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North Cyprus Real Estate Briefing And History

Purchasing property in North Cyprus has not been a popular event until recently. In 1974, the island of Cyprus was divided into the North region and the South region with a "green line". The Greeks occupy the South and the Turkish people occupy the North. Before the division, both sides had property mixed all over the island. After the separation took place, the Greeks lost access to their land in the North and the Turks lost access to their land in the South. It is a belief in Cyprus that whoever owns a piece of land and then builds a structure on it, then they will forever be the owner of the land. In 2000, South Cyprus began discussing an action to reunite both sides again. This caused people in North Cyprus to frantically purchase property. They did not want to lose their land again.

Until the year 2001, there were not many foreigners that wanted to purchase land in Cyprus. However, as the tourist industry increased, the number of foreign investors also increased. There are currently 10,000 citizens from the UK who own land or properties in North Cyprus. People from the UK are the most popular investors on the island of Cyprus. The property market in North Cyprus is only 6 years old. The prices are just now beginning to increase, and they will only increase as the years go on. Now is the perfect time to invest in property in North Cyprus.

There are many properties in North Cyprus that require no or very little work in order to lease them out or vacation in them. The properties that do require some significant up keep, may be a better deal in the long run. However, there are several properties that you may want to be cautious about before committing to a purchase. A Greek Cypriot house that was built before the separation in 1974, has a very high chance of being returned to the original owner if both states were to be reunited.

Stay away from any property that is very close to the dividing line in the middle of Cyprus. There is a big chance that the properties will be given back to the Greek Cypriot owners as well. Other issues regarding Greek Cypriot owners is land. If you purchase land, do not wait very long before building a house. Once you build the house on the land, you have full entitlement to the property for the remainder of your lifetime.

When purchasing property in North Cyprus, it is required that you pay at least 0.5% tax on the value of the property. This value will be based on the amount that was given at the time the property was registered as under contract. A Power of Attorney will have to be given the deed until you have lived in the residence for at least 2 years. When the deed is signed over, you will be required to pay 5% VAT and 3% purchase tax. Even if you are not the official owner of the deed, you will still have to pay an annual property tax. The tax fee is based on the size of the property and the typical fee ranges from 100 to 150 £. The vendors who act as your solicitor or Power of Attorney will typically charge you anywhere from 1000 £ to 1200 £.