of active teaching universities has increased to 18 with the opening of new universities. With universities approved and expected to start teaching soon, this number will rise to 26. Today, the number of active students in TRNC has exceeded 100,000 and this number is increasing by 12-15% every year. This creates serious opportunities in both real estate and investment areas and contributes to the growth of the country’s economy.
GROWTH OF TOURISM IN NORTHERN CYPRUS
According to new TRNC government statistics, tourism in Northern Cyprus has increased significantly over the past 12 months – with an increase in the number of tourists from different regions, including Europe (France and Germany grew by 25%), North America (Canada and the United States grew by 10 and 20%) . , Scandinavia (up 50% in Finland), even new arrivals from China (up 18%)!
LIFESTYLE CHEAPER THAN SOUTH CYPRUS
Usually North Cyprus is cheaper than South Cyprus. The main reason for this is that the Turkish Lira is used in Northern Cyprus, which is more favorable than the Euro (which is used in Southern Cyprus). The Turkish Lira currency is beneficial for tourists and people living in Northern Cyprus as it makes it cheaper than in Southern Cyprus. Due to currency advantages, not only is it cheaper when you spend on restaurants, beach clubs, car rentals, etc., Northern Cyprus also often offers better value for money quality hotels compared to hotels south of the southern border.
NO DISCLOSURE OF INFORMATION ABOUT THE SOURCE OF MONEY
Due to international sanctions and non-recognition of the TRNC, the banking sector is largely isolated from international financial institutions. Banks operating in this region do not have access to the SWIFT system and have almost no correspondent banking relationships outside of Turkey. In addition, any information disclosed to the Ministry of Finance, including the names of beneficial owners (properties or companies), as well as financial or other information about properties or companies and their owners, remains strictly confidential.
CYPRUS BEACHES HAVE THE BEST WATER QUALITY IN THE EU
According to a report by the European Commission and the European Environment Agency (EEA) published on June 8, 2020, Cyprus has the highest proportion of bathing places with excellent water quality in the European Union – 99.1%. The survey covered 113 bathing places. in Cyprus, of which 112 were found to be of excellent quality. According to the report, in five countries, 95% or more of the bathing places had excellent water quality: Cyprus (99.1% of all places), Austria (98.5%), Malta (97.7%), Greece (95.7% ) and It says Croatia (95.6%).
NEW ERCAN AIRPORT TO ACCEPT DIRECT FLIGHTS FROM EUROPE
The TRNC Minister of Tourism, Unal Ustel, said that after the completion of the construction of a new terminal at Ercan Airport, campaigns will be launched to launch direct flights to Northern Cyprus in Europe and the UK. The new Ercan will operate at the same level as other modern international airports, ensuring passenger safety, flight safety and quality service. Northern Cyprus Prime Minister Ersin Tatar said that work on the new runway and terminal at Ercan Airport has been completed and the opening date has been set for October 29, 2020.
SINCE ONE OF THE LARGEST GAS RESERVES IN THE WORLD WERE DISCOVERED IN CYPRUS, THE ISLAND HAS BECOME POPULAR WITH FOSSIL-FUEL GIANTS
On October 31, 2018, Turkey began its own oil and gas hunt off the coast of Antalya, and this race could spark new tensions in the region. Over the past decade, exploratory drilling has unearthed vast reserves of natural gas and oil off the coast of Cyprus, Egypt, occupied Palestine and Lebanon. The Mediterranean Sea, Mare Nostrum, is rapidly becoming the focus of tensions related to maritime borders and economic exclusion zones (EEZs). Two regional disputes exacerbate the problem: the Israeli-Palestinian conflict and disagreements over Cyprus itself, the island has been divided since 1974.
Ankara has also not ratified the 1982 UN Convention on the Law of the Sea (Unclos) due to its concerns over Article 87 Part V. Following Ankara’s line, the TRNC claims joint ownership of the island’s natural resources and opposes Nicosia’s attempts to make unilateral offshore drilling contracts . In September 2011, the Turkish Cypriots signed an “agreement on the delimitation of the continental shelf” with Turkey. On this basis, the secessionist regime has declared an “economic exclusion zone” comprising half of the Cypriot EEZ and comprising blocks 1, 2, 3, 8, 9, 12 and 13.
Explored gas reserves, dispersed across 13 blocks of part of the self-proclaimed EEZ of the Republic of Cyprus, are estimated at 10-12 billion cubic feet. The natural gas alone in Block 12, called Aphrodite, which is being drilled by the likes of Noble Energy, Royal Dutch Shell and Delek, is estimated at 4.5 billion cubic feet. On February 8, 2018, the Italian giant Eni announced the discovery of gas in Block 6 Calypso. According to Cypriot media, its proven reserves are estimated at 6 to 8 billion cubic feet. But these numbers remain small compared to the wells belonging to Egypt (Zohr, 30 billion cubic feet) and occupied Palestine.
For the first time in its history, Cyprus is de facto playing an important role in regional politics and security. Thus, this step may present a real opportunity to bring economic benefits to Northern Cyprus.