Buying Property in North Cyprus
Mediterranean sea is the choice holiday destination of the world but for some a holiday is not enough and they would rather settle down and make it a permanent holiday. Fact one prices for property are by far the cheapest in Northern cyprus than any where else on the Mediterranean Comparing it with the South Cyprus or spain you can buy properties here which are half the price and are in a pollution free zone.
Fact two not only is Northern Cyprus ideal for your second home but also is an opportunity to invest in real estate the market for which never goes down but up. With the added advantage of Subletting to cover the expenses for your own holiday till you decide to settle down for good.
Fact three with relatively less pollution and more organic farming life in Northern Cyprus is much healthier than most modern countries with much lower living expenses.
Buying property in Northern Cyprus is a comparatively simple process, but as with any purchase in unfamiliar territory, foreigners are strongly advised to use a fully-qualified and recommended lawyer.
Foreigners wishing to purchase in Northern Cyprus are limited to one property per person or married couple. Alternatively, up to one donum of land (1,338sq meters or 14,400 sq.ft). This restriction does not apply when buying Foreign or Turkish Titles. All purchases are subject to permission from the Council of Ministry, which can take about six months to complete. Land and property is sold under different forms of title:
Turkish Tile: This is property which was owned by Turks or Turkish Cypriots before the division of Cyprus in 1974.
Foreign Title: This was under the ownership of Europeans or other foreigners before 1974. Both the above are internationally recognised.
TRNC Title: Also known as "points land" or "eshdeger". This is land or property that was given to Turkish Cypriots by their government, in compensation for land of similar size and value that they lost in the south following the war in 1974.
Turkish Cypriot refugees were awarded points corresponding to the value of what property they had left behind in the south, which they could exchange for a TRNC Title Deed (Kesin Tasarruf Belgesi - Absolute Possession Document)
In the event of future political agreement in Cyprus based on the United Nations' Annan Plan, these properties may be subject to claims for compensation from former Greek Cypriot owners.
It is generally accepted that if such compensation is ordered, it will be based on pre-1974 values, and is likely to be minimal. For example, the vast majority of new construction in Northern Cyprus is taking place on land that was derelict more than thirty years ago, or used solely for grazing and the like.
TRNC title deed properties can be considered safe to purchase.
TDM: This stands for "Turk Mali Degil", literally Not Turkish Title. This is land that was granted by the TRNC government after 1975 to Turkish settlers and other essential workers. It is mostly former Greek-Cypriot owned land and tends to be concentrated in the Karpaz peninsula.
The sale and exchange of this type of title is increasing, due to cheaper prices but tends to have a higher risk factor than the titles explained above.
Leasehold Title: This is government property which can be bought on a long-term lease basis of 49 years. applications for buying can made directly, or via a solicitor, by the buyers to the Minister of Tourism for a lease. These are mainly aimed at tourism development companies, although there are a few old historic buildings available.
Freehold property in North Cyprus can be bought by the following steps: Firstly find the property which is suitable to your requirements and agree on a price. The vendor and the purchaser under the auspices of an appointed lawyer draw up a contract in which such details as the price agreed, time frame of completion or any other applicable conditions are entered and are signed by both the parties the buyer at this stage pays a deposit of 10 % the solicitor on behalf of the buyer applies for a permit from the council of ministers to purchase the property this permit may take six to ninth months to be processed after the permit has been issued the buyer has to pay the balance due this the prompt for the seller to sign the transfer of all rights of the property in name of the buyer and the transaction is officially complete.
Leasehold property in Northern Cyprus can be bought in more or less the same manner the only difference is that the application is made directly by you or your lawyer to the Tourism ministry instead of the Interior Ministry.
A deposit of 10 % is paid when submitting the application and is held in the name of the seller once the permission has been granted the buyer and seller can than complete the transaction with their mutual consent.
The cost involved for the above procedure are approximate and may differ but by a rough estimate application and solicitor fees are GBP 1,300 plus 3 % stamp duty charged by the office of land registration.
Buying a new property in North Cyprus: The estimate of the expenses to buy a new property can be detailed as follows:
- Deposit; 10-20% of purchase price (in most cases) followed by stage payment on development.
- Solicitor's fee; £1000
- Stamp duty; 3%
- Approximate for electricity and water connection; £200 - £600
- Council tax; 1% VAT; 5%
- Approximate for annual property tax; £15
- Water charges can vary considerably, depending on size and location of property, and whether usage is general or excessive for pool and irrigation system etc. But a standard charge would be about £10 bi-monthly.
- Note: Electricity - payable monthly average standard £25 summer, £50 summer.
NOT: All above prices and figures are subject to change, and we accept no responsibility.
Learn about the Residency in North Cyprus