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Posted by Kingsley Ajuonuma on January 12, 2024
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Investing in real estate in North Cyprus as an expat offers a unique opportunity to own a piece of this beautiful and historically rich region. However, it’s important to approach such an investment with a well-informed strategy, taking into account various factors such as location, tax implications, and networking opportunities. In this guide, we’ll delve into these aspects to help expats make informed decisions.

  1. Understanding the North Cyprus Real Estate Market

Before investing, it’s crucial to have a clear understanding of the North Cyprus real estate market. The market has seen a steady increase in demand, especially in areas close to the coast and major cities. Properties range from luxurious seafront villas to more affordable apartments and townhouses. Researching current market trends and future development plans can provide valuable insights.

  1. Expat-Friendly Neighborhoods

North Cyprus has several neighborhoods that are particularly popular among expats. These include:

  • Kyrenia (Girne): Known for its beautiful harbor and vibrant nightlife, Kyrenia is a top choice for expats seeking a lively environment.
  • Famagusta (Gazimağusa): This area is rich in history and offers more affordable housing options with an incredible number of recreational facilities.
  • Iskele: Iskele is a charming town known for its beautiful beaches and peaceful atmosphere. It’s a great place to relax, with friendly locals and a mix of old-world charm and modern amenities. Perfect for those looking for a calm Mediterranean experience

When choosing a neighborhood, consider factors like proximity to amenities, schools (if you have children), and the expat community.


  1. Legal Considerations

It’s important to be aware of the legal aspects of buying property in North Cyprus. To Engage a reputable local lawyer who understands the intricacies of property law in the area is of extreme importance and Ashrafi Estate Team is always available to help. Ensure that the property has a clear title deed and that there are no outstanding disputes or legal issues.


  1. Tax Implications

Understanding the tax implications is crucial. North Cyprus has its tax laws, which can be different from both Turkey and the Republic of Cyprus. Generally, property taxes are relatively low, but it’s essential to be aware of:

  • Stamp Duty: Payable upon signing the contract.
  • Capital Gains Tax: Applicable when selling the property.
  • Annual Property Tax: Based on the value of the property.

Investing in property in North Cyprus requires a thorough grasp of the diverse tax obligations linked to real estate dealings. Navigating these taxes can be challenging, particularly in light of the recent legislative changes in 2023. To aid potential investors, the following is a detailed overview of the key tax elements to consider when purchasing property in North Cyprus:

Property Purchase Taxes

  • VAT (Value Added Tax)
    • Rate: 5% of the property’s value as specified in the contract of sale.
    • Payment Timeline: Within 3 months before receiving the keys to the property.
  • Stamp Duty
    • Rate: 0.5% of the property value as specified in the contract.
    • Payment Timeline: Within 21 days from the date of signing the contract.
  • Transformer Charge
    • Amount: Approximately £3,000 (varies based on the property).
    • Payment Timeline: Within 3 months before receiving the keys to the property.
  • Transfer Fee
    • Rate: 12% of the property’s acquired value (estimated value).
    • Payment Method for Foreign Citizens: Divided into two stages – 6% upon property registration and another 6% when transferring the title.

Maintenance Taxes

  • Annual Property Tax
    • Rate: 1.25TL (about 0.1 euros) per square meter of the covered area of the property, annually.
    • Exclusion: Open terraces are not included.
    • Payment Timeline: Annually, in the municipality of residence.
  • Annual Tax on Cleanliness
    • Amount: May vary
    • Coverage: Services like road cleaning, garbage disposal, and pest control.

Additional Tax Information

  • Income Tax on Rented Properties
    • Rate: 13% of the rental fee.
  • Capital Gains Tax
    • Rate for Professional Vendors: 4.7%.
    • Rate for Private Individuals: Tax-free for one sale of a house or land not exceeding 1 donum (approx. 1,337.80 square meters or about 13.38 acres). For larger properties, 2.8% on the remaining land.
    • Special Conditions: The presence of olive or carob trees can affect tax rates.

Additional Legal Considerations

  • Ownership Limitation: Non-Citizens are entitled to own one property up to a maximum area of 1 donums per person, with only one unit house on the land.
  • Changes for Couples: Now, both husband and wife may purchase one property each in their own names.
  • Council of Ministers Permission: Required before the title deeds can be registered in your name.
  • Trustees or Company Ownership: If you wish to buy or invest in more than one property or property over 1 donums, you must use trustees or set up a TRNC L.T.D company.

Costs for Company Setup for Property Ownership

  • Initial Cost: Approximately £6,000 – £7,000.
  • Annual Running Cost: Minimum of £3000.


Risks and Considerations

  • Potential Risks: Navigating the property market in North Cyprus or elsewhere can sometimes lead to challenges such as deceptive advertising practices, violations of contract terms by sellers or builders, delays or failures in completing construction projects, and errors in tax assessments. These issues can significantly impact buyers, ranging from financial losses to legal complications. It’s essential for prospective property investors to be aware of these potential pitfalls and to take appropriate measures to safeguard their investments. Conducting thorough research, engaging with reputable professionals, and understanding the local legal framework are key steps in mitigating these risks.


  • Protection Measures: To secure your property purchase in North Cyprus, it’s crucial to register the Sale Contract at the local District Lands Office within a 21-day window following the signing. This step is vital for safeguarding against the possibility of the property being sold to another buyer and ensures that your agreement takes precedence over any later claims or liens on the property. Timely registration acts as a protective measure, providing legal assurance and priority to your contract in the property’s official records.


Professional Assistance

  • Ashrafi Estate Expertise: Offers personalized advice and assistance, ensuring compliance with legal requirements.
  • It’s essential to consult with local authorities or legal experts for the most current information and guidance on property taxes in Northern Cyprus.


  1. Networking Opportunities

Building a network can be incredibly beneficial. Consider joining expat communities, real estate investment groups, or local business associations. These networks can provide:

  • Valuable Insights: Learn from the experiences of others who have invested in the region.
  • Business Opportunities: Networking can lead to partnerships or investment opportunities.
  • Support System: Having a community can be a great source of support, especially in navigating the nuances of living and investing in a new country.


  1. Financing and Investment Options

Many expats opt for cash purchases, but there are financing options available. Some local banks offer mortgages to foreign investors, though the terms and conditions can vary significantly from those in other countries. Additionally, consider investment options like buying to let, which can provide a steady income stream.


  1. Cultural Adaptation

Understanding and adapting to the local culture is vital. North Cyprus has a unique blend of Turkish and Greek influences, with its own distinct cultural traits. Respecting local customs and learning the basics of the Turkish language can enhance your living and investment experience.


  1. Property Management

If you’re not planning to live in the property year-round, consider property management services. These services can handle maintenance, rent collection, and tenant issues, ensuring your investment is well-cared for in your absence.


  1. The Impact of Political Situation

The political situation in Cyprus is complex and can impact property ownership and investment. It’s important to stay informed about any developments that might affect your property rights or the value of your investment.




Investing in real estate in North Cyprus as an expat can be a rewarding venture if approached with thorough research and understanding. Consider the location, legalities, tax implications, and cultural aspects. Utilize networking opportunities and seek professional advice when necessary. With the right approach, North Cyprus offers a welcoming environment and a promising real estate market for expats. Contact with Ashrafi Estate today to learn about the available investment opportunities that suits your needs.

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