About North Cyprus

Living There

Sitting at the crossroads of two continents, North Cyprus is steeped in a rich cultural history providing a truly fascinating place to live. Its glorious Mediterranean climate combined with a low cost of living and low property prices make this an attractive investment proposition for real estate as the country has become increasingly more accessible following The Republic of Cyprus’ accession to the EU. Largely due to its gradual economic development, North Cyprus remains unspoilt by mass development and is a country of outstanding natural beauty.

Economy

Despite the constraints imposed by North Cyprus’ lack of international recognition, it has shown impressive economic growth in recent years buoyed by the relative stability of the New Turkish Lira and booms in the education and construction sectors. The mainstay of North Cyprus’ economy is still the service industry and tourism, particularly, is playing an increasingly important part in the economy’s growth.

Politics 

The Turkish Republic of Northern Cyprus (TRNC), commonly referred to as North Cyprus, is a de facto independent democratic republic. The president is head of state and the prime minister is head of government and exercises executive power. Legislative power is vested in both the government and the Assembly of the Republic.

Buying Guide 

The Turkish Republic of Northern Cyprus (TRNC) is based upon the English legal system which will make it more approachable for those familiar with property transactions there. Despite this fact, however, you will unquestionably need the services of an adept local lawyer when buying property in North Cyprus as verification of ownership is somewhat more complex.

Investment Guide 

As property investors continue to wake up to the potential North Cyprus has to offer, prices have risen by up to 50% since 2004 but still remain up to a third less than those in the south of the island. Investors are aware that this disparity will not remain forever and that by purchasing off-plan property for sale in North Cyprus now they are buying into great potential for substantial property price growth. 

Price Per Square Foot 

Property prices in North Cyprus vary considerably and will depend upon the type of title deed the property is under. Whilst you may be able to find a three-bedroom flat for around €71,000 (GBP 50,000), you can expect to pay up to €143,000 (GBP 100,000) in the most popular areas. The average price per square foot is approximately €357 (GBP 250). 

Rental Yields 

The rental market is currently thriving in North Cyprus, producing an average yield of 10% per annum. Its popularity with tourists combined with a 16 week high season ensures extremely successful holiday rentals. 

Mortgages 

Owing to the unique political situation in North Cyprus it is not currently possible to raise a foreign mortgage on property in North Cyprus although some Turkish banks do offer mortgages to customers resident in North Cyprus - having an inherent understanding of the political situation in the country. Many astute developers, too, will offer a range of finance options for foreign buyers keen to capitalise on the investment opportunities afforded by the real estate market in North Cyprus. Whilst mortgage lenders in the UK are not currently in a position to lend money directly secured on a property in North Cyprus, one option is to finance your foreign property through releasing equity by remortgaging on your UK property.

Capital Gains Tax 

In North Cyprus, Capital Gains Tax is payable by the vendor at 3.5% provided that you are not classed as a ‘professional’ vendor. 

Rental Income Tax 

Recent legislation dictates that rental income tax will be levied at 10% after expenses.