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Why Invest Abroad - Northern Cyprus Monday, August 14, 2006 North Cyprus has in the past 18 months begun to attract potential homeowners more than ever before. This is because the restrictions placed on the North from the South have been lifted and people are allowed to visit and take holidays and even purchase property, when up until fairly recently it was not allowed. There is a very strong likelihood in the near future that direct flights to Ercan airport will be available, but in the meantime flights via mainland Turkey is the main way to get to North Cyprus. The effect of direct flights will mean a surge in property prices and the surrounding infrastructure which will help support and sustain the fragile economy that exists at the moment. In many ways North Cyprus is emerging as a new country ready to experience and welcome tourists, as previously the country was virtually unknown by the world as a whole. The Turkish Cypriot people are only too willing to embrace the role as hosts to the tourists who continue to come back year after year. North Cyprus law and regulations are based on British Law, which even includes driving on the left. North Cyprus in particular has a great need for all sorts of trades and businesses; travel agencies, transport companies, hotels, bars, restaurants, holiday villages, tourist related services, recreational pursuits, specialist holidays etc. Foreign investment is actively encouraged, and those willing to invest in Northern Cyprus can be sure of a positive Government attitude. It is an exciting time for both countries and anyone with entrepreneurial flair will find fantastic opportunities. We feel to invest in both North Cyprus & Turkey is an extremely shrewd move for the following reasons: Both countries are emerging markets and with both countries hotly tipped to join the EU you can take advantage of cheap properties to complement your property portfolio, with the very strong likelihood that you will increase your return significantly Make sure you know what your reasons are for buying property, making sure you select the right property & location for your needs Annual interest and principal instalments on foreign loans are tax free Free transfer of profits to gain quick access to your funds Repatriation of profits with no restrictions or limitations on the amount Freedom to employ foreign staff where there is no availability locally Net income of foreign staff is tax free No constricted license fee All PR and Marketing expenses and associated travel costs are tax deductible from your annual profits Private Limited Companies are the most popular to set up and are based on the UK Companys Act of 1948. The Council of Ministers grants permission for foreigners to register and operate a company and this takes two/three months from application. Foreign ownership of a company can be up to 49%. The remaining 51% ownership must be of Turkish Cypriot citizenship. A business permit is also a requirement from the immigration office, as is a health check. Social security registration must be completed before trading commences Favourable rates for extended land leases Materials connected to your business are exempt from duty tax Government contribution to charter risk Government contribution to brochure/advertisement expenditure up to a maximum of 75% Income & Corporation tax exemption for a period of up to ten years for investment in hotels and self catering establishments Public companies that have more than 50 shareholders can extend tax exemption limits Businesses that operate in the tourisim sector can maximise profit by utilising 20% tax allowance reduction on their annual foreign profits (gross) Land in North Cyprus is measured as follows: 1 acre = 4,047 sqm 1 donum = 1338 sqm 1 acre = 3 donums 1 evlek = 334.45 sqm 1 donum = 4 evleks Back to Articles |
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