Turkish Republic of Northern Cyprus Businessmen's Association criticizes changes to Real Estate Acquisition Law

ŞAD Criticizes Amendments to the Immovable Property Acquisition Law

İŞAD (The Turkish Cypriot Businessmen’s Association) has criticized the amendments to the Immovable Property Acquisition and Long-Term Leasing (by Foreigners) Law, which came into effect following its publication in the Official Gazette on May 21, 2024.

İŞAD expressed concerns that certain provisions of the new law are impractical and contradict the principle of the rule of law. The association called for the law to be reviewed and re-enacted.

In its statement, İŞAD emphasized that the real estate sector is one of the main pillars of the country’s economy. Concerns were raised that many businesses reliant on this sector could face serious economic and social challenges due to the potential negative consequences of this law.

The statement also addressed the longstanding issues related to the acquisition of property by foreigners, noting that while new legislation was necessary, the amendments that have come into force are far from resolving the existing problems.

İŞAD pointed out that many articles of the law were not clearly regulated, which could lead to chaos in their implementation, and therefore called for the law to be reviewed.

Finally, İŞAD stressed that certain provisions of the Immovable Property Acquisition and Long-Term Leasing (by Foreigners) Law are in violation of the TRNC Constitution, and it was announced that a judicial process has been initiated in the Constitutional Court on these grounds.

The full text of İŞAD’s statement is as follows:

“We recognize that the real estate sector has become one of the main pillars of the country’s economy. However, a crisis in this sector could lead to serious economic and social disruptions, both for individuals and for the country as a whole.

The longstanding problems related to the acquisition of property by foreigners are well known. New legislation was needed, particularly to combat illegal sales, tax evasion, and difficulties faced by Cypriots in acquiring property.

However, the amendments to the Immovable Property Acquisition and Long-Term Leasing (by Foreigners) Law, published in the Official Gazette on May 21, 2024, are far from practical, unpredictable, discriminatory, and open to arbitrary interpretations. This contradicts both the fundamental principles of rights and freedoms recognized locally and internationally, as well as the principle of the rule of law.

Such legislation not only fails to eliminate existing problems but also creates new ones due to its unpredictability and the lack of clarity in many of its articles. This will lead to chaos in the implementation of the law.

For all these reasons, we demand the immediate review of the Immovable Property Acquisition and Long-Term Leasing (by Foreigners) Law, taking into account the opinions of all stakeholders, and its enactment in a manner that prevents arbitrary application.

In conclusion, we would like to note that certain articles of the Immovable Property Acquisition and Long-Term Leasing (by Foreigners) Law are in violation of the TRNC Constitution, and a judicial process has been initiated in the Constitutional Court on these grounds.”