Disadvantage of Investment in NorthCyprus
The disadvantages of buying property in Northern Cyprus
Buying property in Northern Cyprus, like any investment in a foreign country, has its pros and cons. Below are some of the disadvantages of buying property in Northern Cyprus:
1. Complex Legal Situation: Northern Cyprus has a complex legal situation, especially for foreign individuals. For example, there are restrictions on investment, with each foreigner only allowed to purchase one unit. This necessitates legal consultation.
2. Currency Restrictions: Since foreign buyers typically lack a bank account in Cyprus before purchasing, there might be limitations on currency exchange, necessitating currency transfer through exchange offices.
3. Uncertainty Regarding Ownership Establishment: Some investors might face uncertainty about establishing ownership, particularly if the property is newly built and the title deed issuance process takes longer than expected. If the deed is not issued within a few months, sellers may not refund the money, causing problems for the investor’s ownership. Buying from reputable developers is the best solution.
4. Restrictions on Commercial Documents: Northern Cyprus laws regarding foreign investors have imposed significant restrictions since 2021, including limitations on commercial property purchases by foreign investors and the non-issuance of title deeds for commercial properties.
5. Infrastructure Issues: Some areas in Northern Cyprus might have insufficient infrastructure, leading to problems with productivity and property usage. It’s crucial to seek detailed advice when selecting a property to purchase.
Buying property in Northern Cyprus may come with considerable risks, necessitating thorough examination and consultation with experienced professionals.
