Why Cyprus is Advantageous for Real Estate Investment?

Recently, North Cyprus has become a star shining in real estate investments. Of course, education and tourism investments lie in the infrastructure of this shining. Let us examine the causes of this rise together.

The recent market instability and unrest in Turkey and policies. With the decline in the real estate sector, the decrease in rental income and therefore the rental depreciation times have increased considerably. Cyprus known as Motherland is case attracted the attention of real estate investors in Turkey. In North Cyprus, where peace is at its highest level, we share the reasons for investing below you.

1-    Constantly rising values ​​in Cyprus: 

In the last five years in North Cyprus, house prices have risen by 10% – 12% a year. For example, in 2012, the 45-50 m2 studio apartments sold between 22,000 – 24,000 pounds in the Iskele region are being sold today in the vicinity of 35,000 pounds and in the completed apartments around 40,000 pounds. In the same way, 2 + 1 Apartments sold at 35.000 pounds at Famagusta Center are now around 55,000 pounds. This ascension in almost every part of the island does not run out of sight.

2-    The Winning Impact of Sterling Sales: 

A good investor is not afraid of investing in pound, why? The pound appreciated against the Turkish Lira by 65% ​​in the last 5 years. House buyers have turned this increase into a winner. How Does? While July 1, 2012, £ 1 = £ 2.8, it is now at 4.8 TL. In other words, an investor who has an apartment worth 50.000 pounds and bought 140.000 TL in July 2012 according to the current rate has a residence value of 230.000 TL, without considering any increase in the price of a house today. In other words, with a 65% increase in exchange rate, TL 90,000.

3-     Rental Return:

One of the most important reasons for investing in Northern Cyprus is rental depreciation. In a city like Istanbul, the minimum rental depreciation period is 25 years, while in Northern Cyprus this period varies between 10-16 years. For example, in Kyrenia, a monthly rental income of 2 + 1 houses is around 400 pounds. That means 4800 pounds per year. The increase in apartment prices in Kyrenia real estate market has increased the rent amortization period by 16 years. The most important reason for this is the restriction of construction rights along with the orders and the excessive price of land. But there are still high rent depreciation areas. In Famagusta and Nicosia rent depreciation starts from 12 years. In a mega city such as Istanbul, rental depreciation periods are 25-30 years, while rental depreciation times in North Cyprus are quite attractive for investors.

4-    Quality Education Center:

There are approximately 100.000 local and foreign students in Cyprus. Starting from secondary and high school, these students receive undergraduate, graduate and doctoral education in our universities. The universities accepted by Council of Higher Education (YOK) and offering education in world education standards are the lifeblood of the TRNC economy. In recent years, since primary school education, there has been an increase in demand for private schools offering foreign language-based education. Especially families who are concerned about the education system in Turkey, moved to Northern Cyprus, half the price of private schools in Turkey have started their children to these schools. As a result, children grow up in a peaceful and secure environment in Northern Cyprus, and they are also trained in English-based Cambridge standards.

5-    North Cyprus’s Possibility to Enter the EU:

Cyprus peace talks have been going on for years. If the Cyprus problem is resolved, North Cyprus will enter the European Union. In the case of favorable conditions, those who invest in real estate in northern Cyprus will be deemed to have property in the EU land and will be able to obtain a residence permit. The fact that house prices are 4 times higher than in Northern Cyprus and Southern Cyprus is one of the most important points attracting real estate investors. Currently, almost 90% of Turkish Cypriots holding EU passports. I can say that with the emergence of natural gas deposits in Cyprus lands and seas, the solution is not compulsory and not at all remote. Many local and foreign investors who believe in it continue to invest quickly. The most important point that should not be forgotten is that it is known that the Turkish Cypriots have legal rights to all the rights of the Greek Cypriots. Therefore, the solution is not at all remote.

6-    The Characteristics of Cypriot People:

Apart from the reasons mentioned above, I think one of the most important reasons is that the people of Cyprus are friendly, educated and tolerant people. The people of Cyprus are nationalist, democratic and social people. Our people, who love to help, meet their guests from many nations with sincerity and friendliness without discrimination. Because the island is small, people have social values, and they do not do things that easily hurt their reputation. I can say that our society is honest and trustworthy at a high level. Cypriots can not tolerate injustice. In the municipalities, whoever makes a mistake or mistakes a judge, they will never forget to vocalize, if necessary, to fall into the squares. It is not possible to divide the people who believe in democracy, to get in and separate them.

Work with Trustworthy Companies:

 There are approximate 900 illegal or registered companies and persons that carrying on the real estate business. Before purchasing an estate, by visiting personally the company and their buying offices and researching their membership from Real Estate Association will accommodate you to work with trustworthy and instructed company. The member of TRNC Real Estate Association Company costumers are insured up to €100.000 during purchasing process for any loss or deprivation. Foreigners can purchase 1 house, 1 land measure of about 920 square meters and land a field about 4600 meters in North Cyprus. Hence experienced advocates provide to obtain permission from Council of Ministers in a safe manner. Foreign nationals whose purchase a house in TRNC can obtain residence permit. Annual residence permit can be renewed, thus individuals stay permanently in TRNC, can open a bank account and benefit the public services.

Please Take into Consider the Below Stated Principles before You Purchase Property:

  • You should land a contract in the course of property purchasing. We strongly recommend you to sign your contract accompanied with an advocate to defend your rights. You need to submit your Turkish Identity Card or passport for contract and other applications. Contract can be prepared for 2 or three person’s name.
  • Your contract will be valid in all government offices while the payment your contract 0.5% postage fee have paid to TRNC Tax Office.
  • You need to make a ‘Search’ of your property from Land Registry Office to verify whether the property have any hypothec or not. Then your contract should be registered to Land Registry Office to affix an addendum to the title deed. That will restrain the seller to not sale your property. This process will only abrogate with you or your advocate. Hence you will feel in safe.
  • In order to chain your payment, we recommend to make payment accompany with your lawyer.
  • The importance of hiring a lawyer manifest itself while obtaining the property permission securely and swiftly.
  • While all permissions have prepared and you get an appointment for Deed Transfer, parties or representatives meet at Land Registry Office and complete the conveyancing. Residue payments should be completed.

 

Any person or company who’s interested to make a sizable investment can also work with reliable and experienced real estate lawyers. If you are not a TRNC citizen and wish for establishing a company in Cyprus, you cannot have a share more than 49%. At this stage, any chosen person or lawyer should put his name to share in proportion to 51%. Don’t be daunted. Under the law, share proportion should be suchlike when a foreigner found a company. The share of TRNC citizen have protected with escrow agreement, Foreigner Shareholder Rights agreement and power of attorney. Meantime, it is custom to put on a salary to TRNC citizen shareholder. After incorporate the company, Investor Company can purchase land as much as they want and make a Tourism and Construction investment.

Charges

  • VAT: VAT is paid to the companies for real estate purchasing 5% of contract price at the title deed or property submit process. It the seller is not professional in the occasion of purchasing second hand house or land, you will be exempted from VAT.
  • Contract Postage Fee: The action of registry and affix your contract to the Tax Office. The 5% of contract price is paid from costumer.
  • Power Distribution Unit Appendage Fee: When you purchase a house the uncompleted housing project, electricity, telephone, water and other infrastructures are provided by companies. Total number of the cost divided equally to costumers and expected to be paid at turnkey process. The power distribution unit appending fee can be differ from the project. Approximately this fee show and alteration from £1,200 to £1,800.
  • Deed Transfer Fee: Normally it is a VAT that paid 6% of contract price or Deed Evaluation. For once only, 3% is applying to both local and foreigners. Land Registry Office Deed Evaluation could be lower than contract price. Also Land Registry Office currently using 3.50 TL fixed exchange rate. As a result of deed evaluation, the payment made 3% from Turkish Lira Price.
  • Withdrawal Fee: This fee is legally pertain to the seller. Do not accept to pay while purchasing except special occasions. If you will sell your property, through you are not professional you need to pay 2withdrawal 2.8% after deed evaluation. Professional companies’ withdrawal fee rate is higher. Furthermore, you can ask any question to us about property purchasing or investing in TRNC.

Taxes other than the Home Price during the purchase of housing

Stamp Fee: 0.5% Tax that is paid during the contract phase for stamping and formalization of the tax contract.

VAT: VAT paid by the customer for the Tax Office at 5% over the Contract Price. It is paid before the house delivery takes place.

Transformer Contribution + Infrastructure and Connections: Since the government does not provide electricity, telephone, water and other infrastructure connections, these costs are divided equally among the customers. The average amount is between £ 1500 and £ 2500. The house is paid before delivery.

Title deed Fee: In case of the payment of all the debts of the customer and the house tiles are ready after the receipt of the house purchase permission by the lawyer, 3% of the value shall be paid during the title deed according to the result of the price evaluation of the house to be built by the TRNC Land Registy Office.

NOTE: In second-hand real estate purchases, taxes such as VAT, transformer are not paid because a house with a deed is not taken from a professional dealer. If you are contracted with the landlord, a stamp charge is paid. If the title deed is taken directly, only 3% of the period fee is paid.

* Those who own real estate in Cyprus annually pay taxes to the municipalities for 1 TL per square meter. For example, an apartment with an area of ​​80 square meters is 80 TL per year.

Frequently Asked Questions

*You can contact us from our company contact addresses and follow up with the consultants of sales department, and you can make an appointment and get information about the property portfolio.

For appointment and information: +90 (392) 815 1918. You can get information by calling us.

You can also contact us at info@ozeninsaat.pro  e-mail address.

* Our company is working with many domestic and foreign customers. We work with Far East, Russian countries, Scandinavia, UK and European countries.

* In order to see our projects, it is possible to see the show houses in our offices and with the consultants in sales department

* In order to see our projects from abroad, you must first come to North Cyprus. You need to arrange your ticket with yourself or our help, and connect with us before you come to the island. We provide all our foreign customers with free accommodation, real estate tour, region promotion and legal information services for 3 days in our own houses under the name of residential tour. It is FREE.

REQUIREMENTS TO BE ATTENTION TO PARTICIPATE IN PROPERTY TOUR:

  • You have decided to purchase a house
  • The person or persons who will influence your decision to be present (maximum 3 persons)
  • Before you decide to finance your budget, you have already met with your bank.
  • Before you come, you should talk to our real estate agent with all the details.

NOTE: Real estate tour is not a tourist tour. Please be very careful that customers who will invest in housing should be sensitive to this issue. Otherwise, the company may charge from the customer expenses for this tour.

*Whether you like any housing, you can pay a non-refundable deposit to book your name for up to 1 month. You can deposit £ 1000 for apartment rentals, £ 2000 for duplex house reservations, and you can keep your apartment up to the completion and your contract signed. This period should not exceed 20 days. For longer reservations, you can contact the sales authorities.

*North Cyprus become attractive and draw investors and tourism sector’s interest due to its quite temperate, untouched nature. The friendliness, helpfulness, European perspective and benevolent relations with their guests whose visit Cyprus as an opportunity for foreigners to embrace and invest in Cyprus as their home. North Cyprus Housing acquisition has accelerated in recent years, as there has been a steady rise in the housing sector for many years, as Northern Cyprus is in the process of EU membership. House prices are rising by an annual average of 10-15%. It is known that 100% increase of housing prices in Northern Cyprus after the EU membership will take place in the first place and that these increases will reach the same level as Southern Cyprus in the following years, the vitality of the region, ease of investment, low tax rates, ‘ın real estate investors and tourism investors are the most important factors in becoming a center of investment. Obviously we look forward to welcoming you to our office to provide the best service and information for all domestic and foreign people who want to win, live a happy and peaceful life, and make a safe investment.

* Foreign customers have the right to purchase 1 house from Cyprus and up to 3 plots. Foreigners wishing to acquire more property can increase their number of properties through their Lawyers. For this, an inactive company is established under the name of Trust Company and the required number of dwellings and land can be acquired on behalf of this company.

*Taxes other than the Home Price during the purchase of housing

Stamp Fee: 0.5% Tax that is paid during the contract phase for stamping and formalization of the tax contract.

 VAT: VAT paid by the customer for the Tax Office at 5% over the Contract Price. It is paid before the house delivery takes place.

 Transformer Contribution + Infrastructure and Connections: Since the government does not provide electricity, telephone, water and other infrastructure connections, these costs are divided equally among the customers. The average amount is between £ 1500 and £ 2500. The house is paid before delivery.

 Title deed Fee: In case of the payment of all the debts of the customer and the house tiles are ready after the receipt of the house purchase permission by the lawyer, 3% of the value shall be paid during the title deed according to the result of the price evaluation of the house to be built by the TRNC Land Registy Office.

NOTE: TRANSFORMER CONTRIBUTION CAN NOT BE REQUIRED BY CUSTOMER AND THE VAT RATE WILL BE LOWER IN THE SECOND HAND PRICE OF CYPRUS. YOU CAN GET YOUR DETAILED INFORMATION SALE CONSULTANTS.

*World-recognized Turkish and Cypriot banks in North Cyprus are operating. ING BANK, Turkey Isbank (Türkiye İş Bankası), Garanti Bank, Ziraat Bank, Faisal Islamic Bank, Turkey Economy Bank, Halk Bank, Limassol Turkish Bank, Turkish Bank, Credit West etc. It is possible and safe to transfer money to Northern Cyprus with many more banks. Economically, there is no problem in Northern Cyprus. Many foreigners are keeping their money in Northern Cyprus banks.

*After you buy your house and receiving your home, you have to apply to the TRNC electricity company personally and the deposit and labor fee have to be paid to the house for the electricity meter to be connected to the house or you must have a name change on the counter. For Water Connection If there is a different system in common use of the site, consult the company and if it is under the control of the local municipality, contact the responsible municipality and the water meters are connected by the customer. All of this is done by the person authorized by the recipient or the official.

*There are 50 flights per day out of Northern Cyprus to Turkey. There are also flights to Antalya, Ankara, Izmir, Adana, Gaziantep and Trabzon. Turkish Airlines is generally preferred on transit flights. Nicosia – Ercan Airport is located within 30 minutes driving distance to our Company and Projects. In addition, our customers who want to come to our country can also use Larnaca Airport in Cyprus. You have to be a Schengen Visa (EU Visa) to get from Cyprus to Larnaca. No visa is applied from Larnaca to northern Cyprus. Moreover, there is no visa application to Cyprus through Ercan airport. Visitor is allowed at least 30 days. It can stay up to 90 days a year without a residence permit.

*Foreign citizens who live in any house or flat in Northern Cyprus can easily obtain a residence permit through their lawyer. They can reside as long as they wish. The conditions and documents required to obtain a residence permit are given below.

  • Application Form (taken from the Regional Police Center and filled in by the customer himself)
  • Copy of passport (original must also be shown)
  • Passport Copy of the Client’s Spouse, if Present (Original must also be shown)
  • Certificate of Residence approved by the Mukhtar
  • Marriage Certificate (Must be original)
  • Purchased copy of house contract. (it will be washed away from the tax office)
  • Bank Account Statement (It is necessary to open an account in the Local Bank account, which will be followed by the state, so that it can be lived for 1 year.) (Approximately 10,000 – 15,000 US dollars can be exchanged for TRNC a year).
  • Stamp charge (15 TL)
  • Two pictures

*The Health Carnets (accepted from the private hospital too) and the receipts of payment for the check-ups of the Health Checks for the Residence Permit. Upon completion of all these proceedings, your lawyer will follow the process and will issue your residence permit within approximately 30 – 45 days. The session must be renewed on a six-month or annual basis. If you return to the island abroad, you can renew it.

We want you to know that the value of your home from your company will be continuously improved in the future with the increase in value. If you are renting your property, you may be able to cooperate with our management company in other areas and our income in other regions. We can get a rent guarantee for you from the construction companies in the purchasing you do with us.

*First of all we as the Company must ensure that we transmit all information to you and that you are guided correctly. If you have made your decision, it will be passed to contract phase.

Our contracts can be prepared in 1 hour in English, Turkish and Russian languages ​​mutually via our companies and lawyers.

You may leave authority to your lawyer if your time is limited for the contract and your lawyer can follow your name and complete the proceedings with your approval.

*The houses purchased from companies are given a Structural Guarantee between 5 and 10 years. These guarantees are troubles in wall cracks, rubbing due to construction, electrical or plumbing infrastructure. In addition, for the damages that occur as ceramic drops or swellings, they are kept under guarantee for 5 years, as reflected to us by the companies receiving the paint guarantee material. On the other hand, the kitchen, fountain, door handles, aluminum window or PVC window fittings are guaranteed by the material suppliers for 1 year in case of water motor failure.

*These times may vary depending on the company.

Note: During first year, the products are subject to on-site exploration by the companies to ensure that there is a defect in the customer’s product malfunction.

*Our company continues to serve after sales as much as possible. Furniture and home appliance packages and prices ready for your house to match will be presented to you. In addition, for customers who do not buy ready packs, our company offers a 1 day shopping tour during the delivery of the house.