Banks and Currency in North Cyprus
If you decide to buy a property in Northern Cyprus it is better to open a bank account as well.
The currency is the Turkish Lira, at the time of writing £1 was equivalent to 10TL Most shops will also accept Pounds and Euros.
Cyprus was once a British Colony and because of this All property transactions are calculated in Pounds sterling. This makes life easier.
Banks can be divided into 3 categories.
Those that only have branches in North Cyprus, those that have branches in both North Cyprus and Turkey and those that have offices in North Cyprus and UK. To open an account at any of these banks you will need your passport and evidence of where you live. Either in Cyprus or the UK, i.e. electricity bill, council tax etc.
Banks with branches only in North Cyprus.
The most well know of these is Credit West, they have English speakers in all their branches and are very helpful. This is a very popular local Bank.
Banks with Branches in North Cyprus and Turkey
The best know of these is Garanti Bank.
Banks with branches in North Cyprus and the UK
There is one; Turk Bankasi.
Interest Rates in North Cyprus
Interest rates on sterling deposit accounts are similar to those in the UK, so they are low. However, interest rates on Turkish Lira accounts can be up to 10% per annum. So, it is possible if you have a large enough amount in your Turkish Lira account to just live on the interest. However, it is very important to remember that if you need eventually to change your money back to sterling that you may lose depending on the difference between the exchange rate when you bought your Turkish Lira and when you sold them.
North Cyprus Cost of Living
Compared with most countries in Western Europe, the cost of living in Northern Cyprus is low. Locally produced products or those produced in Turkey are generally cheaper than their European counterparts. However, goods imported from Europe tend to tend to be higher in price than their country of origin. Very cheap are cigarettes and alcohol.
North Cyprus Currency / Exchange Rates
The legal tender of Northern Cyprus is the Turkish Lira. The exchange rates change daily. Most shops will also be quite happy to accept major foreign currencies. It is more expensive to convert money to Turkish Lira in your own country. Best option is to use a debit card at an ATM in North Cyprus to get Turkish Lira, this way you get a much better exchange rate.