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Based in Northern Cyprus, Afik Group is an international real estate development and construction company that has successfully undertaken landmark projects across Cyprus and Turkey. This article will take a closer look at the property market in Northern Cyprus, an arena that has seen rapid growth in recent years thanks to the region’s unspoiled beauty, delicious cuisine and fascinating cultural heritage.
With affordable prices and potential for a fast return on investment, Northern Cyprus has established itself as a prime location for foreign investment. In addition, The Turkish Republic of Northern Cyprus (TRNC) has also garnered global attention for its safety, security and high quality of education within international educational standards, making it an increasingly attractive option for families from all over the world.
For those seeking to invest in real estate in Northern Cyprus, the process involved depends on the type of property being bought. Initial communication will usually start with an email or phone call. The interested party will then be invited to carry out an inspection.
In addition to the sale price, other factors for the purchaser to consider include taxes, which include 0.5% stamp duty, 5% VAT and a 3 to 6% transfer fee. There will also be solicitors’ costs and fees for connection of utilities. Buyers will also need to factor in the cost of any new furniture.
When purchasing an Afik Group property, the buyer reserves their selected unit prior to signing the contract, paying a non-refundable deposit of £1,500. This can either be paid by bank card, bank transfer or in cash at Afik Group’s office. After paying the deposit, the buyer signs an Agreement of Sale, making an agreed first down payment of 30% of the sale price.
Solicitors then undertake all of the necessary legal procedures, checking and confirming the validity of the title deed and drawing up contracts delineating the terms of sale. By granting the solicitor a power of attorney, the purchaser avoids the need to attend the completion in person, enabling their solicitor to complete the transaction, including applying for a purchase permit from the Council of Ministers.
In Northern Cyprus, there are three different types of freehold titles:
Pre-1974 Turkish Title for properties owned by Turkish Cypriots or owners of other nationalities, including English expatriates, before 1974. These are regarded as having ‘clean freehold title’, attracting a premium when sold for redevelopment or as part of a completed development project. It is a relative rarity for properties of this freehold title type to come onto the market today.
TRNC Esdeger (Exchange) Title. This covers land that has been given to a Turkish Cypriot owner in exchange for land of an equivalent price that they owned in Southern Cyprus. Again, again this type of land is hard to find, particularly near the sea.
Turkish Mainland Deed Land. After the war, as part of plans to boost the population of TRNC, the Turkish Government awarded unoccupied land to war veterans and their families from mainland Turkey, inviting them to settle on the island.
Documentation required to complete the purchase of an Afik Group property includes a completed application form, a questionnaire and a copy of the contract. The buyer will also need to provide a copy of their passport, as well as a certificate of clean criminal record.
Stamp duty must be paid within 21 days of signing the contract, and the 3 to 6% transfer fee must be paid once the sale price has been paid in full and the complex is completed. VAT becomes due one year after key handover, along with the fee for connection of electricity and water. In Northern Cyprus, there is also an annual tax due of €0.2 per square meter of the property’s gross area.