3% tax, no source docs, no residency needed

[Reytonne]

Hello everyone.

The TRNC government is about to pass the “asset peace” law. The bill is being discussed in parliament.

Why is this so important?

With only a 3% tax, you can bring as much money as you want to TRNC (Dollars, EURO, Gold)

They will not ask or investigate the source of the money

There was a similar asset peace law in Turkey before and people could transfer millions via SWIFT with 0% tax.

This is for the new TRNC asset peace:

- Businesses and individuals can benefit,
- No need for citizenship and residence permit.
- You will be able to pass through customs in cash.

The law is still in the approval process, but should be finalized very soon.
It could be a great opportunity to invest, especially in some beautiful properties on the island!

Source:
https://basimevi.gov.ct.tr/Portals/6/2025/57.pdf?ver=2025-03-12-093941-990
https://www.ktto.net/wp-content/upl...tibari-Paralarin-Ekonomiye-Kazandirilmasi.pdf

 

[SCHLOSSFINANZ]

totally useless as this "country" does not exist officially and isn't recognized from anyone except Turkey!

 

[Clank]

How do you even open a bank account there?

 

[redeye]

Will never put my food into Turkey again, it's a country of criminals and scams.

 

[JustAnotherNomad]

What is the benefit?
So say you have a couple of millions in undeclared crypto, gold or cash that you want to get into the banking system.
You go there, open a bank account, deposit your millions, pay 3% tax... and then what? I guess you can't even transfer them to anywhere else than Turkey.
You transfer your money to a Turkish bank account - and then what?
If you transfer the money anywhere else, surely the next bank will ask for proof of funds?

 

[SCHLOSSFINANZ]

you don't understand that a tax confirmation from an non reocognized country is not accepted anywhere, its just expensive toilet paper you got for 3%...

 

[SCHLOSSFINANZ]

I know nothing lol. Yeah for sure go for your money laundering system then. Good luck!

 

[Sols]

It's not totally useless. From what I've seen (which isn't nearly as much as in other countries, of course), SWIFT in and out is generally quite easy, just sometimes a little slower because it has to pass through mainland Turkish banks.

Once your money is in there, you can keep it there, or move it out. Outward won't look particularly strange.

TRNC has its uses. Turkey has its uses. Dealing in absolutes will make you miss out on opportunities.

What is the benefit?
So say you have a couple of millions in undeclared crypto, gold or cash that you want to get into the banking system.
You go there, open a bank account, deposit your millions, pay 3% tax... and then what? I guess you can't even transfer them to anywhere else than Turkey.
You transfer your money to a Turkish bank account - and then what?
If you transfer the money anywhere else, surely the next bank will ask for proof of funds?

It depends on what your next step is. If you plan to move the money on into the west, you will run into the usual issues. But if you gradually shift the funds out into the east and global south, it'll probably be easier than if you try to cash out crypto there.

 

[Shadow Atlas]

Having spent two months in the TRNC last year, I completely agree with @Sols.

Northern Cyprus has been used to get around CRS for the past few years. Its banks (HalkBank, TürkBankası, GarantiBank, and the "prestigious" Turkish BNP Paribas subsidiary, TNB) are owned by Turkish institutions, meaning you can also easily open a Turkish bank account through them.

Is it used by the "grey area"? Absolutely. It's probably also a solution for those who bought crypto years ago via P2P, are now sitting on millions, and need a way to cash out.

When I was there, the situation was this:
You couldn't open a bank account unless you were either a resident or had a TRNC company (usually a Freezone company).
Residency applications take months to process, require purchasing property, are valid for only one year, and must be renewed—mostly Russians and Germans used this route.
Setting up a Freezone company was another option. It's taxed at 0%, but setting one up takes about four months and costs a staggering £11,500 — of which £2,000 was for capital blocking (I'll explain why this matters shortly).
The positive side? You don't have to buy property, and you can cash everything out into Northern Cyprus and then into a Turkish corporate bank account.

The key question about the new law is this:
Does it allow foreigners to open bank accounts in Northern Cyprus without residency or setting up a Freezone company?

If it does, the advantages would be:

A) You bypass the bureaucracy and delays to move your money into Northern Cyprus, paying only a 3% fee.
B) You avoid the £2,000 "capital blocking" fee that lawyers charge (or rather, extort). To explain: the statutory capital to establish a Freezone company is €25,000, but since you couldn't open a TRNC bank account, lawyers would "lend" their own funds — and charge you £2,000 for it. With the new law, this expense would disappear, making the total setup cost closer to £10,000. However, accounting and Freeport operating costs still run around £750 per month... for a non-reconized jurisdiction. We're not talking about a Cook Islands Asset Protection Trust.

In short:

For smaller amounts or when time is critical, paying the 3% tax makes sense.

For larger sums, setting up a Freezone company is more cost-effective from a tax perspective.

Also, I spoke with the online banking manager at TürkBankası in Lefkoşa. He said that all international transfers above £10,000 must be done in person. I'm fairly certain that with a longer and more established relationship, this limit can be increased.
Secondly, they do not generally open accounts for non-residents—and this likely won’t change even after the new law passes. From my conversation, I got the impression that they expect a minimum of €100,000 to be considered a serious client.

Long story short:
Northern Cyprus knows exactly why people come — and capitalizes on it through their tax incentives and expensive company setups.

But OP is right: everything is doable on the island.