Regulation introduces purchase limits
A new decree published in the “official gazette” introduces a series of regulations governing the sale of property to foreign buyers, including registration requirements, fees, usage permits, security checks and a system of licensed intermediaries.
Despite references to restrictions, the framework reportedly still allows up to 80% of residential developments to be sold to foreign purchasers.
Transitional measures for past transactions
According to reports cited by Turkish Cypriot media outlet Bugün Kıbrıs, the decree issued by the coalition administration also includes transitional arrangements for previous property transactions that exceeded permitted limits, subject to payment of a fee.
The new system introduces a compliance window for buyers who previously exceeded ownership thresholds, requiring them to declare transactions and pay a levy.
Licensed intermediaries and usage certificates
A key feature of the framework is the introduction of “licensed intermediary investors”, allowing agents to market at least 10 properties annually to foreign buyers without taking ownership.
The regulation also allows issuance of 10-year “usage certificates” for properties exceeding acquisition limits, with ownership remaining with the seller while buyers obtain usage rights.
Foreign nationals or companies may, subject to approval by the “council of ministers”, purchase up to three apartments, rising to six for citizens of countries that recognise the administration and grant reciprocal rights.
Land and construction limits defined
The decree sets land limits of up to 3,300 square metres for housing purchases and 1,338 square metres for land acquisitions.
It also allows participation of foreign entities in construction projects alongside local contractors, with a maximum foreign share of 49%.
Utility restrictions and security checks
The framework states that water and electricity connections will not be provided for properties where taxes and fees remain unpaid.
Foreign buyers will also be required to submit an apostilled criminal record and undergo security checks, including verification of proximity to military areas.
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