The Turkish Republic of Northern Cyprus (TRNC) is among the favorite holiday destinations of foreign tourists with its fascinating Mediterranean climate, world-famous beaches, and hotel options that will meet every expectation.
Revealing all the beauty of the Mediterranean, this region has recently attracted a lot of attention with its fascinating nature, favorable living conditions, and schools with international education standards. At this point, it is possible to say that Northern Cyprus will be the right address for those who want to live in an island country.
The legal process in Northern Cyprus has the same qualifications as in the UK and the process for owning real estate is quite easy. The language of the documents to be used in the legal process is English. When you decide to buy real estate in the TRNC, you have to follow all the necessary procedures for the purchase. The real estate purchase process in the region is completed in an average of 3-6 months.
If you are not a TRNC citizen, you must obtain a “Real Estate Purchase Permit” from the TRNC State to purchase real estate in Northern Cyprus. It will not be possible to carry out the title deed transfer transactions before the “Real Estate Purchase Permit” is issued. After deciding on the real estate you will buy and agreeing on the price, a sales contract is signed between the buyer and the owner of the real estate through a lawyer, which includes the details of the real estate transfer transaction such as price, payment, and delivery conditions. The sale takes place after both parties sign the contract.
After the sales contract is approved by the Tax Office, a stamp fee of 0.5% is paid by the current law and registered with the Land Registry Office within 21 days. After these transactions, the buyer’s property rights become legal. A declaration stating the details that the real estate for which the sale has been made will not pass into the ownership of third parties must also be submitted by the seller to the Land Registry Office.
After the payment is made and the purchase permit is issued, the real estate title transfer completes. After the buyer and seller fulfill the conditions in the sales contract, the seller; transfers the ownership of the real estate to the buyer at the Land Registry Office where the real estate is registered. The buyer is obliged to pay the “Deed Transfer Fee” of the real estate. For the real estate that has become financially legal to be registered in the name of the foreigner, an application must be made to the Council of Ministers in the TRNC and a purchase permit must be obtained from the Council of Ministers.
Foreign nationals have the right to buy a house with a maximum of 5 acres of land per person or land of a maximum of 1 acre from the TRNC if they do not have a registered company in Northern Cyprus. Due to the marriage bond, married couples are considered as 1 person, but if there is a surname difference, they can buy 2 separate real estate. If it is desired to buy more than one real estate or a land larger than 1 decare, it is necessary to establish a company in the TRNC.
If there is no real estate to be purchased, a construction permit for the construction or house should be obtained, it should be noted that there is no mortgage or obstacle on the real estate, the seller of the real estate must be the real owner. After the permit procedures are concluded without any problems, a fee must be paid to the Tax Office for the purchased real estate at the legally specified annual fees. This amount is a mandatory annual payment for each real estate registered in the person’s name. For foreign companies, these procedures may differ.
What are the Documents Required to Buy Property in Cyprus?
According to general principles, the passport you have for the documents required to buy real estate in Cyprus is sufficient to start the purchasing process. However, the condition of not having committed a crime is also sought. In this direction, the documents required when buying real estate in the Cyprus are as follows:
- Passport: It is the main document required to start the real estate purchase process.
- Criminal Record: Subject to the requirement that foreign nationals have not committed a crime, they are required to submit a criminal record document, which they will obtain from the competent authorities of the country of citizenship to the state offices in the TRNC. The documents can be submitted in English or Turkish.
Real estate buyers who are citizens of countries other than the TRNC must apply to the Ministry of Interior for a residence permit in the TRNC with these documents.
Who can Buy Property in Cyprus?
In the country, which has not experienced any security weakness since the Turkish Cypriot Peace Operation in 1974, it is not allowed for anyone with economic competence to buy a house anywhere they want, to maintain balance and security.
In this context, if you want to own a house within the borders of the TRNC, the location of the house you are considering is the source of your money and the security investigation to be made about you is very important.
In the Turkish Republic of Northern Cyprus (TRNC), anyone who is not a TRNC citizen is considered a ‘foreigner’. In this context, citizens of different countries are given the chance to own real estate after the security examination.
Can non-EU citizens Buy Property in Cyprus?
Non-EU citizens can also buy property in Cyprus. For these persons to own real estate in Northern Cyprus, they must obtain a “Real Estate Purchase Permit” approved by the TRNC State. This is a standard procedure applied to all foreign nationals, regardless of nationality, except TRNC citizens. Process management related to the subject can be carried out by Lawyers and Notaries.
What’s the Approximate Cost of Different Properties in Cyprus?
The official currency of the Turkish Republic of Northern Cyprus (TRNC) is the Turkish lira. However, the British pound is also widely used as a foreign currency. You can also have the chance to earn a high return on your rent by shortening the depreciation period by renting the house you bought in the TRNC in British pounds.
Lefkosa, the capital of the TRNC, can be expressed as the most populated and most developed city on the island. Along with being the commercial center of the country, it also attracts the attention of tourists with its colorful nightlife and excellent sea holiday opportunities.
You can examine the average residential square meters and prices in certain regions of Nicosia from the table below:
Region: M²: Price:
Gonyeli 100m² 65.000 GBP (85.685,92 USD)
Kucukkaymaklı 100m² 47.000 GBP (61.957,51 USD)
Ortakoy 100m² 55.000 GBP (72.503,47 USD)
Yenikent 100m² 70.000 GBP (92.277,15 USD)
Kyrenia, one of the popular cities of TRNC, attracts the attention of people from all over the world with its holiday centers, casinos, and natural beaches. Average residential square meters and prices in some of the most popular residential areas of Kyrenia can be listed as follows:
Region: M²: Price:
Alsancak 110m² 60.000 GBP (79.094,70 USD)
Catalkoy 300m² 259.000 GBP (341.425,45 USD)
Merkez 100m² 74.500 GBP (98.209,25 USD)
Cyprus is also home to Famagusta, one of the most developed port cities of the Mediterranean. This region attracts a lot of attention with its historical and natural beauties. The region, Salamis Ancient City, St. Nicholas Cathedral, and Othello Castle. The average square meters and sales prices of the houses in the regions of the city are as follows:
Region: M²: Price:
Gulseren 150m² 67.000 GBP (88.322,41 USD)
Merkez 50m² 45.000 GBP (59.321,02 USD)
Salamis 70m² 30.000 GBP (39.547,35 USD)
Yeni Bogazici 100m² 48.000 GBP (63.275,75 USD)
The prices mentioned above may vary according to the exchange rate.
Where Should You Buy Property in Cyprus?
Domestic and foreign investors who are considering investing in Cyprus want to invest in Cyprus with the many advantages offered to them. Cyprus provides many advantages to people who want to invest with house opportunities for sale.
With its developed real estate sector and its potential, Northern Cyprus promises investors to make big profits in the short term.
The common question in the minds of many people who are considering investing in Cyprus is which region in Cyprus is suitable for real estate investment. The regions that are suitable for investing in the TRNC can be listed as follows:
- Kyrenia: Being one of the most popular areas of the Cyprus real estate sector, Kyrenia is a suitable area for those who think of a quiet, calm, and peaceful living space, as well as for those who enjoy crowded and busy city life. Expressed as a port city, Kyrenia is one of the regions with an extremely active life with its many historical values, touristic beauties, harbor, comfortable hotels, beaches that can be expressed as a natural wonder, shopping centers, and casinos. It is a region that impresses people in many ways such as its unique beauty, natural weather, perfect beaches, fun, and calm lifestyle. With the effect of these advantages, Girne is among the indispensable regions of those who want to own a house and investors. Art festivals held in the Kyrenia region of Cyprus at the same time each year contributed to making the region one of the most attractive Cyprus cities. The Kyrenia region, where you will have the opportunity to shop to your heart’s content and host many entertainment venues, is a very advantageous region to buy a house for sale in Cyprus.
- Famagusta: Famagusta, another port city of Cyprus, contains many other beauties such as historical and tourist places, beaches, sea, and greenery. The region has a very diverse population in all aspects. Famagusta, which is home to one of the fortified ports of the Mediterranean Region, is a very popular city with its golden sands and blue beaches. Famagusta, one of the interesting regions of Cyprus, has a deep-rooted historical past and is home to many kingdoms. It has a very rich history. Like the Kyrenia region, it is worth seeing and living in the Famagusta, and it is one of the most popular cities in Cyprus in terms of house options for sale.
- Iskele Long Beach: This region, which has the most popular beaches of Cyprus, is one of the most preferred regions by investors recently. Iskele Long Beach, which welcomes many tourists throughout the year, offers its visitors and residents the chance to live in a peaceful area intertwined with nature, with its unique white sands and walking paths covered with palm trees. The region is expressed as one of the most suitable regions for those who want to buy a house for sale in Cyprus.
What are the Advantages of Buying Property in Cyprus?
Cyprus, the third-largest island in the Mediterranean, has the potential to make everyone fall in love with its deep-rooted history, fascinating beauties, and perfect atmosphere. But owning a home here means much more to the individual. Cyprus promises to you a life where you can feel free, prosperous, stress-free, and safe. Living in this beautiful region provides many advantages. These advantages can be listed as follows:
- Cyprus, which is also a member of the European Union, offers unique living standards with new living space projects and the perfect harmony of these projects with nature.
- Cyprus offers you the opportunity to live in a place where you can feel the effect of Aphrodite’s impressive mythical magic, within a walking distance of the most beautiful golden beaches of the world, intertwined with a perfect nature.
- Whether you want to use it only for your holidays or to continue your life peacefully, you can own a house of excellent standards.
- Being a homeowner in Cyprus also provides an investment advantage to the buyer. Owning a house in Cyprus also offers the opportunity to earn a profit by guaranteeing rental income for the buyer. With the residence you will buy in the region, you will have a treasure where you can make a profit and have the opportunity to have a perfect holiday whenever you want.
How Much Are Property Taxes in Cyprus?
4 different types of taxes must be paid when buying real estate in Cyprus. The first and most important of these can be expressed as VAT (Value Added Tax). Unless otherwise agreed, this tax is paid by the buyer at a rate of 5%. If the seller is not a professional company that sells for profit, there is no VAT payment when buying second-hand land and housing.
One value tax payment is the title deed transfer fee. Unless otherwise stated, this amount is paid by the buyer at a rate of 6%. If the buyer is a non-profit buyer, he pays a 3% title deed transfer fee at a 50% discount, provided that it happens once in his life. In the real estate purchases to be made afterward, it is liable to pay tax at a rate of 6% over the price specified by the land registry office.
Withholding payment is another tax payment realized in this process. This tax payment is made by the seller. If the seller is a for-profit company, the rate is 4%, and if he is an amateur non-profit seller, he has to pay a tax of 2.8%. Non-profit sellers are exempt from this tax for once in their lifetime.
Another tax item that we are obliged to pay at the time of sale is the stamp tax. If you purchase real estate from a project with future delivery, the sales contract between the parties must be registered with the land registry office. In such cases, the stamp fee of 0.5% of the sales price must be paid to the tax office. In this way, the buyer’s right of ownership of the real estate becomes legal.
Cyprus, which attracts especially foreign investors with the advantages it provides at the point of investment, also provides a great advantage to its investors in terms of annual property taxes. The property tax rate paid in Cyprus is quite low, especially when compared to European countries, where property tax rates are up to 10%.
The real estate tax amounts that real estate investors in Cyprus are responsible for paying regularly every year are determined according to the m² of the real estate. This amount is determined as 1 TL (0.067 USD) per m².
If you own a house with a 200 m² usage area and a sea view. Even if the value of the house you own is £70,000 (76.845.30 USD), the property tax you will pay for this house you own will be only 200 TL (13.48 USD). To give another example, let’s assume that you have a seafront villa with a 400 m² usable area in Kyrenia and the value of this villa is approximately 1,000,000 pounds. The annual property tax you will pay for this villa you own will be 400 TL (26.95 USD). To summarize the issue, the property tax to be paid in Cyprus has nothing to do with the real estate value, current value, and other possibilities of the house. This gives investors a great advantage, especially when compared to Scandinavian and European countries.
Along with these, another issue that should be known is the option of paying in installments, which is an opportunity provided at the payment point of property taxes in Cyprus. Today, most municipalities can collect property taxes in 2 installments. Payment dates vary by municipality and it is possible to obtain information on the subject from the websites of municipalities. Property tax in Cyprus can be paid to local governments in the region. In this context, municipalities, service points of municipalities, and mukhtars collect this tax. If you reside outside of Cyprus, you can inquire about the amount of property tax you will pay through the websites of the municipalities and Cyprus banks. You can pay your tax via debit or credit card.
What You Should Consider Before Buying a Property in Cyprus?
Cyprus is one of the destinations that everyone dreams of living in with its high standards, the warm climate where you will spend the whole year as if you were on vacation, and its fascinating geography. The advantages of the region are not limited to these.
Cyprus, which is one of the favorite places for foreign citizens in terms of investment, stands out with the advantages it offers in real estate and the diversity it has. With the real estate prices of the region, it offers the chance to own a house at more affordable prices compared to European and Mediterranean countries. The period of amortization of the real estate cost of the region varies between 8-12 years. Along with these reasons, the real estate sector in Cyprus hosts many opportunities for those who want to invest or buy real estate to continue their life.
If you want to own a house in Cyprus, there are some details you need to pay attention to. These details can be listed as follows:
- If the real estate you are considering buying is in a newly built project, carefully check whether the company that carries out the construction and sales transactions is local and reliable. Local companies have been doing real estate projects in Cyprus for many years and these well-established companies are known as the most reliable companies.
- Cyprus has a lot of options in terms of real estate types for sale. You can choose the most suitable one for your needs and taste among the seafront villas, residence flats, detached houses with gardens, apartments with different features, residential complexes, and many more. At this point, as always, we recommend that you prioritize your needs.
- The process of purchasing real estate in Cyprus brings some procedures for foreign citizens. It is possible to carry out this process through Cypriot lawyers. In this process, your expert lawyer can apply to the Council of Ministers on your behalf.
- You may face some costs when purchasing real estate in Cyprus. After the signing of the sales contract, you have to pay a stamp fee for it to become official. However, it is also useful to have information about the fees that may arise during the title deed transfer process.
- While researching property for sale in Cyprus, carefully research whether the property you are considering purchasing is suitable for investment purposes or as a living space where you will continue your life. If you are considering buying an investment property, it would be beneficial to choose regions with high rental income.
- There are 3 different types of title deeds in Cyprus due to political reasons. While searching the ads for sale, you will come across these 3 title deed types such as Turkish Title, Equivalent Koc, and Tahsis Kocan. In this context, to summarize; Turkish title deeds are titles for citizens of Turkish origin and English people in 1974 and before, it is named as Turkish title. It is expressed as the safest type of title deed. The second option is the equivalent title deed, which was created under the Landing and Equivalent Property Act in 1977. The last type of title deed is also referred to as an allotment deed. It is the type of title deed given for the areas allocated by Cyprus. Persons with this type of deed only have the right to use the land. Banks do not give housing loans for real estate with this type of title.
- It will be beneficial for you to know these concepts before purchasing real estate.
- Another important point when purchasing real estate is whether the building has a building permit and a building occupancy permit. It is necessary to pay attention to these details in order not to cause problems in the future in title deeds with more than one partner or in houses whose construction process has not been carried out by the legislation. For newly completed projects in Cyprus, this risk is quite low.
- If you are considering buying a house with a tenant and an ongoing lease agreement, you should carefully examine the existing lease agreement. At this point, it is a very important detail to learn the monthly rental price for purchases made for investment purposes.
- When purchasing real estate, the region where it is located, its facilities, transportation facilities, and its proximity to main routes should be checked very well. For this purpose, it would be useful to explore the surroundings of the house day and night.
Is It Worth Buying Property In Cyprus?
Cyprus, which has an increase in the number of tourists and student population every year, can be expressed as one of the countries where the real estate market is extremely active. This region, which has a coast to the Mediterranean Sea, is a region preferred by millions of tourists every year, as it hosts excellent beaches and contains many historical and cultural heritages. In addition, with its universities providing education at European standards, it welcomes more than 120 thousand students every year. Cyprus, which leads the list of countries with very low crime rates, is also highly preferred due to its quiet lifestyle and economically affordable. Purchasing a property in Cyprus, where rental demand is extremely high, is a very logical and profitable decision.
How Many Properties Can You Own In Cyprus?
The number of residences that foreign nationals can have in Cyprus is one residence or flat for one person. Spouses with the same surname are treated as one person. The right of foreign nationals to purchase a house in a detached land without a dwelling, a detached land with a dwelling, or an area where there is a housing estate is determined as one.
How To Avoid Potential Pitfalls When Buying A Property In Cyprus?
If you are considering owning real estate in Cyprus, it is very important to work with an expert and reliable companies to be protected from possible risks and to have a safe buying and selling process. Realty Group is ready to provide you with the support you need in this process from start to finish, with its expert real estate consultant staff and a wide range of products that can meet every need and taste.
Is Buying a Property in Cyprus Safe?
Buying real estate in Cyprus is quite simple and reliable. The laws of Cyprus are always of a nature that protects the buyer. A good example of this is the processing of the contract in the Land Registry for unfinished projects that are under construction. In this way, the Cypriot state recognizes you as the sole owner of the property.
In addition, there are other issues that you should pay attention to in terms of security. Receiving a knowledgeable and guiding real estate consultancy gives you the chance to get the right guidance in every situation and reduces the possible risks you will face to zero.