Buying Property in Northern Cyprus: Taxes, Costs, ROI, Maintenance, Residence Permit and Citizenship

Northern Cyprus is becoming an increasingly attractive destination for real estate investment. Reasons include moderate prices, a growing market, a favorable climate, high rental potential and a relatively simple registration procedure.

We have prepared a detailed overview of the main aspects of the purchase for you: from taxes and maintenance to obtaining a residence permit and citizenship.

• Title Deed Transfer Fee — 6% of the property value, but for your first home you can get a discount and pay 3%.
• Stamp Duty — 0.5% of the amount stated in the purchase and sale agreement. Payable within 21 days of signing the agreement.
• VAT — 5% if the seller is a legal entity. Private transactions may be exempt.
• Registration of the purchase and sale agreement in the land registry — approximately 1% of the value.
• Legal fees — from £1,000 to £1,500.

Property Maintenance Costs

• Property maintenance is relatively inexpensive:
• Utilities (water, electricity, internet) — from £50 to £100 per month.
• Aidat (complex maintenance) — from £30 to £150 per month depending on the complex (especially if there is a swimming pool, security, fitness room, etc.).
• Property tax — on average £50–100 per year.
• Housing insurance — not mandatory, but recommended. Cost — from £100 per year.

Northern Cyprus offers a high ROI, especially at the construction stage:

• Primary market: when buying at an early stage (off-plan), you can earn from 30 to 50% on the price increase by the time of completion of construction.
• Rent: daily rent brings £30-£100 per day (depending on the season and location), long-term - from £400 per month.
• Average yield: 6-10% per annum from rent, up to 15% taking into account the increase in value.

A foreigner can obtain a residence permit in Northern Cyprus by purchasing real estate. The price of the property is not important, since the law does not specify requirements for the minimum purchase price to obtain a residence permit.

A residence permit through the purchase of real estate is issued for one year with the possibility of renewal every year. The main condition is that the property remains in the ownership of the investor.

It should be noted that a residence permit through the purchase of real estate only gives the right to live in Northern Cyprus. It does not provide the right to get a job or open a business in the country.

Also, a residence permit in Northern Cyprus does not provide the opportunity for visa-free entry into EU countries.

In 2021, Northern Cyprus took first place in the Forbes ranking of “Best Beachfront Investments”.

Analysts noted the best “price-quality” indicator in terms of living conditions and property prices compared to other well-known coastal countries.

Northern Cyprus is also a safe and welcoming place with a well-developed tourist infrastructure, including clubs, casinos and luxury hotels that are more affordable than their counterparts in France or Italy.