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Unlocking New Horizons: Transitioning my Property Portfolio to North Cyprus

This post hears from Andrew, a UK landlord that’s made the move to North Cyprus and started the process of transitioning his portfolio.

A High Yield Property Investment Near The Beach
Long Beach At Iskele

Simply a better investment environment


As a landlord in the UK, I have always been on the lookout for opportunities that offer favourable returns on investment while ensuring long-term stability. Recently, I made the decision to transition a significant portion of my property portfolio to North Cyprus. In this post, I will outline the reasons behind this strategic move and explain why North Cyprus provides a better investment environment for landlords like myself. The aim is not to UK bash but demonstrate the pull factors of a place like North Cyprus that can enhance your returns and maybe your lifestyle if you were to also make the move yourself.



Thriving Real Estate Market


North Cyprus has emerged as a flourishing real estate market, presenting lucrative investment prospects for property owners. The region's property prices are still relatively affordable compared to other popular Mediterranean destinations, making it an attractive proposition for investors seeking high potential returns. The increasing demand for residential and commercial properties, coupled with a stable and growing economy, indicates a positive outlook and when you look how much prices have increased over the past couple of years alone, you can see the trajectory with it still looking like early days in the country’s growth journey.

Property investors often get caught into the trap of remembering the yield on their initial investment rather than their yield on their assets in today’s value. When you couple that with increasing tax liabilities in the UK, people should do a small spreadsheet exercise to see how much they could be missing out on by not transitioning (perhaps even more so now, in the higher rate environment!).


Aerial Marina View

Favourable Legal Framework


Investing in any foreign market can sometimes be daunting, but North Cyprus offers a favourable legal framework that ensures transparency, security, and protection for landlords. The property purchase process is straightforward, and the government has implemented legislation to safeguard the rights of both local and foreign property owners. This stability and legal assurance provide peace of mind, allowing landlords to focus on maximising their investment potential.

We all know that conveyancing in the UK can be a bit of a drag but fortunately (touch wood), I haven’t found that to be the case in North Cyprus - admittedly this could be because of dealing with new build properties rather than those with history. Nevertheless, there are UK qualified and English speaking solicitors here, which gives further peace of mind and helps to ensure everyone is on the same wavelength.

A pitfall that we can often succumb to is not looking beyond a 10 mile radius of where we live for property investing, let alone abroad. When you realise that the legal aspects are in hand, it can be enlightening on how much we are missing out on when we use a narrow scope for property investing.



Rapidly Developing Infrastructure


North Cyprus is witnessing significant infrastructure development, with ongoing projects aimed at enhancing transportation networks, healthcare facilities, and educational institutions. The government's commitment to infrastructure growth creates a positive ripple effect on property values, attracting tenants and buyers alike. This development also means that properties in well-connected areas are likely to appreciate in value, further bolstering the investment prospects for landlords. Having been here for a little while and seeing up close the wider projects that are underway, I only have positive thoughts about how things will look and feel in the next 5 to 10 years, which will hopefully correlate well with my property investments.



Tourism and Rental Opportunities


North Cyprus is renowned for its stunning natural landscapes, historical sites, and vibrant culture. The region has seen a steady increase in tourism over the years, attracting visitors seeking a unique Mediterranean experience. This surge in tourism creates a demand for short-term rentals, making it an excellent opportunity for landlords to capitalise on the thriving holiday rental market. The potential for year-round rental income, combined with the favourable climate and leisure amenities, makes North Cyprus an enticing prospect for property investors.

What’s great is how hands off the government are in this regard. When I think about the mood music in the UK with things like Airbnb, it feels inevitable that a supplementary tax is coming for this type of rental. What’s more local authorities back home are starting to be empowered to limit the number of days that a property can be let short term; something I cannot agree with.


Kyrenia Castle by the water
Kyrenia

Tax Advantages and Cost of Living


Another significant advantage of investing in North Cyprus is its favorable tax system. The region offers attractive tax incentives for property owners, including a low corporate tax rate, no capital gains tax on property sales, and advantageous inheritance tax regulations. These incentives contribute to higher rental yields and long-term profitability for landlords. Additionally, North Cyprus boasts a lower cost of living compared to the UK and may other countries in Europe, enabling landlords to maximise their returns while maintaining a more comfortable lifestyle.


Summary


Transitioning my property portfolio to North Cyprus has proven to be a strategic move, driven by the region's thriving marketplace, favorable legal framework, rapid infrastructure development, tourism opportunities, tax advantages, and lower cost of living. The decision to invest in North Cyprus has opened new horizons for me as a landlord, offering a promising investment environment and the potential for long-term financial stability. As the region continues to flourish, I am confident that North Cyprus will prove to be a fruitful and rewarding destination for all types of property investors.





If a North Cyprus property investment sounds like it could be for you then check out our latest properties at Beyond Borders here or get in touch, as we would love to help.




Disclaimer: This post does not constitute investment advice and is provided for information purposes only. The reader should carry out their own due diligence when considering any investment, whether it’s property related or otherwise.






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