Buying property in North Cyprus from the UK

Article
Reuben Allonby

Have you ever imagined owning property in the idyllic landscapes of North Cyprus as a UK resident? Whether you're considering a beachfront villa, a countryside cottage, or a stylish apartment in Kyrenia, purchasing property in North Cyprus from the UK can be a rewarding and profitable venture.

However, navigating the buying process and managing international money transfers can be complex. In this blog post, we'll walk you through the vital steps of buying North Cypriot property and demonstrate how to save on GBP to EUR international money transfers to maximise your investment.

About Equals Money

Property Search and Legal Requirements

The initial step in buying property in North Cyprus is to determine the location and type of property that best aligns with your lifestyle and needs. It's crucial to acquaint yourself with North Cypriot property law and engage a local solicitor to manage the legal aspects of the transaction.

Financing Your North Cypriot Property Purchase

Your North Cypriot property purchase can be financed using a UK mortgage, a North Cyprus mortgage, or cash. UK banks may require a larger deposit and have less favourable terms than North Cyprus banks. To maximise your international money transfers, consider using a currency exchange specialist like Equals Money, who offer competitive exchange rates, optimising your GBP to EUR transfers.

The Property Buying Process in North Cyprus

The North Cypriot property buying process typically involves the following steps:

  1. Making an Offer: Once you've found a property, you'll make an offer. If accepted, a Contract of Sale is drawn up and signed.
  2. Permission to Purchase: As a foreign buyer, you'll need to apply for permission to purchase from the Council of Ministers. This can take several months but you can continue with the process in the meantime.
  3. Transfer of Title Deeds: Upon receiving permission to purchase, paying the balance of the purchase price, and fulfilling all other contract terms, the title deed is transferred to the buyer.

Taxes and Fees

When buying property in North Cyprus, you'll need to pay various taxes and fees, including:

  1. Stamp Duty: This is typically paid upon signing the Contract of Sale and is currently at a rate of 0.5% of the contract price.
  2. VAT: VAT of 5% is applied to new properties.
  3. Transfer Fee: When the title deed is transferred, a fee of 3-6% is applied, depending on the number of properties you own in North Cyprus.

Maximising Value on GBP to EUR International Money Transfers

To ensure you're getting the best value on your international money transfers, consider the following:

  1. a. Use a currency exchange specialist: Equals Money offers more competitive rates than traditional banks, allowing you to save significantly on your transfers.
  2. b. Set up a forward contract: This allows you to lock in an exchange rate for a future transfer and mitigate the risk from potential market fluctuations. Although should the rate continue to move after the contract has been agreed, you’ll still receive the original agreed exchange rate, presenting a potential disadvantage in choosing a forward contract. However, many looking to purchase property abroad find the stability offered by a forward contract outweighs this disadvantage.*
  3. c. Monitor exchange rates: Keep a close eye on the GBP to EUR exchange rate and transfer funds when the rate is most favourable.

Conclusion

Purchasing property in North Cyprus from the UK is an exciting journey filled with potential rewards. By understanding the property buying process and leveraging Equals Money for your international money transfers, you can significantly optimise the value of your investment. Embark on your journey towards owning a piece of the enchanting landscapes of North Cyprus, where warm sunny climates, stunning beaches, and a rich history await.

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*Equals Money can only offer forward contracts to facilitate payments for goods and services

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