On May 21, 2024, the Legislative Assembly of the Turkish Republic of Northern Cyprus (TRNC) enacted significant amendments to Law No. 52/2008, governing the acquisition of real estate and long-term leases by foreign individuals and legal entities. These changes aim to enhance control over real estate transactions, ensure market transparency, and protect the interests of local residents.
New Definitions of "Foreigner" and "Foreign Legal Entity" in Northern Cyprus Real Estate Laws (2024)
Under the updated legislation, the term "foreigner" now encompasses all individuals who are not citizens of the TRNC, including foreign companies and trustees acting on behalf of foreign persons. A "foreign legal entity" is defined as a company registered in the TRNC but having at least one foreign shareholder or a majority of foreign directors. Previously, a company was considered local if 51% of its shares were owned by TRNC citizens; now, all shareholders and the majority of directors must be TRNC citizens to attain local legal entity status.
Key Restrictions for Foreign Buyers in Northern Cyprus Real Estate Market in 2024
The amendments introduce several stringent restrictions for foreign individuals and legal entities regarding the purchase or long-term lease of real estate in Northern Cyprus:
Prohibition on Purchasing Agricultural and Forest Lands: This measure aims to preserve natural resources and prevent their uncontrolled exploitation.
Territorial Distribution Limits: Foreigners are prohibited from owning more than 7% of the area of a single district and more than 3% of the total area of Northern Cyprus. This prevents excessive concentration of foreign-owned property in specific regions.
Ban on Acquiring Property in "Undesirable" Zones: The Council of Ministers can designate such zones based on national security, public interest, or order considerations. Any transactions contravening these restrictions will be deemed invalid.
New Conditions for Property Acquisition by Foreigners in Northern Cyprus in 2024
Foreign citizens and companies are permitted to acquire only one property, subject to the following conditions and after obtaining the appropriate permit from the TRNC Council of Ministers:
Land Plot: The area must not exceed 1,338 m², and only one residential house is permitted to be constructed on it.
Apartment: Purchase of only one apartment is allowed. The seller must provide a floor easement document (Kat İrtifakı) or a separate title deed (Kat Mülkiyeti).
Detached House: The land area under the house must not exceed 3,300 m², and construction of additional residential units on this plot is prohibited.
An exception is made for citizens of countries recognising the TRNC's independence (currently only Turkey); they are permitted to acquire up to three apartments.
Step-by-Step Procedure for Obtaining Property Purchase Permission in Northern Cyprus (2024)
To acquire property, foreign individuals must:
Submit an Online Application: Include necessary documents such as the plot plan, title deed, and a criminal record certificate from the country of citizenship.
Pay the Application Fee: The fee is half of the gross minimum wage (as of February 14, 2025 — 21,734.50 Turkish lira). For a repeated application for the same property, the fee doubles.
Await Security Clearance: In case of refusal, a reapplication is possible only after paying double the fee.
Deadlines and Obligations After Obtaining Property Purchase Permission in Northern Cyprus
After receiving purchase permission, the following must be completed:
Transfer of Ownership: Finalize the transfer within six months. If the purchase is in installments, the countdown starts from the date of the last payment specified in the sales contract.
Payment of Taxes and Fees: Settle all dues (such as title transfer fee, VAT, capital gains tax) within 60 days from the publication of the permit in the Official Gazette. Failure to comply will result in permit cancellation.
Penalties for Non-Compliance: What Foreign Buyers Should Know About Northern Cyprus 2024 Real Estate Laws
Violations of the new regulations entail serious consequences:
Fines: Up to 500 times the minimum wage for selling prohibited land types or exceeding the set limits on the number and area of properties acquired.
Nullification of Transactions: Deals made in violation of the established restrictions may lead to the loss of rights to the acquired property.
Transitional Provisions for Previously Concluded Real Estate Deals in Northern Cyprus (2024)
For transactions made before May 21, 2024, specific conditions apply:
Registration of Sales Contracts: Must be completed in the Land Registry within six months from the law's enactment. Non-compliance results in fines and contract invalidation.
Obtaining Purchase Permission: For previously concluded but incomplete deals, permission must be secured within six months. Otherwise, both buyer and seller may face fines.
Conclusion
The new legislative changes in Northern Cyprus significantly impact the process of purchasing real estate by foreign citizens and companies. Potential buyers must now consider strict restrictions, increased registration requirements, and possible financial penalties for non-compliance. These measures aim to protect the local real estate market, prevent speculation, and control the distribution of property among foreign investors.
For those who have already purchased property or are planning to do so, it is essential to seek professional legal and real estate consultancy to avoid legal issues and financial losses. Despite the new restrictions, Northern Cyprus remains an attractive destination for real estate investment due to its favorable climate, low taxes, and steady property price growth. However, buyers must now exercise greater caution and carefully review all documentation before finalizing any transactions.
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