Why should a foreigner buy property in North Cyprus?

Why should a foreigner buy property in North Cyprus?

Whether you are seeking a place to spend extended summer vacations or retire to North Cyprus, the attractiveness of Cyprus’ Mediterranean climate and golden beaches make it an appealing second home for foreigners. Purchasing property in North Cyprus necessitates meticulous planning to ensure that everything goes properly and that any possible hazards are avoided.

This article provides a comprehensive guide about buying property in North Cyprus to assist you. It goes through everything you need to know about the real estate market, mortgages, and fees, as well as the actual buying process. Additionally, this article looks at some of the most appealing areas on the island that you can call home, as well as the best ways to finance the costs of overseas property. We hope that this article will be a good starting point for you if you are thinking about buying a home in North Cyprus.

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What is the state of the property market in Cyprus?

The property market in North Cyprus is divided into two distinct sections: the urban areas of Nicosia and Girne, and the coastal areas of Famagusta and İskele, which are in high demand among ex-pats and tourists seeking a peaceful life and unique climate condition.

The market was doing significantly better than it had in a long time up to 2020, after three years of strong improvement. The country’s economy, on the other hand, has been severely impacted by the Covid-19 outbreak, which has had a negative impact on the property market.

North Cyprus was named the greatest area in the world for beachfront property investment by Forbes magazine in 2021. For individuals wishing to live or retire overseas, a beachfront home in İskele, North Cyprus, is recognized as the world’s greatest investment in 2021. “If you are looking for an adventure while stretching your retirement budget to buy a true luxury quality of living on one of the world’s most gorgeous stretches of beach, Northern Cyprus should be at the top of your list,” Forbes says.

This has had an impact on the island’s housing supply and demand. Prospective international purchasers, on the other hand, might take heart: according to the report, apartment prices are stable, appear to be unaffected by the pandemic, and are projected to rebound first.

Is it possible for foreigners to purchase property in North Cyprus?

In a nutshell, foreigners can buy property in North Cyprus. Furthermore, compared to many European countries, it is easier to do so in North Cyprus. EU residents can buy property in North Cyprus without any limitations. It is still feasible for UK citizens to do so, however, the restrictions have altered slightly since the UK exited the EU.

Purchasing a home in North Cyprus after Brexit

UK citizens are allowed to buy one home in North Cyprus and keep the freehold. The property might be an apartment, house, villa on a building site, or a plot of land with a maximum size of 4,014 square meters. The purchase of a second property (such as a vacation home) may be permitted in particular cases.

Importantly, the buying process4 for post-Brexit buyers has changed. When making a purchase, you will need to apply to the government for authorization, and title deeds won’t be delivered to you until that permission is granted. While it is only a formality and it is highly unlikely that your application will be denied, you will need a clause in the contract that spells out what will happen if permission is not given. It is not unusual for the application to take anywhere from a few months to a year to be completed. You won’t be able to rent or lease property, buy a share in a property, or buy a home in joint names if you are not married.

What is the average price of various homes in North Cyprus?

Property prices vary greatly depending on where you are on the island. The nation’s capital, Nicosia, and the trendy tourist hub of Girne, for example, are more expensive than others. It also matters how close you live to the city center, as it does in many towns.

Best places in Cyprus to purchase a home

There are appealing houses to be found all across the island, so where you decide to buy will be determined by the type of lifestyle you choose. Do you want a city culture with a view of the sea, for example? Maybe Famagusta is the right place for you. Or do you simply wish to be close to the nicest beaches in North Cyprus? İskele is more to your liking.

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Here is a rundown of some of the most popular hotspots so you can get a sense of life on the island:

Girne: is a major tourist destination with a thriving ex-pat community. It has a lot to offer, including a beautiful harbor, a historically significant old town, and beaches.

Famagusta: located on North Cyprus’ east coast, it boasts some of the island’s best beaches, ideal for sunbathing, swimming, and watersports. Palm Beach is also in this area. It is now a renovated, family-oriented resort that was once known for its pristine atmosphere.

İskele: is located on the island’s west coast. It mixes culture and beach life, and because it offers the best of both worlds, it is a popular tourist destination. It also has a range of historical sites and getting there is simple.

Nicosia: North Cyprus’ capital city, located 50 kilometers from the shore, is a flourishing metropolis with a historic center, magnificent Venetian walls, bustling shops, museums, and art galleries. Nicosia may be the best option for individuals who enjoy city life.

Step-by-step guide on how to buy property in North Cyprus as a foreigner

The procedures for purchasing property are comparable to those in the United Kingdom, with a few exceptions. The important steps are listed below:

  • Plan your mortgage – If you are not buying cash, look into mortgages and loans first to see how much money banks are ready to lend you before you start.
  • Consult a North Cyprus lawyer, and make sure they are separate from the developer/vendor and estate agent participating in the transaction to ensure your interests are protected.
  • Begin your home hunt by visiting websites such as noyanlar.com or propertyhub.
  • It is critical to visit a home in person once you have located it to ensure that the condition fits your expectations.
  • Make an offer – Once you have discovered a home you like, contact the real estate owner to make an offer.
  • Request approval to purchase the property from the relevant North Cyprus authorities in writing.
  • Sign the sale contract, which will be signed by both the buyer and the seller.
  • Funds should be transferred.
  • Complete the sale – once approvals have been obtained and finances have been validated, the property will be registered in your name.
When buying a home in North Cyprus, how can you avoid potential pitfalls?

One of the important questions frequently asked by potential property buyers in North Cyprus is; “Are there risks associated with buying North Cyprus property?

During the home purchase process, there are some things to keep an eye out for and steps to take to help you avoid problems. Developers frequently take up a mortgage on land or property, for which you would be liable if they go bankrupt after you sign a contract to buy it. Before you buy the land, get a qualified lawyer to confirm that no mortgages have been placed on it, so you don’t run into any problems later. Request a Land Search Certificate from the Land Registry through your lawyer.

You should also be aware that purchasing property in Northern Cyprus carries some risk. Due to claims of titles coming from persons displaced in 1974, property ownership in the north is frequently challenged. Purchasing such a property could lead to legal action. If you want to buy in the north of the island, it is a good idea to rent first and familiarize yourself with the market. A qualified lawyer can also assist you in obtaining a property with the appropriate form of irrefutable deeds.

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How can I secure a bank loan or a mortgage in North Cyprus?

If you need a mortgage to help you buy a home in North Cyprus, the good news is that you can acquire a loan from a Cypriot bank. However, it is connected with a certain level of risk, therefore you will need a good, international mortgage broker that can locate you the finest financing for your needs.

When you are ready to apply, be prepared to demonstrate that you are a low-risk borrower. Prepare to show your passport as identification. If you are self-employed, you will also need to show proof of income in the form of recent paystubs, personal bank statements, or audited accounts. You will also need documentation of any other investments, such as stocks, bonds, and pension funds. After that, the lender will need to get a property appraisal report.

Your mortgage application may be granted if the lender determines that your finances and the property in question are in order. You will notify your lender of the completion date for the cash to be issued once you have been accepted.

What taxes and fees will I be required to pay?

Keep the following additional fees in mind when planning your purchase:

  • Fees for transfers range from 3 to 8%.
  • Stamp duty is calculated based on the price of the property and ranges from 0.15 percent to 0.20 percent.
  • 19 percent VAT
  • 0.10-1 percent legal charge

If you are going to buy a home in North Cyprus while living abroad, you will need a safe and cost-effective method of payment.

You can click here to read more about the applicable rules for purchasing property in North Cyprus!

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