Living and buying property in Northern Cyprus. Great interview with the director of VELES Property & Enterprises

Partnership article

Both good and bad have been said about Northern Cyprus for a long time. It’s time to dot the i’s and figure out: what kind of country is this and how do they live there? How much does the property cost? What attracts the island of Aphrodite? What relocation options are available in 2024? Read about all this in our great interview with the director of VELES Property & Enterprises, Yulia Ozerdzhe.

“In Northern Cyprus, interest-free installments are available without increasing the cost for as long as 7 years.”

— Why are people increasingly moving to Northern Cyprus, and not to European countries or the USA?

— Our clients move to Northern Cyprus for several reasons: 

1) Firstly, there are affordable real estate prices (from 80,000 euros), as well as long installment plans without rising prices (up to 7 years), which is rare for other countries. You can move into an apartment or house and continue making payments under the contract, or rent out the property and cover the payments with rental income.

2) Secondly, it is easy to purchase. In Northern Cyprus, they do not ask for a certificate about the source of income, and when buying real estate you only need a passport.

3) Plus, we add to all this an environmentally friendly climate (there is no industrial production on the island), year-round access to fresh vegetables and fruits, 330 sunny days a year, the British education system and favorable conditions for business development (we will talk about this in more detail).

Regarding the comparison of Northern Cyprus with Europe and the USA, I will share with you the words of our clients: “We moved to Europe first. After receiving a visa to the USA, without hesitation for long, we decided to move to the West.” Then I asked why you are now purchasing real estate in Northern Cyprus at the VELES office and received the answer: “You have a calm country, where it’s not scary to walk down the street even at night, where I’m not afraid to let my child take the bus to school; there are no beggars or homeless people on the street, and the island’s residents are emotionally open and friendly.” Since then, this married couple has been living with their child in Northern Cyprus.

«There are no analogues for real estate projects in Northern Cyprus neither in the CIS countries, nor in America, nor in Europe».

 —  Tell us more about the northern part of the island. What you need to know about Northern Cyprus before moving?

— Certainly! The island is located in the northeast of the Mediterranean Sea. 57.6% of the entire island territory belongs to the Republic of Cyprus, 36% to the Turkish Republic of Northern Cyprus (Northern Cyprus). Since the division of the island in 1974, the majority of Greek Cypriots live in the Republic of Cyprus. And Turkish Cypriots live in Northern Cyprus. There are no exact population statistics at the beginning of 2024, but the number of residents has already reached about half a million.

Without going into history, since Cyprus was previously colonized by Britain, left-hand traffic, British-style electrical sockets and English legislation have been preserved to this day. The main language here is Turkish, but English, Russian and Arabic are also common.

However, Northern Cyprus is not for everyone. There are no large shopping centers, very high-speed Internet, people are much slower than in countries on the mainland and do not sort garbage. But! It is important to remember that Northern Cyprus is a sunny island in the Mediterranean that lives at its own pace and according to its own rules - this is what captivates the island.

— What relocation methods can a foreigner consider in 2024?

— There are many options. Let's look at each:

•  Student visa

The easiest way to move to Northern Cyprus is on a student visa for the purpose of studying. VELES cooperates with a language course school: you can live on the island legally and study the language of your choice. An alternative is thematic schools where you can learn a skill (beauty school, for example) or universities (getting a bachelor's, master's or doctorate).

Northern Cyprus follows the British education system. Large universities such as Eastern Mediterranean University, Near East University, Girne American University, and Final University have dozens of faculties, ranging from management to medicine and aviation. The ARUCAD University of Art and Design also opened on the island about five years ago.

Note: A student visa does not give the right to work, but can be converted by an employer into a student-work visa.

The procedure for obtaining a student visa can be found here.

• Employment

People usually look for work in Northern Cyprus by contacting companies directly - there are no hiring sites here as such. Applying for a work visa is an additional expense for the employer. Therefore, as a rule, an official work permit is issued after successful completion of the probationary period.

Most vacancies require knowledge of English or Turkish, but it all depends on your persistence and desire to work.

The minimum wage at the beginning of 2024 is 770 euros per month. Students by law can work 20 hours a week, or for 3 months during the holidays.

Note: Employment makes it possible to use free public healthcare.

• Residence permit for high income

This type of residence permit is suitable for the self-employed and those who work online. If you are not sure that you are ready to move to permanent residence, in Northern Cyprus there is the option of obtaining a residence permit for a period of six months. You provide a document about your income level and issue a residence permit for up to a year with the possibility of extension.

On average, after a year on the island, our clients decide to stay in Northern Cyprus or not. Some of them buy real estate for living and move, the other part rents out the purchased property and comes to the island for 2-3 months a year to relax.

Note: To obtain a residence permit for a high rental income, you need to have $33,000 per person in your account.

The procedure for obtaining a residence permit can be found here.

• Residence permit when purchasing real estate

In Northern Cyprus, when purchasing residential property for any amount, your family receives a residence permit for a period of one year with the possibility of extension. For example, in Turkey, the cost of real estate to obtain a residence permit must be 200 thousand euros and above, in Southern Cyprus 300 thousand euros and above, in Spain - from 500 thousand euros.

There is no minimum requirement in Northern Cyprus, but the property must be residential and not commercial. Children under 18 years of age do not have to apply for a residence permit, and for citizens over 60 the rules are more flexible. By the way, after six years of living with a residence permit, you can apply for permanent residence.

Note: To obtain a residence permit while owning real estate, you need to have $11,000 per person in your account. A residence permit in Northern Cyprus does not give the right to work, so a work visa must be issued separately.

The procedure for obtaining a residence permit can be found here.

• Business set up

There are several types of companies in Northern Cyprus. But when arriving in a foreign country, it is important to talk with a lawyer about local laws and legalization rules. VELES advises on both opening new companies and in cases where you want to relocate your existing business. Let's look at 3 types of companies in NC:

• Local. It has restrictions on the types of activities of the company: foreigners cannot open construction, tourism and legal companies. And in some areas it is required to have a Cypriot founder who will own 51% of the shares. Specialists in the medical field (including massage therapists) must obtain permission to practice by legalizing their diploma.
• Offshore. This is a company that is used for the transit of money, is not allowed to operate within Cyprus and is subject to 1% income tax. This is a company in which all founders must be foreigners and must not have a residence permit.
• Self employed. However, this option is only available to Cypriots.

Note: Consult with a VELES lawyer before making an important decision.

Northern Cyprus took 1st place in Forbes TOP countries for investment in 2024

— And yet, is real estate in the country more often purchased for investment or for moving and living?

— Everyone, in fact, is guided by their own goals. Investors often buy for resale after completion of construction or for rental (short and long term). But the majority still buy housing for living, moving to the island with the whole family, or as a “vacation home”, coming here for 2-3 months a year. Someone buys real estate as a gift for a child (once they go to university, it is more comfortable and profitable to live in their own, non-rented apartments).

 — How stable is the real estate market in Northern Cyprus? How much does an apartment or house cost in 2024?

In the post-Covid period, the island has changed a lot. Northern Cyprus took 1st place in the TOP Forbes countries for investment three years ago - in 2021 - and now again in 2024!

Over these three years, more and more investors have turned their attention to the northern part of the island. In addition to already existing construction companies, Turkish and German companies entered Northern Cyprus, and many businesses opened in the beauty and tourism sectors. If someone says that the island is not developing, then most likely they have not been to the island. Real estate prices from 2021 to the current moment (beginning of 2024) have increased by 2 times or more.

— What is more often purchased: finished housing or at the construction stage?

— The advantages of buying real estate at the construction stage are the potential for price increases of 30-40%. By investing in construction, you actually get a price increase of almost 50%, as companies raise real estate prices as construction progresses: the closer to completion, the higher the price. Plus, it is possible to pay in stages, choose finishes and even make small changes to the project.

But we recommend buying on a construction site if you have at least 2 years left and you are planning to move, but not right away, and, just as important, you buy with an agency (agent) that analyzes the market and works with a lawyer - such as VELES. Our lawyer always checks the documents for the site and permits for the project, and the manager accompanies the client not only before the transaction, but also after, on all issues of adaptation.

— Residents of which countries live on the island and move to it, besides locals?

— It all depends on the region. For example, the northern coast (Esentepe and Tatlisu region) was very fond of the inhabitants of northern Europe: Norwegians, Finns, Swedes, Germans; residents from the CIS countries settled most of the eastern coast (Iskele region, Yeni Bogazici). In larger cities, such as Girne (or Kyrenia), Gazimagusa (or Famagusta), residents live from different countries of the world.

Many people believe that once Northern Cyprus captivates your heart, it will never let you go again. Perhaps it's Aphrodite's spell, but we're noticing this trend.  

— Where is the best place to live on the island?

— Northern Cyprus is usually divided into 5 regions: Kyrenia (Girne), Famagusta (Gazimagusa), Nicosia (Lefkosa), Guzelyurt, Iskele. Each has its own characteristics and lifestyle.

Lefkoshi has a lower cost of living, a large local Turkish Cypriot population and no access to the coastline. There, by the way, is the new Ercan Airport, whose passenger capacity is up to 10 million people.

Girne is considered one of the most lively cities. There is a place for city life (bars, restaurants of various cuisines, cinema, clubs, offices, etc.) and for recreation (sandy beaches, golf club, embankment). Schools, colleges and universities are also located in Girne.

Guzelyurt is an eco-friendly area surrounded by orange groves. This is where people from different countries come to try different water sports. Real estate there is being built “zero to the sea.” The region is quiet with incredibly beautiful nature.

Famagusta is considered a student town. It is home to one of the largest universities, EMU, and often hosts various events for young people. There is a shopping center in the city center.

Iskele is a region with resort properties along the coastline. Since 2010, Iskele began to gain popularity among the Russian-speaking population. There is still a lot of undeveloped land there, but most have already been purchased and are being prepared for development.

Despite this difference in regions, there are no analogues for real estate projects in Northern Cyprus, especially resort ones, neither in the CIS countries, nor in America, nor in Europe.

When I moved to the island in the early 2000s, I faced many challenges as a foreigner. Now, the mission of my company VELES is a high-quality solution to all the problems that foreigners may encounter in Northern Cyprus.