The most crucial factor in buying property in Northern Cyprus, whether land or buildings, is to use a qualified lawyer for all contracts and Government applications. As part of our service we can recommend several reputable firms of independent solicitors, who specialise in this area and can offer a comprehensive service.

All investors are advised to seek professional legal and accounting advice.

Foreigners are limited to owning one dönüm (approx 1/3 acre) per person (husband and wife count as one person). There are a number of checks carried out by the Council of Ministers following an application to purchase a North Cyprus Property and this process can take approx 12-18 months to complete.

Foreign investment for trade is actively encouraged, and those willing to invest in North Cyprus can be sure of a positive Government attitude. The Turkish Republic of Northern Cyprus is encouraging a policy of attracting foreigners to live and work in North Cyprus and, in particular, to invest in businesses, especially within the tourism and property sectors.

Apart from property, there are a multitude of opportunities for other trades and businesses, from travel agencies, transport companies (whether land, sea or air), hotels, bars, restaurants, holiday villages, tourist related services such as water sports, recreational land sports such as tennis, golf, horse riding etc.

Some government incentives on offer include

• Import duty exemptions for goods concerning the project.
• Leasing of land for extended periods at favourable rates.
• Government contribution to charter risk.
• Exemption from income tax and corporation tax for a period of ten years in the case of investment in tourist accommodation units.
• For public companies which have shareholders in excess of 50, tax exemption can be extended.
• Annual interest and principal instalments of foreign loans enjoy a transfer guarantee.
• Contribution to brochure/advertisement expenditure up to 75%.
• Tourism establishments or hotels may deduct each year 20% of their annual foreign exchange gross earnings from taxable income.
• Repatriation of profits without restriction or limitations.
• Employment of foreign personnel who are not available locally.
• Free transfer of proceeds in case of liquidity of investments.
• Transfer of net income earned by foreign personnel is free.
• Exemption of constriction licence fee.
• Also deductible when calculating annual taxable profit are all travel expenses related to promotion and marketing, plus all kinds of advertisement, promotion and marketing expenses.

More information can be found on the pages listed in our Useful Links.

The legal form widely used for business undertakings in the TRNC both by foreign investors and by the local businessmen, is the private limited company.

In relation to setting up a company, North Cyprus laws allow 100% foreign ownership. However, if the field of activity is property development and the land is to be registered in the company’s name, the majority of shares (i.e. 51%) should be held by TRNC citizens. For such incorporation, 30,000 USD must be deposited as the capital contribution of the company. This money is regarded as capital of the company, and can be used once the incorporation is completed.

The provisions concerning limited companies are set out in the Company's Law, Cap 113, which is almost identical with the UK's Company Act of 1948. Permission has to be obtained from the Ministry of Economy for foreign ownership of TRNC registered companies, usually within one or two months of application. Foreign directors are required to lodge a percentage of the company's share capital in a North Cyprus bank to obtain a bank guarantee letter of withholding tax.

All our properties are sold with clear title which depends on the original title of the development. Each development, when complete, is divided into individual title deeds for each home and is then transferred to the buyer automatically by us.

The actual procedures are as follows:

• Buyers are highly advised to take professional and independent legal advice as the validity of a title deed should be checked by a solicitor who will visit the Land Registry personally.
• Contracts of sale are drawn up and notarised, at which time a 10% deposit is payable, and a completion date is set. In many cases, the purchaser can return home leaving a power of attorney with their solicitor, who can then complete the purchase.
• The Contract is lodged at the Land Registry and is binding on both purchaser and vendor.
• An application to purchase a North Cyprus property must be made to the Council of Ministers which can take 12-18 months.
• The Land Registry will value the property for Purchase Tax, which may be included in the purchase price.
• Subsequent payments will depend on the terms of the contract. For a new build, this will normally be by stage payments based on the building work.
• On completion of the entire development (or sometimes at the commencement of the project), the title will be split into individual titles, which are then transferred to the purchaser and the Land Registry will issue an updated title deed.
• Purchase Tax and VAT are payable in North Cyprus on the transfer of the title of the property.