New Real Estate / Property Regulations in North Cyprus 2024

If you bought a house or want to buy one, this information is crucial for you. This week, the North Cyprus government introduced new rules for real estate and foreign buyers. The construction industry is particularly shocked as these rules affect them the most.

Background and Concerns
For weeks, we have heard rumors about these changes. Our real estate agents’ union and some property lawyers tried to meet with the government to make the rules fairer and more logical. Unfortunately, the government did not listen and made the law very difficult to follow and complicated.

Why These New Rules?
The main reason for this new law is the significant increase in property sales to foreigners. In the last two years, over 20,000 houses were sold to foreigners, including Europeans, Russians, and Iranians. This number is substantial for a country with only half a million people.

Local Impact
In some towns, local people, including long-term expats, feel like a minority. They blame rising property and food prices on new residents and worry their children won’t be able to buy homes in the future. If you visit Iskele and Tatlisu, you’ll see more Persian and Russian billboards than English or Turkish, highlighting these concerns.

Comparative Property Investor Statistics
– North Cyprus (400,000 population): 8,000 foreign buyers last year.
– South Cyprus (1 million population): 6,900 sales last year.
– Turkey (90 million population): 35,000 foreign sales last year.

The rising number of foreign buyers has doubled property prices in the last three years, particularly in areas like Iskele and Tatlisu, where you might feel like you’re in Iran or Russia due to the lack of locals.

New Regulations Summary

1. Registration Requirements
-Multiple Properties: If you bought more than one property last year and did not register them within six months, contact your lawyer to get them registered. You must sell them within 24 months as only one property per person is allowed.
-Purchase Permits: Register the property in your name within six months, or it will be canceled.
– Trustee Purchases: Register the property at the land registry within 75 days.

2. Requirements for New Buyers
– Title Deeds: All properties must have full or semi-title deeds. Contracts without title deeds will not be accepted.
– Shared Title Deeds: No shared title deed properties are allowed to be sold, even to locals.

3. Penalties
– Non-compliance may result in a penalty of up to 500,000 euros.

4. Temporary Concessions
– Contract sales with planning permissions are allowed for up to one year under pressure from builders.

5. Limits on Foreign Buyers
– Foreign sales cannot exceed 7% of the state’s land or 3% in cities.
– Any residential complex cannot have more than 80% foreign buyers, with no more than 51% from one nation.

Future Outlook
Buying properties in North Cyprus will become more challenging. New property prices will rise as builders may need two years to complete necessary documents and developments. However, in some areas, property prices may drop as multiple-unit buyers will have to sell due to the new law.

Conclusion
To find out more, watch my previous videos or subscribe to my email list. A big shout-out to my clients for trusting us; your contracts are registered, so there is nothing to worry about. For those who bought against this law, your lawyers are working on a solution. No need to panic; 20,000 buyers are involved in this 4 billion euro case. The estate agent’s association and bar association are preparing to challenge this law in high court for a fairer and more logical revision.

This is a summary of the new regulations. I will send the full translation in English and German on Tuesday if you provide your email below.

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