Life in Northern Cyprus attracts foreigners with its proximity to the sea, clean environment, and the relative ease of obtaining residency. A straightforward way to get residency is through buying property. We’ll answer common questions for those wanting to move to Cyprus or invest in the country.
What Type of Real Estate in Northern Cyprus is Required for Residency?
Commercial or residential property. Commercial options include hotels, warehouses, offices, retail spaces purchased on the primary or secondary market. Residential homes require a licensed developer and no encumbrances.
Commercial real estate can be a profitable investment tool, used for rental and business purposes. However, such options are limited, and sales often come with a markup. There’s a more extensive selection of residential properties on the real estate market, making it easy to find a suitable property for various purposes.
What’s the Recommended Minimum Property Price in Northern Cyprus?
Among Mediterranean coastal countries, Cyprus is known for its low property prices. The cost of real estate starts from 65,000–70,000 pounds (70,000–75,000 euros). For many Europeans, such property serves as an ideal first step for beginning life in Northern Cyprus.
Properties near the sea with an area of 170 sq.m. are priced at 190,000 euros, while luxurious bungalows cost 290,000 euros. Additionally, a 5% VAT is payable.
For permanent residence, it’s advisable to choose areas with developed transportation infrastructure when buying property in Cyprus. However, if savings are a priority, consider affordable apartments farther from the sea, located close to main roads and easily rented to tourists.
Can Residency be Obtained through Property Purchase on Mortgage?
Residency cannot be obtained on a mortgage, but you can request installment payments from the developer. Typically, they offer interest-free credit to foreigners for several years. When buying resale property, the full cost of the property must be paid.
What is the Current State of the Real Estate Market in Northern Cyprus?
The real estate market is growing, with demand surpassing supply. Therefore, renting a property on the Mediterranean coast is easy. A small apartment near a university can be a good investment since the number of international students is increasing every year.
The yield of long-term rentals in cities is 5-7%, and the investment pays off in 16-20 years. Short-term rentals in resort towns can yield 8-10%, with a project payback period of 10-15 years. The drawback is the seasonality; such properties are in demand from May to October.
How does the Residency Process Work for Europeans in Northern Cyprus?
After selecting suitable real estate, a contract is concluded with the developer or owner. When buying property under construction, a minimum of 35% must be paid, with the remaining amount paid according to an established schedule. For the purchase of resale property, the full cost is paid.
Next, if the goal is to reside in Northern Cyprus, a “Title Deed” must be obtained, which confirms property ownership. To apply for the Title Deed, you need to gather a package of documents and submit them to the Ministry of Foreign Affairs. The exact processing time depends on the type of real estate. However, the residency application process can begin immediately after purchasing the property.