New Law on Real Estate Acquisition in Northern Cyprus
The rules for foreigners acquiring real estate in Northern Cyprus have been updated. The new property acquisition law, known as the ‘Immovable Property Acquisition and Long-Term Leasing (Foreigners) (Amendment) Bill,’ has been approved by the TRNC Republican Assembly. The law introduces a 3% quota on a country basis and a 7% quota on a district basis based on the TRNC’s surface area for property sales to foreigners. Additionally, the ‘right to buy a house’ for citizens of the Republic of Turkey has been increased from one to three.
What is in the new law?
Foreign individuals or legal entities are not allowed to purchase immovable property in agricultural lands and forest lands. Additionally, no more than 7% of the surface area of the districts and no more than 3% of the country’s surface area can be sold to foreigners.
The Council of Ministers has the authority to restrict the purchase or long-term lease of immovable property by specific foreigners on security grounds. Foreigners who wish to buy immovable property or enter into long-term leases are required to obtain authorization from the Council of Ministers, subject to a positive security investigation.
Foreigners are permitted to purchase one immovable property with the approval of the Council of Ministers. If the property to be purchased is land, its surface area cannot exceed 1338 square meters, and only one residence can be built within this area. If it is an apartment, only one unit can be purchased.
Turkish citizens can buy up to 3 properties in North Cyprus
Residents of countries that recognize the Turkish Republic of Northern Cyprus (TRNC) are allowed to purchase up to three houses.
If the property being purchased is a standalone house, the land area cannot exceed 3300 square meters.
The transfer of properties sold to foreign buyers must be completed within six months. Failure to do so will result in the cancellation of the Council of Ministers’ decision allowing the property purchase, rendering it invalid.
Individuals who acquire additional property through a contract must apply to obtain the title deed for one property within six months and sell the other property within 24 months.
Foreign individuals or legal entities are not permitted to buy property using share certificates.
In areas designated for development, at least 20% of housing projects can be sold to citizens of the Turkish Republic of Northern Cyprus and natural persons who are nationals of countries recognizing the TRNC and granting the same rights to TRNC citizens.
A maximum of 80,280 square meters of land can be purchased for investment purposes.
Investment purchase permits require a minimum investment of 20 million euros. However, this requirement does not apply to build-and-sell housing projects, tourism, education, health, industry, agriculture, technology, or research and development (R&D) applications.
Resource: https://www.idealandpartners.com/new-law-on-the-acquisition-of-real-estate-in-northern-cyprus/
