Considerations When Buying In North Cyprus

Whether it’s a new home, a vacation home or investment there are a few topics to consider when purchasing a property here such as tax and title deeds amongst others. Here we have provided a quick view of pertinent items so you’re equipped with the knowledge ahead of finding your new property.

Reasons To Invest

The cost of living is relatively low compared to other countries in Europe.
Property prices are affordable compared to other Mediterranean destinations.
North Cyprus is known for its beautiful coastline, historic landmarks, and unspoiled natural beauty, which attracts tourists and investors.
The government provides incentives for foreign investors such as low tax rates, residency permits, and citizenship options.
The climate is favourable throughout the year, with long summers and mild winters.
The government is actively promoting foreign investment in North Cyprus, and there are several initiatives aimed at attracting investors to the country.
The tourism industry is growing, and there is a demand for short-term rentals, making it an attractive option for property investors.
North Cyprus is considered a gateway to the Middle East and provides opportunities for businesses looking to expand their operations in the region.

Things To Consider

Cyprus is divided into the Greek southern side and the Turkish northern side. There is a border between the two, which has seven border crossings across the island making it easy to go between the two. It is fair to say that with the increase in investment and improvement to tourism and amenities much of the previous tensions of yesteryear have been broadly quashed.
The legal system in North Cyprus is based on the UK legal system, which provides peace of mind with respect to asset security. As with any property purchase, it is still important to choose the right solicitor that understands the local landscape and we ensure that your purchase will be made using an established and qualified solicitor with a UK background that specialises in property purchases for overseas buyers.
With its robust infrastructure advancement, North Cyprus buyers will have access to reliable services. What's perhaps most remarkable is the progress of the healthcare sector, with the establishment of state of the art medical facilities and the recruitment of highly skilled professionals.

Taxes

Northern Cyprus generally has lower tax rates compared to many other countries from personal to corporate tax.
You may be able to benefit with residency through reduced taxation on your income from overseas (for example rental properties/pension).
Offshore companies are allowed, often referred to as International Business Companies (IBSs), which enjoy tax advantages such as tax exemptions.
Privacy & Confidentiality - regulations and practices are in place that provide a much higher level of privacy and confidentiality, unlike many nations that are now compelled to share our information, often without our knowledge.

Title Deeds

There are several types of title deeds in North Cyprus, including pre-1974 Turkish title deeds, TRNC title deeds, and Kocan title deeds. Each has its own legal status and level of recognition, so it's important to understand the differences and implications of each type of deed.
Before purchasing a property, it's crucial to conduct thorough due diligence to ensure that the property has a clear title and there are no outstanding legal issues or disputes. This is why we ensure that you work with a reputable and established solicitor who is experienced in North Cyprus property law to assist with this process.

The following are generally considered the safest types of title deeds:

Pre-1974 Turkish title deeds: These are title deeds that date back to before the division of Cyprus in 1974. They are recognized by the Turkish Cypriot authorities and are generally considered to be the safest type of title deed.
TRNC (Turkish Republic of Northern Cyprus) title deeds: These are title deeds issued by the Turkish Cypriot authorities after 1974. They are recognized by the TRNC government and are generally considered to be a safe option.
Kocan title deeds: These are title deeds issued by the TRNC government under a system known as the "TRNC Immoveable Property Commission." These title deeds are generally considered to be safe, but there have been legal challenges to the validity of some Kocan title deeds.

FAQs

Do I need a visa to visit North Cyprus?

No visa is required for citizens of most European countries, including the UK.

Is North Cyprus a member of the EU?

On May 1st, 2004, the Republic of Cyprus became a full member of the European Union (EU) on behalf of the whole island. It means that the whole island is considered to be part of the EU. However, the application of EU law is suspended in the northern part of the island.

The Turkish Republic of Northern Cyprus (TRNC), which is not recognised as a member state, is within the European Union borders but outside the territory of the internal market.

How do I get my residency permit?

A short-term residency is given on entering the country. It usually covers 30 or 90 days.

To apply for long-term residency, the system is now automated and online.

Typically, however the permit can be applied for during the conveyancing/solicitor stage of the house purchase.