Banking Sector in North Cyprus

To begin with let’s tackle the tax regime in North Cyprus.  As Northern Cyprus is outside the EU and not signed up to the terms and conditions of the EU Savings Tax Directive, it is possible and legal, (depending on your own personal circumstances), to offshore all your money legitimately and only pay absolutely minimal tax on the money you remit to North Cyprus.

There are financial advisers who specialise in international and offshore finance who can help you arrange your affairs legally and tax effectively so that you can ensure you save maximum tax when living in North Cyprus.  Contact us to be put in touch with such an adviser.

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North Cyprus Currency

In 2005 the central bank and the government in Turkey knocked off a handful of zeros from their currency and today the currency in both Northern Cyprus and Turkey is the yeni, (new), Turkish lira.  Exchange rates fluctuate, but on the whole the currency is now very stable.  The yeni/new part of the currency’s name is to be removed in 2009, ending the novelty completely, but we thought we’d keep it for posterity!

If you arrive with just sterling, euros or US dollars in North Cyprus you’ll find that most business owners will happily take the currency and give you any change in lira.  Some people even try to confuse the situation by paying in about three different currencies – but don’t worry, the business owner won’t mind too much however the person behind you in the queue might!

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North Cyprus Economy

The economy in North Cyprus is severely hampered by its continuing isolation and the embargoes placed upon it.  It relies heavily on Turkey for economic and monetary support.

In recent years the construction industry has played in a big part in North Cyprus’ developing fortunes.  A building boom started in 2002 – 2003 and created an opportunity for foreign buyers to buy up holiday homes at relatively cheap prices – particularly when compared to other parts of Europe – and this helped the economy in [Read more...]