Why to buy a property in North Cyprus?
The new Mediterranean property hotspot
The Real Estate in North Cyprus is still very cheap and available for every budget. Through the recognition of North Cyprus gradually by other states, just the real estate industry is experiencing a boom. Now is the right time to secure a home or investment.
Buy now a property in North Cyprus and invest in the future. Turkish Republic of Northern Cyprus (TRNC) is the new Mediterranean property hotspot! With buyers from Germany, UK, East and West Europe, Scandinavia and the Middle East increasingly lining up to buy a North Cyprus house, villa or apartment. A one-room flat or a studio is also a very good investment at the moment. Either as a holiday home or also for rent and thus you can secure an additional income.
North Cyprus is gradually becoming one of the most popular areas of investing in real estate. Especially attractive Northern Cyprus is to residents of those countries, whose national currencies in recent years became weaker. In connection with the currency crisis has appeared an urgent need to save the remaining part of the capital, to protect assets from future risks.
This article explores the top reasons to buy a property in North Cyprus and to invest in North Cyprus. Read on for news about how YOU can benefit from a secure, low-cost yet fast-rising North Cyprus property investment in this unique non-Euro-zone economic area with an international population of residents from all over the world.
TIPS FOR THE INVESTORS
- North Cyprus – (Dubai of 90’s)
- 330 days of sun
- Average temprature in the winter (7°C/15°C)
- Average temprature in the summer (35°C/40°C)
- Natural sandy beaches
- Nature conservation areas
- Warm and clean Mediterranean sea
- Low criminal record
- Affordable real estate
- An increasing investment (10% annually)
- Low Tax rate
- Higher Rental Yields
- Easy to Grant Residence Permit
- North Cyprus is a Rich Culture
- Healthy & affordable organic food
- Life Style Cheaper than Southern Cyprus
- European standard of the education
- More and more universities and students
- Significant increase in tourism in Northern Cyprus
- New ERCAN Airport will take Direct Flights from Europe
- No More Coronavirus (COVID-19) in North Cyprus
- No Information Disclosure about the Source of Money
- You can buy a property in Bitcoin
The Sleeping Beauty
Unrecognized by the international community and with limited transport links and some trade embargoes, the North has remained something of a Sleeping Beauty.
This has created an artificially-low property market. For example, a one-bedroom studio flat in a managed development costs just £25,000, a newly-built two to three-bedroom apartment overlooking the sea, usually with a communal pool, can be bought for less than £60,000, while it is perfectly possible to find a three-bedroom villa with garden and pool for just under £120,000. Buying now a property in North Cyprus it´s a very good investment.
Leaders of the two sides and also Turkey and Russia have entered into a fresh round of talks aimed at settling their 40-year-old division. Hopes are high that a UN-backed deal will create a new bi-zonal Federation of Cyprus, formed by two equal states of Greek Cypriots and Turkish Cypriots. This would mean North Cyprus joining South Cyprus as a fully-recognised member of the EU.
In North Cyprus, investors and lifestyle property buyers have “the best of both worlds” – getting their property value fixed to a stable currency whilst also gaining a low cost of living (due to favourable exchange rates against the Turkish Lira), which makes eating out, shopping or furnishing a new North Cyprus property extremely affordable.
Safety and Low Crime Rate
A recent research carried out by ValuePenguin has confirmed that Cyprus is one of thbe safest countries in the world. Cyprus is proud to hold the 5th place worldwide out of 106 countries that were analyzed during the research about the safest countries in the world. Moreover, Cyprus is the number 1 safest place to live and travel among the countries that have population under 5 million. Buy a property in North Cyprus and live safely, you and your family.
Easy to Grant Residence Permit
Foreigners who own a property like an apartment or villa in North Cyprus may be granted a 1 year renewable residence permit for the first 3 years, and thereafter 2 years renewable permit provided they have obtained the title deeds (Kocan) registered in their name. Buy a property in North Cyprus and become a resident.
The applicant must own a property suitable for residence which is currently being used for this purpose. If the title deed (Kocan) of a dwelling is divided into more than one share and one of the shareholders has been issued a Temporary residence permit (immovable property), no Temporary residence permit shall be granted to another shareholder for the same dwelling.
If the immovable property has been purchased by a contract of sale, and the Kocan has not yet been issued, at least one third of the sale price must have been paid and the applicant must have applied for permission from the Council of Ministers to acquire the immovable property (Permission to Purchase).
When you apply for residency if you do not have a Kocan you must submit a copy of your contract of sale which has been stamped by the District Land (TAPU) Office. In addition you should submit a stamped document from the Taşımaz Mal Birimi Office in the Interior Ministry which shows the file reference number for your Permission to Purchase application. An email with the reference number from your solicitor is no longer sufficient.
If the immovable property has a Title Deed (Kocan) registered to the name of the applicant, the applicant is required to have an income equal to at least 1 monthly minimum wages (4400tl per month). If the instalments are still being paid for the immovable property, the applicant must have an income equal to at least 1 x monthly minimum wage in addition to the monthly instalment amount stated in the contract.
An increasing investment (10% annually)
North Cyprus property prices are rising by up to 10% p.a. in key investment zones. In other areas, prices have been extremely stable. This is in sharp contrast to falling prices in other Eurozone areas. The reason why North Cyprus property prices have stayed so stable is that property in Northern Cyprus has been built with private capital and NOT with loans from the international banking system. Hence the North Cyprus property market was insulated from the global banking collapse.
The most profitable resale strategy is the purchase of an object at the zero stage of construction, when the developer sells it at the lowest price. After the construction completed (as a rule, this period is in 1,5-2 years after the beginning of the construction), the object is resold at the market price of the completed projects. The properties value goes up to 30% in capital increase from off-plan to final project realization. Buy a property in North Cyprus and make a safe investment for the future.
Low Tax on real estate in North Cyprus
Tax on real estate in the Northern part of the island of Cyprus is quite low. In the list below, we mentioned taxes and other payments that a foreign owner has to pay for the real estate.
- Stamp duty (The payment when signing of the contract of sale) : 0.5% of the property’s cost
- VAT (The payment by the time you receive the keys from the builder): 5% of the property’s cost
- Services of the lawyer: Approximately £1,200
- Transfer fee, the title obtaining: 1% of the property’s cost
- Installing the electricity meter: 1100 Turkish Liras
- Installing the water meter: 400 Turkish Liras
- Annual property tax: 1.25 Turkish Lira (about 0.15 euros) per 1 sq.m.
- Annual tax on cleanliness: 100 Turkish Liras
- Annual payment for the maintenance (depending on the complex): from £40 to £60 (monthly)
Higher Rental Yields
Commercial real estate of Northern Cyprus (shopping, offices), as well as in any other country, brings more income than the housing. On the other hand, risks are higher, and it will require pretty solid investments. Not every investor can afford it.
Residential property in North Cyprus every year becomes more expensive. In addition, offering holiday homes for rent the owner may get 10% return per year. The most popular are studios and apartments with 1 or 2 bedrooms. Buy a property in North Cyprus now before prices rise.
The maximum profit is currently yielding short-term rental. In condition of effective management the owner of such property earns up to 15% per annum.
Do you want to invest in North Cyprus?
Its time to buy a property in North Cyprus. If you need any help by planning your holiday and at the same time would like a property viewing tour in North Cyprus, please contact our professional team or simply email us at: info@cyprus-realestate.org
