What is investment?


It is an asset (anything with economic value) that is purchased with the purpose of generating income or increasing the price in the future. When a person buys an asset (such as land, property, gold, stocks, and bonds), his/her goal is not to consume that asset, but to use this asset in the future as a means of acquiring wealth.

Investment always involves spending something in the present (such as money, time, or individual effort) in the hope that the return in the future will be greater than what was spent today.

For example, when someone buys a house with the intention of investing, his goal is to sell this house at a higher price in the future or to rent the house and get a profit from it.

Due to its infantile age and small population, Northern Cyprus’s economy is growing rapidly, and this presents international investors with an attractive investment opportunity.

Northern Cyprus is undoubtedly one of the world’s most clean and stunning nations, and many individuals are considering moving there and settling there. Due to the lack of a special visa need, security measures, immigration regulations, simplicity of administrative processes, and low prices, Northern Cyprus offers exceptionally favorable conditions for the immigration of people from all over the world, particularly Iranians.

Cyprus, the third-largest island in the Mediterranean Sea after Sicily and Sardinia, enjoys a temperate Mediterranean climate. The north of this island, which borders Turkey, is bordered by the three continents of Europe, Africa, and Asia.

For a long period of time, this nation came under siege from numerous strong world leaders. The geographic location of this nation and its distinctive climate are some of the key causes of this. After Cyprus’ declaration of independence in 1974, there were disputes between the country’s Turks and Greeks, ultimately dividing the island into Northern Cyprus (Turkish) and Southern Cyprus (Greek).

Both North Cyprus and South Cyprus are members of the European Union, however, only South Cyprus has access to the Schengen region because of these two nations’ differences.
As a result, Iranians not only do not require a Schengen visa to enter North Cyprus but are also free from receiving other types of visas, such as those for study, employment, investment, etc., due to the links between Iran and North Cyprus.

The Turkish government is in charge of Northern Cyprus. The Turkish lira is widely used in this nation, however in some situations, including real estate deals, the British pound is also accepted. Dollars or euros are typically used to pay for tuition and other educational costs.
Istanbul Turkish is the primary language of the native inhabitants of Northern Cyprus, but English is also commonly used here due to immigration, the presence of foreign colleges, the presence of businesspeople, the popularity of North Cyprus as a tourist destination, etc.

With regard to the situation of the Turkish Cypriots, it is reasonable to say that under the current circumstances, the Turkish Lira’s parity rate with other currencies may not be as favorable as it once was, and the cost of living has risen somewhat. However, these costs have gotten more manageable for immigrants and investors, who are more accepting of the current circumstances.

The open market and the tourism sector are the foundation of Northern Cyprus’s economy. Many tourists from over the world come to this nation after visiting it and realizing the great opportunities for real estate investment, property acquisition, and ideal living.
The renowned American business publication Forbes declared North Cyprus to be the greatest place in the world for real estate investment in 2021.

Northern Cyprus is currently regarded as one of the top 15 investment destinations in the world, and as a result, it is well-liked. Since the business climate in this nation is so favorable, it has been seen as a good place for the Iranian people’s financial and economic development. In this case, you need to have at least 40,000 euros in capital to be able to employ the right strategies for investing and earning money in this nation.

Domestic and foreign investors have several options for secure and lucrative investments in Northern Cyprus as a result of its expanding economy. In North Cyprus right now, the real estate market is one of the most active investment prospects.
This nation has an extremely low tax rate. Additionally, Northern Cyprus is very secure. This nation is one of the top five safest in the world, as suggested by its name. There are branches of every Turkish bank in this nation, and foreigners can obtain bank facilities (loans) to purchase real estate.
The studies indicate that investments in North Cyprus will typically pay off in about three years.

One of the key things to keep in mind when investing in North Cyprus is that if your money grows at the highest rates allowed by the government, you will quickly be able to get a North Cyprus passport and citizenship.

We can list the documentation requirements as one of the investment requirements in North Cyprus. A passport (no visa is needed), a work resume, a criminal background check, a police clearance certificate from the country where you most recently resided, and a completed application form are among the documents that must be ready. However, in order to make the best investment in North Cyprus, you must first decide on the type of investment, your desired budget, and your end goal in order to make a good profit.

The Faramis Group will guide you through each stage, allowing you to achieve your goal quickly and calmly.

You can get residency in North Cyprus for you and your family by making an investment there. In Cyprus, you’ll have unrestricted access to both living and studying. Examples of businesses where foreign investors are present include financial firms, auto showrooms, the building of residential units, pharmacies, restaurants, cafes, and vehicle rental services.

The long-term goals of the nation are to entice international investment and raise educational standards to that of American and British colleges. Studying in North Cyprus is thus a preferred method of immigration. Students from all educational levels, including high schoolers, aim to move to North Cyprus each year to attend one of the nation’s best colleges. There are a variety of methods to live in North Cyprus, which we shall cover in more detail in the section below regarding investing in North Cyprus.

The quality of business management in Northern Cyprus is good, thus investing in or taking part in some industries, like apartment building, will be quite profitable.

As was previously stated, your decision to invest in North Cyprus will depend on the industry and region in which you hope to generate money. We’ll look at a few investing strategies in North Cyprus below:

  • Buying property

Purchasing a piece of real estate in North Cyprus is one of the most popular and straightforward ways to establish a home there. Of course, with this strategy, you can enjoy one of the most successful investment strategies in North Cyprus. The property confiscation rate in Northern Cyprus, which is on an index of 1 (the lowest possible value), is one of the distinctive qualities of this nation, which is regarded as the primary business destination for foreign investors.

In truth, the danger of investing in North Cyprus is relatively low, and the government won’t seize your assets for unfair political or economic motives. One of those investments that can both pay for your stay and allow you to make money by renting out your property is real estate. The fact that Cyprus real estate prices rise each year is also advantageous to you and profitable.

Buyers in North Cyprus have access to facilities managed by renowned real estate developers. For the majority of these projects, you may apply for housing for you and your family by paying at least 30% of the total cost of your property.
The seller will get the balance of the property from us in a series of long-term installments free of interest. Northern Cyprus law states that once you have made the down payment, you will officially own the property, and your papers and agreement with the seller will be recorded at the Registry of Deeds.

This restriction was put in place to protect the buyer by ensuring that the seller was not reselling the property. Investors and immigration are always supported by the legislation regulating North Cyprus.
To purchase a home, you are not required to be in the nation. Although purchasing a property in North Cyprus is not a complicated or administratively burdensome process, it is advised that you speak with knowledgeable consultants who are acquainted with North Cyprus’s legislation before making any decisions.

The British pound, which is frequently used in real estate transactions, is one of the currencies that is least susceptible to inflation and changes in the currency markets. You will observe the profitability of purchasing real estate in this nation every year as a result of the rise in property worth and the stability of the pound’s value.

Advantages of buying property in North Cyprus

From the perspectives of someone who has moved here to study and someone who has invested in or purchased a home, staying in Northern Cyprus provides several benefits that are very different. We shall look at a few benefits of purchasing real estate in this nation below:

  1. Possibility of installment purchase
  2. The possibility of obtaining a residence
  3. Buying property with British pounds
  4. Moderate and Mediterranean climate
  5. Warm and friendly people
  6. Low cost of living
  7. Existence of great job opportunities for foreigners
  8. Quick and easy process of buying property and obtaining a residence
  9. Small tax
  10. High security

Company registration

Businesses have always been welcomed in Northern Cyprus, which is also one of their devoted supporters. People who visit North Cyprus for the first time typically immediately see the perfect conditions and the robust labor market on the island and realize how simple it will be to transform their ideas into a successful business.
Depending on your sort of business, you can invest in North Cyprus via one of five different forms of companies: a civil company, a personal partnership company, a joint stock company, a limited liability company, or a representative office. The company registration process in North Cyprus can be completed in less than 10 days as a result of the country’s future-focused policies being in line with the attraction of foreign capital.

One of the most crucial things to do before forming a company is to counsel someone who is knowledgeable about North Cyprus conditions and is an expert in the issues related to registering the company and the business you are considering.
Financial consultancy firms set up businesses in North Cyprus, and these firms are furthermore governed by centralized organizations.

People who plan to use this method to apply for residence should be aware that they will initially be given a two-year visa and that their residence will be approved as long as the company maintains its operations and the salaries, taxes, and insurance of the employees are paid. It is an extension.
Commercial enterprise: In commercial enterprises, activities may include purchasing, selling, exporting, importing, and any other means of generating revenue. These businesses do not have any restrictions on how they can make money.

Service company: The actions of service companies must only be consistent with the rendering of services; even if these businesses engage in buying and selling, their activities must be consistent with the rendering of services.
A minimum of two people are required to launch a business, one of whom must be a Cypriot. The two most crucial individuals for any business are an accountant and a lawyer, ideally a Cypriot who is knowledgeable on North Cyprus law.

After deciding on the type of business, you must select a unique and appropriate name. The Cyprus Company Registration Organization verifies and validates this name. The relevant attorney has prepared the memorandum and special documents relating to company registration in the following. Finally, the Ministry of Taxation will designate a tax and value added tax number for you when the Companies Registration Office has given its final approval. Finally, you must register on the website of the Cyprus Ministry of Labor in order to get social assistance.

As previously said, Farmis Group assists and counsels you as you complete all of these processes.

  • Benefits of investing in North Cyprus

As we already mentioned, North Cyprus has emerged as one of the top commercial locations for international investors. However, in order to invest in North Cyprus more securely, it is important to take into account the economic statistics of this nation, which we will look at below.

Unemployment rate and inflation

North Cyprus’s unemployment rate has recently been very low thanks to the nation’s innovative economic policies. Inflation in this nation is zero or very low as a result of the fact that the investment requirements in North Cyprus for purchasing real estate, establishing a business, and registering a company are relatively straightforward and comparable to those in first-tier nations.

Economic and social conditions

In this nation, there is a relatively low tax rate that must be paid. Additionally, by making an investment in North Cyprus, you can obtain a passport from that nation. In addition to the fact that crime is quite low in North Cyprus, the financial security of this nation is also very high, and its economy is free of corruption. All of these factors make investing in North Cyprus incredibly easy and useful; as a result, this means of generating income shouldn’t be overlooked in any way.

Geographical conditions

The temperate climate of this nation has contributed to its popularity as a travel destination. At the same time, numerous students from all over the world decide to continue their education in North Cyprus. This nation, which is situated east of the Mediterranean Sea, is one of the developing nations and has had fast economic growth. This country’s economic flow is expanding significantly as a result of its location along the route of the continents of Europe, Asia, and Africa. We may also point to North Cyprus’s economic and social security, as well as the low cost of living, as desirable characteristics for investment circumstances.

Residence in Northern Cyprus

Getting a place to live is one of the many excellent advantages of North Cyprus’s investing circumstances. For yourself, your spouse, and your minor children, you can obtain residency in Northern Cyprus and live there as a regular citizen. However, it is not required to reside here in order to be a citizen. Instead, you can have your stay by making an investment in North Cyprus and spending a few days there each year.

Getting a loan

You can easily obtain loans with an interest rate of 10-12% if you intend to invest in North Cyprus by purchasing real estate. With these North Cyprus investing conditions, you can make a sizable profit because their repayment terms range from 10 to 12 years. In any event, if you seek advice from professionals in this sector, all the benefits that have been described could work in your favor.

The dynamic economy in Northern Cyprus

This country is developing, particularly in the wake of the Greek financial crisis, and is quickly becoming a major economic, commercial, and tourism destination. It will happen repeatedly. Due to the lack of stability and advancement, your capital will lose value quickly if you invest in any way, most notably by purchasing real estate. This country is developing, particularly in the wake of the Greek financial crisis, and is quickly becoming a major economic, commercial, and tourism destination. It will happen repeatedly.

Tax laws

Contrary to many other European nations, Cyprus has simple, inexpensive tax rules that are simple to navigate.

The high value of the pound

In North Cyprus, investments are done using British pounds. Even when compared to the dollar and the euro, currency swings have always increased the value of the pound. Your investment will be very rewarding as a result of this problem.

Constant added value

You have a fair chance of making a profit since, in addition to any profit that might accrue to your capital for other causes, the property and land you bought have an extra value of 8%.

The potential to incorporate a business after buying land

You can have a place to live and a place to work by purchasing real estate. In North Cyprus, there are no limitations on using your home address as your office, therefore registering your business will not present an office address difficulty.

Obtaining residence by investment

After investing in North Cyprus, you can live there and, depending on the manner of investment, eventually, obtain a home for you and your family.

Welfare Conditions in Northern Cyprus

The majority of international investors make investments to settle there and immigrate. Despite its strong security, affordable daily living expenses, and temperate temperature, North Cyprus is an ideal location for immigrants and investors from abroad.

Superior management

You might have some money in North Cyprus and wish to indirectly engage in tourism, construction projects, etc. without actually being in the country you’re going to. Due to its rigorous rules and unique business practices, North Cyprus is the greatest alternative in this situation because it attracts capital with very low risk.

Laws of inheritance and the field and nobles

One of the dangers of making investments abroad is that the money may be taken away from the foreign investor for political reasons. In terms of this danger, European nations are categorized into seven levels, ranging from low risk to high risk. North Cyprus is on the first level, thus no matter what happens, your property and money in North Cyprus will belong to you first, followed by your heirs.

Reasonable prices

In terms of amenities, North Cyprus is the most costly country in Europe to invest in real estate and land, costing around a tenth of that of Italy and a fifth of that of South Cyprus.

Investment in North Cyprus to gain residency and citizenship

Although Northern Cyprus’s citizenship, which is recognized by Turkey, may not currently offer any advantages internationally, it is nonetheless crucial for starting a business, making investments, and living a more comfortable life.
For locals and foreigners, North Cyprus, like any other nation, has different processes and techniques; as a result, a foreigner will undoubtedly pay more to set up a business. Because of this, a lot of investors favor obtaining North Cyprus citizenship rapidly.

There are three methods to become a citizen of North Cyprus:

  1. Marriage: You are eligible to petition for citizenship after three years of marriage to a North Cyprus citizen.
  2. Work and residence permits: You can apply for citizenship by having a work permit and being present continuously for ten years, or by acquiring a business permit in exchange for a dwelling permit for this time.
  3. Citizenship by merit: In recognition of exceptional contributions to Northern Cyprus in the sectors of science, sports, politics, and culture, the Council of Ministers of Northern Cyprus has the authority to bestow citizenship on foreign persons.