NOW IS A GREAT TIME TO INVEST IN NORTH CYPRUS Currently, the property market in North Cyprus is booming. With British, Scandinavian, Russian and other European buyers choosing North Cyprus there is great potential and choice available. Properties are affordable, which makes it the best time for buyers to invest. The increased interest in North Cyprus properties reflects in the number of foreign investors, which shows in the current rise in sales figures. With a population of around 400,000, you can rest assured that North Cyprus is a relatively crime-free location. To many, it offers a safe haven away from the hectic and often chaotic life they may lead in overpopulated countries.
NORTH CYPRUS OFFERS A SAFE HAVEN IN THE MEDITERRANEAN
Many investors are attracted to North Cyprus because of the wide choice of affordable properties in prime locations. Combined with the beauty of the Northern side of the island, people quickly realise they could very easily feel at home within the friendly local and international community.
CHOOSING THE RIGHT PROPERTY
Everyone has their own idea of what the right property is for them. Kensington has a reputation built and sustained on quality, affordability and choice. Whether it be a private apartment or villa residence, big or small, or a property set within a resort environment with facilities for all, you can be assured we can provide a wealth of options for our clients. From spacious studio apartments to 8 bedroom luxury villas, our mission is to offer a vast range of accommodation to suit all budgets and requirements. Whatever property you choose by Kensington you will find beaches on your doorstep or a short walk away. Helping you to choose the right property with all that North Cyprus has to offer is the ethos of who we are, and what we do.
Choice - our projects cater for all budgets, tastes and requirements. Feel comfortable that you will find an affordable property built to a high standard.
REQUIREMENTS FOR FOREIGN NATIONALS TO BUY PROPERTY IN THE TRNC Foreign nationals can only take title to immovable property which equals to 1 plot of land and/or 5 dönüms of land and/or 1 house. In order to purchase more than one immovable property and/or one house and/or a property over 5 dönüm in area, it is necessary to use trustees or set up a company in T.R.N.C. The immovable property to be purchased should be free of any mortgages/charges or impediments. The Vendor (Seller) should be the registered true freehold owner of the property. The Contract of Sale should be registered at the Land Registry within 21 days from the signature date. In order to register the immovable property under a foreign national’s name, application for permit to purchase property must be submitted to T.R.N.C. Council of Ministers and the permit must be granted by the Council of Ministers.
Facilities and amenities – projects with increasing investment potential, offering a great lifestyle, with rental income prospects. Location – Kensington builds properties in prime locations, both that suit those looking for sandy beachfront locations and those seeking residential living with beaches close by, offering prime views of the Mediterranean Sea. Private residences - choose from low density build apartment projects with secluded communal pools, to larger villas with private pools and gardens. Reputation - we have been one of the leading residential property developers in North Cyprus for over 20 years, offering a wide range of properties at affordable prices. Safety and security – our resort project offers a gated community, 24 hour concierge/security, CCTV, 24-hour management company assistance, facilities and amenities nearby such as hospital, pharmacy, markets etc. Solid management company - our larger projects, such as Thalassa Beach Resort are successfully managed and maintained by non-profit management companies. Value for money – an extremely important aspect of investment, buying any Kensington property will ensure that you see value for your money. Flexible and generous payment plans are provided for all our properties. Views - choose a property with views, giving you the added benefit of higher resale opportunities and increased value.
BUYING GUIDE The procedure of buying a home in North Cyprus is quite straightforward and not significantly different from acquiring a home in more established Mediterranean destinations. However, there are always a few points to remember.
The Lawyer checks the title deed to ensure it is clean of mortgages, debts and claims.
Having decided on which type of property you would like to buy and reached agreement on the price, you will need to appoint a solicitor into act on your behalf. This is called granting ‘Power of Attorney’ and enables legal matters such as confirmation of deeds and application to the Council of Ministers for the purchase permit to be handled on your property purchase, whilst you are out of the country. Here are the steps of purchasing Freehold property in Northern Cyprus
The Purchaser pays the first installment of the property to the vendor (usually 30-50%, as it will be negotiated and stated in the contract) and 0, 5% stamp duty (0.5% of the purchase price).
The Purchaser selects the property and pays a deposit. The Purchaser pays the solicitor’s fee.
Both Vendor and Purchaser (or lawyers if they have been given power of attorney) sign the contract.
The solicitor applies to the Council of Ministers on the Purchaser’s behalf for the purchase permit. Purchase permit has been received. The Vendor transfers title into the Purchaser’s name. Sale complete.
The Contract of Sale will also stipulate when future payments for your property must be made and will also establish a completion date.
The Purchase Permit can be obtained within a 6 month period, however, it should be noted that at times it can take up to 18 months. In order to transfer the ownership, the application to the District Land’s Office should be made together with submission of property registration certificate, copy of purchase permission and the evidence of property taxes payment.
When buying a new build property the developer will normally require staged payments through construction with the balance due upon completion.
Cypriots or persons of Cypriot origin are given permission to buy property without any restrictions.
The Purchaser’s solicitor is sent the contract, to include price, timescale, payment terms and specifications.
PURCHASE COSTS AND TAXES
Due to the unique history of Cyprus, there is more than one type of title deed available in existence in Northern Cyprus. It is well known that these predominantly fall into two categories. The first is what is called Pre-74 Title, or internationally recognised title, which is property or land, purchased or owned by either Turkish Cypriot or foreign individuals prior to 1974. The second is what is known as TRNC Title (formerly Eşdeğer (exchange) Title). This relates to land or property that was relinquished by Greek Cypriots who left North Cyprus to settle in the southern part of the island, where they were given land or property equivalent to what they had left in the north. Two other types of title deed are available when purchasing property in North Cyprus. TMD - title given previously to Turkish mainland settlers Leasehold - title issued by the Turkish Cypriot authorities with period of lease term given. It is important to note here that titles in these categories are classed equally and recognised as safe to purchase, with TRNC Title being guaranteed by the government of the TRNC.
Non-refundable deposit; of £2,000 – 5000GBP (depending on property type)
All Kensington projects are built and offered on freehold title deed
1 Dönüm = 4 Evlek = 14.400 ay2 = 1.338 m2 1 Evlek = 3600 ay2 = 334,5 m2
Solicitor's fee; £1,350-1,500 0,5% Stamp Duty payable within 21 day of Contract sign 5% VAT Title Deed transfer: 6% (3% for first and one-time purchase) Approximate for electricity and water connection; £1,500 - £3,000
COSTS AFTER PURCHASE Annual property tax (1,25TL per m2 of covered area) Water charges as per meter readings and personal consumption Electricity as per meter reading and personal consumption Site Maintenance depending on whether private or facilities related location Pool Maintenance (if there is a private pool) Furnishing
USEFUL INFO Here are the useful area measurement units of North Cyprus:
1 m2 = 10,76 ay2
FREQUENTLY ASKED QUESTIONS What documents will I need to purchase a property in North Cyprus? The only document you will need to enable you to purchase a property in North Cyprus is your passport. Can we use a solicitor that is not in TRNC? No. You must use a solicitor registered in North Cyprus to handle your transaction and perform the necessary formalities. Most of the well-known solicitors in the TRNC have offices in Girne (Kyrenia), speak English and Russian and are used to dealing with European clients. If you are not able to be present when your contract is signed, you will be able to leave Power of Attorney with your solicitor or a Trustee to enable them to sign on your behalf.
Are there any restrictions on how much land I can buy? Under current legislation (as at 2021) nonTRNC citizens are entitled to buy up 5 dönüms with 1 dwelling, in one name. In some instances, it may be possible to own more and your solicitor will be able to advise you accordingly. Can I own more than one property at a time? Currently, as of 2021, and if you do not hold a TRNC ID (Kimlik Card), then a married couple are each entitled to own 1 property, even if you have the same surname.
Do I need to open a bank account in North Cyprus? It is not necessary to open a bank account in North Cyprus but it can be useful for transferring funds from abroad, arranging utility payments by standing order, etc. Most of the well-known banks in North Cyprus offer all the usual banking facilities and have English and Russian speaking staff.
Can I import personal possessions to North Cyprus? It is possible to import personal possessions, car etc. However, cars, some electrical goods and certain other items will be subject to import duty, which can be high. The shipping agent will be able to give you more information about this. There are several companies that offer shipping services to North Cyprus and we can provide their details to you on request. Shipping costs are usually calculated by the cubic metre. Note that each individual has the opportunity to make one shipment.
Do I have to make a new will in Northern Cyprus? Yes. You should make a will in the TRNC to take into account your property purchase. Your solicitor can easily arrange this for you for a small fee.
Can I bring my pets into North Cyprus? You can bring pets into the TRNC. However, the regulations are very strict and must be followed. The Kyrenia Animal Rescue (“KAR”) websitewww.kyreniaanimalrescue.org will give you more information on this.
What size is a dönüm of land? Land measurements in North Cyprus are shown in dönüms, evleks and square feet. A dönüm is approximately one third of an acre - or 1,338 m². There are 4 evleks in each dönüm and 3,600 square feet to an evlek.
Are there any tax implications in North Cyprus if I decide to sell up and return to my country of origin? At present, your first sale is tax-free so there are no taxes to pay and no restrictions on repatriation of funds.
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Kensington Property Buying Guide for clients looks to purchase property in North Cyprus.