Real Estate Law for Foreign Buyers in Northern Cyprus: Simplified Guide
Introduction: The 2024 Real Estate Law for Foreign Buyers in Northern Cyprus introduces new regulations to balance investment opportunities with national security and public interests. Here’s a straightforward guide to help you understand the key points of this new law.
Who Is Considered a Foreign Buyer?
- Foreign Individual: Anyone who is not a citizen of Northern Cyprus.
- Foreign Corporation: A company established in Northern Cyprus with at least one foreign founder or majority foreign directors.
Investment Requirements: For sectors like tourism, education, healthcare, industry, agriculture, technology, and scientific research, foreign investors must invest at least €20 million. This requirement does not apply to construction investments aimed at selling properties.
Key Points of the Real Estate Law for Foreign Buyers in Northern Cyprus
1. Forbidden Zones: Foreigners cannot own properties in restricted areas due to national security or public interest. Any property bought in these areas will have its registration canceled unless it was inherited.
2. Land Ownership Limits: Foreigners can own up to 7% of the land in each district and no more than 3% of the total land in Northern Cyprus (3,241 km² total; 97.23 km² for foreigners).
Examples by District:
- Kyrenia: Total 690 km², foreigners can own 48.3 km².
- Iskele: Total 774 km², foreigners can own 54.18 km².
- Famagusta: Total 997 km², foreigners can own 69.79 km².
- Guzelyurt: Total 381 km², foreigners can own 26.67 km².
3. Corporate Ownership: Companies with foreign stakeholders need permission from the Council of Ministers to acquire properties. Public companies established in Northern Cyprus are exempt.
4. Individual Property Purchase:
- Foreign individuals can buy one property with Council of Ministers’ approval.
- Land Purchase: Up to 1,338 m², for one residential building.
- Apartment Purchase: One apartment, unless from countries recognizing Northern Cyprus, then up to three apartments.
- House Purchase with Land: Up to 3,300 m², no additional houses allowed.
Application Process and Fees
- Application Fee: Half of the gross minimum wage (17,035 Turkish Lira as of May 2024).
- Required Documents: Proof of property ownership, property valuation documents, a certificate of good conduct, and a passport copy.
- If the application is denied, you can reapply with double the fee.
Special Rules for Investments in Northern Cyprus
Foreign investors can purchase multiple properties for specified sectors with a minimum investment of €20 million, which must be used within two years. The property must be used only for the declared investment purpose, and it cannot be sold within five years.
Compliance and Reporting
Foreign investors must notify the Companies Registrar about their property within six months of ownership transfer. They must also inform authorities immediately about any changes in the company’s board members.
Penalties for Non-Compliance
- Fines can reach up to 500 times the gross minimum wage for violations (17,035,000 Turkish Lira or $522,627).
- Violations include unauthorized sales, exceeding property size limits, and failure to report ownership changes.
The 2024 Real Estate Law for Foreign Buyers in Northern Cyprus is designed to streamline investment while protecting national interests. By understanding these rules, foreign investors can navigate the property market effectively and make informed decisions. For further details, always consult with a local legal expert to ensure compliance with the latest laws and regulations.
This guide should help you understand the key aspects of the Real Estate Law for Foreign Buyers in Northern Cyprus, making your investment process smoother and more secure.
