In North Cyprus, an individual foreigner (or couple with the same surname), can only buy one property in their own name. If you want to buy more than one property, there are three main options:

1 - You can buy additional properties in different family members’ names (they must be older than 18). In this way, you will have to pay 8.5% tax (0.5% stamp duty, 5% VAT and 3% title transfer tax) at purchase and no tax on selling. They also must apply for ‘Permission to Purchase’ (PTP) from the Interior Minister. Most of our investors take this route.

2 - The other way is to establish a North Cyprus limited company. To do this, you will need a trustworthy partner with a North Cyprus identity card and at least 51% of the shares must be held by the Cypriot partner. Alternatively, you can establish a 100% foreign owned company, but this procedure takes much longer and is more difficult. Also, you need to temporarily deposit a much larger capital sum at the local bank. Consequently, this way is not very popular. When you establish a limited company with a local partner, you will pay 11.5% tax at the buying stage and 6.25% tax when selling. The main advantage is that you will get the Title Deeds in the company’s name straight away, and you do not need to apply for ‘Permission to Purchase’ from the Interior Minister.

3 - Many investors purchase properties in N. Cyprus ‘on contract’ and sell them ‘on contract’, without actually taking title to them. That way, they can avoid the problems of ownership and taxes will be much lower. You can rent the properties for years, earn the rental income, and sell them later, paying very little tax. If you sell a property for a higher price than the original purchase price, the original vendor may ask you for an indemnity in the event that he becomes liable for any further taxes when he eventually transfers the title to the new purchasers. So, he may ask you to pay 6.25% of capital appreciation, only.

Thousands of foreigners are buying properties in North Cyprus only with sales contracts. As soon as you have purchased the property, you will have full ownership rights to the property. You can rent it, stay in it, or, if you want, you can resell it with a sales contract to a third party. As soon as you sign your sales contract, the new TRNC estate law allows you to register your contract with the land registry. So, the builder can not mortgage it, or sell it to anyone. No one can remove this mortgage without your written request to the Land Registry. It will stay under protection until it is transferred to your name, as soon as your ‘Permission to Purchase’ is approved. According to TRNC laws, all foreigners must first get permission from the Interior Ministry, in order to get Title Deeds in their name.

We are also highly recommending our investors to get irrevocable Power of Attorney from the vendor when they make the full payment, so they can transfer the property, at the Land Registry, to any third party at any time they like, without the vendor’s presence. Having a full Power of Attorney provides protection.

In any case, you have to deal with a reputable, reliable and honest builder, which is essential when buying in North Cyprus.  
If you deal with the right people you won’t have any problems.

At Royal Estates, we only recommend our customers to trustworthy and well established builders whom we have been working with for years, without having any problems.

We can, confidently, supply you with the contact information of some of our clients in order that you may personally verify that they are genuinely happy with their investments.