by Northern Cyprus Property 
Understanding North Cyprus Property Law: Key Changes for Buyers
On 21st May 2024, the Government of the Turkish Republic of Northern Cyprus (TRNC) introduced new legislation that significantly impacts property ownership in North Cyprus, especially for foreign buyers. These changes affect both individuals who have already purchased property and those planning to buy in the future. This article will explain the key provisions of the new law, focusing on North Cyprus property law and how it impacts property buyers.
1. Changes for Existing Property Owners
If you have already bought property in North Cyprus but haven’t completed certain procedures, the new law requires you to take action. Here’s what you need to know:
A. Registering Your Contract of Sale
Foreign buyers who signed a Contract of Sale before the law was passed but haven’t yet registered the contract with the Land Registry must do so within six months of 21st May 2024. If you fail to register within this time, the seller could face a fine of up to 500 times the minimum wage.
- If you bought your property through a reputable agent (like us) after May 2008, your contract was likely registered already, and you don’t need to do anything.
- If you bought before May 2008 and never registered your contract, you must register it now to avoid any penalties.
B. Applying for Permission to Purchase
Foreign buyers must also apply for permission to purchase from the Ministry of the Interior. If you haven’t applied yet, you must do so within six months of the new law. Failing to apply on time can result in a fine.
- If you’re unsure whether you’ve applied for this permission, please contact us to ensure your application is submitted before the deadline.
C. Finalizing Property Ownership (Transfer of Title)
Foreign buyers who have applied for permission and are waiting for approval must complete the transfer of ownership within six months of receiving permission. If there are outstanding payments or issues with property documents, the six-month period begins only after the final payment is made. Failure to complete the transfer on time may cause the permission to purchase to become void, and a fine could be imposed.
2. What If You Have More Than One Property?
If you own more properties than the law allows, you must notify the Ministry within six months and pay a fee. If you don’t notify them on time, the fee increases. You then have 24 months to transfer any excess properties out of your name. Failure to comply will make your contracts void, and fines could be charged.
3. Changes for New Property Buyers in North Cyprus
The new North Cyprus property law also affects those who are considering purchasing property in the future. Here are the key changes you need to be aware of:
A. Restrictions on Property Size and Type
Foreign buyers can purchase only certain types of property under the new law:
- Vacant Land: One plot, up to 1338m².
- Apartment: One apartment (or up to three apartments for Turkish Republic of Turkey citizens).
- House: One house with a plot of up to 3300m².
Foreigners are not allowed to purchase agricultural or forestry land.
B. Shared Title Deeds
Non-citizens cannot buy property with shared title deeds anymore. If you are considering purchasing a property, it must have an individual title deed or a storey easement title deed (known as “Kat İrtifak Koçanı” in Turkish). Any contracts for properties with shared deeds will be void.
C. Sales in New Developments
For new developments, at least 20% of the units must be sold to TRNC nationals or Republic of Turkey citizens. Moreover, no more than half of the units can be sold to first-degree relatives or foreign buyers of the same nationality.
D. Land Sale Limitations
No more than 7% of the land in any area, or 3% of the land in the entire country, can be sold to foreign buyers. This means there are limitations on the amount of land available for purchase by non-citizens.
E. National Security Concerns
The Ministry of the Interior can issue regulations restricting property purchases in specific areas for national security reasons. These restrictions could prevent foreign buyers from purchasing property in certain regions.
F. Companies Owned by Foreigners
Previously, local companies (those majority-owned by TRNC citizens) were allowed to purchase property freely. Under the new law, companies with foreign ownership or foreign-controlled voting rights will be considered foreign companies. These companies will be subject to the same property restrictions as individual foreign buyers.
G. Registration of Contracts of Sale
Any new property purchase contracts must be registered at the Land Registry within 75 days. If you do not complete this step, the contract will be considered void.
4. Trust Agreements and Their Impact
Under the new law, non-citizens are no longer allowed to use trust agreements to bypass property ownership restrictions. If you’ve entered into a trust agreement before the law was passed, you must register the agreement with the Land Registry within 75 days. If you don’t do so, the agreement will become void, and both the buyer and seller may face a fine.
5. Consequences of Non-Compliance
If you do not comply with the new laws, you could face serious penalties. This includes:
- Fines of up to 500 times the gross monthly minimum wage for not registering your contract or completing the transfer of title.
- Your property transaction could become void if not registered within the required timeframe.
- Failure to comply with property ownership limits or using trust agreements to bypass laws can result in criminal penalties.
Conclusion: Stay Informed and Act Quickly
The new North Cyprus property law brings significant changes to property purchases in the region, particularly for foreign buyers. Whether you’ve already bought property or are planning to purchase in the future, it is crucial to understand these new rules to avoid legal issues and penalties.
If you need help with registering your contract, applying for permission to purchase, or completing your transfer of title, don’t hesitate to contact us. We’re here to guide you through the process and ensure you comply with all aspects of North Cyprus property law.
