Northern Cyprus Property Purchase Law

1. Initial Conditions for Foreigners Purchasing Property in Northern Cyprus

1. Personal Purchase Limit

Under the laws of the Turkish Republic of Northern Cyprus (TRNC), a foreign individual can typically purchase one independent residential unit or up to 3.5 donums of land (approximately 4,683 m²) if there is a building on the land. If the land is empty, the maximum allowed purchase is 1 donum (approximately 1,338 m²).

Acquiring a larger land area or multiple properties often requires special permissions or proceeding via a locally registered company.

2. Project Status and Building Permit

Recent regulations encourage foreigners to buy in projects that either have established condominium (kat irtifakı) status or, at minimum, have official building permits / project approvals on file (sometimes referred to as “planning application”).

In practice, many projects still sell “off-plan,” meaning the project might only have preliminary documents submitted to the authorities. However, fully unregistered land parcels, where no project approvals exist, carry higher legal risks—especially for acquiring Permission to Purchase (PTP) later.

3. Due Diligence and Legal Assistance

You should verify the type of title deed (e.g., Turkish title, exchange title, or allocation title), the presence of any mortgages or liens on the property, and whether the price is in line with the value of comparable properties in the same area.

It is highly advisable to work with an expert real estate agency and consult a local TRNC attorney to review or draft the sales contract, ensure that all required taxes and fees are paid on time, and manage the registration and PTP application process.

2. Sales Contract and Registration Process

1. Signing a Sales Contract

A contract is drawn up between buyer and seller. It should clearly specify the property details, price, payment schedule, delivery date, and any other obligations or penalties.

2. Stamp Duty and Contract Registration

Stamp duty is typically 0.5% of the contract value and must be paid, as per common practice, within 21 days from the signing date. In practice, the signing date in some cases is left unspecified to gain more flexibility with regards to the 21-day period. Stamp duty is typically 0.5% of the contract value and, as per common practice, must be paid within 21 days from the signing date. In practice, the signing date is sometimes left unspecified to allow for more flexibility regarding the 21-day period (legally this is not allowed!).

The tax duty for contract registration is another 6%, so in most cases stamp and tax duty combined amount to 6.5%.

The contract must then be registered at the Land Registry (Tapu Dairesi) within the legally specified timeframe (according to the law 21 days, in practice often cited as up to 75 days).

In reality, the Tax Office still imposes higher fees or penalties if registration occurs after 21 days, adding an extra 1% penalty, which increases the total stamp duty to 1.5%.

To avoid these penalties and to ensure the contract’s validity, most lawyers and buyers will prioritize completing the registration within 21 days after the signing date.

3. Unregistered Contracts

In TRNC law, a contract that is not registered may be considered invalid in the event of a dispute, and the buyer might lose protections regarding ownership claims.

New rules make contract registration mandatory, so skipping this step can jeopardize your right to obtain a title deed in the future.

For a detailed assessment on this regulation, please contact us.

3. Permission to Purchase (PTP) – Cabinet Approval

1. What Is PTP?

In the TRNC, foreign nationals need a Permission to Purchase from the Council of Ministers (or a delegated authority) to finalize a title deed transfer.

This is essentially a security clearance process to confirm that the purchased property does not pose any risks (e.g., near military zones).

2. When to Apply

Legally, foreigners should apply for PTP “immediately” after acquiring the property. Practically, if the property is still under construction and lacks essential approvals (e.g., building permit, site plans), the application may be delayed.

You cannot apply for PTP without having the contract stamped and registered first (please see the above detailed process description).

Though there is no official cut-off date, the law speaks of a “reasonable time.” If you apply too early, when the project is incomplete or missing vital paperwork, authorities might refuse or put the application on hold.

3. PTP Fees and Timing

The PTP application involves paying certain fees—recently around 22,000–23,000 TL (as of March 2025), although this sum may change over time.

The approval time frame can range from 6 months to 1–2 years, depending on the applicant’s nationality, completeness of documentation, and administrative workload.

Still, even before receiving the PTP, a buyer can—if the property is completed—start to "use" the property by showing the stamped and registered sales contract.

4. After PTP Approval

Once PTP is granted, there is typically a 60-day window to pay the remaining taxes (e.g., transfer fee, VAT if applicable) and finalize the title deed transfer into the buyer’s name.

If the property is not yet completed and the title deed is not yet available, in practice, the buyer is granted the necessary time to wait until the title deed becomes available for transfer.

4. Title Deed Transfer and Taxation

1. Title Deed Transfer Fee

A 6% title deed transfer fee is standard. For Turkish citizens, there is an option (for first-time transfers) to use a one-time “discount” right, reducing this to 3%.

2. Value Added Tax (VAT)

If buying a new property (first-hand purchase), you may need to pay 5% VAT on the property.

Typically collected at the final title transfer, VAT can also be required earlier, depending on contract terms or the developer’s practices.

3. Other Charges

Translator and notary fees, consular certifications for foreign documents, and municipality fees can add extra costs.

Before completion, you might also pay site service charges, infrastructure levies, etc.

5. New Law and Practical Contradictions

1. Restrictions on Undivided Land

The law states that foreigners cannot directly own undivided shares of land (i.e., “hisseli arazi”). However, if the land is part of an officially approved or semi-approved building or project, in practice, the Land Registry may still allow the sales contract to be registered.

Thus, there is a gap between the stated legislation and the real-world application.

2. Land Registry vs. Tax Office Time Frames

While 75 days is sometimes referenced for contract registration, the Tax Office applies penalties if it’s done after 21 days. This discrepancy can create confusion.

Most parties therefore strive to finalize everything within the initial 21 days to avoid fines.

3. Requirement for Building Permits and Project Approvals

Legally, a project should have at least a “planning permission” or “building permit” to sell units to foreigners.

In practice, for many projects, the initial architectural drawings and a planning application are submitted to open a project file at the Land Registry, thus enabling contract registration.

Actual PTP approval, however, often requires the project to have progressed in its permitting phase; otherwise, the PTP might be rejected or stalled. Since the PTP takes quite some time in practice, this plays into the hand of the buyer if the project under construction is progressing within this time.

6. Step-by-Step Summary of the Buying Process

• Market Research
• Hire an Agency

  A professional agency ideally has knowledge of the entire market, operates completely independently of any specific projects, and can accurately assess the value of a property.

• Research and Hire an Attorney

  In order to investigate the legal status of a property and/or project and double-check the agency’s data, select an experienced TRNC lawyer.

• Sign the Sales Contract

  Finalize terms: price, payment schedule, handover date, penalties, etc.

• Tax and Stamp Duty and Registration (21-Day Rule)

  Pay 0.5% stamp duty and 6% tax duty promptly.

  Register the contract at the Land Registry within 21 days to avoid late fees.

• Construction and Project Documents
  It is important to know that the basis for calculating the tax and stampd duty and the VAT is the valuation conducted by the Land Registry Office for the respective property. This valuation is usually slightly lower than the market value of the property.

  Check building permits, confirm the project is properly filed with the Land Registry, and ensure the project has all required documents.

• Permission to Purchase (PTP) Application

  After contract registration, file your PTP application within a “reasonable” timeframe.

  Pay the relevant fees (approx. 22,000–23,000 TL recently) and supply all supporting documents. Expect up to 6–24 months for approval.

• Post-Approval

  Once PTP is granted, settle the remaining taxes (transfer fees, VAT, etc.) within about 60 days.

  Finalize the title deed transfer into your name.

7. Conclusion

• Buying property in Northern Cyprus involves several crucial steps: contract registration, PTP application, and title deed transfer.
• Regulations have been changing, and there are known inconsistencies between the law and actual practice—particularly around the 21-day vs. 75-day timeframe, penalties for delayed registration, and the sale of undivided land shares.
• Off-plan projects may carry extra risk if building permits or approvals are not yet in place, which could delay or jeopardize the PTP application.
• Regarding costs, prepare for:
  • 6% tax duty at contract registration
  • 0.5% stamp duty
  • Possible monthly penalties for late registration (please see above 21 vs. 75 days period)
  • 5% VAT on new builds
  • 6% tax duty at title deed transfer
  • Additional charges for translator/notary

Quick Tips

• Register the Contract Promptly: Pay stamp duty and register at the Land Registry to secure your rights.
• Check Project Approvals: Verify that the project’s planning permission or building permit is either obtained or in progress.
• Apply for PTP: Submit a PTP application without undue delay once the project has sufficient documentation.
• Budget for Transfer Costs: Include transfer fees, VAT, and other costs in your financial plan.
• Stay Updated: Laws can change. Always rely on official confirmation and legal advice for your specific case.

By following these steps and staying informed, foreigners can navigate Northern Cyprus’s property purchase procedures more confidently and with minimal risk.

For questions, property valuation, and the purchasing process, please get in touch with our professional property experts.

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