GENERAL JUSTIFICATION

Law No. 63/2026, was published on 11th May 2026 with a 90-day validity which expires on 10th August 2026.   The planned amended/replacement law has not yet been passed in Parliament due to the recess.  Therefore, a new decree has been issued, Law No 89/2026 the Law on the Acquisition of Immovable Property and Long-Term Leasing (Foreigners) (Amendment), to ensure that the requirements are continued until amendments to Law No 52/2008 are agreed.

The main elements of the Law, which apply to Foreigners purchasing a single or a small number of properties are summarized below:

 

Rules for Foreigners’ Purchasing Immovable Property

(1) Foreigners may, subject to obtaining Permission to Purchase from the Council of Ministers, purchase the following:

(A) Land which is suitable for a building permit: The area of the land to be purchased may not exceed 1,338 m², and only 1 residence may be constructed; or

(B) Where the immovable property to be purchased is an apartment: Up to 3 apartments.

However, Citizens of states which recognise the TRNC (i.e. Turkish Citizens) may purchase up to 6 apartments; or

(C) Where the immovable property to be purchased is a detached house: The area of the land may not exceed 3,300 m², and a second house and/or apartment and/or residence may not be constructed on the land.

However, if the property has been constructed as a mass-housing development or residential site, the purchaser may purchase 2 two-storey detached villas.

However, Citizens of states which recognise the TRNC (i.e. Turkish Citizens) may purchase 3 two-storey detached villas.

Foreigners must register at the relevant District Land Registry Office, within 1 month, their agreements and/or sales contracts provided all taxes and fees payable by the buyer and seller arising from the purchase and sale transaction have been paid.

They must also apply for Permission to Purchase.  Otherwise, the contract made shall automatically be deemed invalid.

(2) Within 1 year from the date on which Permission to Purchase was approved the Transfer of the Title Deed of the Property must be completed at the District Land Registry Office.  If the transfer is not completed within the 1-year period The Permission to Purchase approval shall automatically be cancelled and deemed invalid.

(3) In cases where the buyer has taken a mortgage or payment plan, the 1-year period begins from the date when the full sale price of the property, has been paid. If the contractor, fails to fulfil its obligation and fails to transfer the title deed, the contractor shall be obliged to compensate the buyer to the extent of the loss suffered by the buyer.

However, the buyer and seller shall be obliged to pay all outstanding land-transfer fees within 75 working days from the date Permission to Purchase was granted.  If they fail to make the payment, the Permission to Purchase approval shall automatically be cancelled and deemed invalid.

If all taxes and fees have not been paid, the local authorities shall not provide a permanent or temporary water connection to the relevant immovable property, and the Cyprus Turkish Electricity Authority shall not provide a temporary or permanent electricity connection.

These rules do not apply to construction-site electricity connections and temporary water connections required during the construction of the building.

(4) If the property purchased is an apartment, >50% properties located on the same parcel may not be purchased by foreigners who are first-degree relatives or relatives by marriage and/or foreigners of the same nationality.

No more than 80% of the residences in any residential project constructed in areas open for development may be sold to foreigners.

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Transfer and Leasing of Property from One Foreigner to Another

The Principal Law is amended by adding the following new second paragraph to Article 12:

“However, a foreigner may, with the knowledge and approval of the Ministry, transfer an immovable property located in their possession or in their name to persons who are their first- or second-degree blood relatives or relatives by marriage, notwithstanding the rules contained in the section above.”

 

Non-Registered Sales Contracts

1. Sellers and foreigners who entered into sales contracts before the date on which the Amendment Law came into force must, within 6 months from 7th August 2026, go to the relevant District Land Registry Office and register the sales contract corresponding to their acquisition entitlement and apply to the Ministry for purchase permission.

2. Foreigners, who before 7th August 2026, entered into sales contracts exceeding their acquisition entitlement but did not register the contracts at the relevant District Land Registry Offices shall notify the Ministry within 6 months by paying a fee equal to 1% of the sales price stated in the contract.  Those who do not notify the Ministry within the allowed period, may subsequently make the notification by paying a fee equal to 3% of the sales price stated in the contract.

(3)        Foreigners who have completed the matters specified in paragraph (2) above may, after notifying the Ministry, register at the relevant District Land Registry Office the sales contracts made only for residences, excluding land sales, and, by requesting at the time of registration to benefit from the right to a Usage Certificate and paying the land-transfer fees, obtain the 10-year Usage Certificate in Annex 2.  With this registration, provided that ownership remains with the seller, the buyer shall be given a 10-year Usage Certificate.  For more information about usage certificates you should contact your legal advisor.

(4) Foreigners who obtained Permission to Purchase before 21st May 2024, and the seller who sold the immovable property to them, shall be obliged, within 6 months from 7th August 2026, to go to the relevant District Land Registry Office and complete the transfer of title.

(5) For the registration and transfer at the Land Registry of sales contracts made before 21st May 2024, where the foreigner is the buyer and the contracts exceed the acquisition entitlement applicable to foreigners for the purchase of immovable property, the existing contracts must be transferred in accordance with the rules of this Decree within 24 months, beginning after the expiry of the 6-month registration period.

(6) Contracts which have not been brought into compliance with the rules of this Decree within this period shall be deemed invalid.

(7) Trustee agreements relating to the acquisition of immovable property by foreigners which were made before 21st May 2024 must be registered at the relevant District Land Registry Office within 6 months from the date on which the Amendment Law entered into force.  Trustee agreements which are not registered within this period, or which have the effect of rendering the rules contained in the Amendment Law ineffective, shall be deemed invalid.

(8) If the transactions within the periods specified in this section have not been completed due to a fault arising from the administration, the Council of Ministers may extend the relevant period by a maximum of 6 months in order to enable those transactions to be completed.

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Applications with a Building Permit or Planning Approval

Within 2 years from the date of this Decree, where, before foreigners apply to the Ministry to purchase the relevant immovable property, it is not possible to establish condominium ownership or condominium easement in respect of the immovable property under the Law on Condominium Ownership and Condominium Easements, an application for the purchase of the immovable property may be made to the Ministry with a building permit or Planning Approval obtained from the Belediye Planning Department.

 

Transfer of Completed Residences Purchased by Sales Contract and Payment of Taxes and Land-Transfer Fees

(1) For residences which were purchased by sales contract before this Decree and are within the buyer’s acquisition entitlement, whose construction has been completed and which have been delivered to the buyer, the parties to the sales contract or the seller must, within 36 months from 7th August 2026, carry out the transfer of the residence at the relevant District Land Registry Office and, on the same date, pay all taxes and land-transfer fees.

(2) Persons who have a reasonable excuse preventing them from carrying out the transfer as specified in paragraph (1) above may, provided that they notify the relevant District Land Registry Office of their excuse by written application no later than 34 months from 7th August 2026, carry out the transfer after the 36-month period, provided that they pay all taxes and land-transfer fees required to be paid for the transfer of the residence.

The relevant District Land Registry Office must decide on the matter notified as a reasonable excuse within 15 days and notify the applicant of its decision in writing.

 

Transfer of Shares with the Approval of the Director of the Land Registry Department

Where, because of a technical obstacle arising from any of the shareholders of an immovable property acquired before 7th August 2026, condominium ownership or condominium easement cannot be established under the Law on Condominium Ownership and Condominium Easements and it is therefore impossible to obtain the title deed for the independent unit, the persons concerned may, if they apply to the relevant District Land Registry Offices within 2 years from above date, transfer their shares to other persons with the approval of the Director of the Land Registry Department.

 

Transfer of Immovable Property Purchased for Investment Purposes and in Which Investment Has Been Made under Law No. 52/2008

(1) Where, before 7th August 2026, an immovable property was purchased for investment purposes by a foreigner and Permission to Purchase was granted and investment had commenced, the Council of Ministers may, by granting purchase permission for the immovable property, permit the purchase by a Foreigner(s) at the date this Law enters into force, regardless of whether the investment has been completed.

In such a case, if the investment has not been completed, the purchasing foreigner must complete the investment within 2 years.  The investment shall be supervised and controlled by the Ministry responsible for the subject of the investment and the Tax Department.

(2) Paragraph (1) above shall be subject to the rules of paragraph (12)(B) of Article 8 of the Principal Law No. 52/2008, as amended.

 

Completion of Transactions Commenced in Accordance with Law No. 52/2008

Persons who, before 21st May 2024, acquired immovable property under the rules of the Principal Law No. 52/2008 and who were not considered foreigners, having applied to the relevant District Land Registry Office under the provisions concerning registration of sales contracts or acquisition rights, shall, notwithstanding the provisions of Law No. 39/2024, remain subject to the rules of the Principal Law No. 52/2008.