Britons are being warned they could end up in court if they buy a house in North Cyprus where properties are up to 50% cheaper than in the south.
Unsuspecting pensioners who dream of a home in the sun for their retirement may discover that what they purchased was not owned by the person who sold it to them.
This is because it is in the part of Cyprus which has been illegally occupied by Turkey since an invasion in 1974 and is not recognised under international law.
At the time of the invasion, which divided the island in two, the amount of private property owned by Greek Cypriots in the occupied north was 84%.
More than 160,000 of them were forced to flee to the south, now the Republic of Cyprus, leaving behind their homes and land.
Many of the 45,000 Turkish Cypriots living in the south at the time went the other way and moved into some of the empty properties, as did settlers arriving from mainland Turkey.
Now the Republic of Cyprus, where 1.3m Brits go on holiday every year, is getting tough on criminals who are illegally selling off properties which the fleeing Greek Cypriots were forced to leave behind.
In May, two Hungarian women were jailed for advertising the sale of Greek properties in the north online.
Now four more people, a Ukrainian man, a German national and two Israelis, are awaiting trial on a variety of charges, including advertising the sale of a Greek Cypriot property and illegal possession.
Warnings are being issued about websites, such as ‘Live and Invest Overseas’, which are encouraging expats to move to Kyrenia, “the tourism capital of North Cyprus.”
A video on the website entitled ‘8 Things You Should Know About Cyprus’ does not even mention the fact that the island has been bitterly divided for half a century.
Instead, it says: “Discover Kyrenia, Cyprus – an ideal destination to live, invest or retire for expats. With affordable living costs, quality healthcare and everything you need to know about making Kyrenia your next home.”
Property in North Cyprus is significantly cheaper than the Republic of Cyprus, with prices often being 30-50% lower, mainly due to higher developement and tourism in the south as well as different currencies which operate.
The North uses the Turkish lira, which can be more favourable for British buyers compared with the Euro in the south.
Menelaos Menelaou, the Chief Negotiator for the Republic of Cyprus, warned Brits not to be fooled into buying a property in the occupied north.
He said: “They should definitely be careful because they are going to a place where there is an occupation, an illegal occupation and an illegal regime that cannot produce any legal acts, including in the field of the selling and buying of properties.
“If it is a transaction that concerns the title deed that is illegal, that concerns a property of a Greek Cypriot, with a lawful owner, but for which another title deed has been issued, and this is the title deed that is sold, then they have engaged in illegal activity.”
Asked whether a British person who bought such a property could be taken to court, he replied: “If the lawful owner initiates legal proceedings, then they might find themselves in a situation of having to face legal consequences. One cannot exclude that possibility, yes.
“Even if they didn’t buy the property knowingly, that does not constitute an excuse because the buyer would have to check whether the property sale is of a legal nature. It is as if someone is accepting an amount of money without checking where it is from.”
Earlier this week, the Financial Times reported that the government in North Cyprus has given the go-ahead for the number of casinos to double to 64, prompting fears among Turkish Cypriots that the government is turning to the ‘dark economy’.
The region is exempt from EU legislation, including anti-money laundering directives.
Local residents have voiced fears that the region is attracting a flow of capital from Russia and Iran, which constitutes money laundering.
One said: “It’s gambling through illegal casinos, it’s real estate through industrial exploitation of properties, and it’s also human trafficking. These are the three main ways in which illegal activities are undertaken here.”
