There are two main types of rental income investors can receive in Northern Cyprus:
All year lets (from an all year tenant or student let) and holiday let/vacation rental.
Vacation/holiday lets which tend to be calculated to apply to an average of 12-18 weeks between May to October – with some properties achieving more than 18 weeks (including periods in the winter).
Combination All Year and Holiday Let. If you buy wisely, you may be able to get maximum return by getting a “combination” property – which is really a third type.
We would recommend a consultation with one of our experts, to guide you through which is right for you personally.
All Year Rental Investment Property
All year lets make a lower % return than holiday lets but are “hassle-free” and more predictable investment. All year rental property investments need to be in or near a city or university. The key investment areas are Kyrenia (Girne) and Famagusta and Iskele. All year rental investment properties can be managed either by the site manager (if available) OR by an independent letting agency.10% tax is due to the TRNC government on all lets, which can be paid by yourself on a visit OR by your letting agent.
Where are the best all year rental property investments located?
If you wish to rent out your North Cyprus property full time, then this must be a property which is in or near a city or university, as those renting full time to be near their education or work will not wish to travel far. We would not recommend a beachfront property on a holiday site as being a good investment for all year lets.
The best investments for all year lets are currently in Kyrenia (Girne) which is also close to several universities, including Girne American University (GAU). You can also consider an all year investment in Famagusta or Iskele on the East Coast.
Northern Cyprus Holiday Let Rental Investment Property
Holiday let income can be higher than all- year income for the same priced property. The property owner can also schedule time in their own property for holidays. However, finding holiday let tenants is usually the responsibility of the property owner and usually involve more work by the owner A few management co.’s will find you tenants (particularly for villas)There are a few select holiday sites in North Cyprus which offer around 7 or 8% p.a. Rental guarantees in the new build purchase contract (usually for 1-2 years). These properties tend to cost more than furnished resales. The best holiday let investments are on sites where the guest may not need a car (with bus route and/or shops, bars, restaurants) near the beach.10% tax on profits to the TRNC government is officially due on holiday lets but short term lets can be tax-free due to lack of a contract. Holiday lets are let out for an average of 12-18 weeks per year. You may not fill all the weeks in some areas – in others you may fill more. Holiday let sites will always have a site fee – usually around £70 per month. Income will vary depending upon the condition of the property, furnishings, location, views, facilities etc.
We recommend the following regions: Kyrenia, Alagadi, Esentepe, Bahceli, Tatlisu COAST, Famagusta, Long Beach, Iskele, Bogaz.
Are there investment properties which can gain both holiday letting income and winter let income?
There are just a few properties where it’s possible to gain excellent 18 week holiday let income and then, when the apartments are empty in the winter, are still near enough to a University to gain short term winter lets to local students or those employed locally.
One example of this is a new build site in Iskele with shuttle buses to Famagusta and EMU. This gives you the best of all worlds and can yield over 10% per year profit.
To get a combination holiday let and winter let you need the following features:
• Swimming Pool and other holiday facilities for summer use
• Ideally close to a beach
• Transport to, or close to a University
We would recommend a consultation with one of our experts, to guide you through which is right for you personally.
