Foreign Property Ownership Rules Revised by Decree in TRNC

The Council of Ministers approved the “Decree with the Force of Law Regulating the Rules on the Acquisition of Immovable Property by Foreigners,” which entered into force on May 11, 2026, upon publication in the Official Gazette and was submitted to the Republic’s Assembly.

The decree introduces wide-ranging changes regarding property acquisition by foreign individuals and legal entities in the TRNC.

Definitions for “foreign legal entity,” “investment,” and “licensed intermediary investor” were revised, while new restrictions and obligations were introduced particularly for large-scale investments and foreign residential purchases.

Under the new rules, foreign individuals or legal entities may, with Council of Ministers approval, acquire:

• One residence on land not exceeding 1,338 square metres,
• Three apartment units,
• Or one detached house on land not exceeding 3,300 square metres.

Foreign buyers will also be permitted to acquire two two-storey villas in mass housing or site projects. For citizens of countries that recognize the TRNC and grant reciprocal rights to TRNC citizens, the limit increases to six apartment units and three villas.

The decree also prohibits the construction of a second residence or apartment building on the land of a purchased detached house.

€10 Million Investment Requirement

New criteria were also introduced for investment-based property acquisitions.

Foreign individuals or legal entities investing in tourism, education, healthcare, industry, agriculture, technology or research and development sectors will be required to invest at least €10 million. Build-and-sell housing projects are excluded from the scope of investment incentives.

Investors will also be required to deposit at least €10 million into a company account at a bank operating in the TRNC and use those funds within two years for the declared investment purpose.

Licensed Intermediary Investor System Introduced

The decree also establishes a “Licensed Intermediary Investor” system for the first time.

Under the system, investors granted annual licences by the relevant undersecretariat attached to the ministry will be allowed to reserve at least 10 housing units per year at the project stage or after final approval, without taking ownership.

These investors will be permitted to market the properties domestically or abroad to foreign individuals or legal entities. However, reserved properties must be registered with the relevant Land Registry Office within one month.

Licensed intermediary investors will also be required to complete the transfer of marketed properties within two years. Otherwise, they may be brought under the “Holiday Homes” legislation or have their licences revoked.

Transition Period for Existing Contracts

The decree also includes transitional arrangements for previously signed sales contracts.

Foreign individuals and legal entities will have six months to register existing contracts with the relevant Land Registry Office and apply for purchase permits.

Additional fees will apply for contracts exceeding the permitted acquisition limits. Contracts declared within the prescribed period will incur a fee equal to 1 percent of the sales price, while later declarations will be subject to a 3 percent fee.

10-Year Usage Permit System

One of the most notable provisions is the introduction of a “usage permit” system.

Under the arrangement, foreigners exceeding acquisition limits but meeting certain conditions may be granted a 10-year right-of-use certificate while ownership remains with the seller.

The certificate will grant the right to use and benefit from the property without transferring ownership. Properties falling under the “Holiday Homes” legislation may be granted unlimited usage rights.

New Rules on Transfers and Trustee Agreements

The decree also introduces new deadlines and obligations concerning:

• Uncompleted title deed transfers,
• Trustee agreements,
• Transfers of investment properties,
• Harmonization of existing foreign sales contracts,
• Condominium ownership and planning approval procedures.

Contracts that fail to comply within the prescribed timeframes may be deemed invalid. The Council of Ministers will also have authority in some cases to extend deadlines.

The decree will be implemented by the Interior Ministry.