Real estate in Northern Cyprus (Turkish Republic of Northern Cyprus or TRNC) is a popular investment destination among citizens of Europe. Not least among the factors are low taxes on the purchase and maintenance of property and Northern Cyprus being isolated in the banking sector, which allows not disclosing information about clients’ money accounts. In this article, we will review what other advantages are there to investing in real estate in Northern Cyprus for foreign nationals.
Content:
- Advantages of investing in the TRNC
- Annual rise in real estate prices
- Purchases with profits
- Low taxes
- Easy way to obtain a residence permit
- Obtaining a long-term residence permit
- No disclosure
- Conclusion
Advantages of investing in the TRNC
Purchasing real estate in the TRNC is a good option for people who want to move abroad for permanent residence, or for those who are looking for profitable business and passive income ideas. There are many reasons to invest in the TRNC.
Annual rise in real estate prices
In 2022, the cost per square metre in the secondary market increased by 30%. Historical landmarks, warm climate, and beaches attract more and more tourists in need of accommodation. Thanks to this, the payback period for real estate used for daily rentals is only six to eight years. Increasingly more investors are seeking to purchase apartments in the TRNC, which inevitably affects the growth of their value.
Purchases with profits
Apartments and houses in the TRNC are 30 to 70% cheaper than in other Mediterranean countries. Real estate has an excellent payback, which even Turkey or the United Arab Emirates cannot boast about. You can earn even without having to look for tenants, it is enough to invest in an off-plan property and resell it after the building is commissioned. In this case, the profit can be 30% or more.
Low taxes
What taxes are charged when buying a property and when are they due?
Stamp duty must be paid within 21 days from the date of signing the contract. The rate is 0.5% of the property price.
VAT is payable in case you enter into a contract with a professional seller and amounts to 5%.
Title deed transfer tax is 12%. This payment must be made by all foreign investors who purchase property in the TRNC, except for Turkish citizens.
Easy way to obtain a residence permit
Unlike many other countries, the TRNC has a simplified procedure for obtaining a residence permit. As a result, you do not need to set up a business in order to become a resident of Northern Cyprus. After paying at least 30% of the total value of the property and registering it, you will be able to go through the process and get a residence permit in just three weeks.
By the way, holding a residence permit does not require the applicant to reside permanently in Cyprus. The property owner can leave the country and return whenever they want and for any period.
So, a Northern Cyprus residence permit:
- is granted even if you buy a property in instalments;
- entitles you to apply for a residence permit for your family members;
- is issued for one year (and then can be repeatedly renewed for two years).
A residence permit entitles foreign nationals to:
- obtain national health insurance;
- enrol children in preschools and schools;
- open a bank card;
- get UK, US, German, and Italian visas through a simplified process.
Obtaining a long-term residence permit
After residing in Northern Cyprus for five years (without the need to permanently reside on the island during this entire period), foreign nationals are eligible to obtain a five-year residence permit with the possibility of subsequent renewal.
No disclosure
International sanctions and non-recognition of the TRNC play in favour of investors. Any financial information is not subject to disclosure. The maximum privacy of the data of bank clients and property owners is guaranteed here, including names, amounts, and other facts about property or companies and their owners. No source of funds requests and the possibility of settlements in cryptocurrency also speak in favour of investing in the TRNC when it comes to privacy.
Conclusion
Northern Cyprus is currently one of the best options for investment and property purchase. High returns and quick payback of local properties are their indisputable advantages. Moreover, if you move to Northern Cyprus, you will feel at peace and confident in your safety, since the TRNC is one of the five countries in the world with the lowest crime rate.