Simple Guide for Foreigners Buying Property in Northern Cyprus

On May 21, 2024, new rules were made for foreigners buying property in Northern Cyprus. These changes affect both new and existing property owners who don't have title deeds yet.

Who is a "Foreigner"?

• A "Foreigner" is anyone who is not a citizen of Northern Cyprus.
• This includes foreign companies, no matter how much of the company is owned by foreigners.

Trustee Agreements

• Foreigners often made agreements with Northern Cyprus citizens to buy property.
• New rules say these agreements are invalid if they involve more than one property or don't meet specific requirements.
• All agreements made before May 21, 2024, must be registered within 75 working days, or they will be void.

Limits on Buying Property

• Foreigners cannot buy agricultural or forest land.
• They can't buy property in areas important for national security or public order.
• Foreigners can't buy more than 7% of a district's area or more than 3% of Northern Cyprus's total area.
• The government can limit certain foreigners from buying property for security reasons.

Buying Property: What Foreigners Can Buy

• Foreigners can buy one property if they get permission:
  • Land up to 1,338m² for one house.
  • One apartment with specific deed requirements.
  • Up to three apartments if they're from countries recognizing Northern Cyprus (like Turkey).
  • A detached house with land up to 3,300m².
• Foreigners can't buy shared title deeds unless it's a detached house or apartment, and only three foreigners can share a title deed.
• In any development, 20% must be sold to Northern Cyprus citizens or citizens of countries recognizing Northern Cyprus.

Permission to Buy

• Foreigners and foreign companies need permission to buy property.
• For application amongst other things property details and a police clearance certificate is needed.
• Application fees vary based on whether it's a first or second application for the same property.

PTP Application Fees:

• First application – half of the gross minimum salary wage (i.e. as of 21.05.24 -17,035TRY);
• Second application (same property) – double of the application fee (i.e. one gross minimum salary wage).

Transferring the Title Deed

• After getting permission, the title deed transfer must happen within 6 months.
• If the transfer isn’t completed in time, the permission becomes invalid.
• Taxes must be paid within 60 days of getting permission, or it becomes invalid.
• If permission becomes invalid, one reapplication is allowed with a double fee.

Penalties for Breaking the Rules

• Breaking these rules can result in fines of 500 times the minimum salary, especially if:
  • Agricultural or forest land is sold to foreigners.
  • More than one property is bought or it exceeds size limits.
  • Sales contracts are made without proper deeds.

Existing Contracts

• Contracts made before May 21, 2024, must be registered within 6 months.
• If the title deed transfer isn’t completed in time, there are penalties.
• Trustee Agreements made before May 21, 2024, must be registered within 75 working days, or they become void.

For More Help

• Contact us for legal consultation if you need more help or clarification.

• Email: [email protected]
• Tel: +90 392 2288001
• Fax: +90 392 228009
• Web: www.sertbaylaw.com

NB: This guide is not legal advice. For detailed information and guidance regarding your specific situation, it is recommended to seek professional legal consultation.

Sertbay Law Firm © August 2024