The Investment Rules for Property in Northern Cyprus Are Changing

On May 15, 2025, a major legal update was published in the Official Gazette. With this decision, the property ownership law in North Cyprus was fully revised. The Turkish Republic of Northern Cyprus (TRNC) completed a broad reform process to make buying property more secure and transparent. These legal updates for buying property in North Cyprus were made to protect the environment, boost the economy, and respond to social needs. Because of this, foreign buyers now face new conditions, and real estate acquisition regulations in TRNC are stricter. Procedures were also simplified to make the process more efficient.

The new property law for foreigners in North Cyprus removed the old 5000 square meters land limit. Instead, property size now depends on the type of real estate and how you plan to use it. This gives you more freedom, especially if you're looking at apartment projects. But foreigners can’t buy farmland anymore, and you’ll need a local partner to buy commercial property. A ₺ 500,000 deposit and a security check are also required before applying. This adds extra protection to the process.

Applications now go through an online system, and the timeline is limited to 45 working days. This helps you track your file and avoid delays. If the title deed transfer isn’t finished within a year, it will be canceled. This step was added to stop risky investments and better control the market under the North Cyprus property purchase rules.

Here are some key points from the updated real estate investment laws:

• The investment minimum for foreigners is now 10 million Euros, instead of 20 million.
• You can still own only one house on a plot of 1,338 m² or 3,300 m².
• All purchases by foreign people or companies need Cabinet approval.
• Title transfers must be done within one year after approval.
• If you're paying in installments, the final transfer must happen within one year of your last payment.
• Property taxes must be paid within 75 business days after getting permission (previously 60).

New Regulations on Real Estate Purchasing in the TRNC

If you're planning to buy property in Northern Cyprus, you now need to follow a new set of detailed rules. These changes are part of the updated property law in North Cyprus, which creates different limits based on the type of building and project. Under the current system, foreign ownership rights in TRNC allow you to buy up to three apartment units. However, if you're a citizen of Turkey, that number increases to six. When it comes to housing project laws, the rules are tighter. In planned communities or housing developments, foreigners can own up to two houses, while Turkish citizens can own up to three. These rules aim to protect the local market and reduce pressure caused by foreign property investment in North Cyprus.

The rules for land purchases also continue under the updated North Cyprus property law. If you're a foreigner, you can buy land up to 1,338 square meters and build only one house. When buying a detached house, Turkish citizens can buy up to 3,300 square meters acreage, but they also must follow the one-building rule. If anyone goes beyond these limits, they won’t receive full ownership. Instead, they may get a ten-year lease agreement under review. This helps control North Cyprus real estate activity and prevent large-scale speculative purchases.

Taxes and Procedures in Property Sales

The tax rates for foreigners have increased, with the stamp tax now at 1.2% and the property tax at 6.5%. These higher taxes raise your overall investment costs. Also, if you sell the property within two years, you must pay a 15% speculation tax. This tax is meant to discourage quick, profit-driven sales. For Turkish citizens, the tax rate is 6%, 8%, 9%, 9%, 9%, 9% respectively for each purchase. This affects both individual buyers and construction companies.

The sales process now requires you to apply online. After you get permission from the Cabinet, you have one year to complete the TRNC title deed transfer. To keep the process smooth, you must get security approval and open a deposit account. If the property is larger than 1,000 square meters, you also need an environmental impact report. You must fulfill all tax obligations when buying real estate within 75 working days after approval. If you don’t, serious penalties will follow. Your transfer could be stopped, your deposit seized by the government, your contract canceled, and the property might even lose utility services like electricity or municipal support. Additionally, ongoing projects must finish their permits and planning approvals within two years. If they don’t, the government can cancel their permission.

New Rules for Investors and Contractors

If you want to run a business in Northern Cyprus as a foreign investor, you must have at least 30% local ownership in your company. For large investments, there are benefits like tax exemptions and government-supported land grants. If you are a citizen of Turkey setting up a company, at least 51% of the ownership must belong to Northern Cyprus partners. To carry out construction and sales activities, you need a current license from the Contractors’ Union and special permission from the Cabinet.

These changes affect North Cyprus property investment by adding more steps for contractors and investors. For example, you must include a complete environmental impact report with your project documents. Applications are only accepted online, and if you don’t finish the title transfer on time, your approval can be canceled. Foreign buyers must obtain their construction permit requirements and zoning permits within two years. If they don’t, their projects can be stopped.

There is also a clear transition plan for projects signed before May 15, 2025, but not yet registered. You have one year to comply with the new rules. Title registrations must be completed within 36 months. If you don’t explain delays by the 34th month, you will face penalties. You must finish permits and planning approvals within two years. If you exceed limits, a 1% tax applies, and if you don’t declare it, a 3% penalty tax is charged. Informal power-of-attorney contracts are no longer valid.

RELATED PAGES

Best Places to Live in North Cyprus for Expats

A Foreigner’s Guide to Living in North Cyprus: Cities & Tips

Where to Buy Property in North Cyprus?

Property Ownership and Title Deed in Northern Cyprus