If you are considering investing in Cyprus, here’s where you can find out more about some sectors worthy of your investment as well as general information on other sectors in the TRNC.
Cyprus, the third-largest island in the Mediterranean after Sicily and Sardinia, is located on the trade route of the Eastern Mediterranean. North Cyprus has a multi-party democracy system and its local currency is the Turkish Lira. People in North Cyprus are free to hold, accumulate, and use foreign currencies. In fact, the British Pound and Euro are used just as much as the Turkish Lira. North Cyprus boasts a sophisticated banking system consisting of 1 public bank and 14 private banks, and an additional 5 foreign banks. All banks in North Cyprus operate in line with the international Code of Banking Conduct.
Investments in Cyprus supported by the government
Due to its low population, the TRNC has long since stuck to its policies supporting investments and economic development. So much so that joint ventures between local and foreign companies are greatly supported. This is made possible by providing legal arrangements and incentives to foreign investors so that they may take full advantage of their proprietary rights. It is worth noting that there is no difference between Cypriot citizens and foreign investors in North Cyprus, and that is guaranteed by the local constitution. Due to its low population, the TRNC has long since stuck to its policies supporting investments and economic development. So much so that joint ventures between local and foreign companies are greatly supported. This is made possible by providing legal arrangements and incentives to foreign investors so that they may take full advantage of their proprietary rights. It is worth noting that there is no difference between Cypriot citizens and foreign investors in North Cyprus, and that is guaranteed by the local constitution.
In what sectors can I invest in Cyprus?
If you are looking to invest in North Cyprus and have something already in mind, then you will benefit from reviewing our up-to-date investment guide providing a breakdown of sectors in which you might want to invest. Please remember that the advice within this article should not be considered as investment recommendations.
The Tourism Sector North Cyprus
Cyprus, having sunshine almost all year round and its unrivaled beaches, attracts a lot of attention from tourists and, thus, has a clear advantage over competing countries within the tourism sector. It is also renowned for its rich historical and cultural heritage, which adds to its investment potential within the tourism sector.
Currently, the TRNC’s bed space is currently 26,000 within the context of the tourism sector, however, the target is to reach 50,000 by the year 2023. Investments within the tourism sector in North Cyprus, with over 1 million tourists visiting every year, tend to pay off in the short, medium, and long term depending on the type of investment.
Over the past few years, special interest tourism, health tourism, yacht tourism, and conference / convention tourism has stood out as some of the more popular types of tourism in the TRNC. Additionally, the opening of Varosha promises a swift and significant advancement for tourism and the economy in the TRNC. Varosha, which was a tourism hot-spot before 1973, boasted 45 hotels, 60 aparthotels, 99 entertainment venues, 25 museums, 24 theatres and cinemas, 21 banks, 3,000 businesses, and 4,469 houses. Without a doubt, the opening of Varosha, and consequently restarting construction within the area, is going to be a turning point for both the construction property sector as well as the tourism sector.
From 2001 until the end of 2017, 601 investment projects have received an incentive certificate in North Cyprus. This means that 79% of investment projects consist of tourism investments. Before you invest in North Cyprus, we highly recommend that you consider the tourism sector.
The Property Sector in North Cyprus
The significant proportion of international students contributing to the local population (⅓ of the population is made up of students coming to study in Cyprus) and the 1 million tourists coming to Cyprus on holiday are two major dynamics within the North Cyprus Property Sector. The constant and high demand and fast payback period are critical advantages when it comes to Property in North Cyprus. Along with the increase in rental income of your investment property and value over the years, the average depreciation period is expected to be between 8-10 years. If you are looking for a short or medium payback period and would like to continue earning from your investment in the long run, we ask that you consider Investing in Property in North Cyprus.
The Education Sector in North Cyprus
There are around 7 million international students worldwide,where each student spends on average 30,000-50,000 US Dollars in the countries they are studying. With this in mind, considering that 90% of the 120,000 students coming to Study in North Cyprus are international students, investing in Education in North Cyprus becomes a sector worth considering for investment purposes. It is also worth mentioning that the percentage of students coming to study in North Cyprus increases on average by 2% each year.
There are around 7 million international students worldwide, where each student spends on average 30,000-50,000 US Dollars in the countries they are studying. With this in mind, considering that 90% of the 120,000 students coming to Study in North Cyprus are international students, investing in Education in North Cyprus becomes a sector worth considering for investment purposes. It is also worth mentioning that the percentage of students coming to study in North Cyprus increases on average by 2% each year.
Those coming to Study in North Cyprus greatly contribute to the country’s economy. When we take a look at the expenses of an international student 25% is food and drink, 20% shelter and accommodation, 7% local transport, 5% communication, 5% clothing with 38% being spent on a variety of things, such as socializing, entertainment, stationery, and international travel. What’s more, is that family members of international students visiting the island also add to international student contributions to the economy.
Direct investments in the education sector or sectors relating to the education sector can be expected to provide a significant return in the medium term.
The IT Sector in North Cyprus
The low cost of living in North Cyprus has opened a new door for the information sector. There are incentives offered by the TRNC for added-value IT investments within certain fields in modern technology and know-how.
For those interested in investing in the IT sector in North Cyprus, it is worth highlighting that there are close to 60,000-70,000 students studying in English in North Cyprus, which will lead to a great workforce potential. Of course, when we factor in the low cost of communication and the technopark opportunities offered by universities, we can begin to see the full advantages of investing in the IT sector in North Cyprus.
The Transportation Sector in North Cyprus
Due to the high usage of privately-owned vehicles, transportation and shipping in North Cyprus haven’t shown much progress. This is particularly true for passenger transportation or cargo services where there are many great investment opportunities. Despite there being an abundance of commercial taxis offering passenger transport services, those relocating to or vacationing in Cyprus have often expressed the need for alternative means of transportation. This becomes more apparent when comparing analyses of the transportation sector and its restructuring in Malta and Iceland to North Cyprus.
If you are considering investing in the transportation and shipping sector in North Cyprus, we could easily say that this would be a sustainable investment in the medium/long term since there are no other alternatives available at the moment.
Foreign investors in transportation and shipping in certain areas of North Cyprus have been exempt from paying Income and Corporate Tax for their earnings. If you would like to find out more about this in detail, you may seek advice from the North Cyprus State Planning Organization.
The Agriculture Sector in North Cyprus
North Cyprus offers phenomenal investment opportunities in agriculture due to its Mediterranean climate and flat, fertile land which is ideal for farming. Out of the 1.9 million decare of land in the TRNC, 1.6 million decare is suitable for farming. The Agriculture Sector in North Cyprus, which makes up 5.4% of the total gross domestic product (GDP), 3.6% of total employment, offers some tantalizing investment opportunities, especially when considering the lack of digital farming ventures introduced to the island.
The Agriculture Sector in North Cyprus needs to direct its attention and resources towards alternative products with high added value as well as citrus products that are high in market demand to increase its competitiveness with other countries. While niche investments in the agricultural sector come at a risk, they also present the perfect investment opportunities.
The Ministry of Agriculture offers various support mechanisms to increase environmentally friendly production methods, health and safety measures in feed and food, and productivity. Among the types of support offered by the ministry, there is income support for the increase in animal production, and support for purchasing relating to growing produce. The support given by the Ministry varies depending on the number of animals, output, and the size of the land.
Agricultural production in Cyprus is always advantageous as there is demand due to internal consumption as well as its ideal location, making it easy to export goods to other Mediterranean countries. Investing in digital agriculture in North Cyprus would lead to optimal agricultural production in North Cyprus, and thus, bring about high revenues from this new sector.