Changes to the Immovable Property Law in the TRNC Effective from May 16, 2025

The Council of Ministers of the Turkish Republic of Northern Cyprus (TRNC) has enacted significant amendments to the "Immovable Property Acquisition and Long-Term Leasing (Foreigners) Law" through a Decree-Law dated May 16, 2025. These changes primarily affect foreign nationals and investors, introducing new standards regarding property acquisition, transfer procedures, tax rates, and residence permits.

1. Sales Contracts and Permit Process

   A. Investment Purchases

   • The minimum investment amount for investments in tourism, education, health, industry, agriculture, technology, or R&D sectors (excluding "Build-Sell" projects) has been reduced to €10,000,000.

   B. Residential and Land Purchases

   • Land Purchase: Foreigners or Turkish citizens may purchase land up to a maximum of 1,338 m², with permission to construct only one residential unit.

   • Apartment Purchases:

     • Foreigners: Up to 3 apartments

     • Turkish Citizens: Up to 6 apartments

   • Detached Villa Purchases:

     • Foreigners: Up to 2 villas

     • Turkish Citizens: Up to 3 villas

   C. Title Deed Transfer Period

   • The period for completing title deed transfers has been extended to 2 years from the publication date of the purchase permit in the Official Gazette. All taxes and fees must be paid within 75 working days after the permit is issued.

   D. Status of Existing Contracts

   • Individuals who have signed property sales contracts before the new law must register these contracts with the Land Registry within 6 months and apply for a purchase permit.

   E. Usage Permits

   • The validity period for usage permits has been extended from 8 to 10 years.

   F. Purchases Before May 21, 2024

   • Those who obtained purchase permits before this date must complete the title deed transfer by November 16, 2025.

   G. Properties Without Condominium Title

   • Applications for purchase permits can be made for projects with construction permits or planning approvals.

   H. Properties Delivered Without Title Deed Transfer

   • Properties that have been completed and delivered but not yet transferred must complete the transfer within 36 months. If unable to do so, owners must notify the Land Registry in writing within 34 months and pay the required fees to retain the right to transfer later.

2. Title Deed Fees and Tax Regulations

   Foreign Nationals

   • First Purchase:

     • Title Deed Office's determined sale price: 9% (6% upon registration, 3% within 75 days after permit)

   • Second and Third Purchases:

     • Sale price: 9% (6% + 3%)

   Turkish Citizens

   • First Purchase: 6% (3% + 3%)

   • Second Purchase: 8% (2% + 6%)

   • Third and Subsequent Purchases: 9% (3% + 6%)

   Additional Liabilities

   • VAT: All buyers must pay 5% VAT on the sale price along with the title deed fee within 75 days.

   • Stamp Duty and Contract Registration:

     • Contracts must be registered with the Tax Office within 21 days.

     • Late registration penalties:

       • Within 21 days: 0.5%

       • 21 days to 6 months: 1%

       • After 6 months: 1.5%

3. New Residence Permit Regulations

   • Foreign nationals and Turkish citizens who complete the title deed transfer by purchasing residential property or land may apply for a maximum 5-year residence permit.

   • Previous Requirements: $30,000 bank deposit and proof of regular income.

   • New Requirements: Financial sufficiency requirement has been completely removed.

   • Note: Buyers who have registered sales contracts but not completed title deed transfers may apply for a maximum 2-year residence permit, provided they present a bank deposit and lease agreement.

These regulations aim to make property transactions in the TRNC more transparent and structured, offering various advantages and responsibilities for investors and individual buyers.

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