Useful Information on the Turkish republic of Northern Cyprus (TRNC)

for Purchasers and Investors in Property

Useful Information on the Turkish republic of Northern Cyprus (TRNC) – for Purchasers and Investors in Property

One of the few remaining ‘undiscovered secrets’ of the Mediterranean, north Cyprus is a rich and colourful tapestry full of unspoilt natural beauty, ranging from crystal waters and golden beaches to fields carpeted by wild flowers in the Spring and the pine-clad heights in the Besparmak Mountains.

For centuries Cyprus has been influenced by the culture of many nations resulting in an island with a rich and diverse historical and architectural heritage.

Climate
Northern Cyprus offers long hot summers and short dry winters. With approximately 340 days of sunshine annually, the island is one of the healthiest places to live in the world. The sea temperature rarely drops below 63 degrees

Major Towns
The capital of the TRNC is Nicosia (Lefkosa), which is shared with the south of Cyprus. Other major towns are the historic and picturesque fishing port of Kyrenia (Girne), Famagusta (Gazi Magusa), and Morphou (Guzelyurt).

Flying to Northern Cyprus
The newly refurbished Ercan (pronounced Airjan and approx 25 minutes from Kyrenia) airport handles the bulk of the tourist traffic.
All flights to Northern Cyprus (at the moment) go via Turkey. There is usually a 45 minute turnaround in turkey then a further short flight to Ercan. Flights from the UK to Ercan therefore take approximately 5 hours. Alternatively, it is possible to fly directly to Larnaca in Southern Cyprus, and then drive across the border. Larnaca to Kyrenia takes about 1 hr 12 minutes by car.
No visa is required to N. Cyprus and if you prefer not to have your passport stamped when entering the country, you can have a blank piece of paper stamped. It has been reported that several airlines, including BA, Virgin and Ryanair have applied for permission to fly directly to Ercan. If, as and when, this becomes a reality, the property market, tourism industry and general economy of Northern Cyprus, will – in the view of most informed commentators – take off.

Direct flights from all overseas countries will be the key to Northern Cyprus, but the road to financial stability and prosperity for the Turkish Cypriots may be impeded for some time yet by the intransigence of the Greek and British/US attitudes.

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 Kyrenia to Tasucu.

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 below.

Currency
The New Turkish Lira (YTL), which has been in circulation since 2005, is the legal tender. The official rates for the YTL are adjusted daily according to changes in international monetary markets. All foreign currencies are acceptable at trading/tourist outlets. Traveller’s cheques are accepted in banks, however, Sterling and Dollars can be used in bars, restaurants, even buying you’re shopping from the corner shop!

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 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.

Banking System
All types of banking services are provided and they are flexible enough to satisfy the continually diversifying needs of the business community. There are branches in many of the important trading centres of the world. Some banks, such as Turk Bankasi have branches in London. See www.turishbank.com Note: HSBC Bank has now opened branches in Nicosia and Kyrenia.

Holiday 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.

Visas, Permits and Licences
Northern Cyprus is encouraging a policy of attracting foreigners to come and live and work. However, there is a great encouragement to invest in businesses, especially within the tourism sector. This includes many trades and businesses such as travel agencies, transport companies, hotels, bars and restaurants. All foreigners coming to live and/or work in the TRNC must apply for certain permits.

Temporary residency permits are issued from the local police station. This is a simple procedure involving a completion of a form and to supply four passport sized photographs. This permit is renewed annually. A Full residency permit will not be issued until the person has lived in Northern Cyprus for five years.

The British residents Society is based in Kyrenia and is open on Saturdays mornings. Members of the committee are there every Saturday to give help, information and advice. Their website is www.geocities.com/brstrnc.com

Employment
There is no acute employment 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.

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.

Cost of Living
Living costs in the TRNC are much cheaper than the UK and most of Europe. There is no rates system at present. The main costs are electricity (approx. ?15 monthly per house for a couple), water (?10 monthly) and an annual council tax is around ?50. Central heating is becoming more popular with new-build properties and is usually run on gas or oil. Most cookers are run on calor gas or electricity.

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 food stuffs generally is about half the price of the UK, with items such as local brandy retailing at about ?1.20 per bottle.

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.

Dining Out
There is a huge selection of excellent restaurants in the north, ranging from authentic Cypriot cuisine to Chinese, Indian, Italian and even Thai!