About Northern Cyprus
Of course, Northern Cyprus and the real estate market of this region stands somewhat apart due to its special political situation. Recall that in 1974 the island was divided into 2 parts, the southern, Greek, and northern, Turkish. In 1983, the Turkish Republic of Northern Cyprus (TRNC) was formed, but the Greek side did not accept this fact. Today, no country in the world, except Turkey, has recognized the TRNC.
Nevertheless, despite such a status on the world stage, the republic is actively developing. Gradually, Northern Cyprus is becoming an increasingly popular destination for tourists and investors from different countries. New hotels, shops, and modern residential complexes are being built along the Mediterranean coast. Mountainous areas are also being built up.
Sometimes foreigners come to Northern Cyprus as tourists and eventually decide to buy an apartment or a house in order to spend on this blessed island not a couple of weeks a year, but a couple of months or even more. Many decide to settle in the cities and towns of Northern Cyprus as a family, as there is not only a pleasant climate, beautiful nature and fresh products, but also a well-developed infrastructure. In particular, English schools, modern medical centers, and several international universities have been opened. By the way, Cyprus has a low crime rate.
It is also important that the cost of living in the republic is lower than, say, in many European cities. For this reason, pensioners from the UK and other European countries like to enjoy life on the island, staying for a long time.
Prices for real estate in Northern Cyprus is quite affordable, significantly lower than in the south of the island and in other European resorts.
You can get to Northern Cyprus through the territory of the Southern One. Tourists arrive at Larnaca Airport and then cross the land border by car or on foot.
Today there are no direct flights to Cyprus from Russia, so Russian citizens often use the second way to get to the republic, through Turkey. Direct flights to Ercan TRNC Airport are made from Istanbul, Antalya and other cities. However, we note that this option is not considered legal by Greek Cypriots and, having arrived in this way, it will be impossible to get to the southern part of the island from the north.
Real estate purchase procedure
Despite the political status of the Turkish Republic of Northern Cyprus, foreign citizens have the right to purchase real estate here. Such transactions are legal and recognized by the jurisdictions of other countries.
During the division of Cyprus, many Greek Cypriots were forced to leave their homes and moved to the southern part of the island. It is reasonable to ask whether they have rights to the real estate left once. Back in the early fifties, there were precedents when the original owners tried to return the property. However, according to the ECHR's decision on such cases, property in Northern Cyprus is not subject to return, and Greek Cypriots in case of claims must apply to the Real Estate Commission established in 2006 by Turkey. The claims of the Greek Cypriots are being considered, and if they are justified, compensation is paid to the people.
The issue of disputed lands is complicated, however, it is considered to be settled to a certain extent, and there will be no surprises from this side.
Today, a non-resident can buy only no more than one real estate object in the TRNC. It can be an apartment, a house on a plot of up to 5 acres (2 ha) or a plot of up to 2.4 acres (1 ha). If it is planned to purchase several apartments, then they resort to registering transactions for other family members, spouse or children. According to experts, a revision of this law is expected in the near future, and the number of houses that a foreigner can take over will be increased to four.
Real estate purchased in Northern Cyprus is your property and is inherited.
stage 1. Choosing an apartment and agreeing on conditions
Depending on the purpose of buying – for your own residence, coming on vacation or renting – you can choose an object closer to the coast or in a mountainous area, in a small village or a large developed city.
Property prices in Northern Cyprus are usually traditionally indicated in British pounds. Settlements can also be made in other currencies - Turkish lira, euro or dollars.
As soon as a suitable apartment is found, a deposit of 5,000 British pounds is made so that the object is withdrawn from sale.
Developers, as a rule, provide installments until the end of the construction of the house. Sometimes it is interest-free, sometimes a percentage is provided. The initial payment is 35% of the cost of the apartment. If the residential complex is already at the final stage of construction or is fully ready, then 70-80% of the total amount will need to be transferred immediately.
The interests of the buyer during the entire period of interaction with the seller are represented by a lawyer who has the appropriate license. He checks the documents, prepares the contract of sale, registers it with the Department of Land Resources, interacts with the tax service, conducts the procedure for transferring the title (ownership rights) to your name.
A lawyer is the person you can trust unconditionally. He strictly follows the letter of the law and will not allow any deviations, thereby risking his license.
stage 2. Signing the contract and transferring funds
As a rule, the buyer settles with the seller of the apartment by transferring funds to the account of the developer or the account of an individual, if we are talking about the secondary market.
According to real estate agents, it is more difficult for Russians to make payments today, since many banks are disconnected from the international transfer system. Nevertheless, transactions are carried out from the accounts of a number of Russian banks (not disconnected from SWIFT), although the process has become longer.
When buying an apartment from an individual, settlements through Russian banks are not possible. In this case, they make a transfer through an account in a foreign bank or resort to the services of an intermediary.
After the payments are made in accordance with the schedule agreed by the parties, a purchase and sale agreement is signed. It is concluded in Turkish or English and, if necessary, also in the language of the buyer of the property. The signatures on each page of the contract must be put by: the seller, the buyer or his representative, as well as 2 witnesses.
After signing the contract, the buyer is obliged to pay a stamp duty of 0.5% of the amount.
Next, the contract must be submitted for registration to the Department of Land Resources (at least 35% of the cost of the apartment must already be paid). According to the legislation, the contract must be sent for registration no later than the 21st day from the date of its signing.Registration of the contract transfers the buyer to the status of the owner of the property.
stage 3. Getting the title
In Cyprus there is a document confirming the right of full ownership of the property, – title or Title Deed. Note that its presence is not mandatory. Based on the registered purchase and sale agreement, you are already the owner of the apartment and can dispose of it yourself, rent it out or inherit it. However, if you have not issued a title, when selling real estate, you will need prior approval from the developer. This is a certain kind of limiting factor, so today all buyers strive to have this document.
It should be noted that in order to obtain a title, a foreigner must obtain a permit to own real estate from the Ministry of Internal Affairs of the Republic. This process is not quick and takes from 3 to 12 months (the period varies depending on the nationality of the applicant).
To become the owner of the title deed, after the permission is received, you must pay VAT – 5% of the amount, a fee for the renewal of the title in the amount of 3%, as well as a transformer fee (from 1000 to 3000 pounds).
If the apartment is purchased on the secondary market, the title can already be issued, and all taxes have been paid. In this case, it is not difficult to rewrite the title to another owner.
Taxes and duties
Let's summarize what taxes and duties you will need to pay.
Stamp duty - 0.5% of the amount - is paid before submitting the contract for registration to the Department of Land Resources.
For title registration: VAT 5% and title renewal tax 3% Both taxes are paid after receiptpermits to own real estate.
Transformer fee – from 1000 to 3000 pounds.
There is also an annual property tax, but it is small, about 100 euros per year.
Additional expenses include the services of a lawyer, which will cost 1000-1400 British pounds.
The cost of connecting water and electricity will amount to 200-300 pounds.
Residence permit of the Turkish Republic of Northern Cyprus
Without a visa, you can stay in Northern Cyprus for no more than 90 days for six months. If you plan to stay for a longer period, you need to take care of obtaining a residence permit.
A residence permit can be obtained by those who buy real estate here. A residence permit is provided for one object to the applicant, the applicant's spouse and their minor children.
In addition to the registered contract of sale for registration of a residence permit, you will need confirmation that your account has an amount equal to 12 minimum monthly wages established in the republic (about 8000 euros).
The residence of the TRNC will allow you to live in this part of the island for more than 3 months. Children will be able to go to a local school. However, a residence permit does not give the right to work and conduct business.
Thank you for your help in preparing the material of our experts in Northern Cyprus:
AysunTekce, Director ofcompany marketingTekce Overseas (Antalya Homes)
Arkady Osipyan, company expertLeverage Investments
Author: Elizaveta Barskikh
Photos: depositphotos.com
