Buying Guide Details

Buying Property in Northern Cyprus

Where to buy property in Northern Cyprus

Many overseas buyers are tempted by property in Northern Cyprus due to its low price, and in fact several thousand UK buyers are estimated to have already bought property in Northern Cyprus. Any potential investor should, however, be aware of the implications of buying in the occupied north of the island. The history of events leading up to and stemming from the Turkish invasion and subsequent occupation are beyond the scope of this article. Comparing the version of events published on Greek-Cypriot property websites and with those on Turkish-Cypriot sites will clearly tell you that the subject is at the very least controversial.

In simple terms, the legality of selling property in Northern Cyprus abandoned or taken by force from Greek Cyriots in the north is still a matter of great debate, and the matter of ownership is paramount when buying property in Northern Cyprus. Seeking independent, professional advice is more important than ever in this situation.

Those that do decide to tackle the legal issues will find numerous lovely resorts in the north, some excellent beaches, mountains and quaint villages. Kyrenia is the main town, set on a horseshoe-shaped harbour overlooked by a Byzantine castle. It’s around 30 minutes from Ercan airport, near Nicosia, the main point of arrival into Northern Cyprus.

Lapta is a mountain village overlooking the see and is already one of the most popular tourist and buying destinations. Bellapais is another mountain village close to Kyrenia that attracts visitors thanks to its historic abbey, yet remains unspoilt. Karmi already has a population of settled British and German expats, and Karaman has been transformed from a deserted village to a beautifully restored target for overseas buyers.

The Process of Buying property in Northern Cyprus

When a property in Northern Cyprus has been chosen, a buyer puts down a deposit of between £1,000 and £2,000. This represents a legally binding purchase agreement
Contracts are then drawn up, outlining the conditions of the sale, and at this point a further deposit of between 10 and 30% is payable (10% is usually paid for a resale property in Northern Cyprus, and between 20 and 30% for a new-build property in Northern Cyprus)
At this point the contracts are sent to the land registry and the buyer must make a written application to the Council of Ministers in Cyprus for approval to transfer ownership of the property in Northern Cyprus into the buyer’s name. This is really only a formality (no-one from the UK has ever been denied approval), and you can live in your property in Northern Cyprus while waiting for the approval to come through. Buyers need to present bank and character references with the application
The balance of the money is generally paid on completion for resales and in stages agreed by the developer for new-builds
All taxes are payable when approval is granted.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Health

The standard of Cypriot healthcare is generally very good, and English is widely spoken in hospitals and clinics. Visiting Brits will be given emergency treatment, but subsequent treatment will need to be paid for. Private healthcare is very reasonable and is probably the best choice for anyone spending a considerable amount of time there visa/residency issues.
Any EU citizen can stay for up to 90 days in Cyprus without a visa. Those wishing to spend longer will need a residence permit, which can be obtained from the local Cypriot authorities. This is a fairly straightforward process for anyone coming from an EU member state. That said, anyone wanting to stay permanently will need something called an Alien Registration Certificate. Proof of residence, funds and identity are required for this

Fees and taxes

Transfer tax in Cyprus varies between 3 and 8%, with additional stamp duty payable of up to 0.2% of the property’s purchase price
You will also need to budget for annual property taxes. These can be as much as up to 3.5% of the value of your property in Northern Cyprus
In addition, allow between 1 and 2% for legal fees and anywhere between 3 and 10% for estate agents’ fees, although the norm is around 5%
Notarisation should cost around £1,350.