Property Buying Guide: How to Buy Property in North Cyprus

Introduction

Cyprus is a large island in the eastern Mediterranean Sea. The island is divided into two countries: the southern part is the Republic of Cyprus, and the northern part is the Turkish Republic of Northern Cyprus. This guide provides information on buying property in North Cyprus, where 35,000 foreigners reside among a total population of 350,000 locals.

North Cyprus, a gem in the Mediterranean, is increasingly becoming a sought-after travel destination with its golden sandy beaches, beautiful bays, and rich cultural heritage. Offering a unique mix of natural beauty and historical significance, the island boasts a wonderful climate with 300 sunny days a year, and is famously the birthplace of Aphrodite, the goddess of love.

This Mediterranean paradise is a popular tourist destination for Europeans, British, Russians, and Israelis. Forbes magazine named North Cyprus the world’s best buy on beachfront property in 2021, leading to exceptional growth in the property market and making it a hotspot for real estate investments.

If you are interested in purchasing property in North Cyprus, it’s essential to understand the legal process and associated costs. Please refer to our detailed step-by-step property purchasing and cost guides for comprehensive information.

Real Estate Market in North Cyprus

North Cyprus has a unique political status as a de facto state. The elected government organizes daily life, with Turkey acting as a guarantor. Due to its political situation, flights to North Cyprus must first land in Turkey before continuing to Ercan Airport. Alternatively, you can use Larnaca Airport in the southern part, which involves a trip by car of about 1.5 hours to reach North Cyprus. There are also many direct flights to Paphos, but the journey to Northern Cyprus is considerably longer in this case (around 3 hours by car). Some countries are considering recognizing North Cyprus, making the real estate market very promising.

Thousands of real estate transactions with foreigners have taken place in recent years, particularly with German, British, Scandinavian, Persian, Ukrainian, and Russian buyers. Here are the key points of the North Cyprus real estate market:

Affordable Properties with High ROI

One major draw for investors is the affordability of properties in North Cyprus. Compared to other Mediterranean regions, properties are significantly cheaper, attracting overseas investors seeking vacation homes or second residences. This price difference, coupled with high rental incomes, and an annual value increase of approximately 15% yearly over a 10-year period promises substantial returns on investment.

"Las Vegas of Europe" & Rich Nightlife

North Cyprus is often dubbed the "Las Vegas of Europe" due to its thriving casino industry. The region offers a luxurious lifestyle with high-end resorts, restaurants, and clubs, along with a vibrant nightlife and various cultural events.

Peaceful & Beautiful Island

Renowned for its low crime rates and tight-knit communities, North Cyprus offers a secure living environment. Its stunning natural beauty, including forests and golden sandy beaches, combined with numerous properties offering sea views, makes it a highly desirable location.

Tax Benefits

European citizens are attracted to North Cyprus for its favorable tax conditions. It is not part of the European Savings Tax Directive or FACTA, allowing legal savings in offshore bank accounts without income tax on overseas earnings.

Popular Property Destinations in North Cyprus

Girne

Girne (Kyrenia) is celebrated for its picturesque harbor, historical sites, and lively nightlife. The demand for both short-term and long-term rental properties in Girne and its surrounding villages, such as Alsancak and Lapta, is robust, confirming its status as a prime real estate location.

Gazimağusa

Known for its rich history and deep harbor, Gazimağusa (Famagusta) attracts many for its sunny weather, exciting nightlife, and beautiful beaches. The presence of renowned universities and a high student population ensures consistent rental demand, solidifying its reputation as a top real estate investment destination.

İskele

Located 20 km north of Gazimağusa, İskele is famous for its expansive golden beaches and has become an investment hub with increasing demand for modern, luxurious properties.

Esentepe

Esentepe, near Girne, is ideal for those seeking peace and a connection with nature. It is popular among foreign investors for its proximity to premier golf courses and stunning beaches, offering high returns on short-term rentals.

Lefkoşa

The capital of North Cyprus, Lefkoşa (Nicosia), blends island and city life, with reputable educational institutions, government buildings, and top-tier health centers. It is a prime choice for those looking to settle, work, and invest in North Cyprus.

Lefke

Overlooking the tranquil Guzelyurt Gulf, Lefke combines modern housing projects with natural beauty, making it an ideal destination for property investment.

Güzelyurt

Güzelyurt, meaning "beautiful place" in Turkish, offers picturesque scenery with colorful gardens and historical landmarks. The recent establishment of a university has boosted its status as an investment hotspot, with modern residential projects promising lucrative returns.

How to Buy Property in North Cyprus

Purchasing property in North Cyprus can be a smooth and rewarding experience with the right guidance. Partnering with a reputable real estate agency ensures you navigate the local market and legal details efficiently.

Our team, comprising local experts and experienced lawyers, is committed to making your property buying process in North Cyprus easy and enjoyable. The process begins with our in-house legal team conducting comprehensive due diligence to verify the property’s details and ensure everything is legitimate.

After selecting your property, a deposit reserves it for you, followed by signing the purchase proposal. Our lawyers ensure all legal documents are prepared with precision. We also assist in opening a local bank account for smooth transactions and manage the title deed transfer, guaranteeing compliance with local laws.

Legal Aspects of Property Ownership in North Cyprus

Most properties in North Cyprus come with a freehold title deed (Koçan), ensuring ownership of both the property and the land. The registration process involves submitting essential documents, ensuring transparency and protecting property owners' rights. Here are some key legal aspects:

Legal Representation

Having a property lawyer in North Cyprus is crucial. They guide you through the property purchase contract and oversee the process with the Council of Ministers.

Property Ownership Limitations

Foreign nationals can own one property in North Cyprus, limited to a land size of up to 1,338 sqm or a house plot not exceeding 6,691 sqm. Awareness of these limitations is essential for informed decisions.

Purchase Permit

Foreigners must apply to the Council of Ministers for a purchase permit. The title deed is granted only after obtaining this permission, taking 3-12 months. However, signing a property sales contract grants full property rights until the title deed is received.

Koçan (Title Deeds)

North Cyprus properties have three types of title deeds: Turkish Coupon (Türk Koçanı), Equivalent Coupon (Eşdeğer Koçan), and Greek Coupon (Rum Koçanı). Foreign buyers should avoid properties with Greek Coupon deeds due to potential legal issues.

North Cyprus offers a unique opportunity for property investors and those seeking a Mediterranean retreat. With its rich history, beautiful landscapes, and a growing property market, it's an attractive destination. Understanding local property laws and partnering with a trusted agency ensures a confident and smooth property buying process.

Property Financing and Mortgage in North Cyprus

Purchasing property on credit terms in North Cyprus is straightforward, with minimal formalities. Developers offer flexible payment plans and credit loans to attract foreign buyers. Our team guides you to get the best offers from banks and developers. Down payments range from 10% to 50%, with interest rates varying from 0% to 5% per annum, depending on the builder.