The Cyprus Turkish Business People’s Association (İŞAD) has raised concerns about the recent changes to the law on acquiring and long-term leasing of property by foreigners, which took effect on May 21, 2024.
According to İŞAD, the law is problematic because it is difficult to enforce, unpredictable, and could lead to discriminatory practices. They argue that this contradicts both local and international principles of rights, freedoms, and the rule of law, Kibris Postasi reported.
İŞAD also highlighted the importance of the real estate sector to the country’s economy, warning that many businesses dependent on this sector could suffer significant economic and social hardships through the potential negative effects of the law.
The statement also pointed out that problems related to foreigners acquiring property have been long standing. While acknowledging the need for new legislation in this area, İŞAD argued that the recent changes do not address the existing issues.
İŞAD emphasised that the law could lead to chaos in its application due to the lack of clear regulations in many of its provisions, and therefore, they believe the law should be revised.
Finally, İŞAD mentioned that some provisions of the law conflict with the Constitution of the Turkish Republic of Northern Cyprus (TRNC) and announced that a legal process has been initiated in the Constitutional Court to address these concerns.
Here is the full statement from the Cyprus Turkish Business People’s Association:
“The real estate sector has undeniably become a fundamental pillar of the country’s economy. Many businesses that depend on this sector could face serious economic and social crises if the sector enters into a downturn.
It is also well-known that problems related to foreigners acquiring property have existed for a long time. New legislation was essential to address issues such as unregistered sales, tax evasion, and difficulties for Cypriots in acquiring property. However, the changes to the ‘Law on Acquiring and Long-Term Leasing of Immovable Property (Foreigners)’ that came into effect on May 21, 2024, are impractical, unpredictable, discriminatory, and open to arbitrary interpretation. This contradicts both the fundamental principles of rights and freedoms, as well as the rule of law.
Such legislation will not resolve the existing problems. Instead, due to its unpredictability and the lack of clear regulations in many of its provisions, it will lead to chaos in implementation.
For all these reasons, we call for the immediate revision of the ‘Law on Acquiring and Long-Term Leasing of Immovable Property (Foreigners)’ in a way that incorporates the views of all stakeholders and prevents arbitrary applications.
We also want to point out that some provisions of the law are in conflict with the TRNC Constitution, and a legal process has been initiated in the Constitutional Court accordingly“.
