Northern Cyprus is one of the most attractive business destinations in the world due to its strategic location, tax systems and peaceful laws. The island is located in the Mediterranean Sea and between the three continents of Europe, Africa and Asia, allowing easy access for foreign investors. In Northern Cyprus, supporting and attracting investors who can play a key role in economic prosperity is among the main programs of the statesmen. In this article, which was set up with the efforts of my company’s research team (MAN Inv. LTD) , the investment conditions in Northern Cyprus are fully explained. Investment conditions in North Cyprus for foreigners who intend to invest in various areas of property purchase, company registration, bonds, entrepreneurship, etc. are being evaluated. One of the most important issues is the conditions of investment in North Cyprus. If you are interested in investing in North Cyprus, stay with us until the end of this article…
Items that will be reviewed in this article:
You can contact us via this link and get free consultation from the experts of the institute.
Investment Conditions by Buying Property in North Cyprus
Some details of buying a property in Northern Cyprus
In this section, we have analyzed how to buy property, investment conditions and standards, advantages and costs in the purchase whereby you can get a residence permit in North Cyprus.
The topics discussed in this article are:
Buying property in Northern Cyprus and its general conditions
Cyprus is the official name of the Republic of Cyprus and it’s capital is Nicosia, an island in the Mediterranean Sea and divided into Turkish and Greek parts. The official language of the country is Greek and Turkish. In terms of religion in the country, it should be noted that Greeks in Southern Cyprus are Christian Ordoux and Turkish in Northern Cyprus are Muslims.
Northern Cyprus is part of The European Territory, but EU laws are not enforced in this section, the currency is in the Southern part is euro and in the Northern part in the investments and car property is British Pound and in the daily transactions is Turkish Lira.
The island has a population of more than 1.1 million people and an area of 9,251 square kilometers and is one of the tourist areas of the Mediterranean, which is about 350,000 people in Northern part and in the southern part is about 750,000 people. In fact, the source of the country’s income is through tourism and tourists. Cyprus has hot, dry summers and mild winters. Cyprus’ economy is based on a free market system, with exports including agricultural products, various fruits, tobacco, clothing, shoes and handicrafts, and imports include food, live livestock, oil and chemical products.
The picture has some useful information about North Cyprus:
You can get a residence permit by buying a property in Northern Cyprus. We will explain the details and conditions and procedures.
Buying a property in Cyprus and obtaining a residence permit in North Cyprus:
One of the easiest and fastest ways to get a residence permit in North Cyprus is to buy property and invest in the country. In this method, together with our company’s lawyers, the main applicant and his wife and children will obtain the residence of North Cyprus in the shortest possible time.
Buy Property in North Cyprus:
With a minimum amount of £45,000 in North Cyprus, you can own a home and even get a residence permit by paying 30% of the amount.
Bank deposits in North Cyprus:
You must deposit $10,000 in one of the banks of Northern Cyprus. This amount will actually calculate the predictable costs in one year and this amount will be provided to the Immigration Police for obtaining residency. This amount may be blocked shortly in your personal account with the bank and will be usable after receiving a residence permit and will be removed from the block.
The ceiling amount of property and land acquisition for foreigners in Northern Cyprus:
A person who wants to buy property and land in North Cyprus and in general any investment in this country should first be informed of the political and economic conditions of the country. The number of properties that any foreigner can own with an official document in North Cyprus are three properties and
one and a half land. However, if these properties are purchased by the company, this law will not be included.
Another investment standard is to pay attention to the rate of corruption, which means the country controls and monitors entities and more. This indicator shows the control of corruption in this country.
Buying property in North Cyprus and investment indicators:
In order to buy a property in North Cyprus, we need to consider the property indicators at their prices. Among these indicators, there is property price growth in North Cyprus. This indicator is one of the most important indicators to consider for buying a property. The economic growth chart in Northern Cyprus is shown below
The next case is the inflation rate in Northern Cyprus. The price of property in North Cyprus for the consumer varies in different time periods, as shown in the diagram below, surely important items such as the location of the property, the position of the unit purchased on the map, the access of the property to important recreation centers, medical and educational centers will be very important and considerable.
Buying property in North Cyprus and eligible:
In order to obtain a residence permit in North Cyprus, other than buying a property, a person does not need a language certificate. The person must be over the age of 18 and also have a certificate of non-criminal record. By performing the necessary medical tests, she/he can complete her/his residence permit.
Property in North Cyprus and the cost of buying and renting it:
In the discussion of property investment in Northern Cyprus, like most parts of the world, there are two factors that affect the price of the property very much, the first factor is the location and the second is the use of the property. Taxes for residential properties are charged only once and for all, and after any relocation, they are no longer subject to tax laws.
The price of buying a property in Cyprus varies from one city to another. Also, the prices of apartment houses and villas vary. There are also luxury-designed construction projects that are often considered by investors. On average, the cost of living in Northern Cyprus is 1,500 to 2,000 TL per month and the average rent price in this country is 2,000 TL per month. For more information on property costs in Cyprus, see the table below:
|Rent a 1 bedroom apartment in the city center||1,500-2,000 TL|
|Rent a one-bedroom apartment outside the city center||250 British Pound|
|Rent a 3 bedroom apartment in the city center||3000 TL|
|Rent a 3 bedroom apartment outside the city center||500 British Pound|
|Buy apartments in the city center||45,000-80,000 British Pound|
|Buy apartments outside the city center||55.000-300,000 British Pound|
Buy property in Northern Cyprus and its specialists
Buying property and investing in Northern Cyprus or any other country requires mastery of the laws of that country. To do this, accompanying a reputable consultant, an influential and powerful consultant in the field of real estate can help you at all stages from obtaining residency to other matters. Also, having a knowledgeable consultant greatly reduces the potential losses of this route. With compassionate and experienced consultants and experts in these matters, my company MAN Investment can make the right decision-making path and minimize the stresses caused by immigration and ensure that you move in the right direction.
Although buying a property in North Cyprus leads to obtaining residency, but in order to investigate and analyse various topics, you should pay attention to things such as inflation rate, economic growth, economic health and children’s education, education system and health system, so that you can make a reliable and profitable investment with full knowledge of these issues. My company’s consulting team and experts are ready to consult you.
You can refer to the FAQ section to get answers to your questions
Investment conditions in Northern Cyprus through company registration
Establishing a company in Northern Cyprus is not very complicated and difficult, the Northern Cyprus government helps to attract foreign capital to investors, especially by using a favorable tax system. The company registration process takes about thirty working days and depending on the type of company and related activity, this time can be increased or decreased.
Types of companies in Northern Cyprus are as follows:
Private joint stock companies
Cyprus Limited Liability Company(LTD) is certainly a registered public limited company of Cyprus and foreigners are not allowed to register such companies. In terms of initial capital of limited liability companies, the minimum required capital is fifty thousand liras, as long as the company operates, in the CEO’s account will be blocked by the bank. The power of attorney and documents prepared by a lawyer or accountant must be prepared together with special documents in the companies section of the Companies Registration Office and the official recipient. After registration, the Ministry of Finance must provide the company’s unique tax number and tax code. The cost of registering a company in Northern Cyprus is approximately twenty-seven thousand liras.
Also, at the time of registration of the company, an amount of about one hundred and twenty thousand dollars will be blocked in the account of the founders of the company for about two months. Introducing the official office will also come at a cost. MAN Investment LTD, does not recommend registering a company upon arrival of immigrants. Because starting a company or business and investing in this sector is an urgent need to fully understand the environmental, social, economic conditions and identify potential competitors so that the company can be on the right track. Therefore, registering a company in Northern Cyprus can only be important as an option and is not highly recommended.
Residence in Northern Cyprus through financial means
You can rent a property and a significant bank deposit in Northern Cyprus and obtain temporary residence, this type of residence is suitable for people who intend to immigrate permanently to another country, but in this method there is no guarantee that agreement from the Immigration Police and it will be almost risky and you may be deported by the Immigration Police for any reason and if you are deported you will never be able to travel or immigrate to Northern Cyprus, so this method by my company experts, MAN investment LTD is not recommended for customers.
Entrepreneurship in Cyprus
Certainly, all countries around the world will offer investment packages in the form of incentive packages to investors and entrepreneurs to improve their economic conditions, and Northern Cyprus, like all countries, is ready to submit proposals in this field, incentive plans in the tax system. And the support of investors and entrepreneurs in the tourism sector is very attractive, we highly recommend this sector to you.
Investment Indicators in Northern Cyprus
Examining investment indicators in Northern Cyprus provides an opportunity for foreign investors to make an investment migration by taking a closer look at the political, economic, and judicial conditions of the destination country. In this section, we will examine and analyze three very important factors of investment indicators in Northern Cyprus: Movable and Immovable Property Confiscation Index, Corruption Control Index and Political and Social Stability.
The political stability of a country can indicate the absence of crime and violence in any country, which can lead to instability and the overthrow of a government. The Political Stability Index ranges from -2.5 weak to 2.5 strong. Data for Northern Cyprus are available for this index from 2010 to 2019. The value of this index in Northern Cyprus during this period was at least 0.45% in 2010 and at most 0.63 in 2012. The latest statistic in 2019 was 0.52 percent. For a better comparison and accurate understanding of the subject for you, the global average in 2018 based on 195 countries was -0.05%. Below is the graph of this index in this period.
Rate of confiscation of movable and immovable property
The most important concern of a foreign investment in any country can be the risk of expropriation by the government of the country in which it has invested. This can include any discriminatory action against a foreign investor that could result in the deprivation of the investor’s salary and capital without compensation. This index is categorized from 1 to 7, and the larger the number, it can definitely increase the risk of investing. This index has the number 1 for the country of Northern Cyprus, which means the lowest risk of all countries in the world.
Control corruption in society
Actions that lead to the abuse of individuals due to their political and social status and the loss of the rights of the public are often called corruption, while a country and legislators who can have better control in this regard, certainly a more appropriate and healthy society. They will create for foreign investment. This index also has a range between -2.5 to +2.5, and the more positive it goes, the better conditions it can provide for the country’s judicial system.
Economic indicators in Northern Cyprus
Finally, economic indicators such as economic growth, unemployment rates, taxes, etc. can be used to decide how and under what conditions to invest in Northern Cyprus, the stronger a country’s economy and the more dynamic its society. Investment will be achieved with higher speed and return. We have discussed it below.
For this index, we obtained data for Northern Cyprus from 1976 to 2019, and the average for Northern Cyprus during this period was 4.83% with a minimum of -6.55% in 2013 and a maximum of 20.27% in 1976. . The last value from 2019 is equal to 3.23. For better comparison, the global average in 2019 based on 176 countries was 2.77%.
The next item is the unemployment rate, which also helps the foreign investor to make the necessary predictions for the study and supply of labor, as well as the performance of the destination country in this area, which certainly the lower the rate, the economy and It will have a more active and dynamic work cycle. For this index, we provide data from 2000 to 2020. The average rate for Northern Cyprus during this period was 7.81%, with a minimum of 2.9% in 2008 and a maximum of 17% in 2014.
Note that any action that leads to the abuse of individuals due to their job position and the loss of the right of the general public, the elite, is corruption, and any country and legislation that can have better control in this regard, society is more transparent and Has drawn a healthier outlook for foreign investment. This index also has a range between -2.5 to +2.5, and the more it goes in a positive direction, the better the situation in the country’s judicial system, and this issue can be quite sensitive and decisive.
Benefits of investing in Northern Cyprus
Northern Cyprus can be called a hidden paradise that is currently emerging by Europeans, Russians, Scandinavian countries, the island due to its strategic location in the region, Mediterranean climate, high safety, cost of living Lower levels than other similar countries, as well as attractive tax laws and very high potential, can be considered a tourism hub and a place to live a quiet and carefree life. In this place, you can get accommodation for yourself and your family with a minimum of capital. Currently, the conditions for obtaining accommodation and investment are very easy and the time is very short. This has made the investment climate in Northern Cyprus attractive to foreigners. The Government of Northern Cyprus has created a positive environment for trade. The government’s liberal policies have led to the development of investment.
Some of the key advantages of the country are:
Possibility of 100% foreign participation in almost all sectors of the economy
An attractive tax environment and the existence of tourist and entertainment facilities, the five-star casino hotel that attracts tourists and naturally brings a large amount of capital and money,
The cost of establishing and developing a business is very competitive for companies
By identifying the weaknesses in its economy, the country succeeds in creating an attractive environment for investors.
Stable and prosperous economy with very favorable growth trends
Disadvantages of investing in Northern Cyprus
The main weaknesses of Northern Cyprus are:
Weak attraction of its domestic market with a population of less than 400 thousand people
Lack of urban development in terms of urban facilities and infrastructure, lack of large factories, lack of public transport fleet, problems with the Greek side
Of course, from the point of view of people who have high business intelligence and have the necessary flexibility in entrepreneurship and hunting different businesses, this situation can seem quite pristine and excellent, which will create a variety of jobs.