The housing market of the Turkish Republic of Northern Cyprus (recognized only by Turkey) has not exactly been a safe haven in recent years! At first, there were several years of sales boom thanks to investors from abroad, of course, from Turkey, as well as from Russia and Ukraine, from the UK and other Western European countries, and from Israel. Many were attracted by the cleanest sandy beaches and, at first, incredibly low, and after a while, quite low housing prices, which also grew by leaps and bounds, delighting the discoverers of this region. In the 5 years to 2024, apartments have risen in price by 3-4 times.
Despite the fact that the TRNC is a partially recognized state, real estate transactions are absolutely legal. The influx of investments, not only in residential, but also in commercial facilities, has done its job. The Republic has become attractive for permanent living. Good international, mostly British, schools, as well as good universities have contributed to this.
Foreigners also appreciated the conceptual approach of the developers. Large-scale residential complexes with expanded hotel-level infrastructure and hotel services have appeared on the coast. The authorities do not ban casinos, which has made the resort year-round.
However, the law passed by the TRNC authorities in May 2024, prohibiting foreigners (except Turks) from owning more than one property and obliging buyers to obtain title (ownership) to the acquired property, shook the market. Many managed to get several apartments and now had to get rid of them, making a significant discount. Prices in the secondary market have dropped.
The consequences of the adopted law have been superimposed on the general outflow of relocators, which is typical for other countries.
However, exactly one year later, in May 2025, the government reversed course, and encouraging easing has appeared.
What positive changes in legislation related to the real estate sector took place in Northern Cyprus in the spring of 2025? What are the main points?
Aysun Tecce, Marketing Director of the company TEKCE Real Estate:
First, a foreign buyer is now allowed to purchase up to 3 properties with a registered title, rather than just one.
Citizens of the Republic of Turkey can now purchase up to 6 properties, instead of 3 as before.
Secondly, the tax on the transfer of ownership has been reduced from 12% to 9%.
The investment threshold for investors has been lowered from 20 million to 10 million pounds.
The tax payment period has been increased from 21 to 75 days, and the validity period of a real estate purchase permit has been increased from 3 months to 1 year.
Arkady Osipyan, Head of Sales at Leverage Investments:
There are two main points. Firstly, the tax on the transfer of title to land has been reduced from 12% to 9%. Previously, buyers paid a tax of 6% immediately upon registration of property in the land registry and another 6% upon transfer of title, then there is in 1.5-2 years. Now you will need to pay only 3% during the transfer. Until May 2024, the title could not be transferred, it remained with the developer. Many managed to resell without reissuing the title, but in this case the signature of the developer on the contract was needed.
The second point of the amendments to the law concerns the number of titles that can be registered for a foreigner. Now you can transfer 3 titles to apartments or 2 titles to villas. In addition, introduced the concept of a temporary title. If you already have three apartments, you can purchase as many more objects as you want by issuing a temporary title for 10 years. The taxes will be the same, your rights as the owner are the same, that is, it is a title, and you will not need the developer's participation in the resale.
Have these changes already affected the housing market? Is there a revival? Is there a chance that the authorities will be "tough" again?
Aysun Teche:
These changes did not have a significant impact on the market. There is a revival on it today.Previously, some investors purchased several properties under construction and sold them immediately after the complex was put into operation, without issuing a title. According to the new rules, this is not possible.
The government has no plans to tighten the rules, as such actions negatively affect all sectors of the market. On the contrary, the authorities are focused on closing legal gaps and creating a transparent, fair and safe environment for both new investors and local buyers.
Arkady Osipyan:
I must say that all the sanctions that were provided for by the law of 2024 remained on paper, in fact they were not applied.
For example, a restriction was introduced - no more than 80% of apartments in one complex should be owned by foreigners. This limit has not been lifted de jure, but de facto no one is monitoring it.
Of course, such a law should not have been passed, as it undermined the trust of foreigners. However, the authorities do not want to allow the market to fall, they realized the mistake and will not repeat it.
What is happening on the market now? If a year ago investors were urgently getting rid of apartments, now they are quietly waiting, there is no need to sell at a large discount anymore.
What is already being seen is that the market will take over soon, and there will be fewer cheap second-hand items, so the best time to buy at a good price is now. There are several dozen very high-quality new facilities for sale. "Secondary" can be called conditionally, since no one lived in most of them at all. Prices have decreased over the year, and they are still displayed at these prices. Smart investors are buying during this period.
I'll give you an example. Let's say investors bought an apartment in early 2022 for 50,000-60,000 pounds. Currently, the developer has such facilities, say, in neighboring buildings under construction, offered for 120,000-180,000 pounds. Private sellers, let me remind you, who bought cheap, are ready to give up such a property for 90,000-100,000 pounds. It is not surprising that today 80% of transactions are in the secondary market.
For this reason, developers often put a stick in the wheel, forbidding owners who do not yet have a title to sell below a certain price?
Arkady Osipyan:
Yes, there are companies that do that. We do not cooperate with such people, or we cooperate only if the buyer wants an apartment in the complex of this developer and purchases the object for himself, and not for resale.It is better not to delay and to reissue the title, to pay taxes. The administrative fee for the renewal of the title: 1,500-3,000 pounds, usually it is already included in the price of the apartment.
Has the outflow of foreigners stopped?
Arkady Osipyan:
As for the outflow of foreigners, it was rather natural. Those who did not intend to stay for a long time left, but came for 1-2 years, digital nomads, for example... Rather, migration returned to normal, after all, the infrastructure of Northern Cyprus was not ready for such a population surge.
There are still quite a few foreigners left. Our children still have a lot of Russian-speaking classmates in schools, and you hear Russian all the time in shops and on beaches.
The TRNC authorities have also relaxed the requirements for obtaining a residence permit, right? What are the benefits?
Arkady Osipyan:A residence permit is now issued for 5 years for title holders, and it is not necessary to provide a bank statement confirming their financial viability. Let me remind you that the registration of the title takes about 2 years.
In addition, owners over the age of 60 who do not even have a title can also obtain a 5-year residence permit without bank statements.
For other homeowners who haven't had time yetto issue a title, it is necessary to show the presence in the account of an amount equal to 1 minimum wage for 1 month per family, and for a year, therefore, 12 minimum wage, that is, 12,000 euros. Children do not need a residence permit in Northern Cyprus. The sources of income can be any, the main thing is the availability of funds.
For renters, the amount that must be in the account of the applicant for a residence permit is more.
Aysun Teche:
Previously, the initial residence permit was issued for a period of 1 year, and then it could be extended to a maximum of 2 years. To apply for a residence permit, citizens of foreign countries had to confirm the availability of funds in their bank accounts.
However, now property owners with a title can directly apply for a residence permit for a period of 5 years without having to confirm any income.
The old system is still in effect for those who have not yet received permission to purchase real estate from the Ministry.
For a long time, the status quo has been maintained in relations between Northern Cyprus and the Republic of Cyprus, which allows the real estate market of the TRNC to develop. However, about a year ago suddenly began harassment in Southern Cyprus against realtors from the northern part of the island. What is the reason for this? What are the possible consequences for home buyers?
Aysun Teche:
The situation was settled long ago by a previously established commission called the Real Estate Commission, which included both sides and the United Nations. However, last year, several people who were building and selling real estate on the northern part of the island were arrested on the southern side. Apart from the fact that these arrests are contrary to international law, they have nothing to do with investors and new owners.
This is a completely illegal and intimidating step that is not based on international norms.
Contrary to false claims that Interpol has issued arrest warrants for people purchasing property in Northern Cyprus, there is actually no prohibition on real estate transactions.
The European Court of Human Rights (ECHR) has recognized the Real Estate Commission in Northern Cyprus as the competent body for resolving property disputes, which allows former landowners, Greek Cypriots, to seek compensation, restitution or exchange.
Tens of thousands of foreign citizens from the UK, Europe and the Middle East legally own real estate in Northern Cyprus without the risk of confiscation.Arkady Osipyan:
Southerners, in fact, have always been jealous of the successes of Northern Cyprus. For them, this is an outflow of money and tourists. Of course, they do not recognize our transactions, this is not news to anyone, but this is a different jurisdiction, why should they recognize or not recognize?
As for the situation with the realtors who were arrested, the question arises why they did this. They sold real estate in Northern Cyprus openly, then, when they might have had problems here, they moved to the southern part to sell there...
The situation will not affect private buyers.
What are the 3 main myths about Northern Cyprus? Tell us briefly why these are myths and not reality.
Arkady Osipyan:
The most common myth is that transactions are illegal. In fact, the European Court of Human Rights recognized the legality of the transactions 20 years ago.
30 years ago, there were mainly fields here, that is, most of the development is on former state lands. As for the issue of property that used to belong to the Greeks, it has long been settled. In 2004, after foreigners were allowed to buy real estate, a state commission was established. The former owner of the land cannot address you as the new owner, but applies to the commission. Many have already received compensation from the state. I would like to emphasize that this does not concern either the developer or the buyer of the property.
The second myth is "you have a war there, everyone is walking with machine guns." In fact, the war was 50 years ago and lasted for several days. The current conflict in the Middle East does not affect us either. In reality, Northern Cyprus is quieter than in many other countries of the world. No stealing here. We don't see any military or police officers.
The third myth is that the TRNC is a province of Turkey. That's not so. It has its own laws based on British law, and they are different from Turkish ones. Northern Cyprus is more Europeanized. We have many British schools, and there are 4 currencies in use - the euro, the dollar, the lira, and the British pound.
Aysun Teche:
The first myth: only real estate with a Turkish certificate of ownership is safe.
In fact, there are reliable and internationally recognized categories of real estate in Northern Cyprus that investors can safely purchase.
The second myth is that you can get citizenship by buying a house in Northern Cyprus. The citizenship of the TRNC can be obtained only through marriage with a citizen of the country or through a long-term residence permit (both methods require compliance with certain conditions specified in the legislation). It is impossible to obtain citizenship of the TRNC through investments in real estate.
The third myth: the TRNC is an unrecognized state.
Although the TRNC is recognized only by Turkey, Northern Cyprus is a full-fledged state with a democratically elected government and an independent judiciary, a steadily developing tourism and real estate sector, and internationally accredited higher education systems. Northern Cyprus has the status of an observer State in regional organizations such as the Organization of Turkic States (OTS).
What are your 3 warnings to foreign home buyers in Northern Cyprus? As far as I understand, is it worth avoiding buying apartments near military bases?
Arkady Osipyan:
Yes, foreigners are not given a title to real estate in houses near military bases. Previously, this was not critical, since the title was not mandatory, but now it is important. We do not offer such facilities to our clients, with the exception of buyers from Turkey. I also do not recommend contacting illegal realtors. In the wake of the boom, many bloggers went into real estate, now they've gone to teach yoga...I also do not advise contacting the developer directly. Representatives of the company may keep silent about the disadvantages, they will not tell, for example, that they have bonded assignment conditions.
Aysun Teche:
Projects with shared title deeds and incomplete official permissions should be avoided, as they may lead to problems in the future.
I recommend that you seek advice from a reliable and professional real estate company in order to choose a suitable property and go through all legal procedures, including the purchase procedure, registration of the contract and transfer of ownership, with a lawyer registered in the TRNC.
Are there any restrictions on short-term rental apartments in Northern Cyprus, as in Turkey? Is there a demand for rental among tourists?
Arkady Osipyan:No, there are no legal restrictions.
Thanks to the casino, housing is available for rent all year round. In winter, the resorts of Northern Cyprus do not die out.
Short-term studio rental in a complex with infrastructure costs about 100 euros per day, in a house without infrastructure the rates are much lower: 2+1 is rented for about 80 euros per day.
Long-term rent of a 2+1 apartment costs from 400 500 euros, in a cooler complex from 700 euros.
Aysun Teche:
There are no restrictions on short-term rentals in Northern Cyprus. The demand for it among tourists is especially high in the summer months. Although Northern Cyprus is generally considered a tourist destination, it is important to note that short-term rentals generate higher income in resort areas. At the same time, real estate in the city center, as a rule, provides stable and permanent income from long-term rentals.
Do you recommend Northern Cyprus today for relocation or investment? Why, in short?
Arkady Osipyan:
Now is definitely a favorable period for investments, as I have already said. Such moments should not be missed!
I've already talked about secondary prices.
If you choose a new building, then there will be good conditions for an interest-free installment plan. It can take up to 5 to 8 years, and there are few markets where this can be found. The initial payment is only 30 40%.
Northern Cyprus is a great option for moving, I've been living here for 13 years now.Tranquility, climate, good education, the clearest sea is ideal for families with children!
Aysun Teche:
Northern Cyprus has great potential. With its magnificent nature, pleasant climate, clean beaches and historical attractions, it offers excellent opportunities for both living and investment.
The division of Cyprus remains a political issue, not a legal obstacle to economic activity. Investments in Northern Cyprus are legal, subject to due diligence.
Thank you for the conversation with our partners:
Arkady Osipyan, Head of the company's Sales DepartmentLeverage Investments
Aysun Tecce, Marketing Director, and Zuhal Deniz, Marketing Manager, companyTEKCE Real Estate
