Property  

NEW PROPERTY LAW Last Updated 28 May 2026

There was a change in property purchase legislation that came into force on 21st May 2024. The main concern is that this law is retrospective and covers a number of our members who are already going through the purchasing process or having difficulties obtaining the relevant documents. This law therefore may be detrimental to them financially.

We are aware that although the legislation is in place that the working practices of the law are changing almost on a daily basis. We have also taken advice from our legal representative.

We are aware that a legal challenge has been lodged with the Constitutional Court and we await the outcome.

Our Chairman, Deputy Chairman and Government Liaison representative, are currently engaged in a number of legal meetings and will be considering the society's options on how we can help and support our members, but at the present time if any individual member needs to know what they should be doing, we are advising them to seek legal advice from their solicitor or other legal body.

The BRS cannot get involved in individual property issues as we are not resourced or financially able to deal with such diverse issues.  Like residency, every individual's circumstances are different.

2026– NEW RULES ON PURCHASING IMMOVABLE PROPERTY FOR FOREIGNERS (TRNC) with amendments

On 21st of May 2024, the TRNC Legislative Assembly passed significant amendments to the law on Acquisition of Immovable Property and Long-Term Lease (Aliens Law) No. 52/2008.

These changes have a notable impact on property transactions.

This article summarizes the amendments to help you understand how they affect both new and existing property owners who have not yet obtained title deeds in their names.

A NEW DEFINITION OF “FOREIGNER” AND “FOREIGN LEGAL ENTITY”

• Under the new amendments, a “Foreigner” is defined as an individual who is not a citizen of the TRNC and includes a foreign legal entity. The trustee of a foreigner is considered to be a foreigner for the purpose of this law.
• A “foreign legal entity” is a company registered in the TRNC with a foreign shareholder, regardless of the share percentage owned by foreigner(s). It also includes companies where the majority of directors are foreigners or persons acting on behalf of a foreign person or entity.
• Previously, a company was considered “local” if 51% of shares were owned by TRNC citizens. Now, to qualify as a local legal entity, all shareholders must be TRNC citizens, and the majority of directors must be TRNC citizens.

TRUSTEE AGREEMENT

It was common for foreigners and foreign legal entities to make Trustee Agreements with TRNC citizens in order to purchase immovable property.

According to the amendments, Trustee Agreements for the properties that exceed acquisition limits that do not meet the requirements stipulated in the Law No 52/2008 will be considered invalid.

All Trustee Agreements made before May 21, 2024, must be registered within 75 working days or they will become null and void. The current deadline is 11.11.2026 (please check the deadline with your lawyer)

RESTRICTION ON IMMOVABLE PROPERTY ACQUISITION

The Amendments introduced stricter limits for foreigners and foreign legal entities to buy or lease long-term immovable property in Northern Cyprus, according to which foreigners and foreign legal entities cannot buy:

• Agricultural land (“tarla”) and forest land.
• Immovable Property in areas deemed undesirable by the Council of Ministers in terms of national security, public interest, and public order (except through inheritance). Any registration of a Contract of Sale for the property that contradicts the above, will be deemed invalid.
• More than 7% (seven percent) of a district's surface area, and in total more than 3% surface area of Northern Cyprus.

The Council of Ministers may restrict the rights of a certain foreigner or foreign legal entity, or its directors, shareholders, or members of a foreign legal entity, to purchase or rent, due to their special status or due to national security or public safety concerns. Any registration made in the relevant District Lands Office that is contrary to the above rule will be deemed invalid.

REQUIREMENTS FOR ACQUIRING IMMOVABLE PROPERTY BY FOREIGNERS OR FOREIGN LEGAL ENTITIES IN NORTHERN CYPRUS

• Foreigners and foreign legal entities are entitled to purchase immovable properties under the following conditions and subject to obtaining permission to purchase from the Council of Ministers:
• If land is being purchased, such land must be in compliance with building regulations, not exceed 1,338m2, and only one residence can be built on it;
• If an Apartment is to be purchased, three (3) apartments are allowed. ‘Kat Irtifak' title deed (pre-registration of floors for apartments to be built) or separate individual title deed must be provided in order to purchase.
• However, foreigners who are citizens of the states that recognise the TRNC as an independent state (i.e. Turkey) can buy up to 6 apartments.
• 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.
• Foreigners are not allowed to buy an immovable property on shared title deeds unless it is a detached house or apartment. A maximum of 3 (three) foreign persons can buy such a shared title deed.
• If the property to be purchased is an apartment, less than half of the total apartment units built or to be built on the same plot can be purchased by foreigners of the first-degree relatives or foreigners of the same nationality.

In any case, 20% of such developments must be sold to citizens of TRNC or to the citizens of the states that recognise the TRNC (i.e. Turkey).

The above rule does not apply to developments where permits were obtained and/or necessary applications were made prior to this amendment coming into force. However, land projects that are based on trustee agreements are excluded from this rule.

WHO MUST APPLY FOR PERMISSION TO PURCHASE?

• Foreigners.
• Foreign legal entities, their shareholders, and directors if the majority of the Board of Directors consists of foreigners.
• Should the foreign legal entity wish to transfer its shares to another foreigner or foreign legal entity and/or to change the foreign directors or trustees, Permission from the TRNC Council of Ministers must be obtained. (Applicable to foreign legal entities that have an immovable property in their name).

APPLICATION FOR PERMISSION TO PURCHASE

Application for permission to purchase must be made online. The documents related to the property particulars and not older than 3 months Police Clearance Certificate from the country of the applicant's citizenship must be uploaded to the system.

PTP APPLICATION FEES:

• First application – half of the monthly gross minimum salary wage
• Second application (same property) – double the first application fee (i.e. one month’s gross minimum salary wage).

The Ministry will conduct the necessary investigations with the relevant authorities in order to determine whether the immovable property intended to be purchased presents any issue from a military or security perspective. Permission to Purchase may only be granted for properties which are found not to be problematic.

If the security investigation concerning the foreign purchaser results negatively, the registration of the Contract of Sale at the District Lands Office may be cancelled, and the Contract may be considered null and void.

TRANSFER OF THE TITLE DEED

After the Permission to Purchase is approved, the transfer of the title deed MUST be effected within 12 months.  If not completed, the permission to purchase will become invalid.

If the sale price is paid in instalments, the one-year period starts from the last payment date.

However, although the transfer of the title deed has to be made within 12 months of the last instalment paid to the vendor, the taxes (i.e. remaining transfer fee, VAT (if applicable), and stoppage tax) have to be paid within 75 working days after the permission to purchase is granted and published in the Official Gazette.

 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.)

If the permission to purchase becomes invalid due to the reason stated above, the purchaser has the right to reapply for permission to purchase and pay double the fee. However, the same foreigner or foreign legal entity cannot re-apply a third time for the same property.

PENALTIES & FINES

• If the vendor and/or foreign purchaser do not comply with the rules stated above, a fine of 500 minimum salary wages will be imposed, particularly in the following cases:
• If the vendor sells agricultural or forest land to a foreigner or foreign legal entity;
• Those who exceed acquisition limits
• If the contract of sale is made without the vendor obtaining a separate title deed or “Kat Irtifak” title deed.
• If the vendor offers to sell more than half of the apartment units on the same plot to foreign relatives of the first degree or foreigners of the same nationality.
• If the trustee agreement is made for the purpose of exceeding the acquisition limit specified above.

TRANSITIONAL RULES REGARDING THE EXISTING CONTRACTS OF SALE

These TRANSITIONAL RULES are related to sales transactions that were commenced before the date of the amendments coming into force.

Everyone who had made the contract of sale before 21st of May 2024 must register their contract of sale with the District Lands Office and apply for permission to purchase within 6 months. As of 11.05.2026, the deadline is 11.11.2026

Those who fail to comply with the above section will be considered as having committed an offence and will be charged with a fine of 500 times the minimum salary wage.

However, if one can provide that he/she was abroad during this time that will be a valid defence in Court.

Foreigner and foreign legal entities who obtained permission to purchase immovable property from the Council of Ministers before the 21st of May 2024, and the vendor who sold immovable property to them, must complete the transfer of the title deed at the relevant District Land Registry Office within 6 (six) months from 11th of May 2026. 

Those who fail to comply with the above section (whether it is a vendor or purchaser or both) will be considered as having committed an offence and will be charged with a fine of 500 times the minimum salary wage.

If at the time the foreigner and foreign legal entity is granted the permission to purchase, the final approval of the immovable property has not been received and/or its division has not been completed and/or its separate title deeds have not been issued before 21st of May 2024, the vendor and the purchaser must pay all taxes and fees (i.e. remaining transfer fee, VAT (if applicable) and stoppage tax) within 60 (sixty) business days from the date of publication of the Council of Ministers decision to grant the permission to purchase.

A trustee Agreement that was made before the 21st of May 2024, must be registered with the relevant District Lands Office within 75 (seventy-five) business days starting from 11th of May 2026. If such an agreement is not registered within the above specified period, it will become null and void.

If the above rules are not complied with, the decision of the Council of Ministers to grant permission to purchase will become invalid and the registration of the contract of sale at the DLO will be automatically deleted and deemed invalid.

If the vendor does not have a separate individual title deed or “Kat Irtifak” title deed, the purchaser can apply for permission to purchase provided that the building permit (insaat ruhsati) or Planning Approval is obtained. This rule is in the force until 11th of May 2028.

Transfer of the Title Deeds of the Properties completed before 11 May 2026 purchases:

The law 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 11.05.2026. 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 said 36 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 11.05.2026. 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 Law provides clarification on scenarios where obtaining a separate title deed (of the property acquired before 11.05.2026) 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 11.05.2026

SELLER'S TAX (CAPITAL GAIN TAX) at RATE 2.8% OF THE PROPERTY VALUE

The Vendor, being the registered owner of the property, is required to pay Capital Gains Tax (“Stopaj Tax”) to the Tax Office based on the sales valuation of the property as assessed by the District Lands Office.

Where the Vendor is an individual, the Stopaj Tax is currently calculated at the rate of 2.8%. If the Vendor is a professional seller or company, the applicable rate is 4%.

FOREIGN VENDORS ARE NO LONGER EXEMPT FROM THE PAYMENT OF STOPAJ TAX.

If selling to a 'foreigner' you must take into account that it may take up to 2 years for the buyer to obtain their PTP (permission to purchase) and transfer can only be achieved once the PTP is approved.  It would therefore be that the solicitor may hold back 2.8% to pay the tax prior to completion to make sure the tax is paid.

CHANGE IN COSTS OF TITLE DEED TRANSFER TAX

The Title Deed transfer fee has been reduced from 12% to 9%.

Fee Payment Structure Based on Registration of the Contract of Sale and Transfer of Title

Where the Title Deed transfer takes place directly, or where the Contract of Sale is registered without payment of any transfer fees, the full applicable rate shall apply at the time of transfer.

However, where the Contract of Sale is first registered at the District Lands Office and the transfer of the Title Deed takes place at a later stage, the transfer fee will be divided between the registration stage and the final transfer stage as follows:

For Citizens of the Republic of Türkiye

First Property

3% payable upon registration of the Contract of Sale;

3% payable upon transfer of the Title Deed.

Second Property

2% payable upon registration;

6% payable upon transfer.

Third to Sixth Properties

3% payable upon registration;

6% payable upon transfer.

For Foreign Nationals (excluding Turkish citizens)

First Property

6% payable upon registration of the Contract of Sale;

3% payable upon transfer of the Title Deed.

Second Property

3% payable upon registration;

6% payable upon transfer.

Third Property

3% payable upon registration;

6% payable upon transfer.

Permission to Purchase Last Updated 28 May 2026

Every foreign individual purchasing property in the TRNC is required to apply for Permission to Purchase to the Ministry of Interior in order to obtain the title deed in his/her name.

Permission to Purchase is the procedure through which the TRNC Government conducts due diligence on both the purchaser and the property being acquired.

As a general principle, foreigners are not allowed to purchase property located close to military areas. Therefore, when buying property, you must make your own investigation regarding the location. However, it is also essential to ensure that all required documents are submitted correctly so that the application will be accepted.

In order to facilitate the process, the TRNC Government has introduced an online system through which the application can be submitted and monitored.

The link to the website as follows: https://tmb.icisleri.gov.ct.tr/

Your contract of sale must be stamped and registered before the application for Permission to Purchase can be made.

Property Purchase/Renting Last Updated 28 May 2026

If you are renting out your property in Northern Cyprus, you are obligated to pay taxes.

Any rental agreement must be registered with the Tax Office, and stamp duty must be paid.

Generally, stamp duty is payable by the tenant. When stamping the tenancy agreement, the Tax Office calculates the total rental value for the entire term of the agreement, including any deposit paid and any additional payments stated in the contract (such as maintenance fees).

The stamp duty rate is 0.5% of the total value of the tenancy agreement.

The tenancy agreement must be registered within 30 days from the date of signing or from the commencement date of the tenancy, whichever is earlier.

To register a Tenancy Agreement, the tenant or landlord must visit the TRNC Tax Office with the following documents:

• Tenancy Agreement that has been signed by both parties and two witnesses;
• Tenant(s) passport copy;
• Landlord(s) passport copy;
• A copy of title deed or stamped contract of sale.

The tax rate for any rental income is

8% (if rental payment is in Turkish Lira);

13% (if rental payment is in GBP, EUR or USD).

When making payment at the Tax Office, you will also be required to complete the V.D.91 form, which will be provided on-site.

According to the Tax Office, currently, the tax must be paid by the 15th of the subsequent month after the contract is signed. Alternatively, for the entire rental period, payment can be made immediately upon contract registration.

***From the 1st of January 2025 onwards, all rental payments for either business or residential premises must be paid via a bank (this includes paying cash into a bank, a cheque, EFT, by card, credit card or through internet banking.  ***

You must notify the Tax Office if any rental contract is terminated before its full term. Otherwise, any unpaid tax will continue to accrue. In addition, penalties will be imposed for non-payment. Your property cannot be sold/transferred if there are outstanding Tax Office debts

Please note that copies of the relevant forms and declaration can be obtained from your local Tax Office.

TRNC Property Purchase Flowchart Last Updated 28 May 2026

To view the TRNC Property Purchase Flowchart, please click here