Do you dream of living in a country with a warm climate and low crime rates? Northern Cyprus is an excellent choice whether you’re looking for a vacation home, a property to live in, or a future retirement home. Northern Cyprus is also known to attract many tourists, and while its real estate market has its strengths and weaknesses, it’s great for investors looking for rental yields. That makes investing in a North Cyprus property a smart money move.
While North Cyprus is safe and desirable for investors, buying a property can be exciting and nerve-wracking. Here’s what to consider when buying a North Cyprus property to help you avoid real estate agents who over-promise and under-deliver.
With its historic structures, seas, and other natural beauties, Northern Cyprus provides numerous opportunities for real estate investors or anyone looking for a new home. Iskele, Kyrenia (Girne), and Gazimagusa are among the best places to buy an apartment or a private property in North Cyprus.
Those looking for a vibrant city life should consider buying a property in the capital Lefkosa. However, those looking for a tranquil neighboring are best suited to places like Guzelyurt and Lefke. You can also consider the tourist harbor town of Kyrenia, which is popular for Abbey and music festivals and has many tourist facilities.
Whether you choose a villa in Kyrenia or an apartment in Famagusta, consider nearby amenities like shops, cinemas, landmark estates, schools, and hospitals. Also, choose places with organized activities like pottery, dancing, and bowling lessons, and places you can meet friends.
People want to invest in a North Cyprus property for different reasons. That’s why you must determine the right property type that matches your needs and preferences. Your reasons for buying a property in North Cyprus can be for investment, residential property, or a retirement/ holiday home.
If you’re looking for a property in North Cyprus for investment purposes, ensure you choose the right location to get the most out of your money. However, people looking to buy retirement villas should choose one with access to all the retirement facilities you’ll need. That includes healthcare facilities, public transportation, and more.
Likewise, people looking for a private family home must consider location, amenities, and space. For instance, with a family of four, you’ll need to buy a house in Kyrenia with at least three bedrooms. If you have kids, you’ll need to check whether the property has a garden they can play in and good schools in the neighborhood. Also, use the online viewing features to check the property in advance.
North Cyprus Property Price
Most people often overspend and buy properties over the market value to get a North Cyprus apartment or villa. You need to avoid this costly mistake by doing enough research to understand the average North Cyprus property prices in the region you want.
Unlike in some countries, buying North Cyprus apartments or villas depends on the property type and whether it has a previous owner who covered some costs. Either way, you need to budget between 5% – 16% extra above the property’s value, with low figures applying to properties where previous owners paid the initial costs.
To help new buyers understand how to budget for the buying costs, we’ve classified North Cyprus properties into three categories:
- A pre-owned or resale property purchased from a private seller. When the title is already in the private seller’s name, and VAT (5%) is paid, the buyer doesn’t incur VAT even when furnished.
- A pre-owned or resale property bought from a private individual but still needs to transfer the deed in their name, or it’s still pending. In that case, the government views that as a professional sale, and usually, the buyer will pay a 5% VAT, even if the seller had paid it.
- A new under-construction or key-ready build property bought from the developer. A 5% VAT tax is due when you take possession of the property. You’ll also incur furnishing costs and purchase other equipment like air conditioning systems.
Possible Costs of Buying a North Cyprus Apartment or Villa
- Legal Conveyancing Fees (paid upfront);
- 0.5% Stamp Duty paid to the government (due on the transaction);
- 5% VAT paid to the government (Payable if not paid or when due again);
- 3 or 6% tax for transferring the property deed to your name (you can choose when to pay – 3% only applies to first purchases);
- “Transformer fees” payable on new properties to the developers;
- Air conditioning systems (if not included);
- White goods (if not available).
These costs don’t include payments for site-management fees that might be due. There might also be extra costs if you take a bank mortgage or other financing options.
Frequently Asked Questions
Can foreigners buy property in Northern Cyprus?
Yes, foreigners can purchase and own properties in North Cyprus. The overall process of buying a property is hassle-free, and there are no special restrictions. However, you might need local real estate agents to help you find the right property and a legal representative to make the process smooth.
Is property cheap in Northern Cyprus?
Speaking of the property business, the average price for apartments, villas, and land in North Cyprus is lower than the European average. That’s why the island is attracting many international property buyers.
Is buying a North Cyprus Property a good idea?
The North Cyprus property market is an excellent investment opportunity if you take your time to search for the right villa, apartment, or land. It’s also a good idea to buy property in North Cyprus if you want a residential or holiday home in a country with beautiful beaches, low crime rates, and sunny weather.
Is it cheaper to live in Northern Cyprus?
North Cyprus has moderate living expenses compared to other countries in Europe. In fact, the prices are about 30% cheaper than in South Cyprus and Eurozone countries.