Investing in Northern Cyprus is considered one of the best ways to obtain residency in this country, with various methods that have been well-received by investors.
Cyprus is the third-largest island in the Mediterranean Sea, with its northern part known as Northern Cyprus. It has shown economic progress and is considered one of the best Asian regions for investment. This country offers numerous investment opportunities in diverse sectors such as real estate, participation in construction, company registration, entrepreneurship, and more. Due to the significant growth in property prices, it’s considered one of the safest and most profitable regions in the world for investment.
For this reason, many Iranians are engaging in investments in Northern Cyprus. Alongside capital growth and profitability, they can easily obtain temporary residency and, under specific conditions and through a time-consuming process based on laws, also attain permanent residency and citizenship in this country. Property prices in Northern Cyprus have increased by around 150% over several years, making real estate purchases highly profitable with numerous advantages.
Northern Cyprus is considered one of the safest countries for investment due to its favorable geographical location, economic stability, and easy accessibility. In 2021, a reputable American magazine, Forbes, active in financial markets, ranked Northern Cyprus at the top of its list of the world’s safest investment locations, especially for purchasing property and investing in coastal regions. Various investment methods exist in Northern Cyprus, allowing individuals to choose based on their situation, objectives, and budget.
Investing in this country leads to many benefits, enabling the possibility to apply for temporary residency and, following specific conditions and based on laws, eventually apply for permanent residency after significant time-consuming processes. It’s important to note that proper investment in Northern Cyprus carries very low risk, and after a short period, your investment will likely multiply several times. This is because investments in this country are conducted through the pound sterling, which is one of the world’s most valuable currencies and maintains its value against inflation. Therefore, without worrying about the devaluation of your currency and incurring losses, you can securely invest in this country and also benefit from its other advantages and facilities.
There are several favorable factors and conditions for investing in Northern Cyprus, enough to convince you of the reasons to invest in this country. However, the most important reasons that encourage many individuals to invest in Northern Cyprus (especially through property purchases) include:
One of the most critical factors and significant reasons for investing in Northern Cyprus is the reasonable property prices, which have shown an upward trend annually. The prices here are considerably suitable compared to other countries worldwide. Additionally, various loans are granted, and favorable conditions for installment purchases of properties in Northern Cyprus have transformed this country into a popular destination for property investment.
Another crucial reason for investing in Northern Cyprus is the absence of strict laws and complicated administrative procedures for property purchases or company registration. Typically, foreign investments in other countries consume a significant amount of time for applicants, and some countries have imposed difficult conditions and laws for foreign nationals’ investments. Fortunately, this is not the case in Northern Cyprus, where administrative matters, such as obtaining temporary residency, are done by paying only one-third of the total property value.
As mentioned earlier, investing in Northern Cyprus is done through a valuable currency unit like the pound, which is one of the world’s most valuable currency units. Consequently, you need not worry about your currency depreciating, and you will witness an annual increase in your capital (8 to 12.5 percent). Furthermore, if Northern and Southern Cyprus reach an agreement and unify, we will witness significant economic growth in this area and an increase in property values.
Due to its favorable location, Northern Cyprus attracts numerous investors annually. However, acquiring citizenship in this country is not the primary priority for these investors initially. Nevertheless, with investment and property purchases in this country, an individual can initially obtain temporary residency. In these circumstances, according to the law and after a lengthy process, if the person meets the requirements, they can apply for permanent residency. In general, it takes between 5 to 8 years for an individual to obtain their permanent residency.
Familiarity with the laws and some standards of Northern Cyprus allows you to invest in this country with an open view and complete awareness. For secure investment in Northern Cyprus or any other country, three crucial and vital items should be considered to multiply your capital and avoid losses. These three important factors are:
Political stability and stability of a country are among the most significant factors affecting its economic prosperity and downturn. Due to its favorable geographical location, pleasant climate, economic stability, and high security, Northern Cyprus can be an ideal place for investment. The political stability index of a country ranges from 2.5 to -2.5, with Cyprus registering 0.52 percent until 2019. This number indicates that Northern Cyprus enjoys acceptable political stability, allowing individuals to invest part of their capital in property purchase or setting up a business in the country with peace of mind.
Corruption, in this context, refers to the misuse of power by authorities to the detriment of the public, commonly referred to colloquially as “partisan games.” Therefore, a country capable of controlling corruption within its economic system is undoubtedly one of the best areas for investment. Northern Cyprus is one of the countries excelling in this aspect, with relatively low rates of economic corruption.
Another crucial factor to consider for investing in a foreign country is the risk and rate of confiscation and seizure of assets of foreign investors by the government of that country. The rate of asset seizure in different countries ranges from 1 to 7, with a lower number indicating a lower risk of asset seizure by that country. In Northern Cyprus, this rate was 1 in 2019, signifying a very low rate of confiscation and expropriation of foreign investors’ properties in this country.
Therefore, by evaluating the situation of Northern Cyprus based on these factors, it is concluded that this country has a favorable and acceptable situation for investment, and its economy is also growing. Hence, foreign investors can invest in this country without concern and eventually achieve profitability after a while.
As mentioned, individuals can obtain their temporary residency in Northern Cyprus through investment and, after completing the legal procedures and being eligible, have the possibility of obtaining permanent residency and citizenship. Some necessary conditions for approving individuals’ investments in Northern Cyprus, leading to obtaining temporary residency, include the following:
By meeting these conditions, upon purchasing property and investing in Northern Cyprus, you can quickly initiate your temporary residency process and receive a one-year temporary residency within approximately 60 working days. For individuals who have purchased a property ready for delivery or have no remaining installments for their property, the required financial capability is currently equivalent to three times the basic income of Northern Cyprus (the approved basic income for 2023 is equivalent to 18,103 lira) per month for 13 months. The source can be the applicant’s bank account in Iran or any other country, the income of a company owned by the individual, or the individual’s salary slip.
Please note that if your property is under construction and you’re obliged to pay installments, besides providing documentation for financial stability covering living expenses as mentioned above, you must demonstrate that you also have the necessary financial capability to pay installments for your property throughout one year.
Some individuals also migrate to this country through investment in Northern Cyprus. Purchasing property in Northern Cyprus is one of the fastest and best methods of immigrating to this country and is done very easily.
There are three general methods for investing in Northern Cyprus, and based on your situation and financial conditions, you can choose one of these methods. The effective investment methods in Northern Cyprus are:
Buying property in Northern Cyprus is considered one of the best investment methods in this country because property prices increase annually on average between 8 to 12.5 percent. By purchasing property and making a minimum one-third down payment of the total property amount, you will be able to obtain temporary residency in Northern Cyprus.
Five years after receiving the purchased property, if you have annually extended your temporary residency without interruption and under the necessary conditions, you will be eligible to apply for permanent residency. If you wish to obtain citizenship in this country, you must be present in Northern Cyprus, and about 8 to 12 years after the property purchase, you can submit an application for citizenship. The process for approving this application is also lengthy.
However, in this type of residency (residency through property purchase), you are not allowed to work in Northern Cyprus, but you can seek employment. If you wish to start working in Northern Cyprus after an agreement with an employer who has a registered company in Northern Cyprus, the employer can request a work permit for you, and your residency will be converted into a work residency. Additionally, parents, spouses, unmarried daughters, and unmarried sons up to 24 years old can accompany you to Northern Cyprus through property purchase and receive temporary residency for themselves and your family. If your son turns 24 or your daughter gets married, this residency will not be extended.
Company registration is another investment method in Northern Cyprus that requires undergoing legal and administrative procedures in Northern Cyprus. However, having financial stability for company registration in Northern Cyprus is crucial because this process involves various additional expenses such as administrative registration costs, employee salaries, property rent, etc. Therefore, to register a company, you must have good financial backing to cover these expenses. Although the company registration process in Northern Cyprus is not complicated, it requires several administrative steps. In this regard, Aretan Group also offers a service called “Investment through Company Registration,” and you can contact the relevant experts for more information.
Entrepreneurship and job creation are other investment methods in Northern Cyprus that require presenting a comprehensive and complete economic plan with all the details to this country. Your plan should contribute to the economic growth and prosperity of Northern Cyprus to be approved by the country. Under certain conditions and through a legal process, the possibility of applying for citizenship or nationality will be available to you in a shorter period.
As mentioned, Northern Cyprus is one of the best Asian regions for investment due to its political stability and growing economy. All investment methods in Northern Cyprus, if done correctly, will ultimately be profitable, and the chances of losses or asset confiscation are very low. However, among these, real estate investment, such as property purchase or participation in construction, is considered one of the most profitable investment methods in Northern Cyprus.
Generally, investment in any country that has favorable social, political, and economic conditions ultimately leads to profitability for the investor and brings various advantages. Northern Cyprus is no exception to this rule, as it possesses desirable economic and political conditions that have attracted the attention of many investors.
The currency unit of this country is the Turkish Lira, but for investments like property purchases, the Pound is used. Therefore, when investing in Northern Cyprus, you are faced with one of the most valuable currency units globally, and you can confidently invest in various areas. Some of the most important advantages of investing in Northern Cyprus include:
Investing in any country, besides economic advantages, comes with certain drawbacks that should be considered before proceeding with the investment. As you may know, Cyprus has been divided into two parts, Northern Cyprus and Southern Cyprus, due to political differences for several years. These two countries still have ongoing disputes that sometimes affect the economic growth process in Northern Cyprus. Hence, one of the most significant disadvantages of investing in this country can be considered its political conflict with Southern Cyprus. Another drawback of investing in Northern Cyprus includes the prolonged process of obtaining permanent residency and citizenship in this country. However, this won’t be impossible.
This method attracts investors’ attention for various reasons, the most important of which are acceptable profitability in a short period, reasonable and suitable property prices, the possibility of obtaining housing loans, the possibility of migration after property purchase, and more.
In Northern Cyprus, investment through bond purchase does not exist. However, you can utilize other investment avenues in this country, such as property purchase.
Individuals immigrating to Northern Cyprus can open a bank account in one of the country’s banks. By opening a bank account, they also have access to credit card services, which greatly aids in handling immigration-related matters more conveniently. These services include money transfers and buying/selling and are accessible to individuals with a bank account in Northern Cyprus.
Opening an account in Northern Cyprus banks allows you to store Turkish Lira, Dollar, Euro, and Pound in your currency account. This allows you to easily withdraw cash in European countries from ATMs. Moreover, you can carry your money to countries with cash entry restrictions, ensuring the security of your cash.
Another advantage of opening an account in Northern Cyprus banks is obtaining housing loans. Banks in Northern Cyprus offer up to 50% of the total property amount to the property document holder. This loan is repayable over 10 to 15 years in installments. However, your property document must be available, and therefore, this won’t be possible for projects under pre-purchase.
The bank interest rate for currency accounts in Northern Cyprus ranges annually between 2 to 2.5%, and the bank does not pay more than this amount.
Obtaining residency in Northern Cyprus through investment has various advantages, some of which we’ll mention below:
The minimum investment amount for residency in Northern Cyprus depends on the property price for real estate investment. However, by paying approximately one-third of the property price, you can also proceed to obtain your temporary residency. Please note that the minimum investment amount through property is £87,000. With all these important explanations, it is crucial to define your investment goal. In essence, if you intend to secure residency for yourself and your family through investment, the minimum prices will vary. For instance, the number of family members you have will impact the minimum investment price through property in Northern Cyprus. For example, the number of bedrooms in the house you buy will be significant. The number of bedrooms should ideally match the number of family members minus two. Generally, there are various laws in this regard, considering individuals’ different conditions. For precise information, you can contact our experts at Aretan Group.
Concerning investment in Northern Cyprus, several common questions arise, and in this section, we’ll address your most common queries about investing in this country.
Yes, Northern Cyprus is a safe country. As mentioned in the comprehensive guide to investing in Northern Cyprus, in 2021, it was recognized by Forbes magazine as the safest among five suitable destinations for real estate investment.
In this article, we’ve examined the best investment methods in Northern Cyprus along with their pros and cons. As you’ve read, Northern Cyprus holds a strategic and favorable geographical position, supported by Turkey, with a dynamic and growing economy. It is considered one of the safest countries for investment due to low economic corruption and asset seizure possibilities, coupled with political stability. Investing in Northern Cyprus has numerous advantages, the most important being capital growth and the opportunity to obtain temporary residency within a short process of around 60 working days. If you’re considering investing in Northern Cyprus, Aretan Consulting Group is by your side, providing all the necessary information you require for this venture.