North Cyprus Revises Laws on Foreign Property Purchases

The authorities of Northern Cyprus have approved major amendments to the legislation governing property acquisition by foreign nationals. The new law came into force on May 21, 2024, aiming to tighten control over transactions, reduce market speculation, and protect the interests of the local population.

Under the new rules, foreign nationals are allowed to purchase only one property — an apartment, house, or plot of land up to 1,338 m². An exception is made for Turkish citizens, who may purchase up to three properties, although their total area is also limited. Ownership is now granted only after receiving official approval from the TRNC Council of Ministers. A fee equal to half the minimum wage must be paid when submitting the first application, and the full amount for the second. A third application by the same person is not permitted.

The law also clearly defines who is considered a foreigner. This category includes not only individuals who are not TRNC citizens but also companies involving foreigners, as well as any trust agreements where the beneficiary is a foreigner. All trusts signed before May 21, 2024, must be registered with the land registry within 75 working days. Otherwise, such agreements will be deemed invalid.

In addition to quantity restrictions, new rules have been introduced regarding residential complexes. Foreigners can no longer own more than 80% of apartments or houses in a single project. At least 20% of units must be registered to TRNC citizens or to citizens of countries that recognize the TRNC. The purchase of agricultural and forest land, as well as strategically significant areas, is also prohibited.

Special attention is given to the timeline for title transfer. The title must be transferred no later than six months after obtaining the permit or making the final payment. Taxes and fees, including stamp duty and VAT, must be paid within 60 days, or within 75 working days in the case of installments.

The tax burden for foreigners is 9% of the property value. For Turkish citizens, the rate varies: 6% for the first purchase, 8% for the second, and 9% for all subsequent ones.

Severe penalties are imposed for violating the new rules. Unregistered transactions, violations of limits, or fraudulent schemes may result in fines of up to 500 minimum wages or restriction to rental certificates valid for up to 10 years.

There are also separate conditions for foreign investors wishing to carry out large-scale projects in tourism, healthcare, education, or technology. Such companies must deposit at least 20 million euros into a TRNC bank account and maintain the funds for several years. If the conditions are violated, the permit may be revoked, and the right to sell real estate frozen for five years.

Thus, the TRNC authorities aim to regulate the real estate market, curb uncontrolled land purchases, and strengthen economic sovereignty. The new law is already in force and applies to all transactions made after May 21, 2024.