New real estate law in Northern Cyprus: what changed for foreigners from May 11, 2026

On May 11, 2026, Decree No. 63/2026 came into force in Northern Cyprus, significantly changing the rules for the acquisition of real estate by foreign citizens and foreign companies. Foreigners can now buy up to 3 apartments, up to 2 villas in residential complexes, or one house on a plot of up to 3,300 m², and they also gained the opportunity to legalize part of the previously purchased properties through the new Kullanım Belgesi mechanism. At the same time, new restrictions were introduced for developers, investors, and buyers, additional fees for older contracts, and new requirements for transaction registration.

This is the first legislative change in real estate of such scale since the 2024 reform. The new rules affect both future buyers and thousands of owners of properties previously acquired under sale and purchase contracts.

• Why the new law was adopted
• The main changes in one list
• How much real estate a foreigner can now buy
• New rules for residential complexes and developers
• What changes for old contracts
• The new Kullanım Belgesi regime
• New rules for investors and companies
• What this means for the real estate market
• Frequently asked questions
• If you need help buying real estate in Northern Cyprus
• If you need legal advice on the transaction

Why the new law was adopted

In the explanatory note to the decree, the authorities directly point to several problems that arose after the 2024 changes.

• Some foreign buyers live outside Northern Cyprus and cannot complete real estate formalities in a timely manner.
• Transactions were concluded, but taxes and fees were often not paid in full.
• A large number of properties purchased beyond the established limits had accumulated on the market.
• The state was receiving less tax revenue than it should have.
• There were numerous ownership schemes through third parties and unregistered contracts.

The new law is intended to both increase tax collection, organize the market, and legalize part of the transactions concluded earlier.

The main changes in one list

In short, the law introduces the following changes:

• the purchase limits for foreigners have been increased;
• a new regime for using real estate without title deed has appeared — Kullanım Belgesi;
• a transitional mechanism for old contracts has been introduced;
• a special 1% and 3% fee for over-limit properties has appeared;
• the institution of Lisanslı Ara Yatırımcı has been created;
• an investment regime from EUR 10,000,000 has been introduced;
• the concentration of foreign owners in projects has been restricted;
• a limit has been set for sales to foreigners at 80% of a project;
• water and electricity connections have been linked to the payment of taxes and fees.

How much real estate a foreigner can now buy

The new limits have become one of the most noticeable changes in the law.

For citizens of countries that recognize Northern Cyprus and grant similar rights to citizens of Northern Cyprus, increased limits are provided:

• up to 6 apartments;
• up to 3 villas.

New rules for residential complexes and developers

This part of the law received less attention, although it is precisely this part that may significantly change the new-build market.

80% limit for foreigners

Now, in a residential project, a maximum of 80% of the properties may belong to foreign buyers.

The remaining minimum 20% must remain available to the local market.

Restriction by buyers’ nationality

In one residential project, foreigners of one nationality and their close relatives cannot acquire more than half of the apartments on one land plot.

This is a new measure aimed at preventing entire complexes from being concentrated in the hands of one group of buyers.

Ban on additional development

If a foreign citizen buys a plot for an individual house, the following cannot be built on it:

• a second residential house;
• a multi-apartment building;
• an additional residential property for subsequent sale.

What changes for old contracts

This part of the law affects the largest number of existing real estate owners.

For contracts concluded before the new rules came into force, a transitional period of 6 months has been established.

During this time, owners must:

• register the contract with Tapu;
• submit an application for a purchase permit;
• settle properties that exceed the new limits.

If the contracts are not brought into compliance with the new requirements, in some cases they may lose legal force.

The new Kullanım Belgesi regime

Many experts consider not the increase in limits, but the appearance of a new document — Kullanım Belgesi — to be the most important innovation.

This is a certificate of use of real estate that allows a foreigner to officially use a property without formalizing ownership rights.

For many owners of properties purchased beyond the new limits, this mechanism will become the main way to retain rights to the real estate.

New rules for investors and companies

For the first time, the law introduces an official definition of an investment project.

Investments are recognized as contributions starting from EUR 10,000,000 in the following sectors:

• tourism;
• education;
• medicine;
• industry;
• agriculture;
• technology;
• research and development.

At the same time, ordinary residential construction for sale is no longer considered an investment project for the purposes of this regime.

The funds must be placed through a bank in Northern Cyprus and used within 2 years.

What this means for the real estate market

The main effect of the law lies not so much in increasing the number of apartments that a foreigner can buy.

Much more important are the following changes:

• the market becomes significantly more regulated;
• old transactions are moved into an official legal regime;
• state control over foreign buyers is strengthened;
• excessive concentration of foreign owners in individual projects is limited;
• new tools are created for the work of large investors.

For most buyers, the changes look positive thanks to the increase in limits. However, for owners of old contracts and over-limit properties, it is important to check their status in time and understand whether the property falls under the new transitional rules.

Frequently asked questions

When did the new law come into force?

May 11, 2026.

How many apartments can a foreigner now buy?

Up to 3 apartments, and in some cases — up to 6 apartments.

Can two villas be purchased?

Yes, if we are talking about two-story villas in a residential complex or a mass-development project.

What is Kullanım Belgesi?

This is a certificate of use of real estate for a period of 10 years without obtaining ownership rights.

What will happen to old contracts?

They are subject to a transitional regime with mandatory registration and the possibility of obtaining Kullanım Belgesi.

Is residential construction considered an investment project?

No. Build-and-sell projects are excluded from the investment regime from EUR 10,000,000.

If you need help buying real estate in Northern Cyprus

You can contact our partner — Vadim Chernyakov.

Phone: +90 533 882 40 55
WhatsApp / Telegram
Channel: Analytics and real estate market news

If you need legal advice on the transaction

You can contact our legal partner — the company DeJure for a consultation with a lawyer licensed in Northern Cyprus.

Phone: +90 539 119 05 55
WhatsApp
Telegram