Property Purchase in the Turkish Republic of Northern Cyprus (TRNC)

Work With Reliable Companies

• It is estimated that there are around 1,000 companies or individuals operating in the real estate sector in North Cyprus, either legally or illegally. Before purchasing a property, you should always visit the office of the company you plan to buy from and verify their membership with the Estate Agents Union. This ensures that your transaction is carried out through a reliable and professionally trained company. Clients of companies registered with the TRNC Estate Agents Union are insured for up to €100,000 against potential losses during the purchasing process.
• Foreign nationals in North Cyprus are allowed to purchase 3 residential property, up to 1 dönüm of land, or up to 5 dönüms of agricultural land. The required Council of Ministers permit is obtained safely through experienced lawyers. Foreign buyers who purchase a property in TRNC can also receive a residence permit. These annually renewed permits allow them to stay in the country continuously, open bank accounts, and benefit from public services.

Important Points Before Purchasing Property

• A sales contract is mandatory when purchasing a property. To protect your rights, we strongly recommend signing the contract with the assistance of a lawyer. A Turkish ID card or a passport must be presented for contract procedures. Contracts can also be issued under two or three names if needed.

• The contract must be registered and stamped at the TRNC Tax Office with a 0.5% Stamp Duty, making the agreement legally valid in official institutions.

• A “Search” report must be obtained from the Land Registry to confirm that the property has no mortgage or restrictions. After this, registering a caveat (şerh) at the Land Registry prevents the seller from selling the property to someone else. Removing this caveat can only be done by you or your lawyer, ensuring maximum security.

• Making payments through a lawyer is highly recommended, as it documents all transactions officially and adds an extra layer of protection.

• To obtain the purchase permit smoothly within 1.5–2 months, hiring a lawyer or trusted real estate agency is essential.

• Once all permits are obtained and an appointment is made for the Title Deed Transfer, both parties or their legal representatives meet at the Land Registry Office to complete the transfer. Any outstanding payments must be completed at this stage.

• Individuals or companies planning to make larger investments can also proceed safely through experienced real estate lawyers. Foreigners establishing a company in TRNC cannot legally own more than 49% of the shares. A local individual or a lawyer must hold the remaining 51% as required by law. However, this does not pose a risk, as trustee (Yedi Emin) agreements fully protect the rights of the foreign investor. It is also a common practice for the local shareholder to receive a salary. Once the company is established, the investor can purchase unlimited land and make tourism or construction investments.

Taxes

• VAT:

When purchasing new property from companies, VAT is applied at 5% of the contract price and is paid at the title deed stage or upon property delivery. For second-hand properties or land purchased from a non-professional seller (not a company), VAT is not required.

• Stamp Duty:

This is the fee for registering and stamping the contract at the TRNC Tax Office. It is 0.5% of the contract price and is paid by the buyer.

• Transformer Contribution Fee:

For properties purchased in new developments, infrastructure such as electricity, water, telephone, and other utilities is arranged by the company. The total infrastructure cost is divided equally among all buyers and is usually paid before key handover. Depending on the project, the fee ranges between £1,500 and £2,500.

• Title Deed Transfer Fee:

Normally applied at 6% of the contract price or the Land Registry valuation. However, for citizens of Turkey and TRNC, a discounted rate of 3% is applied once. The Land Registry uses a fixed exchange rate of 3.50 TL for foreign currency. The 3% fee is paid in Turkish Lira based on the Land Registry’s valuation.

• Withholding Tax (Stopaj):

This tax legally belongs to the seller. Buyers should not agree to pay it except in special cases.
If you sell a property as a non-professional individual, you must pay 2.8% withholding tax based on the Land Registry valuation. Professional companies pay a higher rate.