Northern Cyprus residents can now apply to restructure tax and municipal fee debts from 2023 and earlier. Learn which taxes are included, how municipalities are responding, and what deadlines apply.
New Tax Relief Law in North Cyprus Offers Debt Restructuring Until 2025
In a significant policy move aimed at easing the financial burden on residents, the government of the Turkish Republic of Northern Cyprus (TRNC) has issued a new Decree with the force of law. Published in the Official Gazette on July 28, this regulation allows individuals and businesses to restructure unpaid taxes and municipal fees from 2023 and earlier.
Residents have until December 30, 2025, to submit their restructuring applications.
What Debts Can Be Restructured?
The decree covers a wide range of financial obligations, including:
- Income tax
- Corporate tax
- Value-added tax (VAT)
- Property tax
- Various municipal service fees
However, the implementation of the restructuring is not automatic. Each municipal council must approve participation in the program before it can be applied locally.
Mixed Responses from Local Municipalities
So far, reactions from municipal authorities across North Cyprus have varied:
- Güzelyurt officials are open to the public’s opinion and may bring the decision to a vote if there is enough community interest.
- Gazimağusa (Famagusta) supports the restructuring plan and intends to discuss it at their next municipal meeting.
- Gönyeli and Alayköy councils previously rejected a similar initiative and have not indicated a change in stance.
- Lefke and Beyarmudu mayors expressed concerns about fairness toward citizens who have paid their taxes on time, and decisions are still pending.
- Kyrenia (Girne) stated that such a mechanism has never been applied before and that there are no current plans to implement it.
This localized decision-making process means that the availability of restructuring options depends on each town’s policy.
What Should Residents Do?
Residents and business owners in North Cyprus are encouraged to:
- Follow announcements from their local municipal councils
- Monitor upcoming council meetings and decisions
- Submit restructuring applications within the legal deadline of December 30, 2025, if applicable
This decree represents a broader effort by the TRNC government to provide financial flexibility and relief following recent economic challenges, but success depends heavily on local governance. northcyprusinvesting.com, Investra.io