With all the votes counted from Sunday's elections, the opposition National Unity Party won 44 percent of the vote. It beat the ruling Republican Turkish Party by nearly 15 percent.
The opposition is calling for a full two-state model for Cyprus that has been rejected by Greek Cypriots.
The ruling party, led by Turkish Cypriot leader Mehmet Ali Talat, wants a federation of two ethnic regions for Cyprus. Mr. Talat began reunification talks with Greek Cypriots last year.
Mr. Talat will retain his leadership post despite his party's loss in Sunday's polls. But many of his allies, who now control the Turkish legislature, will be replaced.
Agencies