The North Cyprus property market has grown rapidly over the past three to five years and North Cyprus has seen a boom in demand for investment property in the past year in particular. Demand does not seem to be abating.
Property investors and speculators are attracted to North Cyprus because of the potential return on property investment here. Private purchasers are attracted by the unrivalled quality of life they can enjoy here. Both can benefit from the ‘offshore’ haven that is North Cyprus and both are attracted to the ever strengthening stability of the Turkish Republic of North Cyprus on the world map.
The Investment Property Market - Why North Cyprus?
With all other Mediterranean locations having seemingly been exploited to the max in terms of investment property development and price inflation, North Cyprus still offers reasonably priced - even cheap - property.
There are bargains to be had and property investors and private purchasers are always on the hunt for them!
Property Investors - Why North Cyprus?
The North Cyprus Government offer a series of investment incentives to encourage foreign investment to North Cyprus, in fact those willing to invest in North Cyprus can be sure of a positive Government reception and attitude.
Here are just a few of the incentives available: -
Large areas of land can be leased from the Government at favourable rates.
No import tax burden on items imported for the benefit of the investment project.
Government contributions to offset risk.
Financial contributions to promotional and advertising expenditure - up to 75% of the total outlay.
Complete income and corporation taxation burden exemption for ten years if the investment is being made in tourist accommodation.
In the case of investment via a public company with in excess of 50 shareholders, the period of taxation exemption can be extended.
A transfer guarantee on the annual interest and principal instalments of any foreign loans.
Hotels and other tourist establishments can annually deduct 20% of their foreign exchange gross earnings from their taxable income!
Fee free transfer of proceeds in the case of liquidity of investments.
Complete repatriation of any profits without financial restriction or legal limitation.
Freedom to employ foreign personnel if the resources are not available locally in North Cyprus.
Tax and fee free transfer of a foreign employee’s net earned income.
Complete exemption from constriction license fee.
And when it comes to calculating taxable annual profits an investor can deduct all travel expenses related to promotion and marketing, all kinds of advertising expenditure together with any expenses related to promotion and marketing.
If you are interested in investing in investment property in North Cyprus and wish to establish and register a company here, the legal form of company formation that is used for business undertakings by both foreign investors and local businessmen is the private limited company - which is just like the UK equivalent.
The exact details relating to the formation and running of a limited company in North Cyprus are detailed in the Company’s Law, Cap 113 - if you examine this you will see it is virtually identical to the UK’s Company Act of 1948.
You have to obtain the permission of the Council of Ministers if you are a foreigner and you wish to own a North Cyprus registered company - this is usually granted within two or three months of your application.
The criteria for acceptance include the fact that the foreign ownership percentage of the company cannot be 100%. Foreign ownership must make up no more than 49%, with the remaining percentage of shares being owned by a North Cyprus citizen.
Furthermore, a business permit will be required to operate in North Cyprus. This is obtained from the Immigration Office.
Investment opportunities abound in property and tourism in North Cyprus - from the construction and establishment of hotels, bars and restaurants to service the tourism sector to running tourist recreational and entertainment businesses - from water sports to golf clubs, or from night clubs to beach discos.
And if you are interested in investing in North Cyprus you will not have to worry about a shortage of skilled workers or professionally qualified employees.
With the North Cyprus policy of attracting skilled individuals and foreigners to come and live here your personnel requirements will be fulfilled.
Private Individuals - Why North Cyprus?
Property investors aside - people wishing to purchase a holiday home in North Cyprus or looking to move to North Cyprus and make their permanent home here are of course attracted by the climate in North Cyprus - where they can expect up to 340 days sunshine a year. And the easy access to the UK, Europe and other world-wide destinations is also of particular importance.
With Ercan airport now fully renovated, regenerated, and open and with EU passport holders free to cross the green line and make use of the airports and ports on the South side of the island, North Cyprus has never been more accessible.
Further reasons why investment property in North Cyprus is so popular and why North Cyprus is such a haven for those seeking out their dream life and their ideal home are because North Cyprus has managed to retain its unique and unrivalled charm and beauty.
North Cyprus is not over developed, it is not badly developed, it managed to avoid having its landscape raped by monstrous concrete hotel developments in the 1970s, it is not a commercial country full of factories and manufacturing plants, it is a safe, quiet, beautiful and un-spoilt place to relax and enjoy life.
There is faith among many investment property purchasers that North Cyprus will in some way be united with South Cyprus and enter the EU. Whether the entry will form part of Turkey’s bid for EU membership or whether North Cyprus will join with the Republic of Cyprus which is already a member is yet unclear. Obviously, the worldwide recognition of North Cyprus will result in the widespread promotion of the island as an un-spoilt jewel in the Mediterranean.
At this time the more discerning tourist will be attracted to North Cyprus. Those turned off by thoughts of visiting Cyprus and resorts like Agia Napa will find a far more sophisticated haven in North Cyprus.
When these people arrive it is likely that many will be interested in purchasing property, others will be looking for holiday rentals - demand will increase, prices will increase in line with demand. People who are buying right now before this rush ensues are securing themselves a long term property investment at the right price.
It is true to say that retired people who come to live in Northern Cyprus enjoy a much higher standard of living than their UK counterparts for example, with pensions having a much higher purchasing power, and with the reassuring knowledge that one is living in a safe environment.
In fact, North Cyprus offers a haven for retired individuals looking for a peaceful and safe environment with decent health care services available to them.
But it is not just an island for retirees: younger people and families find a haven that affords them a safer and healthier environment in which to live and raise children, and a place where employment opportunities are rife and foreigners are welcomed into the work place.
Moving abroad is a large undertaking and if you are thinking about moving to North Cyprus and making your permanent home here you can rest assured that while you will enjoy a totally new and exciting life you will easily be able to find companionship among the many expats who holiday or reside here, you will be able to find familiar goods and services easily available to you, and in North Cyprus you will quickly find your niche - oh, and if you’re coming from the UK you’ll even discover that you drive on the left here too!
North Cyprus Offshore - An added bonus!
The government of North Cyprus actively encourage and promote the development of North Cyprus as an international fiscal and business centre.
Therefore legislation is liberal and enterprise is welcome making North Cyprus an attractive prospect to anyone likely to benefit from the advantages offered from an offshore haven.
The anonymity, privacy and confidentiality afforded to beneficial owners of offshore entities are assured, offshore entities are exempt from exchange control restrictions and their expatriate staff are free to maintain transferable bank accounts in any currency in North Cyprus and abroad. Furthermore offshore entities and their expatriate staff can import or purchase locally any office and household equipment and cars free from custom duty.
The levels of anonymity afforded to individuals and businesses in North Cyprus - both personally and in terms of the assets they hold - makes North Cyprus a true and unrivalled offshore haven for many - an added bonus to complement the quality of life available in North Cyprus
