On 15 May 2025, the Council of Ministers of the Turkish Republic of Northern Cyprus (TRNC) passed several important amendments to the existing laws and regulation regarding the acquisition, ownership, and transfer of immovable property. The key changes are as follows:

Amendments to the Regulation with regard to the District Lands Office (Fees & Charges)

Transfer Fees:

For TRNC Citizens:

The standard transfer fee remains at 6%.

TRNC citizens retain the right to use a one-time option to pay a reduced fee of 3% instead of 6%.

For Citizens of Countries that Recognise the TRNC (e.g., Turkey):
(Up to 6 immovable properties):

1. First immovable property – 6%
2. Second immovable property – 8%
3. Third immovable property – 9%
4. If the first, second, and third properties are apartments, then for the fourth, fifth, and sixth apartment units, the fee will be 9%.

For All Other Foreign Nationals:

The transfer fee is now reduced from 12% to 9%.

Fee Payment Structure Based on Sale Contract Registration and Title Transfer:

When title deed transfer occurs directly or if the contract of sale is registered without paying any fees, the above rates apply. However, if the contract of sale is registered first and the title deed transfer takes place later, the fee is divided as follows:

For Citizens of the Republic of Turkey:

1st property: 3% upon contract registration + 3% upon title transfer

2nd property: 2% upon registration + 6% upon transfer

3rd–6th properties: 3% upon registration + 6% upon transfer

For Foreign Nationals (excluding Turkish citizens):

1st property: 6% upon registration + 3% upon transfer

2nd property: 3% upon registration + 6% upon transfer

3rd property: 3% upon registration + 6% upon transfer

Decree with Force of Law on the Acquisition of Immovable Property by Foreigners

NEW DEFINITIONS:

Right to Use for Leasing Purposes: Refers to the right to use an immovable property for a specific period for leasing only. It does not grant ownership. An “Immovable Property Right to Use Certificate” will be issued by the District Lands Office.

Foreign Legal Entity: A legal entity is considered “foreign” if:

1. It has shares or capital held by foreign persons, regardless of the shareholding.
2. Its majority of directors are foreigners.
3. Non-governmental organisations, associations, foundations, clubs, or similar entities with foreign members or majority voting rights are held by foreigners or if persons vote on behalf of foreigners.

Investment: Defined as an investment of at least €10,000,000 in tourism, education, health, industry, technology, R&D, or agriculture. Buying and selling does not qualify as investment.

General Acquisition Rules:

1. If the immovable property to be purchased is land and there is a building permit, the surface area of such land being purchased cannot exceed 1338m2 and only one house can be built within this area. OR
2. If immovable property being purchased is an apartment, foreigners are allowed to buy up to 3 apartments. Citizens of Republic of Turkey can buy up to 6 apartments. OR
3. If a detached house is being purchased – the land cannot exceed 3300m2 and the second house/and or apartment cannot be built on it. However, if a detached house is situated on mass housing or site developments, foreigners may purchase 2 two-storey detached villas and Turkish Citizen may acquire 3 two-storey detached villas on such sites/mass housing.

 Transfer of the Title deed & Payment of Taxes

1. Title deed transfer must take place within 1 year from the date of publication of the Council of Ministers’ permission to purchase in the Official Gazette.
2. If at the time the permission to purchase is being granted, the purchaser still need to make the payments towards the sale price as per Contract of Sale signed with the vendor, the 1-year period to transfer the title deed starts after the final payment. If the vendor fails to transfer the deed despite full payment being made, the purchaser is entitled to compensation.

However, the vendor and the purchaser must pay all the taxes within 75 business days from the date of publication of the Council of Ministers’ permission to purchase in the Official Gazette. Failure to do so results in the automatic cancellation of the Council of Ministers’ decision.

If the taxes are not paid, no permanent or temporary electricity or water connection will be connected. The rules of this paragraph do not apply to the construction site electricity connection and temporary water connection required during the construction of the building. (Construction-site connections are excluded.)

Amendments to Section 10 of Law 39/2024

The original restriction under Law 39/2024, which prohibited foreigners of the same nationality from acquiring more than half of the apartments on a single plot, has now been abolished. However, only 80% of the apartments situated on a same development can be purchased by the foreigners.

Long -Terms Lease:

Long-term leases remain subject to the rules in this Decree and Amendment Law 39/2024. However, foreigners may transfer the title deed or lease to their first- and second-degree relatives with Ministry approval, without being subject to Article 4 acquisition limits.

 

Transitional Provisions for Properties Acquired Before 21 May 2024:

1. Contract Registration Deadline: Within 6 months from 15 May 2025.
2. Permission to Purchase Application Deadline: Within 6 months from 15 May 2025.
3. Permission to purchase granted before the new law: Transfer must be completed within 6 months from 15 May 2025.
4. Registration of Trustee Agreements: Within 6 months from 15 May 2025.
5. Notification to Ministry for Exceeding Limits: Within 6 months from 15 May 2025 to pay 1% fee. After this period, the fee increases to 3%.

Foreigners who notify the Ministry of additional properties may be granted a 10-year Usage Certificate (for residential properties only), upon registration of their contract of sale at the District Lands Office and payment of the  title deed transfer fee.

This certificate cannot be cancelled unless the property is sold by the user or the user requests cancellation.

However, if the property lies within the scope of Holidays Homes, an indefinite usage certificate may be granted. The indefinite usage certificate can only be issues if the sale price has been paid in full and whose user apply to the Ministry of Tourism for necessary licensing and permits.

In general, the Certificate of Usage will be granted after the security investigation to determine whether the property falls within areas subject to general restrictions for foreign ownership of immovable property.

If a purchaser receives a negative security clearance, but  sells and transfers the immovable property within the legally allowed period, the taxes and duties previously paid by the purchaser shall be considered as having been paid on the date of transfer. These amounts shall substitute the taxes and duties that would have otherwise been payable at the time of the transfer.

The purchasers who do not apply for a Certificate of Usage but have notified the Ministry of Interior about their contracts of sale concluded before 21 May 2024 that exceed the acquisition rights, must transfer the property to another person within 24 months from the expiry of the 6-month notification period mentioned above.

Application for Permission to Purchase Based on Building Permit or Planning Approval

Where a Kat İrtifakı (Condominium Easement) Title Deed is not available, foreign purchasers may apply for Permission to Purchase within two (2) years from 15 May 2025, provided they can prove that the property in question has either a valid Building Permit or Planning Approval.

Transfer of the Title Deeds of the Properties completed before 15-May 2025 purchases:

This Decree also establishes a timeline and process for transferring ownership of immovable property that was purchased through a sales contract before 15.05.2025. Specifically, it requires that in cases where the construction of the property has been completed and the property has been delivered to the purchaser, the transfer of the title deed must be completed within 36 months from 15.05.2025. Along with the transfer, all applicable taxes and title deed transfer fees must be paid on the same date.

The law also accounts for situations in which the transfer cannot be completed within the  said36 month period due to a valid or reasonable excuse. In such cases, the person concerned must submit a written explanation of the excuse to the relevant District Lands Office within 34 months from 15.05.2025. Upon receiving the explanation, the District Lands Office is obliged to assess the validity of the excuse and issue a written decision within 15 days. If the excuse is accepted, the property transfer can then be completed after the 36-month deadline, provided that all taxes and fees are duly paid.

Individual title deeds are not ready:

Furthermore, the Decree provides clarification on scenarios where obtaining a separate title deed (of the property acquired before 15.05.2025) is not possible due to technical issues. These may arise either from complications caused by one or more shareholders of the property or from issues inherent to the project itself.  In such cases, where it is not possible to establish a condominium regime or a condominium easement under the existing Condominium and Condominium Allotment Law, the foreigners may transfer their shares to others within the approval of the director of the District Lands Office provided that they have applied to District Lands Office within 24 months from 15.05.2025