"Lawyer Burçin Sertbay; Acquisition of Immovable Property by Foreigners in the TRNC: Legal Framework, Risks and the Necessity of Legal Counsel"
Introduction
In recent years, foreign investors’ interest in acquiring immovable property in the Turkish Republic of Northern Cyprus (TRNC) has been rapidly increasing. This interest is not limited to individual residential purchases, but also extends to large-scale land investments and commercial project developments. However, these investments carry significant risks due to constantly changing legal regulations and uncertainties in practice.
Legal Framework
The acquisition of immovable property by foreigners is primarily regulated under the Immovable Property Acquisition and Long-Term Leasing (Foreigners) Law No. 52/2008, dated 10 November 2008. According to this law, foreigners must obtain approval from the Council of Ministers in order to acquire immovable property. Any transfer of title without such approval is deemed invalid. Furthermore, the Council of Ministers reserves the authority to impose restrictions in specific regions or under certain conditions.
2024 Amendment
With the Amendment Law No. 39/2024, which came into force on 20 May 2024, the scope of the legislation was expanded and significant changes were introduced:
- Agricultural and forest lands were prohibited from being acquired by foreigners.
- The number of immovable properties that can be acquired per investor was limited.
- The investment threshold was revised from €20 million to €10 million.
- A deadline of 1 year was set for title deed transfer, and 75 working days for the payment of taxes and duties.
2025 Update – Purchase Limits
With the Decree Law published in the Official Gazette on 15 May 2025, the acquisition rights of foreigners were clearly defined:
- Foreign individual or limited companies may acquire at most:
• 3 apartments
• 2 detached villas
• 1,338 m² of land
- Turkish citizens were granted preferential rights:
• 6 apartments
• 3 detached villas
• Up to 80 dönüms of land subject to investment conditions.
These restrictions entered into force through the Decree Law of 15 May 2025 as published in the Official Gazette.
What is Permission to Purchase (PTP)?
For a foreigner to have the immovable property registered in their name at the Land Registry (Title Deed – Koçan), an approval from the Council of Ministers is mandatory. This approval process is referred to as Permission to Purchase (PTP). Without PTP, a sales transaction remains valid only as a contractual or preliminary sale arrangement and does not result in ownership at the Land Registry.
While EU citizens and foreigners with a clean criminal record generally obtain approval, there remains a risk of refusal. In cases of refusal, alternative legal solutions may be pursued, such as assigning the contractual rights to a third party.
Risks in Investment Processes
- Discrepancies between marketing promises and contractual terms.
- Limited or no refund in case of withdrawal.
- Restrictive provisions concerning sales and transfers.
- Severe administrative sanctions and legal liabilities for foreign developer groups.
The Importance of Legal Counsel
The investment process in the TRNC requires not only legal knowledge but also constant monitoring. Transactions carried out without awareness of the latest legislation may expose investors, developer companies, and even intermediaries to significant financial loss, wasted time, and reputational damage.
With professional legal support:
- Approvals, contracts, and tax-related obligations are handled correctly.
- The investment process is placed on a solid legal foundation.
- Lengthy and exhausting court proceedings are avoided.
Company Formation and Investments via Legal Entities
Foreign investors may acquire immovable property not only as individuals, but also by establishing a company in the TRNC. Acquisition through a company is especially preferred for large-scale projects and investment partnerships. It also enables multiple investors to structure partnerships and manage their investments more flexibly.
At Sertbay Law Firm, we provide our clients with comprehensive legal services not only in immovable property acquisitions, but also in company formation, determining partnership structures, and navigating official approval procedures.
Conclusion
The acquisition of immovable property in the TRNC requires a strong and professional legal foundation, not only for individual buyers but also for land investors, commercial project developers, and sales companies.
The purchase limits introduced by the Decree Law of 15 May 2025 have a direct impact on the strategies of foreign investors. Therefore, obtaining legal advice from the very beginning of the investment process is no longer a preference but a necessity.
Sertbay Law Firm – Secure Investment and Property Law in North Cyprus
Nicosia, TRNC
+90 (392) 228 8001
[email protected]
www.sertbaylaw.com
“For expert legal advice on property acquisition and investment processes in the TRNC, please contact us.”
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Note: This article is for informational purposes only. It does not constitute an official legal opinion or consultation.
