Buyer’s Guide

Dear buyers, property owners and agents, Veles Property specialists have tried to fill the buyer’s guide with answers to the most frequently asked questions. If you have a question that you could not find an answer to in our directory, then write and send your message to a specialist and he will definitely answer you.

Features of choosing and buying real estate in Northern Cyprus

Such events are most important for real estate buyers who consider a residential property as a type of investment. In order for real estate to make a profit in the future, its presence alone is not enough. There are no trifles here, the location of the object, and its “neighbors”, and the proximity / distance from the sea and beaches, interior design and much more matter. And the reliability of all these parameters can only be guaranteed by yourself.

A viewing tour for two people is designed for three days and includes: booking air tickets, meeting at the airport, transfer from/to the airport, accommodation (in a hotel or apartment, at the request of the client), assistance in solving all household issues, visits to shops and markets, familiarization trips to the areas of Northern Cyprus with a full overview of all nearby infrastructure and real estate, consultations on obtaining a residence permit and citizenship, consultations with leading developers and lawyers. Moreover, during this time, our clients have time not only to make the final choice, but also to get acquainted with the beauty of the resort coast, feel the delights of a beach holiday and feel like full-fledged residents of a rapidly developing country.

Transfer from the airport. We not only help you organize your trip, but also provide a meeting at the airport. At the airport, you will be met by the manager of our company, who will comfortably take you to the hotel or apartment, where you can have a great rest and gain strength before a rich program.

Three-day visit. As practice shows, three days are enough to have time to see everything, choose a property that is suitable in all respects and draw up a purchase contract. You can fly in on weekends, for example, Friday, Saturday, Sunday, enough for an introductory program and signing a purchase contract. We work for you 7 days a week. On the first day, we show you the best offers for your request and introduce you to the area along the way, on the second day we finally decide on the choice, and on the third day we sign a contract. We assure you that in our database there are as many offers that you will need in order to make your best choice.

How to choose the right property? What to pay attention to?

As you already understand, the process of buying real estate abroad, including in Northern Cyprus, has many “pitfalls”. And it is almost impossible to do without the help of knowledgeable people. Let’s talk about those aspects of choosing a property that are especially important.

Quality of construction. The most important parameter when choosing real estate is the quality of construction. The fact is that the construction standards in Northern Cyprus are fundamentally different from the construction standards in the CIS countries. And if in Russia we are already accustomed to the fact that in a new apartment there may be minor defects that can be corrected during repairs, then in real estate in Northern Cyprus there may be such defects that will be very difficult to correct later. For example, structural defects in the water supply or sewerage, due to which you may subsequently be denied the connection of the central water supply. Another example: builders work in extreme heat, the concrete quickly hardens with cracks, and then a layer of plaster is made on top of the cracks to close the defect for a while. Other minor defects are also common: a leaking roof, poor design of bathtubs, sinks, shower cabins, an ill-conceived heating system, doors and windows that do not close tightly, and so on. As you understand, many of these defects will not be noticeable during a single visit. What to do to avoid such problems? Firstly, choose developers with a good reputation, and secondly, when selecting a property, contact reputable experts.

Location. An important factor when choosing a property. It is not uncommon for buyers to be dissatisfied with the location of their properties. Remoteness from infrastructure, remoteness from beaches, location in poor and backward areas, location far in the mountains – all this can become a big problem later. It’s not just that there is a bad location or a good one, but also that the location of the facility should meet your goals. Therefore, it is important to decide on them before buying. For recreation, proximity to beaches and entertainment centers is a priority, and if your goal is to move to a permanent place of residence, then you should check in advance the availability of the necessary infrastructure: shops, kindergartens, schools, bus stops. It is also worth considering your wishes for language communication: whether you, for example, want to live among Russian-speaking immigrants or not.

Price. The price depends on many factors: location, size, land on which the property is located. You can choose both an inexpensive apartment for £39,000 and a luxury villa for £1,500,000. However, most properties are in the £50,000 – £200,000 price range. It should also be understood that a low price is usually the result of a poor location or poor-quality construction. Sometimes developers provide good discounts if, for example, they urgently need money, but they won’t tell you about it if you just go to their office. You can find out about such discounts from us.  In addition, there is a difference: to buy already built housing or to conclude a deal at the construction stage. By the end of construction, 90% of the apartments have already been sold, and the developers are selling the remaining apartments at inflated prices. Therefore, if you are interested in a profitable purchase, you need to consider the purchase at the construction stage.

Registration of ownership. Perhaps one of the most exciting questions for buyers is the question of the legality of the property being purchased. It should be noted right away that a registered real estate contract is already a document guaranteeing ownership, and gives the right to live in it, sell or lease it.  However, there is a title system in North Cyprus. The title deed defines the full ownership of the property in the Turkish Republic of Northern Cyprus, certifying that the property and land in its possession has an unconditional right of ownership to the given buyer.

Whatare the taxes when buying real estate?

The fee for the transfer of ownership is 6% of the total cost of the property. But every buyer of real estate in North Cyprus has the right to reduce this fee to 3% once in a lifetime. If this is your first home purchase in North Cyprus, you can pay a transfer fee of 3%, on all subsequent purchases, the tax will be 6% of the property value. Also, when buying real estate, a council tax is paid, which is 1% of the total amount of the transfer of ownership fee.

VAT on the purchase of real estate is 5% of the total cost of the property. As a rule, many sellers require the payment of VAT on the actual price of the property prescribed in the contract of sale of housing on the day of signing the transfer of ownership to the new owner. Therefore, carefully check the deadline for the main contract.

Stamp duty is 0.5% of the value of the property specified in the contract. Stamp duty must be paid within 21 days from the date of signing the contract.

In general, the order of tax payment figures for the purchase of real estate in North Cyprus is as follows: Transfer Fee – 3%, VAT – 5% and Stamp Duty 0.5% of the total value of the property.

Purchasing real estate abroad is a serious step for everyone without exception. That is why our company Veles Property, an expert in the field of transactions with foreign real estate, recommends that everything be carefully checked and double-checked even before signing the purchase and sale agreement. Before concluding a contract, it is worth paying close attention to the past of the purchased housing, that is, to check the legal purity of the property.

Stages of checking the legal purity of real estate:

1. Establishing the authenticity of the seller’s identity documents. It is worth paying attention to the fact that the owner is a capable person, and the transaction was made voluntarily.
2. Examination of title documents for the property being sold. Thanks to this, it is possible to determine whether the housing for sale is under arrest or pledged. In addition, it is established whether the right of ownership is disputed.
3. Request information from the relevant authorities. Information is requested about all persons, individuals and legal entities related to this property.
4. Finding out a similar reason for the sale of real estate.
5. Collection of maximum information about all transactions carried out earlier on this real estate object. The legality of each transaction is determined.

Where isit better to live, near the sea or in the mountains?

Sea: If you like the beach within walking distance, lively surroundings, proximity to various entertainment venues, do not like to use a car.

However, it can be damp and windy near the sea during a storm in winter.

Mountains: Much larger house and plot for the same money, more greenery, peace and tranquility, beautiful views, do not mind a 15-30 minute  drive to the beach on beautiful roads.

“What is the Title and is it necessary to re-register it?”

A title deed is a document of ownership of immovable property. The TRNC government has equated all land with a single Turkish title following a ruling by the European Court of Human Rights and the entry into force of the Land Settlement Commission in 2006.

To date, information on the status of land has not been provided to the Land Committee and all land in the TRNC is land belonging to Northern Cyprus.

For reference, there are 4 main land titles  .

• Turkish title – land previously owned by a Turkish Cypriot until 74 AD. A foreign (English, German or French) title has similar advantages, i.e. when a particular piece of land was owned by a foreigner (not a Turkish or a Cypriot) before the year 74. In the property deeds obtained for lands with Turkish title, there will no longer be an indication of the title of the land, since all land officially has the title of land of the Turkish Republic of Northern Cyprus.
• Exchanged is a land formerly owned by a Greek Cypriot and arose as a result of the exchange of lands between a Greek and a Turkish Cypriot in 74. The rights to this land are guaranteed by the TRNC government.
• TMD  – land owned by the UK government. This land was given as a reward to Turkish soldiers who took part in the 1974 war. The likelihood of any difficulties with this land is extremely small (there are no precedents in the history of the country).
• Leasehold is state land that is intended only for lease for up to 49 years with the right to renew.

Having successfully worked in the IC market long enough to know the situation firsthand, we can say the following: pay special attention to the quality of the property and the availability of documents, as well as the absence of encumbrances, these are the facts that will allow you to be sure of the purity of the purchased property.

The Government of Northern Cyprus and the Government of Turkey are the guarantors of the inviolability of property rights in this territory.

To date, 90% of real estate properties are properties built on land with exchange titles. This is an absolutely reliable title. The name itself suggests that the Greek Cypriots received a similar plot of land in southern Cyprus or monetary compensation. Therefore, you should not be afraid that a Greek Cypriot will break into your door. Of course, there are also problematic objects in the real estate market of the UK (for example, old Greek houses near the border), but we do not deal with such real estate.

“Why is it better to buy from you, and not from the developer?”

There are a number of significant advantages in the purchase of real estate in our company:

• “Benefit of buying at the construction stage?”

The advantages of buying real estate at the construction stage: prices are on average 15-20% lower than the market price, there is the possibility of staged payment, a choice of finishes and the ability to make small changes to the project.

The company raises real estate prices as construction progresses, respectively, the closer to the end of construction, the higher the price. This is used by many of our investors who buy real estate at the zero stage of construction and resell it at the end of construction.

What should you pay attention to? Of course, on the reputation of the developer, to check whether previous projects have been completed, whether buyers have received documents for houses and apartments. It is also necessary to check the documents for the land plot, permits and the project. In case of problems with at least one of the points, it is better to refuse the purchase. We strongly advise you to drive through the company’s already built facilities and assess the quality of construction.” Why is real estate so cheap in North Cyprus?” We do not have corruption, a monopoly on cement, the mandatory participation of the administration in the division of the built real estate. As well as humane prices for connecting communications and building materials. Relatively cheap and affordable loans for businesses. And the appetites of local builders in matters of profit are not exorbitant. “Which is better, a house or an apartment?” The answer directly depends on your goals and financial capabilities. The difference in the cost of maintenance and taxes differ slightly (except for really large houses).

For living, we recommend buying a house. For investment (renting, for children, etc.) – apartments are better suited.

“Buy real estate on credit or in installments?”

It is possible, but with some reservations. A bank loan to a foreigner with sources of income that are incomprehensible to local bankers will most likely not be given. But there is an opportunity to use the finances of the construction company. The down payment is usually 25-30%, and the interest on the loan is around 7-10% per annum. Loans can be obtained for up to 15 years.

Please note that you will receive the ownership of the property (title deed) only after you have paid the last payment, which does not prevent you from using the property, renting it out and obtaining it on the basis of a residence permit contract. Early repayment is always welcome. Delays in payments imply large fines and risks of losing real estate. Another feature of sales on credit is the guaranteed absence of discounts on such objects. With full payment, in 99% of cases, you can get a discount of 5-10% of the cost, which is a pretty nice amount. By the way, with 50% payment, installments for 12-24 months are possible for 90% of the properties sold, not including secondary real estate.

“Is it possible to register real estate for two owners?” 

It is very easy to register a property for 2 people at once. And both of these people will be able to obtain a residence permit in Northern Cyprus. Although, in fact, it is not necessary to purchase real estate to obtain a residence permit. To do this, it is enough to show the state authorities a contract, for example, on the rental of housing and a sufficient amount on the account to live in Cyprus for a year.

Usually, we recommend that our buyers, if they immediately need to apply for a residence permit, and there is no money in the account, first transfer the money to pay for the property to their account, obtain a residence permit, and then pay for the property with this money.

We do not have a donation procedure. Everything is much simpler, one person transfers real estate titles to another person. If we are talking about the long-term prospect of transferring real estate titles from one person to another, in this case, you will need to pay a tax for the transfer of titles (3% is paid by the person in whose name the titles are transferred, if it is his first purchase of real estate in Northern Cyprus, and the one in whose name the titles are transferred from the first such transactions does not pay taxes at all).

And if we are talking about the possible transfer of real estate from one name to another within the next few years (1-2-3 years), everything is even easier, we will immediately plan it and we will not have to pay any taxes. In general, we do not have bureaucracy, everything is extremely simple, the laws work clearly, the officials are very friendly and friendly, you will like it.

Features of life in North Cyprus

“How to open a bank account?” To open a bank account in Northern Cyprus, you will need the following documents:

“How to fly to Northern Cyprus?”

There are two ways to get to Northern Cyprus, fly directly to Northern Cyprus or through Southern Cyprus. Those who arrive through Southern Cyprus can then travel back and forth across the demarcation line as much as they want. They don’t even put a stamp on crossing the border in your passport, but put it on your computer or on a separate sheet if you ask. But to arrive in Southern Cyprus, you will need a visa (visa).

If you fly directly to Northern Cyprus, then you do not need a visa, the entry stamp is also put on the arrival sheet. You will not be able to enter Southern Cyprus this time, although if you have an open Schengen visa in your passport, you can cross the border to the South – but not fly through the airport of the Republic of Cyprus.

We all prefer to fly this way, Turkish Airlines, which fly from different cities, for example: Rostov, Kiev, Minsk, Odessa, Simferopol, Donetsk, Dnepropetrovsk, Baku. The port of destination – Lefkosa / Nicosia / Ercan – is one airport, but it can be called differently.

“How do I get a residence permit?”

A residence permit can be obtained by purchasing real estate in the UK for any amount, unlike the UK and Spain, where there is a lower value of the purchased property. Our company, within the framework of the post-sale service, can help to solve issues with obtaining a residence permit

Pensioners and children do not have to apply for a residence permit (up to 18 years old and after 60 years old). A residence permit gives the right to stay in the UK for up to 1 year without leaving. If the residence permit is extended for 7 years, then you can obtain citizenship of the UK. A citizen feels more confident, for example, it is much easier to open a business than a foreigner.

In some cases, it is possible to obtain a residence permit for a long-term lease of real estate with a contract.

“Utility costs for the insurance company?” 

Usually, the owner of the property pays every month for water and electricity according to the meter. In the winter months, more costs are spent on electricity, in the summer months – on water. Once a year, real estate tax is paid – it is small, and is 1 TL (Turkish lira) per 1 m2.

If the air conditioners are new, inverter, then they can be used for heating and cooling. The standard monthly electricity bill for a family of 3 is usually 200 – 400 TL. Water – 50 – 100 TL.

Usually, a small monthly fee is paid for garbage collection and cleaning of the territory. If it is a complex, especially with a swimming pool, there is an additional fee for pool maintenance and gardening services on site. It can cost from 20 to 50 pounds (the more expensive and prestigious the place, the higher the price for maintenance).
If it is a private house or villa, the decision is made by the owner, hires employees, a cleaning company or does everything himself.

“What is the situation with the heating of the room?”

The average temperature in Northern Cyprus in winter is +15, so, for example, apartments with good insulation do not need to be heated at all. A large house, of course, is good to keep warm up so that it is comfortable in it. As a rule, air conditioners are enough to heat the house. In order to have “dry heat” in the house, autonomous heating systems (diesel or gas) are usually installed, and radiators are installed inside the house. You can also make floor heating (water or electric). This is not very common, but there are specialists in North Cyprus who can fulfill such an order.

“How does the sewerage system work in Northern Cyprus?”

Villas always have autonomous septic tanks (as a last resort, one large septic tank per village, for example, of 20 villas). The city has a centralized sewerage and treatment system.

“Roof terraces, what are the advantages?”
Almost all apartments located on the top floor of a house in North Cyprus have private roof terraces. It’s convenient. The terraces are separated from one another. Each apartment on the top floor has its own terrace. On the terrace, as a rule, there is a sink with a tap (for example, a standard kitchen sink). Large barbecues, pergolas (these are wooden canopies from the sun), sun loungers, flowers in pots are often installed. Less often – a shower or jacuzzi. I know a couple of examples when residents arranged full-fledged offices (covered with a roof) on the roof terrace.

In Northern Cyprus, the attitude to premises is very different from what we are used to in the Union. For example, we build bedrooms of the minimum permissible size, since people really only sleep in bedrooms (our compatriots are used to using bedrooms, among other things, as an office, children’s room or library). And all life takes place on open balconies and terraces. In addition to the above-mentioned infrastructure, it happens that paintings are embroidered on the terraces, garden furniture is installed, television, a music center, etc. Thus, we have small bedrooms, a large number of balconies and terraces, a living room combined with a kitchen with mandatory access to a balcony or terrace.

Another curious detail. For example, if an apartment building is three-storey, then the top floor is considered the most valuable (because it has a separate roof terrace, because the views from it are often better, and there are no neighbors from above), the first floor is the next to be valued, because either it has a larger balcony, or there is a separate plot of land (and this is almost a villa. in Russia-Ukraine, the assessment of the number of storeys of apartments is exactly the opposite.

“How much does it cost to build a swimming pool?”

Construction companies price a 5×10 pool in the region of £20,000. You can make a heated pool. This is almost never practiced, as water heating is expensive. The beach season in Northern Cyprus lasts 7 months, usually in winter the pools are simply not used. You can make a pool under glass, although an outdoor heated pool may well suit you (given that there is no real cold in Cyprus in winter).

“How to find a job?”
To do this, you need to know at least English or Turkish and have a desire to work. The minimum wage is 430 pounds per month.

Students can work on a work visa, many companies take workers on a tourist visa, since there is no real control over this.

A residence permit does not give the right to work, you need to apply for a work visa. By law, students can work 20-24 hours, or for 3 months on vacation.

Most companies hire workers with both a residence permit and a tourist visa, because obtaining a work visa is an additional cost for the employer. Therefore, employers, as a rule, take on a probationary period without a work visa, and if the person is satisfied, they make him a work visa.

It is difficult to find a job remotely, it is easier to look for it on the spot. For young people, an option is to work in one of the many casinos, for example, as a dealer (with training) or a waiter.

“What taxes and fees do I have to pay?”

• The fee for the services of the lawyer who conducts the transaction is 1250 pounds.
• STAMP DUTY upon registration of the contract – 0.5% of the value of the property.
• VAT in the amount of 5% arises when buying on the primary market.
• A one-time tax on the transfer of land title in the amount of 3%.
• Annual tax – 1 round. lira per square meter of closed area per year.

And unlike developers, we also work in the secondary market.

When buying a secondary property, VAT is usually already paid. But here you need to be extremely careful,  because some developers require the payment of VAT not when receiving the keys, but when transferring the title. Thus, if you buy a secondary property, the owner of which has not transferred the title to his name, there is a possibility that VAT has not been paid on this secondary property.

Howmuch money to take with you?

1. To reserve the property, you must pay a deposit of 1000 dollars or euros. The amount is paid in any currency at the current exchange rate. The amount paid is then deducted from the total amount of the contract.
2. Lawyer’s fee is £1250 (this amount includes: drafting the contract for the purchase of the apartment, checking all legal issues related to the legality of the construction and ownership, drawing up powers of attorney and the contract, registering the contract with the Tax Office and the Land Committee, supervising the financial settlements between the buyer and seller for the purchased apartment, as well as transferring the title deeds of the property to your name).
3. Stamp Duty is paid 0.5% of the property value.

“Tax on income from renting out property?” 

There is a tax on rental income. The rate is 10% of income. It is recommended to pay monthly.