Northern Cyprus – a state, as the name suggests, located on the island of Cyprus, according to the UN is the area of the island under Turkish occupation. Being more precise – the only country that internationally recognizes the separateness of Northern Cyprus and its authorities is Turkey, and it is its influence that gives investors ample opportunity to operate on the island.
The choice of Cyprus as an investment destination is often determined by property prices – a minimum of 30-40%, from locations such as Spain or Greece, not to mention other, much more expensive islands. We are comparing, of course, the same standard of the investment, that is, what kind of common parts we have – swimming pools, gyms, and proximity to the sea or distance from another investment – and we are comparing the same standard of the investment.explains Szymon Darznik, owner of investcjenacyprze.pl
The first step in the discussions is to determine the preferences and possibilities – the client’s budget, the size of the apartment, with what purpose he wants to buy it – whether strictly investment for rental, for resale or maybe it is to be a mixed function, that is, a few months we live, and the rest of the time we rent out – explains Szymon Darznik, then adds:The next issue is how the purchase is to be financed – whether through cryptocurrencies, for example, or cash. Here there is also the question of whether we should somehow make an effort to anonymize this purchase, i.e. make it so that no one knows about it.
It is important to remember that there is no exchange of banking information between Europe and North Cyprus. Next, we are invited to stay in North Cyprus for 2-3 days, when we check and select investments. The next step is the so-called deposit, which is about £5,000, which gives us a property reservation for a month or two. During this time, you must pay 35% of the value of such a property -.describes Szymon Darznik, co-owner of investcjenacyprze.pl
Property in North Cyprus, which means you don’t have to have all the cash right away
After the above steps, depending on what stage of construction the property is at, we pay installments to the developer – according to the schedule. The installments are interest-free, they are simply a repayment of the remaining amount we agreed to pay for the apartment. In some cases, we are able to negotiate that by the time the construction is completed and we receive the keys to the finished apartment, we will pay the developer only 65% of its value. The remaining 35% we can already pay back from rent. On average per year, this is 12 to 15% return on rent of such a property already for the owner after deducting all costs, so it is easy to calculate that for two years of deferred payment after acceptance, about 24 to 30% of the value will be repaid by the tenant. That the property is rented and maintained in good condition is taken care of by the companies we recommend or the developer. The profit I mentioned is a passive profit, minus the commission of the management company, which takes 30% of the rental income for itself. It is also calculated as of today, and it should be noted that rental rates are rising, so in the long run, a property purchased today may bring even more profit – Szymon Darznik argues.
A matched payment schedule, cheap flights from any city in Poland and a lower cost of living are just some of the factors for choosing a property in North Cyprus. Of the other important benefits -. Northern Cyprus is outside of the European Union and its jurisdiction, it is a country under the umbrella of Turkey, the second power in NATO and an economic and business power, while it is at the crossroads of Europe and Asia, in the offshore zone, which provides additional tax advantages – he notes.In addition, we can legally purchase real estate through cryptocurrencies, in a wallet to wallet transaction, one that is virtually untraceable. Nowhere else in Europe is this legal. Add to this the ever-increasing property prices and the ability to refinance the purchase through a Cyprus bank.
When the investment is built and we have brought the property onto ourselves, we can go to the bank and the bank will refinance the purchase of such an investment up to 70% of the value. This value is determined at the current market price, that is, if we bought a property 2-3 years ago, and its value will be calculated as of today, we may actually get all the money back, because by that much the value has increased. In addition, when it comes to real estate lending, we are in the process of developing regulations and opportunities for foreigners that will give them the opportunity to take out a loan for property construction. On the other hand, this is likely to come into effect sometime next year – and we’ll be able to do that. Szymon Darznik adds.
Living in Warsaw or in Cyprus – that is the question
A one-bedroom studio, in prestigious locations and highly developed infrastructure, overlooking the sea, is an expense of about one million zlotys, already with furnishings and all taxes. As for really luxurious villas, in specific developments, we can talk about three to five million pounds – reveals Szymon Darznik, owner of the investcjenacyprze.pl, then adds:At this point there are more takers than good properties. It is most profitable to buy a property that is under construction, and studios and two-bedroom apartments are in greatest demand.In Northern Cyprus we have more and more Poles who work remotely and have moved here. Depending on the industry, it is enough to open a company here, while in activities such as real estate or transportation, we will need a local partner to operate legally.The moving process itself is not a problem. Once we have a real estate contract, we can open a bank account in a Cypriot bank. And enjoy all the privileges this gives us.
