The North Cyprus economy is based on a free market system, with the private sector being the backbone of economic activity. The TRNC ( Turkish Republic of North Cyprus) government pursues an economic policy aimed at stimulating and promoting favorable investment conditions and private initiative.

North Cyprus has an effective legal system, and a rigorously supervised financial authority, with a considerable amount of foreign investment taking place. In general, the North Cyprus legal system (as well as its financial and fiscal systems) is based on British law. English case law is closely followed and most statutes regarding property and other commercial matters are based on English Laws. The laws regarding companies closely resemble those of the UK.

Purchase of property by foreigners is perfectly legal, although there are certain restrictions that prospective buyers should be aware of. For example, foreigners purchasing land for the construction of a private residence are limited to one “donum” (approximately one third of an acre or almost 1,400 square meters). However, for those wanting larger amounts of land, there are legal ways to accomplish this; for example, by adding family members as additional owners or by forming a local company and buying the land in its name.

There are several types of property in North Cyprus that are relevant for purchase by foreigners, and each has its own associated land deed and legal definitions. The category of the property determines the type of deed that is applicable.

Property whose legal ownership can be traced back to British or other foreign citizens prior to 1974 will have a “Clean Freehold Title” clearly stating the fact of foreign ownership. This type of title deed is internationally recognised and is absolutely safe. Property whose legal ownership can be traced back to Turkish Cypriot citizens prior to 1974 will also have a Clean Freehold Title that is internationally recognised as well, and is also completely safe.

An “Absolute Possession Document” issued by the Turkish Republic of North Cyprus (TRNC) is used for property or land that was under Greek Cypriot ownership prior to 1974. This refers to property that was involved in the exchange of assets between Greek Cypriots who moved south after 1974, when the island was divided into Greek and Turkish jurisdictions, and Turkish Cypriots who moved north. Each of these communities relinquished properties in the area of the other. Turkish Cypriots who left property in the south signed over their title to the TRNC government, which holds them in trust pending a negotiated settlement between the governments of North and South Cyprus. In return, they received compensation in the form of property that was previously owned by Greek Cypriots in the north with an equivalent value to the property they left behind in South Cyprus, and for which the TRNC government issued a title deed for the recompensed property. This type of property is freely transferable to foreigners. Because the island is in the midst of a process aimed at a final agreement and negotiated settlement for mutual compensation of the 1974 refugees from both sides, this type of title deed can be considered safe for property purchase by foreigners.

There are many law firms and solicitors in North Cyprus who are reputable and experienced in handling property purchases by foreigners, and one of these should be appointed to represent you before entering into any such transaction. The solicitor will be able to provide legal advice; check the construction availability of land (from the State Planning Office); examine and confirm the title deed; handle the sale contract and payment terms, as well as the transfer of money; make sure that your name is entered into the Land Registry as owner of the property; and protect you throughout the transaction by ensuring that all local laws have been properly complied with.







Find here North cyprus lands guide- all the information about lands in north cyprus and how to buy northern cyprus lands and properties .