Turkish Citizens Can Now Purchase Three Properties in Northern Cyprus

Previously, Turkish citizens were limited to purchasing just one property in the TRNC.

Key Changes in the Amendment:

1. Increased Property Purchase Limit:

   • Turkish citizens, along with citizens from countries recognizing the TRNC and those allowing TRNC citizens to purchase three properties in their own countries, can now buy up to three apartments or houses in the TRNC.
   • For other foreign nationals, the limit remains one apartment or house.

2. Land Area Restrictions:

   • Previously, foreigners could buy a standalone house on up to 5 dönüms (approximately 6,665 square meters) of land. The new law reduces this to 2.5 dönüms (approximately 3,333 square meters).

3. Investment in Land:

   • While the allowable land area for foreign investors remains at 60 dönüms (approximately 80,000 square meters), the required investment has been increased from 3 million Euros to 20 million Euros.
   • This investment must be in the industrial, education, or healthcare sectors, and the investor must complete the investment within two years. Failure to do so will result in the confiscation of the land.

4. Regulations for Companies and Trusts:

   • Previously, foreigners could acquire unlimited land through companies or trusts. The new regulation classifies any company or trust with even a 1% foreign ownership as foreign, thus subject to the same restrictions as individual foreign buyers.
   • Foreign-owned companies and trusts can now acquire only one residential property or up to 60 dönüms of land with a 20 million Euro investment.

5. Mandatory Registration of Unregistered Properties:

   • Foreign nationals must register any unregistered real estate they currently hold. Excess properties must be sold within two years, and all relevant contracts must be reported to the Land Registry Office within six months.
   • The Council of Ministers has the authority to extend the two-year period by an additional year.
   • Violations of this regulation will result in fines up to 500 times the minimum wage.

Implications:

This new amendment aims to regulate and control foreign ownership of real estate in the TRNC more strictly, ensuring that investments are beneficial to the local economy and society. It also seeks to prevent uncontrolled accumulation of property by foreigners, thereby addressing concerns over land and property use within the region.