Investment projects in TRNC
Turkish Republic of Northern Cyprus became very popular and legally friendly area for international investors in the last 15 years of development.
People from all over the world are investing in different projects in TRNC nowadays. The long term projects with higher investment perspective especially those of hotel, casino and trading centres are most popular between the investors on the island. People from the Mediterranean and many more countries are commencing their business in TRNC.
Another widely spread type of investment is building from scratch a residential complex of any size. Here, residential complex can consist of two blocks with a minimum of 4 apartments each, located in a separated area with controlled passage, with a swimming pool inside or having nicely landscaped territory around them.
According to local rules all lands here have got their special classification of land according to it’s positioning, exploitation type, ownership, etc.
Dönüm is is a standard measure unit for the land in TRNC, which equals to 1338 m2. Also there is always a certain limit on the percentage of construction on each donum in accordance to the location of the land. It may vary from 5% if we are talking about special naturally selected and protected areas and up to 220% if we take strategically developing regions.
Regions like Iskele, Iskele – Bogaz and Famagusta suburbs are considered as strategically developing areas, located in South-East part of island with a beautiful sandy beaches. Those areas are very popular to be selected if we are talking about big projects with a high touristic potential.
Northern part of the island is famous for its location between the mountains and sea. This area is mostly preferred for permanent living and businesswise. Also we must admit that TRNC is a huge Mediterranean educational area which consists of more than 30 universities, schools, colleges and children facilities.
All those aspects affect investors choice in a very serious manner. TRNC is a small country so all investment perspectives should definitely be in proximity to the following three points:
- Hotels, casinos, beaches and other touristic facilities
- Universities and other educational institutions
- Businesswise they have to be close or inside on of the 6 big cities of TRNC
In other words, those are the places which have to be close to the area where you are planning to make your investment in, otherwise you’ll have trouble with making the investment profitable.
If an individual or an organization are planning to invest in TRNC based project there would be some legal restrictions such as:
- Foreign citizen can not hold on proper legal ground (having their name registered on the title deed in the Land District Office) more than 1 Dönüm of land or 1 property
- All the projects which would be planned shall be done by a local team of architects and engineers. If you prefer your own team to work on the project, they would need to do so jointly with the local team, and all signature and project rights in TRNC will be registered on the name of the local team.
- The construction company which will be constructing the project shall be locally registered or commence work under a local company. There are certain types of permissions that a construction company shall have, in accordance to the amount of construction work they are doing, once again this can be only acquired by a local company.
- All supervisory personal should be locally organized with the purpose of proper legal documentation support.
- If you are planning to bring the construction materials from abroad, this can be done by acquiring necessary permits and paying relevant taxes.
- The system of control should be organized locally
- Bank guarantee for the investment project can be issued after full amount for the project is located on local bank account.
- All the taxation process before finishing the project has to be held in TRNC according to all local rules and regulations.
These are the general restrictions, each area is specific and each investment type is unique on its own therefore there may be other incentives, restrictions or rules in accordance to each project, its location, type of company.
It may seem that there are many rules and restrictions for the investors, however most of them can be solved with a help of a trusted professionals.