Why To Invest In North Cyprus
The Turkish Republic of Northern Cyprus enjoys a typical Eastern Mediterranean climate with long hot summers and short mild winters. The southern coastline at the foot of the Karpaz Peninsular is accepted as being one of the most beautiful areas in the world in which to live. The natural beauty of the island, the lovely climate, the warm and generosity of the Turkish Cypriot people and the abundance of fresh food make North Cyprus an unspoilt and un-commercialised haven.
With over 300 days of sunshine each year, un-crowded beaches and warm unpolluted seas, North Cyprus is a dream holiday destination for many Western Europeans. It is also an ideal location for property investment, whether you are looking for a second home, somewhere you can buy, or a place to retire in the sun.
But why should you choose to invest in property in the North Cyprus over other destinations in the world? Property and land prices are significantly cheaper in North Cyprus, compared to anywhere else around the Mediterranean. Purchasing land, a house or investing within this area are important decisions and should not be taken lightly.
Our wide portfolio gives the purchaser plenty of choice and includes everything from high end luxury villas to beautiful village bungalows and we also have a wide choice of land for private projects where dreams to be built on, therefore Batı Estate Agents offers the Key to Success…
The current situation between North Cyprus and South Cyprus means that many people are confused over this issue. The events of 1974 divided the island and hence this year is vitally important in deciding property ownership. Here is a quick guide to current North Cyprus property title deeds, to help you secure the North Cyprus property of your dreams.
Restrictions on Foreigners
Foreigners are allowed to purchase up to 7000m2 per person, if the purchaser sets up a limited company then the amount allowed is unlimited. A number of checks carried out by the Council of Ministers following an application to purchase, can take approx 12-18 months to complete.
The Land Registry maintains records of all land transfers in the same way as in the UK. The TRNC government issues the titles in the form of Title Deeds (“Kocan” in Turkish) as either Freehold or Leasehold and draws no distinction between the freehold titles of properties. However, buyers should be aware of the history of the title they are buying.
Types of title are as follows:
- Foreign and Turkish pre’74 Titles
TURKISH FREEHOLD TITLE pre’74
Land owned by a Turkish Cypriot prior to 1974 with undisputed title.
FOREIGN FREEHOLD TITLE
Land owned by non-citizens (e.g. British) and purchased prior to 1974.
- Exchange or Esdeger Titles
Esdeger Title (“exchange” title) is land originally owned by a Greek Cypriot prior to 1974, with title deeds issued by the North Cyprus government post 1974 to a Turkish Cypriot refugee from the south on a point’s basis in compensation for land abandoned in the south. It is widely known as exchange land – as the Turkish Cypriot refugee had effectively swapped his land left in the south for equivalent value land a Greek Cypriot abandoned Northern Cyprus.
TMD Title Deeds (Tahsis)
TMD lands at the time (after the war) were unoccupied lands which were only used as agricultural lands. These lands were used as a government incentive to increase the population in the TRNC by allocating lands to mainland Turkish citizens for agricultural and farming purposes. In recent years the law changed enabling persons to be able to take ownership of the land and to settle in the TRNC.
- Leasehold Title
Leasehold property in North Cyprus is often owned by the Government ‘EFKAF’ ministry of antiquities and available on a 49 year lease basis. That aside, you may at any time freely leas or rent property, including your own, for any period of choice. There are no particular restrictions for foreign nationals on this.
- All property sales transactions in Northern Cyprus are normally conducted in British Pounds Sterling.
- Purchase Tax for foreigners in North Cyprus is 3%, which is calculated on the nominal value of the property as assessed by the Land Registry Office (LRO). The LRO valuation is not directly related to the current market value and is typically around 60% of the purchase price
- VAT of 5% of the LRO valuation is payable to the LRO on transfer of title, if the vendor is a company. (Rate confirmed as at 6 June 2005)
- Municipality Tax of 1% is payable in most regions.
- Legal service costs are normally a fixed price of £1,000 or as negotiated with your solicitor. This service normally includes land search, drafting the purchase contract and application to Council of Ministers for permission to buy.
- Most property purchases in Northern Cyprus require a connection fee to be paid to the electricity and water utilities based on the cost of connection. Allow £500 but check that this is itemised in the contract.
- We can recommend several reliable lawyers that offer a complete service.
- Purchase Tax and VAT is not normally included in the purchase price.
- There are no government restrictions on selling your property in North Cyprus.
- The Vendor pays 3.5% capital gain tax when selling. On the first sale of up to one dönüm, which is 1;338m2
- it is possible to get an exemption from this duty.
- If you want to pass the property to the name of your children then there is a transfer tax of 0.2%, i.e., £2 per £1,000.
- Our local partner agencies offer competitive rates and fast results if you want to sell your property.
- Living expenses in the TRNC (Turkish Republic of Northern Cyprus) are much cheaper than the UK and most of Europe.
- Annual Municipal Taxes are normally less than £100 p.a.
- Central heating is rare in North Cyprus but is usually run on gas or oil.
- Electricity supply is 240 volts AC 50Hz. The power supply is subject to disruption and we can supply backup generators or UPS systems upon request.
- Water in Northern Cyprus is by mains supply and in some properties supplemented by wells. Water is stored in your tank, which should be large enough for three days supply as some areas are only refilled every other day. Water is normally suitable for drinking and can also be purchased via tanker.
- Drainage is via individual septic tanks, which require servicing every 18-24 months at a typical cost of £25.
- Telephone lines can take several months to be connected but do provide International direct dialling. Internet connections are relatively cheap at no more than £10 pcm. Broadband is available by satellite but is expensive at present.
- Satellite (including Sky) TV is available.
- Mobile phones have extensive coverage in North Cyprus and are relatively cheap.