Foreigners wishing to purchase real Estate in Turkiye Need to Know
In Turkiye in Turkiye, the acquisition of title to property ownership can only be accepted after registration with the directorates of land registration.
Preliminary contracts for real estate, issued by notaries or signed by natural individuals, in writing, do not confer transfer of property per se. They only serve as an agreement for the transfer of ownership of the property; it is not the case that the property concerned is not transferred through these instruments.
Obligations such as mortgages, liens, or similar restrictions that may exist regarding the property, which could hinder selling it should be inspected prior to the initiation of procedures at the respective land registry directorate.
Inquiries about properties may be made online at parselsorgu.tkgm.gov.tr, where specific details of the city, district, quarter/village, map section, and plot may be used to look up the property. The basic information about the property’s real estate as well as its status and status, can be found online from any location in the world. Personal information about the owner isn’t accessible however.
Foreigners do not need to obtain a residence permit as a condition to purchase real estate in Turkiye. Foreigners who purchase property in Turkiye are issued renewable short-term residence permits under Law No. 6458 on International Foreigners and Protection.
Any legal or natural person planning to acquire real property in Turkiye must apply at the General Directorate of Land Registry and Cadastre together with the owner of the property. In addition, they can make an appointment with the Alo 181 Call Center, which is open 24/7, or visit randevu.tkgm.gov.tr to schedule an appointment and not have to visit directorates’ offices personally.
Turkish companies with foreign capital however it is recommended to first file an application with the Provincial Directorate of Planning and Coordination (PDPC) in the local governor’s office where the real estate is located. If they receive a positive answer from PDPC, they should then make an application for approval to the Land Registry Directorate. The companies can apply by mail, in person, or e-mail.
In Turkiye, the term “foreigner” can be defined as three categories with respect to the acquisition of real estate:
Foreign natural persons
Foreign legal persons
Turkish businesses with foreign capital
Article 35 of Law No. 2644 on Land Registry sets out provisions on the acquisition of real property by foreign natural and legal entities. Article 36 lays out the rules for companies that have foreign capital.
The countries whose citizens are capable of purchasing real property in Turkiye are decided through the cabinet of Ministers, who may additionally set specific conditions for purchase if appropriate.
If granted permission natural persons of foreign origin may acquire any real estate within areas where private property is allowed (residential commercial, commercial or agricultural land etc. ).
If the real estate purchased does not include any existing construction The owner of the foreign-owned property must apply to the relevant public administration within two years in order to plan a new project.
A natural person from a foreign nationality can purchase real estate and limited rights in property rem in Turkey that is up to 30 acres. It is possible that the Cabinet of Ministers may grant more areas if they believe it appropriate.
Natural people of foreign origin can not acquire and lease real estate within prohibited military zones or military security zones. However, they can acquire and lease real estate within security zones designated for special purposes with consent of the governor’s department.
The total amount of acquisitions by natural persons who are foreign-born cannot be more than ten percent total district area , if private property is allowed. Foreigners’ requests for acquisition is not allowed in the event that the ten percent limit is exceeded.
In Turkey only trading firms founded in accordance with the laws of their respective nations and possessing legal personality may acquire real estate and have limited rights in rem as legal entities of foreign origin. Legal entities other than trading firms (foundations organizations, foundations, etc. ), on the other hand, may not be able to acquire real estate, and they may not be entitled to the rem.
Real estate acquisition by trading corporations founded in foreign countries in accordance by the legislation of the respective countries and having legal status, on the contrary, can be granted in certain circumstances and is only permitted where it is permitted by the rules of international agreements or other special laws. Some of the codes specific to and that contain provisions in this subject are Law No. 6491 regarding Turkish Oil, Law No. 2634 regarding Tourism Incentive, and Law No. 4737 on Industrial Zones.
Note: In the case of mortgages, an exception has been made, allowing no limitation as to the mortgages that can be made on the property of foreign natural and legal individuals.
Companies that have been established in Turkey as legal entities are considered under the category of foreign-owned companies in accordance with the following criteria:
Foreign investors hold 50 percent or more the shares or
Foreign investors are entitled to select and deport all or a majority of board members
The companies can acquire property rights and limited rights in rem to engage in activities set forth in their articles of association.
For this purpose, companies must first apply to the governor’s office where the property is located.
On the other hand, if the real estate intended for acquisition is located in a prohibited military zone or a zone of military security or a military security zone, the acquisition is subject to the permission by the General Staff; and if the property is situated in the private security zone, the acquisition will be subject to the approval of the governor’s office of the area in question.
In the event of a successful settlement of the application to acquire real estate, the office of the governor will notify the business/enterprise as well as the Land Registry Office in writing so that the registration may be carried out.
The procedures listed below do not require approval from the governor’s office. Therefore, the application to the Land Registry Office may be directly submitted without requesting permission.
Creation of mortgage
Acquisition of real estate within the scope of cashing out a mortgage by the person who is the mortgage’s beneficiary
Transfer of real estate ownership and restricted rights in rem that arise out of mergers between companies and demergers
Acquisitions in industrial zones with organized structure, industrial zones, technology development zones, as well as free zones
Acquisitions realized due to the operations deemed as loans under the applicable banking legislation or for the purpose of collecting of receivables
In Turkey the rights of foreigners of inheritance is safeguarded. In the event of death of a non-native, the real estate owned by them will pass on to the heirs. If the inheritor is qualified to take possession of the property (if they are eligible in terms of nationality and if the overall limitation conditions per person and throughout the country permit) the person who inherits may retain the inherited property. Otherwise, such person is to transfer the property immediately. In the event of a delay the Ministry of Treasury and Finance must sell the real estate and reimburse the price to the beneficiary.
Natural persons from abroad have the option to gain Turkish citizenship by means of unique procedures when they purchase real estate worth USD 250,000 and more.
In this regard, foreigners:
Shall purchase real estate that is worth at less than USD 250,000.
Shall declare in the application to purchase, that they purchased the real estate for this purpose, the title deed should mention this, and the foreigner is required to declare that they will not sell the real estate for three years in the section on the form where declarations are made.
Once the land registry procedures are complete, the foreign national may apply to the appropriate authorities to obtain the right to citizenship or residency with the help of the certificate of eligibility that will be issued to the owner.
Land registry of the real estate, as well as information about villages/quarters, the map construction, plot and an independent section
The passport must be issued with a photo. nation of where the person is citizen (notarized as well as certified translations should be provided for passports and ID cards that are issued with other alphabets than the Latin alphabet)
If the process involves representation, the document that is required to represent (order regarding guardianship, letter of authorization and power of attorney etc.)
Document on the market value of real estate issued by the relevant municipality
A mandatory earthquake insurance policy has to be taken for the structures
A photo of the seller, and two images of the buyer (taken within the past six months, in the size 6×4 cm)
A certified interpreter is needed if the party does not speak Turkish
If the procedure is to be performed by a person who is a third party through a power of attorney that was issued overseas it is necessary that the authority must include an authorization regarding the procedure to take place. Besides, the power of attorney shall meet the following conditions:
The issue is handled in the name of Turkish consulates with discretion regarding real estate
Issued by competent authorities entitled to issue power of attorneys abroad
The language used is that of the country from which it was issued.
The package includes a photo (with an unmistakable seal and signature on the photo)
This includes the apostil, in the event that it is issued in a country that is a participant in the Hague Convention
Should have certification of the signature of an official who has signed the authority. the relevant authority and the signature and seal of this authority must be certified from the Turkish Consulate if this power of attorney was issued in a country which is not a party to the Hague Convention
The application should also provide an official notarized and certified Turkish language translation which fulfills the necessary requirements.
Extraordinary Acquiring Citizenship
With (b) prefixed by the initial paragraph Article 12 of the Law No. 5901 promulgated by the Supreme Court on July 28, 2016;
The applicants who are granted the residence permit pursuant to (j) in the 1st paragraph Article 31 under the Law No. 6458, through investing within the scope and amount that is determined by the President
Foreigners who hold the Turquoise Card
The possibility of acquiring Turkish citizenship upon the decision of the President of the Republic of Turkiye.
The definition of the scope and amount by the new rules published by the Official Gazette on the 18th of September 2018. The definitions below are as follows. Foreigners who satisfy any of the following conditions may be eligible to apply for Turkey citizen by investment, subject to the decision by Turkey’s President: Republic of Turkiye:
Setting a the minimum investment for fixed capital in USD 500 000 or similar foreign currency as verified from Ministry of Industry and Technology. Ministry of Industry and Technology
A property that is worth the minimum of USD 400,000 or equivalent foreign currency with the restriction of a title deed on its sale for at least three years as affirmed by the Ministry of Environment, Urbanization and Climate Change
In addition, the creation of jobs will benefit at least 50 people, as attested through the Ministry of Labor and Social Security
You must deposit a minimum that is USD 500,000 or an equivalent amount of foreign currency in banks operating in Turkiye with the condition that it is not withdrawn for at least three consecutive years, as affirmed in the Banking Regulation and Supervision Agency
The purchase of government bonds is the minimum of USD 500,000 or the equivalent in foreign currency on the conditions that they are not traded for more than three years as attested in Treasury and Finance Ministry. Ministry of Treasury and Finance
Buy real estate investment fund shares or Venture Capital Investment Fund shares for a minimum amount of USD 500,000 or an equivalent foreign currency under the condition that they’re not traded for at least three years, as certified in the Capital Markets Board of Turkiye
Contributing a minimum in USD 500 000 or similar foreign currency into funds deemed by the Insurance and Private Pension Regulation and Supervision Agency with the condition that it remains in the private pension system for at least three years, as verified in the Insurance and Private Pension Regulation and Supervision Agency
Foreigners wishing to purchase real Estate in Turkiye Need to Know