- North Cyprus
Property Buying Guide: How to Buy Property in North Cyprus
Cyprus is a large island in the eastern Mediterranean Sea. The island is divided into 2 countries, the southern part is the Republic of Cyprus and the northern part is the Turkish Republic of Northern Cyprus. This guide contains buying property information in North Cyprus. There are 35 thousand foreigners living in the total population of 350 thousand locals.
North Cyprus, a gem in the Mediterranean, is increasingly becoming a desired travel destination. With its golden sandy beaches, beautiful bays, and rich tapestry of culture. It offers a unique mix of natural beauty and historical significance. Aphrodite, the goddess of love, was born from the foam of the Mediterranean and landed on North Cyprus's sandy shores. The country is blessed with a wonderful climate; having 300 sunny days a year.
It is a very popular tourist destination for Europeans, British people, Russians and Israelis. Forbes magazine has chosen North Cyprus as the world’s best buy on beachfront property in 2021. Therefore, the property market in North Cyprus has witnessed exceptional growth, making it a hotspot for real estate investments.
If you want to purchase a property in North Cyprus, you would like to get detailed information about how the legal process works and its costs. Please read our step-by-step purchasing property page and purchasing costs pages.
Real Estate Market in North Cyprus
North Cyprus has a rare political situation. It is a de facto state. There, all state organs are facilitated, and daily life is organized by the elected government. Turkey, as a guarantor country, used its rights to stop the violence and unstable situation in the country in 1974. The northern part of the island is currently not diplomatically recognized by the vast majority of the world. That's why all flights currently land first in Turkey and then fly to Ercan Airport. Recently, there are countries planning to recognize North Cyprus in the near future. This makes the real estate market very promising.
Thousands of real estate sales to foreigners have occurred in the last few years. Mainly, German and British people buy their vacation homes. Here are the key points of the Cyprus real estate market:
Cheap Properties Promise High Return on Investment
One of the primary attractions for investors is the affordability of properties in North Cyprus. When compared to its Mediterranean counterparts, North Cyprus offers 3 times cheaper properties than the southern part. This affordability factor has been very important in drawing a significant amount of overseas investors, particularly those looking for a vacation house or a second home. This price difference, combined with the potential for high returns on investment, has been a significant draw for foreign investors. Some countries plan to recognize the country diplomatically and open direct flights.
The climate is mild and long summers make the island a popular tourist destination. Occupancy of short-term rental properties is high. The ROI of property is currently 10 to 12 years as the purchase prices are cheap, and rental incomes are high.
"Las Vegas of Europe" & Rich Nightlife
North Cyprus is often referred to as the "Las Vegas of Europe" due to its developed casino industry. The region has become a gambling heaven in the Mediterranean region. The island offers a luxury lifestyle with high-end resorts, upscale restaurants, and clubs. The rich nightlife, combined with cultural festivals and events, ensures there's always something interesting happening near you.
Peaceful & Beautiful Island
North Cyprus is renowned for its low crime rates, ensuring a safe living environment for its residents. The sense of community and tight-knit society further enhances the feeling of security. Cyprus's ranking as one of the world's safest country among the world. Besides this peaceful life, it offers charming natural beauty, forests and golden sand beaches. Considering North Cyprus is an island, many properties offer beautiful ocean views.
Many European citizens prefer buying property on the island because it is not a member of any institution like the European Savings Tax Directive or bend to FACTA. You may keep your savings legally in Cyprus' offshore bank accounts. You do not need to pay any income tax for your abroad earnings on the island.
Popular Property Destinations in North Cyprus
Often called the jewel of North Cyprus, Girne (Kyrenia) is renowned for its picturesque harbor, massive amount of historical sites, and vibrant nightlife. The city and its surrounding villages, such as Alsancak and Lapta, have witnessed a significant increase in property demand. The robust demand for rental properties, both on short-term (tourist) and long-term bases, further proves its status as a prime real estate location.
This city is known for its history and deep harbor, making it an important trade spot on the island. People love Gazimagusa (Famagusta) for its sunny weather, fun nightlife and beautiful beaches. It's also a big place for learning, with many well-known universities and colleges. Because of this, a lot of students live here. The consistent demand for rentals throughout the year, combined with its appeal to foreigners for buy-to-let properties, fortifies Gazimagusa's reputation as a prime real estate investment destination.
Nestled 20 km north of Gazimağusa, Iskele is famed for its big golden beaches. The region has undergone a transformation in recent years, evolving into an investment hub. The real estate sector here is on an all-time increase in demand, with new, modern, and luxurious residential and commercial projects sprouting regularly. Moreover, the properties here are more pocket-friendly compared to other regions, making Iskele a prime destination for long-term investments.
Situated on the northern coast, a stone's throw away from Girne, Esentepe is a haven for those seeking solitude, peace and a connection with nature. Its proximity to North Cyprus’ premier golf course and idyllic beaches makes it a favorite among foreign investors. The areas surrounding Esentepe, like Bahçeli and Küçük Erenköy, are witnessing a boom, driven by high returns on capital and profitable short-term rentals. In this destination, all properties have an ocean view.
The vibrant center of North Cyprus, Lefkoşa offers a unique blend of island city life. As the capital, it is a prime choice for those looking to settle, work, and invest in North Cyprus. There are apartments and traditional Cypriot villas in the capital. Lefkoşa (Nicosia) stands out with reputable educational institutions, government buildings and top-tier health centers.
Overlooking the tranquil Guzelyurt Gulf, Lefke is the heart of North Cyprus's natural beauty and rich history. Modern housing projects in Lefke blend luxury with nature. If tranquility paired with modern comforts is what you seek, Lefke is an ideal destination for property investment.
The exact translation of Güzelyurt is "beautiful place" in Turkish. It is a picturesque haven on the island's northwestern shores. Adorned with colorful gardens and historical landmarks like the Blue House, St. Mamas Church, and the Güzelyurt Museum of Archeology & Natural History, offer a blend of nature and culture. The recent establishment of a university has further elevated Güzelyurt's status as an investment hotspot, with modern residential projects, promising lucrative returns for investors.
How to Buy Property in North Cyprus
Purchasing property in a foreign country can be a demanding task, but with the right guidance, it can be a smooth and rewarding experience. North Cyprus offers a blend of Mediterranean charm, historical sites, and a favorable property market. When considering purchasing property in North Cyprus, it's essential to partner with a reputable real estate agency that understands the local market and legal details. TEKCE, with its global presence with 20 offices in 5 countries, including Girne and Gazimağusa offices in Cyprus. We are dedicated to zero failure and 100% happiness for our customers. We ensure that you find the best properties that fit your wishlist. Our team, composed of local experts and experienced company lawyers, is committed to making your property buying process in North Cyprus an easy and enjoyable journey.
When purchasing property in North Cyprus with TEKCE, the process begins with our in-house legal team undertaking comprehensive due diligence. They carefully verify the details of the property, including its ownership history, to ensure everything is transparent and legitimate.
Once you've chosen your dream property, a deposit is made. This deposit reserves the property for you. Following this, we assist you in signing the purchase proposal. Our company lawyers are dedicated to ensuring that all associated legal documents are prepared with utmost precision and care. Given the importance of financial transactions in the property buying process, we also guide you through the steps of opening a local bank account in North Cyprus. This is very important for smooth property transactions in the region. Finally, the essential step of transferring the title deed is managed by our experienced lawyers. We ensure that every aspect of this transfer is in compliance with local laws, guaranteeing a hassle-free property acquisition for you.
Legal Aspects of Property Ownership in North Cyprus
In North Cyprus, most properties come with a freehold title deed (called Koçan in the local language), ensuring that the buyer owns both the property and the land it's built on. The property ownership is registered in a public record, ensuring transparency and protecting the rights of property owners. The registration process involves submitting essential documents, including the purchase contract, notarized deeds, and relevant permits.
It's very important to understand some legal aspects of the North Cyprus property market:
Having a property lawyer in North Cyprus is essential. TEKCE company lawyers will guide you through the property purchase contract and oversee the process at the Council of Ministers.
Property Ownership Limitations
Foreign nationals are allowed to own one property only in North Cyprus, limited to a single land of up to 1.338 sqm (4 evlek) or a house whose plot doesn't exceed 6.691 sqm. It's important to be aware of these limitations to make informed decisions.
In North Cyprus, foreigners must apply to the Council of Ministers for a purchase permit. The title deed is granted only after obtaining this permission, which can take between 3-12 months. However, once you sign a property sales contract, you will have 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). It's advisable for foreign buyers to avoid properties with Greek Coupon deeds due to potential legal complications. TEKCE team will take care of this issue at the due diligence.
North Cyprus offers a unique opportunity for property investors and those looking for a Mediterranean retreat. With its rich history, beautiful landscapes, and a growing property market, it's an attractive destination for many. By understanding the local property laws and partnering with a trusted agency like TEKCE, you can navigate the property buying process with confidence and ease.
Property Financing and Mortgage in North Cyprus
The process of purchasing property on credit terms is straightforward, with minimal formalities in North Cyprus. However, obtaining a bank loan in North Cyprus can be complex for foreign citizens. On the other hand, to attract foreign buyers, developers offer flexible payment plans and credit loans. TEKCE team may guide you to get good offers from the banks and developers. Obtaining a loan in North Cyprus from a development company is relatively easy. The purchase of property in Northern Cyprus with a credit plan can be arranged without even visiting the island. Down payment ranges from 10% to 50%, and interest rates vary from 5% to 13% per annum, depending on the builder.
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