Turkey Property

THE ACQUISITION OF PROPERTY IN TURKEY

LEGAL BASIS FOR THE ACQUISITION OF PROPERTY IN TURKEY

Persons with foreign nationality can buy any kind of property (house, business place, land, field) within the legal restrictions.

Persons with foreign nationality who buy property without construction (land, field) have to submit the project which they will construct on the property to the relevant Ministry within 2 years.

Format of the Contract:

Turkish laws and regulations in force, dictates that, transfer of ownership of a property is only possible with an official deed and registry which is signed at the Land Registry Directorates.

For a temporary ownership, it is possible to sign a “sales commitment agreement” before a notary. However, legal ownership is not possible with ony the “sales commitment agreement” or any other kind of sales agreements.

Legal Restrictions for Foreigners in Buying Property in Turkey:

. Max. 30 hectares of property can be bought in Turkey in total and can acquire limited in rem right.

. Foreigners cannot acquire or rent property, If it is within military forbidden zones and security zones.

. A foreigner can acquire property or limited in rem right in a district/town up to 10 % of the total area of the said district/town.

. Legal restrictions do not apply in setting mortgage for real persons and commercial companies having legal personality which are established in foreign countries.

The ownership of the property is banned in Turkey in following cases:

. if the properties are acquired in violation of laws;

. if the relevant Ministries and administrations identify that the properties are used in violation of purpose of purchase;

. if the foreigners do not apply to the relevant Ministry within a determined time in case the property is acquired with a project commitment;

. if the projects are not materialized within time.

APPLICATION AND PROCEDURE FOR ACQUISITION OF PROPERTY IN TURKEY

The citizens of the countries which have bilateral agreement with Turkey can acquire property or limited in rem right in Turkey.

Application

The property owner or his/her authorized representative must make a initial application to the Land Registry Directorate. In case the initial application remains incomplete, the file will not be completed.

Necessary Documents:

a) Tittle deed of the property.

b) ID card or passport (Together with its translation).

c) “Property Value Statement Document” to be taken from the relevant municipality.

d) earthquake insurance policy for the buildings (house, office, etc.)

e) 1 photo of the seller, 2 photos of the buyer (photos to be taken within last 6 months, 6x4 size)   

f)  (If needed) A certified translator and 2 witness.

g) (In case of the power of attorney is done abroad)  The original or certified copy of the "power of attorney" and its approved translation.

Financial Aspect of the Procedure:

a) Both seller and buyer have to pay the tittle deed fee, calculated according to the selling price which cannot be less than the “Property Statement Value” to be issued by the relevant municipality.

b) Circulating capital fee is to be paid.

c) During the phase when the Land Registry Directorate inquires with the relevant military authorities whether the property is located within a military or special zone, circulating capital fee for the map which is prepared by the Cadastre Directorate, has to be paid.  

Other points to be noticed by foreigners who wish to buy a property in Turkey:

- To understand whether there is any restriction on the property, like arrestment, mortgage or any barrier which prevents the sale of the property; the foreigner has to make a search at the Land Registry Directorate, 

- If the application by the foreigner for buying a property is rejected, the act can be appealed to the relevant Regional Office of the Land Registry Directorate.

- It is advised that foreigners do work with persons/companies who/which are expert and reliable.

- Having a residence permit is not a condition for the foreigner who wishes to buy a property in Turkey. Buying a property does not, likewise, grant the foreigner obtain residence permit in Turkey.

- If there is a disagreement between the sides on the sale of the property, the case has to be brought before the Turkish courts by referring to judicial authorities. 

ACQUITION OF PROPERTY BY FOREIGN COMPANIES IN TURKEY

. The Article 35 of the Land Registry Law No 2644 governs the acquisition of property by the  companies which are registered in Turkey. 

a) Foreign commercial can acquire property and limited in rem rights within the provisions of special laws. These special laws are:

- Petroleum Law No. 6326

- Law on Encouragement of Tourism No. 2634

- Law on Industrial Zones No. 4737

b) No restriction is practised in favor of the said commercial companies in establishing mortgage.

c) Other foreign corporations (i.e. foundation, association)  cannot buy property and acquire limited in rem right.

Acquisition of Property by Companies with Foreign Capital:

The companies with foreign capital,

. If the foreign investors hold, individually or collectively, 50 % or more shares of the said company,

. If the foreign investors do not hold any share  of the said company, but have a right to assign or remove the managers of the said companies on the condition that the said company has a legal personality in Turkey,

could buy property in Turkey in accordance with Article 36 of Land Registry Law No. 2644.