New Changes to North Cyprus Property Law: What You Need to Know

On May 21, 2024, the TRNC Legislative Assembly passed important changes to property law in North Cyprus. These changes affect foreigners and foreign companies who want to buy property, as well as people who already own property but haven’t completed all the necessary paperwork. This article explains the key changes and how they affect property buyers.

1. Changes for Existing Property Owners

If you’ve already bought property in North Cyprus but haven’t finished some required steps, these new rules may apply to you. Here’s what you need to know:

A. Register Your Sale Contract

If you signed a Contract of Sale before May 21, 2024, but didn’t register it with the Land Registry, you must do so within six months. If you don’t register your contract on time, the seller could face a fine of 500 times the minimum wage.

• If you bought your property after May 2008 through a trusted agent, your contract may already be registered.
• If you bought before May 2008 and didn’t register, you need to register it now to avoid fines.

B. Apply for Permission to Buy

Foreign buyers must apply for permission to buy property from the Ministry of the Interior. If you haven’t done this, you must apply within six months of the new law. Failure to apply on time could result in a fine.

C. Finalize Ownership (Transfer of Title)

Once you get permission to buy, you have six months to complete the transfer of property ownership. If you are paying in installments, the six-month period starts after you make the final payment. If you don’t complete the transfer on time, the permission may become void, and you could face a fine.

2. What If You Own More Than One Property?

If you own more properties than the law allows, you must tell the Ministry within six months and pay a fee. If you don’t do this on time, the fee will increase. You will then have 24 months to transfer any extra properties out of your name. Failure to follow the rules could make your contracts void and result in fines.

3. Changes for Future Property Buyers

The new law also affects anyone planning to buy property in North Cyprus. Here are the main changes:

A. Restrictions on Property Size and Type

Foreign buyers can only buy certain types of property:

• Land: One plot, up to 1338m².
• Apartment: One apartment (or up to three apartments for Turkish citizens).
• House: One house with a plot of up to 3300m².

Foreigners cannot buy agricultural or forest land.

B. Shared Title Deeds

Foreigners cannot buy property with a shared title deed anymore. If you want to buy a property, it must have an individual title deed or a storey easement title deed (“Kat İrtifak” in Turkish). Contracts for properties with shared deeds will not be valid.

C. Sales in New Developments

In new property developments, at least 20% of the units must be sold to TRNC citizens or Turkish citizens. Also, no more than half of the units can be sold to foreigners of the same nationality or first-degree relatives.

D. Land Sale Limits

Foreign buyers can’t buy more than 7% of the land in any district or 3% of the land in the entire country.

E. National Security Concerns

The Ministry of the Interior may restrict property purchases in certain areas for national security reasons. Foreign buyers may not be allowed to buy property in these areas.

F. Foreign-Owned Companies

In the past, local companies (those with at least 51% ownership by TRNC citizens) could buy property. Now, if a company is foreign-owned, it will be treated the same as an individual foreign buyer, with the same property restrictions.

G. Registering New Contracts

All new property contracts must be registered at the Land Registry within 75 days. If not registered, the contract will be considered invalid.

4. Trust Agreements and Their Impact

The new law says Trustee Agreements (used by foreigners to buy property through TRNC citizens) are no longer allowed. If you have a trust agreement that was made before May 21, 2024, you must register it with the District Lands Office within 75 days. If not, the agreement will be invalid.

5. Penalties and Fines

If you don’t follow the rules, there are serious penalties. These can include:

• Fines of up to 500 times the minimum wage for not registering your contract or completing the title transfer.
• Your property transaction could become void if you don’t follow the rules.
• Violating the property limits or using a Trustee Agreement improperly can lead to criminal penalties.

Transitional Rules for Existing Property Transactions

For those who signed a Contract of Sale before May 21, 2024, the following rules apply:

1. Register Your Contract: If you signed a contract before May 21, 2024, you must register it with the District Lands Office and apply for permission to buy within six months.
2. Transfer of Title: If you were already granted permission to buy but haven’t transferred the title yet, you must complete it within six months from May 21, 2024.
3. Pay Taxes and Fees: If the property doesn’t have final approval or separate title deeds, taxes must be paid within 60 working days after receiving permission to buy.
4. Register Trustee Agreements: Any Trustee Agreements made before May 21, 2024, must be registered within 75 days. If not, they will be invalid.

The new property laws in North Cyprus bring important changes, especially for foreigners and foreign companies. It’s crucial to understand these new rules to avoid fines or legal issues. Whether you’ve already bought property or are planning to buy, make sure you follow the required steps and deadlines.

If you need help with property registration, applying for permission to buy, or completing your property transfer, contact us. We’re here to assist you!