The North part of Cyprus is officially The Turkish Republic of Northern Cyprus (TRNC), recognised by Turkey and attracted numerous foreign legal and individual investors after the so called “Annan Plan” and the number of investments in TRNC on property have increased more than 100% since 2003.

The north has not been affected by the global financial crisis, whereas there has been an average 40% fall in the values in the Greek Republic of Cyprus. However due to the crises in homelands many foreign buyers stayed away after 2008 and the construction sector came to a standstill .

Now both new constructions and prices are on the rise.

With an outlook to the current negotiations to reunify the two parts of Cyprus investors are picking up in North Cyprus as many are expecting a boom in property prices if the whole island is included in the EU.

Foreigners wishing to purchase immovable property in the TRNC have to apply to the Ministry of Internal, Rural Affairs and Housing and obtain approval from the Council of Ministers. Once the permission is obtained from the Council of Ministers, the freehold ownership can be transferred in the purchaser’s name. At the time of transfer of freehold ownership, Purchase Tax should be paid to the District Land Office (6% over the valuation to be made by the District Land Office, however, this rate can be reduced to 3% if exemption right is used). In addition 1% charge of the 6% is also applicable which should be paid to the municipality where the property is located.

VAT at 5% may also be applicable if the seller is a professional (i.e. a construction company) and VAT is to be paid in accordance with the contract between the seller and the purchaser. The capital gains tax (6.25% over the valuation of the District Land Office) is paid by the seller to the Tax Office at the time of the transfer of freehold ownership of the Property purchased.

Property is mostly marketed in British Pounds – GBP/ £ .

Plot and land size is often given in Donum (1 Donum = 1,388 m2 (a third of an acre) = 14400sq ft)

The MAGNA network offers a wide range of investment opportunities and can make sure to advice you on your North Cyprus investment, so don’t hesitate to contact us