Running costs - Living costs 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.

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.

Currency & Foreign Exchange - The legal tender is the Turkish Lira (TL), which has been in circulation since 1974. 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/touristic outlets.
   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.

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.

Driving - Traffic drives on the left, the same as the UK. 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.

Transport - Ercan airport handles most of the tourist traffic, whilst Gecitkale airport serves as a back-up. Daily flights from many mainland Turkish cities, as well as flights from the Europe, supply the majority of the visitors to the island.
   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.

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.

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

Tourism - The mild climate, the natural and scenic attractions, the rich antiquities, coupled with the hospitality of the Turkish Cypriots, make North 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.

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.

Investment Incentives - Foreign investment is actively encouraged, and those willing to invest in North Cyprus can be sure of a positive Government attitude.
1. Import duty exemptions for goods concerning the project.
2. Leasing of land for extended periods at favourable rates.
3. Government contribution to charter risk.
4. Exemption from income tax and corporation tax for a period of ten years in the case of investment in touristic accommodation units.
5. For public companies which have shareholders in excess of 50, tax exemption can be extended.
6. Annual interest and principal instalments of foreign loans enjoy a transfer guarantee.
7. Contribution to brochure/advertisement expenditure up to 75%.
8. Tourism establishments or hotels may deduct each year 20% of their annual foreign exchange gross earnings from taxable income.
9. Repatriation of profits without restriction or limitations.
10. Employment of foreign personnel who are not available locally.
11. Free transfer of proceeds in case of liquidity of investments.
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 two or three 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 North Cyprus, in particular, to invest in businesses, especially within the tourism sector. This 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, here are the different types of property, and the title deeds which one is likely to be offered.

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