Are you considering buying property abroad, for example as an investment, holiday home or a combination of both?
Many Danish investors traditionally look towards markets such as Spain, Portugal, Turkey or Dubai. However, Northern Cyprus has attracted increasing interest from international property investors in recent years.
The combination of relatively low property prices, modern new construction, the possibility of attractive rental income and a location directly on the Mediterranean Sea makes Northern Cyprus interesting for both investors and people looking for a holiday home.
At the same time, buying property in Northern Cyprus is more legally complex than buying property in many traditional European markets.
It is therefore important to choose the area, project and developer carefully, and to get the legal and tax aspects in place before the purchase.
At Friis Legal we help Danish and international clients with investments and cross-border matters. We have visited Northern Cyprus ourselves and investigated the property market, different areas and projects, and established direct contact with selected developers and local partners.
In this guide, we review some of the most important things you should know if you are considering buying property in Northern Cyprus, or if you are more generally considering investing in property outside of Denmark.
Why invest in property in North Cyprus?
There are of course many places to invest in property outside Denmark.
Spain and Portugal are well-established markets for Scandinavian buyers. Dubai has attracted significant international capital in recent years, while Turkey and other parts of the Mediterranean region also offer opportunities for foreign property investors.
Northern Cyprus should therefore not be assessed in isolation, but as one among several possible international real estate markets.
In our opinion, Northern Cyprus stands out in particular for its combination of price level, nature, relatively limited tourism and a significant market for modern resort projects and off-plan properties.
For some buyers, the primary purpose is investment and rental. Others want a vacation home that can also be rented out when they are not using it themselves.
For international investors, Northern Cyprus can also be part of a broader geographical diversification of their investments.
If you are also considering moving from Denmark, the property investment should be viewed in the context of your overall tax situation.
1. How much does property cost in Northern Cyprus?
One of the most obvious reasons for the interest in Northern Cyprus is the price level.
Compared to popular areas in, for example, Spain, France and Italy – and with a market like Dubai – it is still possible to find modern apartments and new construction at relatively attractive prices.
This means that the entry fee for an international real estate investment can be significantly lower than in a number of more established markets, and thus also the potential percentage increase.
However, the price varies significantly depending on, among other things, area, project, developer, size, view, distance to the sea, facilities and time of purchase.
A studio or smaller apartment in a new resort project may therefore be in a completely different price range than a larger penthouse, beachfront property or villa.
| Property type | Indicative price level |
| Studio | from approximately €120,000 |
| 1-bedroom apartment | from approximately €180,000 |
| 2-bedroom apartment | from approximately €220,000 |
| Villa | from approximately €300,000 |
| Premium/beachfront | depends significantly on project and location |
Price levels change continuously and should therefore only be considered indicative.
The most important thing, however, is that the lowest price per square meter is not necessarily the best investment.
Location, the developer’s history, construction quality, the project’s facilities, maintenance and the area’s future development can have a much greater impact on the long-term return.
2. Northern Cyprus compared to other real estate investment markets
If you generally want to buy investment property abroad, the question is of course why you should choose Northern Cyprus over, for example, Spain, Portugal, Turkey or Dubai.
There is no one market that is right for all investors.
More established markets may, among other things, have greater liquidity, more historical market data and legal systems that Danish investors can more easily recognize.
Northern Cyprus’ potential advantage lies, among other things, in the fact that the market is still at a different level of development and price than many traditional destinations around the Mediterranean.
It can provide access to modern properties and resort projects for a lower capital investment.
On the other hand, Northern Cyprus also has special legal and political conditions that make thorough due diligence more important than in many traditional European markets.
The relevant question is therefore not only:
Where can I buy the cheapest property?
But rather:
Which market, project and property provides the best combination of price, risk, application options and expected return in relation to my specific situation?
3. Off-plan property in North Cyprus
A significant portion of new construction in Northern Cyprus is sold off-plan.
This means that you buy the property before the project is completed.
The advantage is that prices are often lowest in the early stages of the project. As construction progresses and the project nears completion, prices are often raised on the remaining units.
If you buy the right project at the right time, there may be a possibility of an increase in value from the time of purchase until delivery.
However, off-plan also involves a risk.
You are investing in something that does not yet exist in its finished form. It is therefore crucial that the developer has the necessary financial strength, experience and documented history to complete the project to the expected quality.
We therefore recommend that you do not choose a property solely based on price and visualizations and that you use a good advisor.
The choice of developer is at least as important as the choice of the property itself.
4. Nature, Mediterranean and mountains
One of North Cyprus’ greatest qualities is, in our opinion, difficult to show in an investment spreadsheet.
It’s the area itself.
Along large parts of the northern coast you have the Mediterranean Sea on one side and the Kyrenia mountain range on the other.
At the same time, many areas are still perceived as significantly less touristy than traditional holiday destinations around the Mediterranean.
It offers a combination of sea, mountains, nature and tranquility that can be difficult to find on the more developed parts of the Mediterranean coast.
For buyers who want to use the property themselves for a few weeks or months a year, this can be at least as important as the financial return.
5. Modern resorts and communities
An interesting part of the property market in Northern Cyprus consists of larger resort projects.
In our opinion, the best projects are not just collections of apartments. They function as actual communities.
Depending on the project, facilities may include swimming pools, fitness, restaurants, cafes, wellness, sports facilities, beach clubs and assistance with administration and rental.
With certain developers, owners in one project can also gain access to facilities in the developer’s other projects in the area.
This means, for example, that you can live in your own project, but at the same time use swimming pools, restaurants, beach areas or other facilities in the developer’s other resorts.
For people who want to stay in the property for longer periods, it can make a significant difference.
It can also make the property more interesting for holiday rentals.
6. Can you make money from renting in Northern Cyprus?
The short answer is that rental can be a significant part of the investment case, but the actual return depends a lot on the specific property.
Particularly smaller apartments in attractive resort projects can have an interesting combination of relatively low purchase price and the possibility of short-term or holiday rental.
Developers and real estate players in some cases market expected annual returns of around 10% or more for selected apartments.
However, such figures should always be treated as estimates – not as guarantees.
The real net return depends, among other things, on:
- occupancy rate
- actual rental price
- seasonal fluctuations
- management fees
- maintenance
- common expenses
- taxes and duties
- financing
- the property’s total purchase price and other purchase costs.
Therefore, an investment should be assessed based on realistic scenarios rather than the developer’s most optimistic forecast.
Villas will typically have a different return profile than smaller apartments because the invested capital is larger.
7. Can properties in North Cyprus increase in value?
Yes, properties in North Cyprus can of course increase in value, and price developments are a central part of the investment case for many buyers.
Especially with off-plan projects, there may be a difference between the price early in the project and the price of similar units as the project nears completion.
But appreciation is never guaranteed.
It depends, among other things, on the general market development, developer, project, location, quality, demand and the future supply of properties.
In addition, it is important to think about exit options.n already at the time of purchase.
A property is not only interesting because it can be purchased cheaply. It must also be attractive to a future buyer if the investor later wants to sell.
Therefore, we believe that project selection is crucial.
8. The choice of developer is crucial
There are professional and well-established developers in North Cyprus with a significant history of completed projects.
However, there are also projects and actors where we would be significantly more cautious.
A property may look attractive in a brochure, but the long-term outcome depends on much more than the apartment itself.
Among other things, you should investigate:
- the developer’s previous projects
- whether the projects have actually been completed
- delivery times
- build quality
- maintenance after delivery
- the quality of the common facilities
- the developer’s financial and operational history
- the developer’s ability to create a functioning community
- rental options
- the possibility of later resale.
In our opinion, the latter is often underestimated.
A nice apartment located in a poorly run or half-finished area is not necessarily a good investment.
This can affect both the experience as an owner, the rental opportunities and the property’s later resale value.
At Friis Legal, we have visited Northern Cyprus on several occasions, investigated the market and established direct contact with selected developers and local partners.
We can therefore help clients identify projects that we consider interesting, without the client having to navigate among a very large number of developers and sales agents.
Are you specifically considering buying property in North Cyprus?
Friis Legal can help identify relevant projects and establish contact with selected developers. At the same time, we can help coordinate the legal and tax aspects of the investment.
“Talk to us about property in North Cyprus”
9. Can Danes buy property in Northern Cyprus?
Danes and other foreign investors can buy property in Northern Cyprus, but special rules and procedures apply to foreign buyers.
The rules have also been changed in recent years.
It is therefore important to have the specific transaction legally reviewed and not base a purchase on older information found on the internet.
There may be, among other things, requirements and restrictions regarding the number and type of properties that a foreign buyer can acquire, as well as procedures regarding registration and approval.
The specific rules should always be checked at the time of purchase.
10. How is a property taxed in Northern Cyprus?
Taxation does not depend solely on where the property is located.
The investor’s tax residence, ownership structure, use of the property, any rental income and a later sale can all be important.
A person who is fully liable to tax in Denmark may, for example, have Danish tax and disclosure obligations in relation to a foreign property and income from it.
However, if you live in, for example, the UAE, the situation may be different.
It is therefore relevant to assess the tax situation before making the investment, especially if the investment is part of a larger international asset or corporate structure.
If the property investment is in connection with a planned move to the UAE, you can also read our guide on:
“moving to Dubai and the tax implications”
11. Should you buy privately or through a company?
For some investors, the question arises whether the property should be purchased personally or through a corporate structure.
There is no one answer that is right for everyone.
It depends, among other things, on the investor’s country of residence, the purpose of the property, financing, rental, local legislation and the investor’s other corporate and asset structure.
A corporate structure should therefore not be established solely with the aim of creating discretion regarding ownership.
It should have a genuine legal, commercial or tax justification and be structured in accordance with the relevant rules.
For international investors, the question is not how to hide the investment, but how to structure it correctly and appropriately.
12. Who can help with purchasing property in Northern Cyprus?
There is a big difference between finding a property and finding the right property.
The property market in Northern Cyprus consists of many developers, projects, brokers and sales agents. For a foreign investor, it can be difficult to assess which projects are actually interesting.
At Friis Legal, we have visited Northern Cyprus ourselves, investigated the market and established direct contact with selected developers and local partners.
We can help identify relevant projects and create direct contact with developers that we consider interesting.
However, our role does not have to stop at the property itself.
We already work with international legal and tax matters and can therefore help to see the investment in a broader context, including:
- tax consequences
- international structuring
- purchase privately or through a company
- relocation from Denmark
- relocation to UAE
- coordination with independent local legal advice.
This means that the advice does not only need to be about which apartment or villa to buy, but also about how the investment fits into the buyer’s overall situation.
Is property in North Cyprus a good investment?
In our opinion, Northern Cyprus can be an interesting real estate market for the right investor.
The price level remains relatively attractive, there are modern resort projects, off-plan purchases can provide opportunities for value appreciation, and certain properties may have interesting rental potential.
At the same time, you gain access to an area with the Mediterranean Sea, mountains and nature, which is still significantly less developed than many traditional destinations in Southern Europe.
But the market also has special risks.
Therefore, our approach is not that every property in North Cyprus is a good investment.
Developer, project, location, legal basis, price, exit options and the buyer’s own tax situation should be assessed collectively.
For the right investor, the combination of a relatively low price level, modern projects and a market that is still developing may make Northern Cyprus worth investigating further.
Frequently asked questions about buying property in Northern Cyprus
Can Danes buy property in Northern Cyprus?
Yes, Danish citizens can generally buy property in Northern Cyprus, but foreign buyers are subject to special rules and procedures. The rules should be checked specifically at the time of purchase.
Is property in Northern Cyprus cheaper than in Spain?
It depends on the area and property type, but Northern Cyprus can have a lower price level on a number of projects than popular areas in Spain and other established Mediterranean markets. However, price alone should not determine the investment.
Can you buy off-plan property in North Cyprus?
Yes. A significant portion of new construction is sold off-plan. This can provide access to lower prices early in the project, but also involves developer and completion risk.
Can you rent out your property?
Rental is part of the investment case for many buyers. The specific options, rules, costs and realistic rental income should be investigated for the individual project and the specific property.
Can you get a high return on property in North Cyprus?
Some developers and real estate agents market high expected returns. Such forecasts are not guarantees. What is relevant for the investor is what is realistic. net return after, among other things, idle time, management, maintenance, common expenses and taxes.
Who can help me buy property in North Cyprus?
Friis Legal can help identify relevant projects and establish contact with selected developers, as well as coordinate the legal and tax aspects of the investment with relevant local advisors.
Are you considering buying property in North Cyprus?
If you are considering investing in an apartment, villa or off-plan property in North Cyprus, please feel free to contact Friis Legal.
This applies both if you have already decided on Northern Cyprus and if you are more generally considering investing in property outside Denmark and want to investigate whether Northern Cyprus could be relevant.
We can help identify relevant projects, establish contact with selected developers and coordinate legal and tax advice regarding the investment.
The first step does not have to be that you have already found the specific property. We can also help you research which projects and property types suit what you want to achieve with the investment..
“Contact Friis Legal about purchasing property in Northern Cyprus”