Buying Property in North Cyprus: The Complete Guide

Buying Property in North Cyprus: The Complete Guide

Introduction

North Cyprus has become one of the Mediterranean’s hidden gems for property investment. With its unspoiled beaches, lower cost of living compared to the south, and attractive property prices, more people are considering buying a holiday home or making a long-term investment here. But purchasing property in North Cyprus comes with unique considerations that every buyer should understand.

Why Buy in North Cyprus?

·         Affordability: Property prices are significantly lower than in Southern Cyprus, Spain, or Portugal.

·         High Rental Yield: Popular with holidaymakers and expats, rental returns can be strong.

·         Lifestyle Appeal: Mediterranean climate, rich history, and relaxed pace of life.

·         Potential Growth: Increased foreign interest has steadily pushed values upward.

Types of Property Available

·         Apartments: Often in complexes with pools, gyms, and sea views.

·         Villas: Private homes, many with gardens and pools, popular in coastal towns.

·         Townhouses: A middle-ground between apartments and villas.

·         Land: For those wishing to build a bespoke property.

Key Areas for Buyers

·         Girne: The cultural and tourism hub, bustling with shops, restaurants, and nightlife.

·         Famagusta: A mix of history and modern development, popular with students due to the university.

·         Iskele: Known for Long Beach, one of the most attractive areas for investment.

·         Esentepe: A growing hotspot with golf resorts and seaside developments.

·         Lefkosa: The capital, suited for those wanting a more local, urban lifestyle.

Legal Considerations

Property ownership in North Cyprus has complexities due to the political situation. Buyers must pay attention to title deeds:

1.      Turkish Title Deeds – Pre-1974 Turkish Cypriot ownership. Safest option.

2.      Exchange Title Deeds – Granted to Turkish Cypriots in exchange for land lost in the south. Considered safe.

3.      TRNC Title Deeds – Post-1974 allocations. Usually safe but check carefully.

4.      Greek Cypriot Pre-1974 Title – Land originally owned by Greek Cypriots. These carry higher risk, as future claims could arise.

👉 Always use an independent solicitor and never rely solely on the developer or seller’s lawyer.

Buying Process Step by Step

1.      Choose Your Property – Visit, research, and compare developments.

2.      Make an Offer – Often a small deposit secures the property.

3.      Hire a Solicitor – Ensure they conduct a full title deed check.

4.      Sales Agreement – Outlines price, payment terms, and transfer details.

5.      Permission to Purchase (PTP) – Foreigners need approval from the TRNC Council of Ministers, which can take months.

6.      Transfer of Title Deeds – Once approved, the property is officially yours.

Costs to Consider

·         Stamp Duty: 0.5% of contract price.

·         VAT: 5% on new properties.

·         Title Deed Transfer Fee: Currently 9% for foreigners.

·         Legal Fees: Approx. £1,200 – £1,500.

·         Utilities & Maintenance: Connection fees, monthly site fees if in a complex.

Financing Options

·         Cash Purchases: Most common.

·         Developer Payment Plans: Interest-free or low-interest staged payments.

·         Mortgages: Limited availability for foreign buyers, usually through local banks with high deposits.

Pros and Cons of Buying in North Cyprus

Pros:

·         Affordable prices compared to Europe.

·         Strong rental and holiday market.

·         Relaxed lifestyle.

·         Large expat community.

Cons:

·         Political uncertainty regarding property rights.

·         Bureaucratic delays in deed transfers.

·         Limited international mortgage options.

Tips for Safe Buying

✔ Always use an independent solicitor.

✔ Avoid high-risk pre-1974 Greek Cypriot land.

✔ Ensure contracts are registered at the Land Registry Office.

✔ Visit the property and surrounding area multiple times.

✔ Be wary of unrealistic rental guarantees.

Issues to watch out for

• Lawyers acting for both buyer and seller, therefore not independent-

• Lack of planning permission or building permits-

• Fluctuations in currency and interest rates affecting prices/charges-

• Payment plans or fees not being included in the initial contract-

• Ability to obtain certificates of final completion (deeds cannot be issued without this)-

• Ability to obtain title deeds-

• What redress is there if problems are identified

👉 With all property purchases, we strongly recommend you seek your own independent legal advice.

Lawyers

First meetings with lawyers are normally free, so it’s worth having a meeting before selecting a property, to make sure you’re happy with the legalities of owning a home in Northern Cyprus. Provide your lawyer with full information about the property plus details of any informal or verbal agreements you’ve made with the vendor regarding price, payment schedule and included items. Your lawyer can also give you advice about setting up a business, residency, taxation, or drawing up a new will. Legal firms increasingly offer multi-lingual services, advice and property contracts in English, Turkish, Russian and German. Their websites will give you more information.

Power of Attorney (POA)

Unless you speak Turkish and live in North Cyprus full time, you need a lawyer. Setting up a limited POA with a certified legal advisor in the TRNC is a free and very quick process. It’s ONLY for the process of buying property and is without risk to yourself. Proof of identify required is your passport plus recent bank or utility bill. You can do this during a visit giving you the option to still buy after you leave. A POA enables the lawyer to sign documents on your behalf if you’re away from Northern Cyprus for periods of time. Giving this POA is usually without charge, and enables all the important buying processes from the contract registration, to putting the deeds into your name, to be done without you having to return.

Number of properties.

Non-TRNC citizens are allowed to hold three (3) properties of up to 5 donums, or just over 1.5 acres. Husband and wife qualify for 3 properties each, as the restriction is 3 properties per person. Multiple properties may be purchased by setting up a company or TRNC trust, or finding a trusted nominee to hold title for you. Properties can be registered in the name of an individual or a company. Setting up a TRNC company to hold the property title may have tax benefits. Consult a lawyer for advice.

Taxes

There are four main taxes involved in any property sale and purchase transaction. These taxes are:

• Capital Gains Tax (Stopaj). Payable to the Tax Office by the seller unless varied by an express clause in the Contract of Sale. The Tax Office requires a copy of the Contract of Sale prior to transfer of title. Currently 4% of the assessed value of the property.

• V.A.T. Payable to the Tax Office by the seller if they’re deemed by the Tax Office to be a ‘Professional Vendor’ (i.e. whether the transaction is of a commercial nature or for profit). The Tax Office requires a copy of the Contract of Sale presented prior to transfer of title. Currently 5% of the Contract value.

• Transfer Fee. Payable to the Land Registry Office just before transfer of title takes place. Usually paid by the buyer and is currently 3% of the assessed value of the property for locals and 9% for foreigners.

• Stamp Duty. Payable to the Tax Office by the buyer unless varied by an express clause in the Contract of Sale. All Contracts of Sale must be registered at the District Lands Office within 21 days of being signed. Stamp Duty of 0.5% of the contract value must be paid before registration can take place.

Obtaining permission to purchase

The obtaining of permission to purchase is protracted and can take anywhere from 1 month to one year, but this doesn’t mean you’ll be unable to take possession. Once contracts have been exchanged and registered at the Land Registry, you’ll acquire beneficial interest and contractual rights of the property. Not only can you take possession, but your rights on the property are protected at the Land Registry Office, therefore no third party can buy, sell, or claim your property until permission is granted and deeds are transferred.

Can I sell my property before I obtain my purchase permission?

Yes - if you’ve negotiated with the seller to insert a clause allowing you to sell the property before taking title. Your lawyer would then prepare an assignment of contract to be signed between you, the seller, and the new buyer, assigning all of your rights and obligations under the contract to the new buyer.Property PricesUp to date information on housing prices is available from www.101evler.com/district-report/girne

Conclusion

Buying property in North Cyprus can be a rewarding investment and a gateway to Mediterranean living. With due diligence, the right legal guidance, and careful planning, you can secure a safe and profitable piece of paradise.