Regulation on property acquisition and leasing conditions for foreigners in the TRNC

The "Bill on the Acquisition of Immovable Property and Long-Term Leasing (Foreigners) (Amendment)", which introduces new conditions and restrictions on certain purchases, has been passed by a majority vote in the TRNC Assembly of the Republic.

According to the amendment, foreign nationals will be able to purchase one apartment or residence in the TRNC. Citizens of countries that recognize the TRNC, as well as citizens of countries that grant TRNC citizens the right to purchase 3 residences or apartments on their own soil, will be able to acquire 3 residences or apartments in the TRNC.

Under the previous regulation, foreigners were also able to purchase one residence or apartment in the TRNC, but the new regulation adds a land size restriction for the purchase of detached houses.

Previously, the land area included with a detached house could be up to 5 dönüms (approx. 6,690 square meters), but with the amendment, this area has been reduced to 2.5 dönüms.

2-YEAR CONDITION INTRODUCED

With the law passed in the TRNC Assembly of the Republic, changes were also made regarding the purchase of land by foreigners for investment purposes. While the land size remains the same for foreigners who could previously purchase 60 dönüms of land with a 3 million euro investment, the required investment amount has been increased to 20 million euros.

While the nature of the previously required 3 million euro investment was not scrutinized, the new law mandates that the 20 million euro investment must be in the fields of industry, education, or health, and stipulates that the land will be confiscated from those found not to have made these investments within 2 years.

The condition that previously allowed foreigners to purchase unlimited land through companies or trustees has also been changed. From now on, if a company or trustee has even one percent foreign ownership, it will be considered foreign and will only be able to benefit from the rights of natural persons, allowing for the purchase of 1 residence or 60 dönüms of land with a 20 million euro investment.

A requirement has also been introduced for the registration of unregistered immovable properties held by foreigners. Accordingly, foreigners will be required to sell their excess land and properties within 2 years and report their contracts to the Land Registry Office within 6 months.

While the Council of Ministers is granted the right to extend the 2-year period for excess properties to 3 years, foreigners who violate the law will be fined 500 times the minimum wage.

The net minimum wage in the TRNC for 2024 is 29,640 TL.

News Source: AA