Real Estate

Over the last few years, thanks to its historic landscape, as well as warm climate, Northern Cyprus has turned into one of the favorite locations for real estate investments. Every year, this Mediterranean island, situated very close to Turkey, attracts visitors from all corners of the world. This interest has elevated the real estate market in equal measure over the last few years, turning Northern Cyprus into a prime location for real estate investors. With its vast beaches, unparalleled historic legacy, climate and island culture, Northern Cyprus attracts investors from a variety of countries whether for large or small projects. A few of the Island's prime investors are: The UK, Germany, Sweden, Norway, Finland, Israel and Russia. These investments in real estate development help the island develop. In Kyrenia, Nicosia, Famagusta, Güzelyurt and Lefke, Northern Cyprus offers a vast array of real estate investment alternatives for all types of tastes and budgets, ranging from mass residential projects to ultra-luxurious villas. Developers in Northern Cyprus place utmost importance in utilizing the best construction technologies and materials. Northern Cyprus developers have completed several award-winning projects over the last few years and have helped many buyers attain the homes of their dreams. Northern Cyprus offers opportunities to those who wish to retire in a warm climate, those wishing to purchase a vacation home, or individuals who invest in the island and obtain residency rights and settle in Northern Cyprus. Government policies in Northern Cyprus have also made education a priority. With at least one university in every city in Northern Cyprus, every year local universities attract students from all corners of the world. Parallel to the education sector, Cyprus offers unique opportunities to real estate investors who seek to obtain regular rental income while enjoying a low tax rate.

Gürkan & Gürkan Advocates and Legal Advisers builds on its vast experience obtained through its representation of local and international developers, investors, managers, constructors and financiers over the years and offers legal consulting services to its clients across Northern Cyprus during purchases, sales, project management, construction, investment selection, as well as other areas relating to real estate.

Our Firm undertakes a detailed study of the ownership rights, construction licenses and all other documentation of an apartment flat or villa identified by its clients, ensuring a problem-free investment. Instead of using off-the-shelf sales contracts, ours are tailor made by our expert team, in line with the requirements of our clients. After the signing process, managed in close coordination with our clients, these are filed with the District Lands Office. Our Firm offers speedy solutions and a transparent procedure to clients wishing to purchase real estate. We have provided legal consulting services to thousands of individuals in Northern Cyprus in real estate and our firm is a leader in the field. Gürkan & Gürkan Advocates and Legal Advisers makes it a priority to work with utmost care to ensure that clients attain the house of their dreams.

Some of the major services we offer as part of this effort are:

Legal consulting services to clients who desire to purchase real estate in Northern Cyprus
Legal consulting services to clients who desire to sell their real estate in Northern Cyprus
Detailed study and preparation of real estate sales contracts
The submission of the required application for our foreign clients to enable them to purchase real estate in Cyprus, per Article 109, to the Ministry of the Interior and the follow up of the process
Registration of the sales contract with the District Lands Office and the de-registration of contracts
Consulting services regarding the taxation applicable to the purchase and sale of real estate
Trustee services
Applications and follow up on transfer requests submitted to the District Lands Office
Preparation of rental agreements and the payment of rental tax

Gürkan & Gürkan Advocates and Legal Advisers provides trust-related services to local and international clients, in line with their needs in Northern Cyprus. Our Firm has innovative and reliable service offerings that enable our clients and investors to use Trusts and secure their assets, as well as real estate, in Northern Cyprus.

Gürkan & Gürkan Advocates and Legal Advisers has a team of experts, specializing in Law numbered 35/2010 on Property Ownership and Maintenance Act and has used this expertise to prepare specialized service management contracts for residents as well as leading construction companies. Our attorneys consider the unique circumstances and requirements of each case to prepare extensive service management contracts for mass residential, large developments and apartment buildings for their management as well as upkeep. Furthermore, we provide legal consulting services to construction companies, building managers, maintenance firms and property owners on how to elect a building manager, the convening of the committee of residents, how to hold the annual meeting, recordkeeping as applicable to such meetings and calls for extraordinary meetings, in compliance with 35/2010 on Property Ownership and Maintenance Act. Our Firm also provides services relating to the resolution of disputes arising between maintenance companies and homeowners, as well as the collection of maintenance fees.

Gürkan & Gürkan Advocates and Legal Advisers provides project consulting services to investors desiring to make large-scale investments in Northern Cyprus for the construction and sale of mass residential projects. Our detailed and comprehensive array of solutions, with which we support the project from beginning to end, include: identification of the right plot of land for our clients’ projects, research on the legal and construction status and any roadblocks concerning this land, design of the project with the right team of architects and engineers and getting the visa on the project, getting the plans approved, obtaining the construction permit, identification of the right target market and buyer profile for the project and cooperation with a sales team, signing contracts with real estate agents for the promotion and sale of the project, preparation of sale contracts, identification for a suitable maintenance company for the project and the preparation of the maintenance contract, establishment and registration of the investment company, crafting of accounting strategies that will provide a tax advantage and collaboration with the right accountants.

Gürkan & Gürkan Advocates and Legal Advisers also actively pursues the interest of either the buyer or the seller within a legal framework, when the agreement is violated by the other party and therefore damage suffered. Should the dispute become a matter for the courts, our team of experts specializing in real estate disputes and breach of contracts evaluates each case based on its unique set of circumstances and works to obtain the highest possible compensation for its clients, as quickly as possible. It is an utmost priority of our Firm to closely follow court cases regularly, by staying on top of the daily court schedule. We have a history of successful conclusion of hundreds of real estate cases and effective collection of the judgment debts for our clients, by way of the right legal method.

Gürkan & Gürkan Advocates and Legal Advisers offers legal consulting services to the owners of residential or commercial real estate in Northern Cyprus, on the law relating to rentals and other applicable regulations. Our team of experts will prepare rental agreements upon the request of either the landlord or the property owner, while also offering legal consulting services on surety bonds and guarantees, short and long-term rental relations and the collection of rent. Our Firm also facilitates, with great care and attention, court cases involving the violation of rental agreements, with the intent to repossess the property in question and collect unpaid rent as speedily as possible. Our Firm provides consulting services and shares alternative solutions, where the owner of the property desires to terminate the rental agreement on the right legal grounds. Additionally, we provide reliable and accurate advice to real estate owners, whose property is illegally occupied, for the eviction process.

FREQUENTLY ASKED QUESTIONS

When you a can use the right of exemption ? Seller has only a right of exemption if she/he/it is not deemed to be a professional and if it is the first sale and/or never has been used the right of exemption before, then seller can use this right to be exempt of capital gains tax.
What is a “professional seller” ? If a seller, regardless of whether real person or legal entity has sold more than 3 immovable properties within a year, then a seller is deemed to be a professional.
What are the taxes for the transfer of the title deed ? If a seller is deemed to be a professional, then seller should pay 4% of capital gains tax. If a seller is not a professional, then seller will only be liable to pay 2.8% of capital gains tax.
Can a buyer whose title deed is not registered in his/her name transfer the title deed? Technically No. If the title deed is not registered in the name of buyer, then buyer has no right to transfer the title deed.
When can I sell the property I have purchased? Subject to the mutual agreement of the original buyer and the original seller, a property purchased through a contract of sale can be sold to a third party at any given time after the execution of the original contract of sale.
Can I purchase an immovable property jointly with my spouse / partner / child / business partner? Provided that the person(s) to be named as purchaser on the contract of sale do not already have a contract of sale or title deed registered to their name, an immovable property can be jointly purchased by multiple persons. This person can be your spouse, partner, child, business partner or any other person of your choice.
Why do I need to obtain a criminal record? Every person that is not a TRNC citizen must make a permission to purchase application to the TRNC Ministry of Internal Affairs in order to be able to take the title of an immovable property into their own name.
As a foreigner, is there a limitation as to the number of properties that I can buy? A foreigner is currently allowed to purchase and hold the legal title of one property. It is possible to purchase more properties only through a trust.
Is registering my property on trust safe for me? Trust deeds are executed which specify that the beneficial and true owner of any such property is the beneficiary. Any violation of such deed causes the trustee (person holding the property on trust for the benefit of the beneficiary) to be liable in damages
Do I have to be personally present at the District Lands Office for any immovable property which I intend to sell or purchase? It is not required to be personally present at the District Lands Office for buying or selling process. It is possible to effect this process via your lawful representative.
Is it possible to register a contract of sale if there is more than one person as the purchaser? It is possible to register a contract of sale if there is more than one person as the purchaser in a written contract of sale.
I have lost my original title deed. What can I do to obtain the original copy? If you have lost your original title deed for your immovable property, it is possible to obtain the original by making an application in person or via your legal representative to the District Lands Office where your property is located by paying the mandatory fees to the District Lands Office.
How can I learn if my immovable property or any immovable property which I intend to purchase has a right of way? It is possible to obtain information whether your immovable property or any immovable property which you intend to purchase has a right of way by virtue of a search application which will be made by an advocate following the payment of mandatory fees to the District Lands Office.
Is it possible to obtain online information regarding an immovable property located in TRNC? The way of obtaining an information regarding an immovable property located in TRNC is possible by virtue of a search application which will be made by an advocate following the payment of mandatory fees to the District Lands Office. District Lands Offices do not have an online system for an immovable property located in TRNC.
Can someone from South Cyprus claim my land as theirs showing that they owned it pre-1974? Post-1974 war, some Turkish Cypriot land is left at the South side of the border and Greek Cypriot land at the Northern side of the border.
Is it risky to make a property purchase with exchange title deed? Following precedents, laws and set up of establishments backed up by the EU, there no longer remains any difference between Turkish and Exchange title deeds. Regardless of what type of title deed is help, the holder is the owner.
What are the units of measurement used in measuring immovable property in the TRNC? The area measurement units of donum, evlek and square feet are frequently encountered in the sale and purchase of immovable property in the TRNC.
Do I need to wait for the permit of the Council of Ministers to move to the house I bought? No. Once the construction of your house is completed, there is no time limit in taking over possession and moving in.
Can my spouse and I buy a property each? Yes. Until recently, married couples were considered as one person, and although their acquisition rights were limited to only one immovable property...
What are the restrictions on the acquisition of an immovable property by overseas citizens in TRNC? Overseas citizens have the right to buy 1 house (1 apartment flat or 1 house or 1 villa) located on a piece of land not exceeding 5 donums not exceeding 1 donum within the borders of Northern Cyprus.
What is the procedure to be followed by an overseas citizen who wishes to buy an immovable property in Northern Cyprus? All overseas buyers who are not citizens of Northern Cyprus are required to get permission from the TRNC Council of Ministers in order to register any immovable property in their names...
Can the acquisition of an immovable property be followed on behalf of someone outside of Cyprus? Persons outside of Cyprus or those who do not personally follow the proceedings may provide their attorneys with a ‘power of attorney’ and carry out the necessary action for the acquisition of the property in question.
What kind of approval process applies to foreign nationals who desire to purchase real estate in Cyprus? In order to register a real estate in their name, buyers who are not citizens of Northern Cyprus need an approval from the cabinet (of ministers). Our office will follow up all related matters with the Ministry of Interior, where the application is submitted, with your provision of a form (available at our office), a copy of your passport and security clearance.
Can a person located outside of Cyprus follow up on the purchase process of real estate in his or her name? Individuals who are located outside of Cyprus or those who do not get involved in such follow-up personally can provide their attorney with a warrant of attorney, thus enabling the performance of all related tasks by the attorney.
How much is the stamp duty? Where is the stamp duty to be paid? The stamp duty corresponds to 0,5% of the sale value stated in the contract.
How does registering the sales contract protect buyers? After sales contracts are signed, they are registered with the local deed office. Such registration must be performed within no later than 21 days following the sale and can only be completed if the stamp duty of the sales contract has been paid.

All Frequently Asked Questions

PUBLICATIONS

Foreign Investor’s Guide- setting up a company in North Cyprus

One of the most important decisions you will need to make when setting up a private limited company in The Turkish Republic of Northern Cyprus is determining whether the company will be taking title of any immovable property. Not only will this decision have an impact on planning the corporate structure but it could also mean that in the absence of the appropriate corporate structure the company may encounter certain restrictions and requirements when acquiring property.

Attr. Deniz Avkıran
February 2023

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Real Estate