The Northern Cyprus Turkish Republic has amended Law No. 39/2024 on the Acquisition of Real Estate and Long-Term Leases (by Foreigners) aimed at extending the deadlines for fulfilling obligations under current sales contracts. These changes came into force upon publication in the Official Gazette on November 20, 2024.
Why was there a need for change?
The application of Law No. 39/2024 revealed a number of problems:
• Foreign buyers located outside the country were unable to complete the purchase and sale process within the stipulated time frame.
• Difficulties in communication between the parties to the transaction prevented the payment of taxes and duties.
• The state suffered losses due to a decrease in budget revenues.
To resolve these issues, a decree was adopted to extend the deadlines, which will allow the completion of unfinished transactions and restore the stability of revenues.
Main provisions of the decree
1. Extension of deadlines:
• The deadline for registering sales and purchase agreements and submitting applications to the Council of Ministers has been extended by 90 working days from November 21, 2024.
• The validity period of the previous extension established by Decree No. 41/2024 has been increased by 75 working days from December 24, 2024.
2. Consequences of failure to meet deadlines:
• Buyers who do not complete the process within the specified period will lose the right to purchase the property. Previously issued permits will be automatically revoked.
• Sellers who withdraw from the contract are not subject to certain provisions of the law.
3. Goals of change:
The decree aims to prevent losses of budget revenues, collect taxes and contribute to the country's economy. In addition, the changes ensure that financial obligations are met to cover urgent government expenditures.
Impact of changes on the economy
Innovations contribute to:
• Reducing financial risks for the state.
• Increase in revenues from taxes and duties.
• Accelerating the completion of transactions, which has a positive effect on the investment climate in Northern Cyprus.
Conclusion
Extending the deadline for submitting applications and completing transactions for the purchase and sale of real estate is a necessary measure that takes into account the difficulties encountered by foreign buyers. These changes are aimed at maintaining economic stability and solving problems that impede the realization of the right to real estate. The new deadlines provide an opportunity for market participants to successfully complete transactions and contribute to the development of the region.
