In May 2026, the Turkish Republic of Northern Cyprus (TRNC) brought Decree-Law 63/2026 into force, reshaping how foreigners acquire property. Most coverage repeats the same ownership limits. This guide covers what the others miss: the four genuinely new mechanisms in the law, namely the Right of Use Certificate, the Licensed Intermediary Investor, the €10 million investment definition, and the 80% project cap, and exactly how each one affects a foreign buyer.
What is the Right of Use Certificate in North Cyprus?
A Right of Use Certificate (Kullanım Belgesi) lets a foreigner who exceeds the legal acquisition limit keep using a property for 10 years while legal ownership stays with the seller. It grants the right to use and benefit from the property but does not transfer ownership. During the 10-year term it cannot be cancelled except at the holder's own request.
Key details:
The certificate becomes indefinite (not just 10 years) if the property falls under TRNC holiday-home legislation and is not cancelled.
It is only issued once the property's sale price has been paid in full.
The holder can resell the property and transfer it, but cannot transfer any other right attached to the certificate.
It cannot be issued for properties inside military forbidden zones or those covered by the Regulation on Restrictions on Foreigners' Property Acquisition.
The standard foreigner title-transfer fee applies when the certificate is registered.
Who this matters for: anyone who signed contracts for more properties than the new limits allow. Instead of losing the excess, you can convert it into a Right of Use Certificate during the transitional window.
What is a Licensed Intermediary Investor (Lisanslı Ara Yatırımcı)?
A Licensed Intermediary Investor is a new TRNC-licensed role created by Decree-Law 63/2026. It allows a person or company to take control of at least 10 residential units per year, off-plan or after final approval, in order to market and resell them to foreign buyers, without ever taking ownership themselves.
How the licence works:
The licence is issued annually by the relevant Ministry undersecretariat and runs for exactly one year from the issue date.
The application fee is twice the monthly gross minimum wage, paid into a Land Registry development account.
The licence is renewable each year if the holder still meets the qualifying criteria.
Stamped written agreements must be registered at the District Land Office within 1 month.
Units must be transferred to the foreign buyers within 2 years of the final approval certificate. If they are not sold and transferred in time, the units must be brought under holiday-home legislation, or the licence is cancelled.
Why it exists: it formalises the developer-to-foreign-buyer resale chain that previously operated in a legal grey area.
What counts as "investment" under the new North Cyprus property law?
Under Decree-Law 63/2026, "investment" means a minimum of €10,000,000 placed in tourism, education, health, industry, agriculture, technology, or research and development. Crucially, build-and-sell housing (yap-sat) is explicitly excluded and does not qualify as investment under the law.
What this means in practice:
A foreign company investing in a qualifying sector must deposit at least €10 million into a TRNC bank in the company's name.
That sum must be used to carry out the approved investment within 2 years (land purchase itself does not count toward it).
The investment is audited by the relevant Ministry and the Income and Tax Office.
A foreign-owned company can buy up to 80,280 m² of land for genuine investment purposes, far above the standard limits, provided it complies with the law's other conditions.
If a building meeting the investment criteria already has final approval on the land, the Council of Ministers may waive the €10 million test for that purchase.
What is the 80% rule for housing projects in North Cyprus?
The 80% rule sets a hard ceiling on foreign sales: in development-zoned areas, a maximum of 80% of any housing project may be sold to foreign buyers. The remaining 20% must stay available to TRNC nationals.
This works alongside a second anti-concentration rule for apartment buildings: within a single parcel, no more than half of the units may be bought by foreigners who are first-degree relatives, related by marriage, or of the same nationality.
Buyer takeaway: in popular developments, foreign-allocated units are now a capped resource. If a project is near its 80% threshold, availability for foreign buyers can close quickly.
Quick reference: the 4 new mechanisms at a glance
Right of Use Certificate. Lets you use an over-limit property while ownership stays with the seller. Key number: 10 years, or indefinite under holiday-home legislation.
Licensed Intermediary Investor. A new licence to control and resell units to foreigners. Key number: at least 10 units per year.
Investment definition. Sets the threshold for qualifying as an "investor." Key number: €10,000,000 minimum.
80% project cap. Limits foreign sales in development-zone housing projects. Key number: 80% maximum.
Frequently asked questions
Does a Right of Use Certificate give me ownership of the property? No. A Right of Use Certificate grants the right to use and benefit from the property for 10 years, but legal ownership remains with the seller. It is designed for buyers who exceed the legal acquisition limits.
Can I sell a property held under a Right of Use Certificate? Yes. The certificate holder retains the right to sell the property and transfer it, even without the original seller's consent, once all taxes and fees are paid.
Does build-and-sell (yap-sat) housing count as an investment under Decree-Law 63/2026? No. The law explicitly excludes build-and-sell housing from the definition of "investment." Only qualifying activity in tourism, education, health, industry, agriculture, technology, or R&D counts.
How much can a foreign company invest to qualify under the new law? A qualifying foreign investment requires a minimum of €10,000,000 deposited in a TRNC bank and used for the approved project within two years. Land purchase alone does not count toward this figure.
What is the maximum percentage of a housing project that can be sold to foreigners? In development-zoned areas, a maximum of 80% of a housing project may be sold to foreign buyers under Decree-Law 63/2026.
Published 23 May 2026
