Northern Cyprus
Northern Cyprus enjoys a typical Eastern Mediterranean climate with long hot summers and short mild winters. The northern coastline, which borders the Girne (Kyrenia) mountain range, is accepted as one of the most beautiful areas in the world in which to live. The natural beauty of the island, the lovely climate, the warmth and generosity of the Turkish Cypriot peoples and the abundant selection of fresh foods make Northern Cyprus an unspoilt and non-commercialised haven. There is virtually no crime to speak of, and this country is reminiscent of UK standards long lost, where hospitality, politeness and the general enjoyment of life are the daily norm.

Location
The island of Cyprus is located in the Eastern Mediterranean. Its neighbouring lands at the nearest coastal points are Turkey 40 miles north, Syria 60 miles east, Lebanon 108 miles south-east, Israel 180 miles south-east and Egypt 230 miles south. Cyprus is the third largest island in the Mediterranean. It is smaller than Sicily and Sardinia and larger than Corsica and Crete. The area of the whole island is 3584 sq. miles. (9250 sq. kilometers) Owing to the location of Northern Cyprus and its proximity to the rich Middle Eastern countries, it provides an ideal place for foreign investment.

Major Towns
Northern Cyprus has four major towns, the capital being Lefkosa (Nicosia), which serves as the main administration and business centre. The other main towns Magosa (Famagusta), the country's principal port; Girne (Kyrenia), the main tourist centre well known for its ancient harbour, and Guzelyurt the centre of the citrus fruit industry.

The British interest in the island dates back to the 12th century and has remained until present day with many British ways being adopted by the government of the Northern Cyprus. Therefore, the British are genuinely welcomed and the transition could not be easier, as English is widely spoken and driving being on the left hand side of the road.

Language
Turkish is the official. language and English is the second language, and is widely used and understood in official and commercial circles. There are several first-class Turkish language teachers available, and some British residents avail themselves of their services.

Climate
The climate of the island is an eastern Mediterranean type with long, hot summers and relatively cool, short winters. There are over 300 days of sunshine a year, the sea temperature is rarely below 16°C and rises to 28-30°C during summer months, making Northern Cyprus one of the healthiest places in the world in which to live. The air condition is excellent and many respirations difficulties either disappears of significantly reduce as a consequence.

Time
Local time is two hours ahead of Greenwich Mean Time (GMT).

Household items
Most household items can be bought in North Cyprus at about the same price as Europe. Most international makes and models are available (Whirlpool, Kelvinator, Candy, Philips,Beko, Sony etc) Auctions are also held monthly where a vast array of items can be purchased at reasonable prices.

Running costs
Living costs in the TRNC are much cheaper than the UK and most of Europe. There is no rates system at present, or community tax. The main costs are electricity (approx. £15 monthly per house), water (£5 monthly) and an annual council tax is less than £50. Central heating is rare in N Cyprus but is usually run on gas or oil. Most cookers are run on calor gas and/or electricity.

Shopping
There is an extensive range of consumer goods and services available throughout the island. Many of the popular imported brand names are readily available and can be found in local supermarkets. Fresh local produce can be purchased from a wide variety of markets and small stores and there is wide range of wines and spirits at very low costs: retailing at approximately. VAT (KDV) is levied on most goods and services with rates ranging from 20% down to 2%.

Consumer Markets
There is a wide selection of consumer goods of good quality. In addition to locally produced goods almost all foreign brands are available on the market. It can be estimated that the cost of foodstuffs generally is about half of the price in UK, with items such as local brandy, retailing at around £1.20 sterling per bottle.

Banking
Northern Cyprus offers a well organised banking system, with all banking facilities catered for. Some banks operate their own branches in London and others have arrangements with major UK banks HSBC has a full service presence here. A deposit account can be opened with ease in Sterling or any other major currency and funds can be drawn in that denomination or in Turkish Lira (TL), which is the local currency.


Currency
The Turkish Lira (TL), which has been in circulation since 1974, is the legal tender. The official rates for the TL are adjusted daily according to changes in international monetary markets. Generally speaking, all foreign currencies are acceptable at trading/tourist outlets.

Foreign Exchange
The TRNC follows a flexible exchange policy. Foreign currency accounts can be opened with local banks, and foreign currency can be brought into the country and taken out through the banks without any restriction or control, and the source of such income is not investigated. It should be noted that the Government are actively encouraging the formation of offshore banks by foreign investors, and are offering incentives such as relatively low set-up capital, low corporation and income tax etc.

Traffic
As in the UK, traffic circulation is on the left. Road signs are international. There is a large selection of car hire companies with a variety of vehicles at favourable rates, from £10 per day in the winter to £15+ in the peak season.

Employment
There is no acute unemployment problem in the TRNC, and the number of registered unemployed has declined steadily since 1978. The official working week is 40 hours in the winter and 36 in the summer.

Further details are available from Mr. Reg Heybetli.


Transport
Ercan airport handles the bulk of the tourist traffic, whilst Gecitkale serves as a back-up airport. Daily flights from many mainland Turkish cities, as well as flights from the Europe, supply the majority of the visitors to the island. Direct flights from all overseas countries are the key for N. Cyprus, but until the intransigence in Greek and British/US attitudes change, the road to financial stability will be slow and tortuous. In addition to air travel, there is a selection of car and passenger ferries from Turkey to the island, the fastest being two and a half hours from Girne to Tasucu.

Pets
Pets can be brought into the country from Europe with little hassle. The Ministry of Agriculture require a certificate from a European vet stating that your animal is free of major diseases. Quarantine is approximately 4 weeks at the Lefkosa kennels.

Accommodation
North Cyprus has a large selection of accommodation units, from 5-star hotels, small family hotels, motels, pensions, self-catering villas, and apartments and camping facilities.

Tourism
The mild climate, the natural and scenic attractions, the rich antiquities, coupled with the hospitality of the Turkish Cypriots, make N Cyprus an ideal place for tourists. There is none of the pestering of holiday-makers that is so common now in other Mediterranean resorts.

Since tourism has been singled out as a vital sector for the future development economy of the TRNC, the Government has approved a Bill which contains a wide range of incentives for investors. See Investment section below.

Education
General education standards in the TRNC are of a very high standard and are borne out by the fact that there are four universities based in Northern Cyprus. The majority of schools offer bilingual education starting with kindergarten through secondary school and finally university.

Medical
The cost of medical treatment in the local hospitals is lower than comparative care in the UK depending of course on the type of treatment required. Accident and emergency facilities are available at local hospitals. It is recommended that you seek a local GP, many of whom have had UK experience, for many minor ailments. Private healthcare is also available through a number of international medical insurance companies if required. Dental treatment is of a high standard and charges are moderate.

Churches
The Anglican Church of St. Andrew's, Kyrenia is conveniently located near the town centre and services are held on Sundays and Thursdays. All Christian communities are welcome. The Roman Catholic Church is also based in the centre of Kyrenia with mass being celebrated on the 1st and 3rd Sundays of each month. Other Christian churches are located in Famagusta and Nicosia.

Mains Services
Mains power 240/415 volts AC. 50Hz.
Water by mains supply and in some properties supplemented by wells.
International telephone system plus facsimile and internet.

Electricity:
The supply is 220/240v AC 50HZ, with a standard UK 3-pin plug. Water: By mains supply and in some cases supplemented by wells. There has been a shortage of water in the past, however, the government has taken major steps to rectify the situation.

Telecommunication:
International telecommunication facilities are a rapidly growing sector of the economy. The company responsible for all telecommunication also provides telex, fax, telegram transmission and ISDN/e-mail facilities. When making international calls the cheap rates are from 20:00 to 08:00 hrs. Monday -Friday and all hours over the weekend. To dial from TRNC to UK dial 00 44 and omit the first 0 of the UK code. To dial from UK to TRNC dial 00 90 392 then the area code, followed by the number required. N.B. Northern Cyprus is 2 hours ahead of GMT.

Investments
Foreign investment is actively encouraged by the government of Northern Cyprus and has led to numerous incentives to help foreign nationals. Some of the facilities which have been made available include exemptions on import duties, income tax and corporation tax, in some cases up to ten years. Tourism in all forms is actively rewarded by the government and in many cases grants have been made available to assist in set-up costs.
Investment Incentives
Foreign investment is actively encouraged, and those willing to invest in N Cyprus can be sure of a positive Government attitude.

1. Leasing of land for extended periods at favourable rates.

2. Import duty exemptions for goods concerning the project.

3. Government contribution to charter risk.

4. Contribution to brochure/advertisement expenditure up to 75%.

5. Exemption from income tax and corporation tax for a period of ten years in the case of investment in tourist accommodation units.

6. For public companies which have shareholders in excess of 50, tax exemption can be extended.

7. Annual interest and principal instalments of foreign loans enjoy a transfer guarantee.

8. Tourism establishments or hotels may deduct each year 20% of their annual foreign exchange gross earnings from taxable income.

9. Free transfer of proceeds in case of liquidity of investments.

10. Repatriation of profits without restriction or limitations.

11. Employment of foreign personnel who are not available locally.

12. Transfer of net income earned by foreign personnel is free.

13. Exemption of constriction licence fee.

14. Also deductible when calculating annual taxable profit are all travel expenses related to promotion and marketing, plus all kinds of advertisement, promotion and marketing expenses.

Investment Procedure
With reference to the registration of a company, the legal form widely used for business undertakings in the TRNC, both by foreign investors and by local businessmen, is the private limited company. The provisions concerning the limited company are set out in the Company's Law, Cap 113, which is almost identical with the UK's Company Act of 1948.

Permission is obtained from the Council of Ministers for foreign ownership of TRNC registered companies, usually within ten to eighteen months of application. The foreign ownership can be from 49% to 100%.

A business permit is also required, which may be obtained from the Immigration Office - this is dealt with later on this page.

Visas, Permits and Licences
The TRNC is encouraging a policy of attracting foreigners to come and live and work in N Cyprus - in particular, to invest in businesses, especially within the tourism sector. This, of course, opens up a multitude of trades and businesses, from travel agencies, transport companies (whether land, sea or air), hotels, bars, restaurants, holiday villages, touristic related services such as water sports, recreational land sports such as tennis, golf, horse riding etc.

Land and Property Purchase
With regard to the purchase of land or buildings, we will first look at the different types of property, and the title deeds which one is likely to be offered.

Foreigners are limited to one donum per person (husband and wife count as one person unless they have different surnames).

a) Clean freehold title - British or other foreign ownership pre-1974, with title deed (kocan), clearly stating that this is the case. Internationally recognised deeds.

b) Clean freehold title - Turkish Cypriot owned pre-1974. These deeds are 100% safe, but before the property can be registered in your name, an application must be made to the Council of Ministers for approval.The procedure to obtain approval will take about six months or so.

c) TRNC - kesin tasarruf - absolute possession document - title deed. This is property or land that was in Greek Cypriot ownership pre-1974. When the Turkish Cypriot refugees came to the safety of the north after July 1974, they left all their possessions behind in the south. Accordingly, the Government then assessed on a points basis, the value of the refugee's forsaken assets in the south.

With these points, the Turkish Cypriot refugee could take a relinquished Greek Cypriot house or land in compensation for his lost properties. He would then sign over his properties in the south to the TRNC government, who would then hold them pending a negotiated settlement between the north and south Governments. The refugee would then be issued with a title deed for his newly recompensed property. Until he received this title, he would not be in a position to sell.

Our feeling is that as the island is heading, albeit slowly, for some sort of solution, whether it will be a negotiated settlement or annexation to the Motherland, then the TRNC title deed properties can be considered safe to purchase.

d) Land or property - Greek Cypriot pre '74 - no title deeds - yet unissued. Some people offer for sale, for relatively nominal sums, these properties without deeds. They are sold for "air money" or "goodwill" usually, these need the purchase of additional points before the title deeds will be issued. It is our opinion that agreements should not be entered into for property that does not have a title deed issued by the relevant authority.

e) Contractual or "cases pending" land or property. When one looks back to pre-1974, there were over two thousand British in the Girne area, and property was experiencing something of a boom. In the period up to the Peace Operation in July 1974, there were several hundred title deed applications pending and subsequently not processed, owing to the lethargy of the Greek Cypriot administration, and the political instability.

Following the formation of a Turkish Cypriot Government, a statement was issued that all foreign land and property ownership, once registered, would be respected. This has been done; the first cases have been to court, and as long as the owner can substantiate his original payment for the property, then deeds are issued. There are some seven or eight hundred cases to be heard, so unavoidably, the process will take some time.

f) There is also the method of leasing land or property from the Government. These are usually derelict houses, which the Government will lease out for periods up to 49 years to foreigners who renovate the property at their own expense, and who pay a nominal ground rent for the lease period. An excellent example of the manner in which this scheme has been operated can be seen in Karaman (Karmi) Village, which is a credit to the Minister of Tourism and his staff.

This policy is beginning to show encouraging results, as many visitors from overseas are returning to N. Cyprus to investigate the possibilities of starting new businesses here. At the present time, the majority of these people are from the British Isles, and several have commenced trading in such businesses as water sports, restaurants, holiday home management, shops, estate agents, construction companies, irrigation equipment suppliers etc.

A foreigner coming to N. Cyprus to live and/or work must apply for the following permits; firstly, a temporary visitors permit from Nicosia, which involves the completion of a form and the supply of three or four passport size photographs. A full permanent residents permit is not usually issued until the recipient has been in residence in the TRNC for five years.

If you wish to operate a business in TRNC, the following procedure must be adhered to:

If you are to form a limited company, then you instruct an accountant to make the necessary applications on your behalf to the Council of Ministers, outlining the trading intentions of the company, share capital, directors etc. The formation of the company is obviously viewed more favourably if it has some Turkish Cypriot involvement, but it is quite possible to form a company with 100% British or foreign ownership.
A further application has to be made to the Immigration Department for an annually renewable business or employment permit, which is given once the Council of Ministers has given their approval.
You must also have a medical examination for clearance of TB and AIDS.
Finally, you register yourself and your company with Social Security for health insurance payments, the tax authorities, and the provident fund.
Once all this has been done, you may commence trading.

For retired persons, the residents permit is all that is required. Retired persons may bring into the country a full household of furniture. These are virtually tax free - a nominal 2 - 3% tax is levied.

All foreigners should carefully examine the importation of vehicles from overseas, as cars are valued (Glass's Guide) and import tax is levied on the basis of the value, engine capacity and age. In most cases, the tax assessment is high. Therefore, it is far more advantageous to purchase a Turkish made Renault or Fiat (Murat), which can be bought brand new for about £6,000 sterling or a Polo, Fiat Palio, Renault Clio for approx £11,000.

Second-hand vehicles are in abundance, but prices for reliable cars rarely drop below £2000 sterling, no matter the condition. Car road tax is approximately £40 annually (more for larger cars/jeeps etc.), and third party insurance in the £30 region. We represent Axa Oyak Insurance from Turkey, who are a branch of Axa, the largest insurance company worldwide; car and household cover quotes can be quickly arranged.

Most applications for licences, visas, permits etc., do require an inordinate amount of patience, but the endearing charm of the North Cypriot people make each and every excursion into Lefkosa or Girne a most interesting and pleasant diversion, albeit retrospectively.

g) Finally, there are opportunities to enter into long-term loose or joint venture projects with an organisation here that owns many seashore and inland tracts of land and properties. Any interested companies or individuals who are looking for investment opportunities in the tourism sector, for hotels, holiday villages, villa or apartment projects in superb locations.

Regarding the actual mechanics of property or land purchase, the following procedure must be adhered to:

The validity of the title deed is checked and confirmed by a solicitor.
Contracts of sale are drawn up, with the purchaser paying a 10% deposit, and a completion date is set. In many cases, the purchaser returns to the UK or wherever, and the solicitor attends to the completion in the purchaser' s absence, having been given Power of Attorney.

If the property is registered in the name of a local person, then an application must be made to the Council of Ministers; allow 18 months.
The Land Registry values the property for Stamp Duty purposes.
On the day of completion, the monies are paid by the solicitor to the vendor and the Land Registry respectively; the name of the purchaser is entered into the Land Registry's record books, and the new title deed is subsequently issued.
There is no rating system in the TRNC at the present time.

The legal system here is based on British law, with a number of first-class lawyers whom we are pleased to recommend to prospective purchasers.

Construction & Planning
For the client who wishes to purchase land and build a house or villa, the laws are as follows:

a) Outside the Municipal boundaries, there are restrictions on the area that one can build on (20% of the land area), and a height restriction of two storeys. This is a further example of the Government's good forward planning.

b) There are good architects and engineers who will plan and design your villa at reasonable rates. We are pleased to be able to recommend reliable practices for interested clients. Once the plans have been lodged with the District Office, work may commence.

c) Land in N Cyprus is measured in donums. 3 donums = 1 acre. 1 donum - 1388 square metres.

d) With regard to the actual construction, there is a multitude of companies who claim to be fully experienced in building villas. It has been our experience, following twenty-six years of home and overseas construction that the main problem for house and villa owners overseas is the matter of building control. There are no building inspectors as in the UK, and whilst the architectural and engineering plans are drawn to exacting standards, many of the so-called construction companies are not able to read plans properly. We are happy to offer to potential house builders the names of reputable and trustworthy building companies who will guarantee the completion of a property within a fixed time, and at a pre-agreed price. Show houses are available to view through our offices.

Building costs vary, dependent upon finishings, from £280 per square metre upwards. Most buildings are constructed in the reinforced concrete frame system that is prevalent in the Mediterranean countries. Buildings tend to be over-specified, but this can only be an advantage to the buyer. Materials are readily available from Turkey, Spain, Italy, Germany and UK. We have many villa and bungalow plans to choose from, and can mail to interested parties on request.

In addition we are happy to direct clients to excellent suppliers of all household items. electrical equipment and landscape gardening services, antique furniture and interior design services.

We have a property management section who will attend to all your requirements should you wish to rent your property or have the villa managed in a professional manner.

We also have reliable personnel who will guide you through the Government Departments for importation of household and personal goods, vehicle registration, immigration permits, driving licences etc. - as well as advice from our legal and accountancy colleagues for your pension, investment and banking needs.

Summary
It is true to say that retired people and families who come to live in N Cyprus enjoy a much higher standard of living than their UK counterparts, with pensions having a much higher purchasing power, and with the reassuring knowledge that one is living in a safe environment.

For investors in virtually all sectors, this country offers more than possibly anywhere else in the world, a statement that is being reflected in the number of' enquiries from British and European companies, and private investors.

For younger people with families, there can be no finer, safer and more healthy environment in which to raise one's children, and being in a position to earn one's living in North Cyprus can only be considered a bonus.
 

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