Frequently Asked Questions

Investment

Yes, Northern Cyprus is a safe country to invest in and own property! Many visitors decide to make a home in the Turkish Republic of Northern Cyprus for full-time or part-time living in this charming former British Colony where property is extremely affordable, English is widely spoken and where over 10,000 British residents live in a virtually crime-free zone happily alongside a multi-cultural population. 

Northern Cyprus boasts a stable political environment and a growing economy, making it a potentially lucrative destination for any investment. However, as with real estate investment, it’s essential to conduct thorough research and consider getting services from a qualified broker or established real estate company like Senilk Real Estate Consultancy.

1. What Are the Key Industries Driving Economic Growth in Northern Cyprus?

Northern Cyprus has a diverse economy with key sectors including tourism, real estate, education, and agriculture. The tourism industry, in particular, has experienced significant growth in recent years, attracting both domestic and international investors. Additionally, the real estate sector offers various investment opportunities, particularly in residential and commercial developments.

2. What Legal and Regulatory Frameworks Govern Investments in Northern Cyprus?

Investors in Northern Cyprus are subject to legal and regulatory frameworks established by the government. Investors must familiarize themselves with these regulations, including property laws, taxation policies, and business registration requirements. Seeking professional legal advice can help navigate the complexities of the local regulatory environment and ensure compliance with applicable laws.

3. Are There Any Risks Associated with Investing in Northern Cyprus?

Like any investment destination, Northern Cyprus presents certain risks that investors should be aware of. These may include currency fluctuations, economic downturns, and regulatory changes. Conducting thorough due diligence, diversifying investment portfolios, and staying informed about local developments can help mitigate these risks and enhance the likelihood of successful investments on the island.

4. What Support is Available for Foreign Investors in Northern Cyprus?

The government of Northern Cyprus actively encourages foreign investment and offers various incentives and support mechanisms to attract investors. These may include tax incentives, investment promotion agencies, and streamlined administrative processes for foreign businesses. Additionally, numerous professional service providers such as legal firms, accounting firms, and investment consultants can assist foreign investors in navigating the local business environment.

5. How Can I Assess the Potential Return on Investment (ROI) in Northern Cyprus?

Assessing the potential ROI in Northern Cyprus requires a comprehensive analysis of various factors, including market trends, economic indicators, competition, and investment costs. Conducting market research, consulting with industry experts, and evaluating comparable investment opportunities can help investors make informed decisions and estimate potential returns on their investments.

6. What Due Diligence Should I Conduct Before Investing in Northern Cyprus?

Before investing in Northern Cyprus, it’s essential to conduct thorough due diligence to assess the feasibility and risks of the investment. This may involve researching market conditions, analyzing financial projections, conducting site visits, reviewing legal documentation, and seeking advice from professionals with local expertise. By diligently evaluating all aspects of the investment opportunity, investors can make informed decisions and mitigate potential risks.

At Senilk Real Estate, we believe that buying a property should be a straightforward and enjoyable experience, particularly when investing in North Cyprus. To ensure transparency and ease throughout the process, we’ve streamlined the deposit payment procedure.

1. Deposit While in Cyprus:

When you’re physically present in North Cyprus and have found a property you wish to reserve, it’s customary to pay a non-refundable deposit of £1,000. This deposit is typically paid either to your lawyer or directly to the seller and serves as a confirmation of your intent to purchase the selected property. Importantly, this deposit is transferable to another property with the same owner or developer, providing flexibility in case your first preferences change.

2. Pre-Visit Reservation:

Understanding that many of our clients prefer to secure a property before flying out for a viewing, we offer a unique solution including the option to purchase the property via the power of attorney. Before you visit North Cyprus, you have the option to negotiate a 7-day refundable deposit. This deposit is submitted to secure the reservation of the property, temporarily removing it from the market. It grants you the chance to visit the island, inspect the property, and confirm it aligns with your expectations before completing the purchase. This approach assures you peace of mind and confidence in your investment choice.

3. Cash Deposit Percentage:

Typically, after signing the contract, buyers are given 14 days to pay a more substantial deposit, usually ranging from 15% to 50% of the purchase price. However, this percentage may vary depending on factors such as the type of property (e.g., resale, new, size, location, and owner’s discretion). At Senilk Real Estate, we prioritize your interests and will negotiate on your behalf to obtain the most favorable payment terms.

At Senilk Real Estate, we uphold the highest ethical standards in our business dealings. We strongly advise against engaging with any party that requests a non-refundable deposit before your visit. We prioritize your satisfaction and aim to build trust throughout the buying process. Our commitment to transparency and fairness ensures that you feel confident and secure in every step of your property investment journey.

In summary, our goal is to simplify the buying process for our clients while prioritizing their peace of mind and satisfaction. Whether you choose to pay the deposit while on the island or opt for the pre-visit reservation option, you can trust Senilk Real Estate to facilitate a seamless and transparent transaction.

Protecting your investment in Northern Cyprus property involves a combination of strategic planning, risk management, and proactive measures to safeguard your interests. Here’s a detailed explanation of how you can protect your investment:

1. Obtain Insurance Coverage: Before making any investment take property insurance to protect against unforeseen events such as natural disasters, fires, theft, or vandalism. Ensure your insurance policy covers the full value of the property and includes provisions for liability protection.

2. Proper Documentation: Keep all documentation related to the property purchase, including contracts, title deeds, building permits, and insurance policies, in a secure and organized manner. Regularly review and update documentation as necessary to reflect any changes in ownership or property status.

3. Always Stay Updated: Stay updated on market trends, economic conditions, and regulatory changes that may impact property values or investment opportunities in Northern Cyprus. Monitor government policies, zoning regulations, and infrastructure developments that could affect your investment.

3. Diversify Your Portfolio: Diversify your investment portfolio to spread risk across different asset classes and geographic locations. Consider investing in a mix of residential, commercial, and land properties to mitigate the impact of market fluctuations on your overall investment portfolio.

4. Property Maintenance: Regularly monitor the performance of your property, including rental income, occupancy rates, and maintenance expenses. Implement a proactive maintenance plan to preserve the value of the property and address any issues promptly to prevent costly repairs or deterioration.

5. Build Strong Relationships: Develop strong relationships with local real estate agents, property managers, lawyers, and other professionals who can provide valuable insights and support for your investment endeavors in Northern Cyprus. Seek recommendations and referrals from trusted sources to ensure you work with reputable partners.

6. Plan for Exit Strategies: Anticipate potential risks and develop contingency plans and exit strategies to mitigate adverse outcomes. Consider factors such as market downturns, changes in local regulations, or unexpected financial challenges and prepare accordingly to protect your investment interests.

7. Seek Professional Advice: Seek advice from qualified professionals, including lawyers, accountants, financial advisors, and real estate consultants, to guide you through complex legal, financial, and strategic decisions related to your property investment in Northern Cyprus. Collaborate with experts who have local expertise and a track record of success in the region.

By implementing these strategies and taking proactive measures to protect your investment, you can enhance the resilience and long-term viability of your property portfolio in Northern Cyprus.

Finding a reliable, profitable buy-to-let property in the Turkish Republic of Northern Cyprus that generates healthy returns can be an exciting investment. The Northern Cyprus property market is hot. If you’re thinking of getting into property ownership so let property, now is the time to do it. 

Capital appreciation is between 10% and 15% in Northern Cyprus, rental income from residential properties is between 3% and 5% and rental income from commercial properties is between 5% and 8% in Cyprus. If you compare the prices between residential and commercial, residential properties are cheaper than commercial properties.

Many overseas buyers of North Cyprus property will wish to take out a mortgage. This means that a mortgage is normally sought from foreign lenders, and these lenders will look for their main security on a Purchaser’s property.

Senilk Real Estate offer customers mortgage options at attractive rates, typically over a period of 10 or 15 years. The Mortgage is normally secured on the North Cyprus Property. We usually require a certain deposit, with the balance payable by way of Mortgage. Applying for a Mortgage is similar to the procedure in the UK and other European countries.

Buying

Occasionally investors who frequently purchase property without visiting the island can set up power of attorney remotely via an Embassy or any lawyer (with a legal partner in the TRNC). Preparing a limited power of attorney with an authorized legal counsel in the TRNC is an easy and very fast process. It is not a risk for you to have only one attorney and power of attorney to purchase the property.

Please contact us if you are unable to visit the TRNC and still wish to purchase property or invest in real estate. At Senilk Real Estate we want to ensure that your interests are maximally protected the whole transaction and we can provide a list of recommended and trusted lawyers in North Cyprus who have the best prices, qualifications (often British trained), track record and efficiency.  Read more.

There are three main taxes which must be paid.  The first is a 0.5% stamp duty payable within one month of the contract sales date.  Please note, this is currently a very low rate – so we recommend buying sooner rather than later as this rate may rise.  If it is not paid within this time, it increases until it becomes 1.5% if paid after 6 months.

Once your purchase permission has been granted, your legal advisor will notify you and then fill out all of the necessary land registry valuation forms for the valuation of the property.  In addition, if you are buying a brand new property from a developer, you will usually have to pay 5% VAT to the government. Read more.

In order the title deed for the purchased property registered in your name, you will need to obtain what is called Permission to Purchase (often written as P2P in shorthand) from the TRNC Council of Ministers.  (It is rare for this to be denied – the only situation is usually if the prospective buyer has a criminal record in their country of origin.  This process is a positive one as it protects other TRNC residents by excluding those with a criminal history). 

The timescale for obtaining this is currently around 6- 9 months, during which period your ownership is fully protected by the registration of your contract of sale at the Land Registry, which must be carried out by your legal representative within 2 weeks of the contract being signed.  Read more.

A Contract of Sale, also known as a Sales Agreement or Purchase Agreement, is a legally binding document that outlines the terms and conditions of a real estate transaction between a buyer and a seller. It serves as proof of the agreement reached between the parties involved and establishes their rights and obligations. Your lawyer will prepare this Contract of Sale to safeguard your interests. 

If your property is a newly built one, the Contract of Sale will include all important terms such as plot number, plot size, price, payment schedule, and other clauses for sale completion. All floor plans and specifications will be attached to the contract to ensure that the vendor is bound to carry out the construction work in accordance with these. The contract will be sent to both the vendor and the purchaser for review.

  • Contract: If your property is a new build, the Contract of Sale will include all important terms such as plot number, plot size, price, payment schedule, and other clauses for sale completion. It may also specify any amenities or additional features included in the property.
  • Inclusion: All floor plans and specifications will be attached to the contract to ensure that the vendor is bound to carry out the construction work by these. This includes details such as materials to be used, construction timelines, and quality standards.
  • Reviewing: The contract will be sent to both the vendor and the purchaser for review. During this time, it is essential to carefully examine the terms and conditions outlined in the contract and seek clarification on any points of confusion.
  • Experts: It is highly recommended to seek legal advice from a qualified realtor or real estate lawyer before signing the Contract of Sale. A lawyer can help you understand the legal implications of the contract and ensure that your interests are protected.
  • Signing: Once both parties are satisfied with the terms and conditions outlined in the contract, it will be signed. This typically occurs after thorough review and any necessary negotiations or revisions to the initial agreement.

It is crucial to thoroughly review the Contract of Sale and seek legal advice before signing to ensure that your interests are protected and that you fully understand your rights and obligations as a buyer. Additionally, ensure that all necessary documentation and paperwork are in order before proceeding with the transaction.

The provision for acquiring a right to real estate in Northern Cyprus is granted upon the approval of the Council of Ministers, foreign persons may own (i) land not exceeding the surface area of 1 donum (14400 square feet) 

Under the laws of the Turkish Republic of Northern Cyprus (TRNC), an individual foreign investor is only allowed to hold one property in his or her name with a land size of up to 1 donums, or just over 1.5 acres (14400 square feet of land) and real estate not exceeding the total surface area of 5 donums. The same conditions hold true for leasing. Foreign persons and entities can buy property for direct investment purposes without any donum limitations by the condition of obtaining the approval of the Council of Ministers, the foreign investor or the entity is expected to have in possession of at least £2.50 million in a local bank account that to be used as part of the total investment capital.

What are the levels of rent in Northern Cyprus?

Subjected to numerous factors; on average ranges per square meter per annum:

  • Residential rents; 24 GBP – 60 GBP
  • Office space rents: 48 GBP – 96 GBP
  • Industrial space rents: 24 GBP – 48 GBP

However, multiple properties are easily and frequently purchased by foreigners by employing various legal strategies such as setting up a company or a trust association registered in North Cyprus or finding a trusted nominee to hold title on your behalf.

  • Example: Husband and wife qualify for one property – although if they have different passport surnames, they may be able to have two properties.
  • Registration Options: Properties can be registered in the name of an individual or a company.
  • Seeking Advice: Contact Senilk Real Estate advisors for advice on how to use trustees or set up a company in Northern Cyprus that could hold the title to the property you have purchased – this can also have tax benefits.

It’s important to consult with legal and financial advisors to understand the best approach for purchasing multiple properties in Northern Cyprus and to ensure compliance with local laws and regulations. Senilk Real Estate advisors can provide guidance tailored to your specific situation and help you navigate the process effectively.

Additionally, Senilk Real Estate can assist you in understanding any potential tax implications associated with property ownership in Northern Cyprus and provide advice on structuring your investment to maximize tax benefits. We have extensive experience in assisting foreign investors in acquiring properties in Northern Cyprus and can offer comprehensive support throughout the entire process. Feel free to reach out to our team for personalized assistance and expert advice.

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