1)LEGAL BASİS:

Pursuant to Article 35 of the Land Registry Law No. 2644, amended by the Law No. 6302, which entered into force in May, the practice of seeking reciprocity in the acquisition of real estate by foreign real persons in our country has been abandoned.It is possible to get information from the Turkish Embassy or Consulate General in your country or your country's representatives in Turkey about whether you can acquire real estate and limited owning in Turkey.It would be appropriate for foreign real persons to pay attention to the following points in order not to incur losses while purchasing real estate in our country:

 

2)FORMAL ARRANGEMENT OF CONTRACTS:

According to applicable legislation in Turkey,official contracts aiming at the transfer of immovable property must be made at the Land Registry Offices where the immovable is located.

Also It is also possible to sign a “sales promise contract” in the presence of a notary public before the official sale.

 

The acquisition of the ownership of the immovable whose sales contract is made officially is possible with the registration to be made at the Land Registry Offices.

 

3)LEGAL RESTRİCTİONS ON ACQUİSİTİON OF REAL ESTATE BY FOREİGNERS:

A)Foreigners can purchase immovables to use as workplaces or residences in Turkey, provided that they comply with the legal restrictions.But albeit in different cities foreigner can buy immovables and the total area of immovables that can be purchased in Turkey cannot exceed 30 hectares.

 

B)Before foreigners buy real estate,it is also necessary to obtain permission from the military authorities in the region.In case the subject property is located within the security zone ,since it is not possible to make sales for foreigners ,ıt is important that this issue is clarified before payment is made.

 

4. PRACTİCAL İNFORMATİON:

 

A. IN THE APPLİCATİONS OF FOREİGN NATİONAL REAL PERSONS TO THE RELEVANT LAND REGİSTRY DİRECTORATES FOR THE ACQUİSİTİON OF REAL ESTATE:

 

Foreigners identification cards or passports

 

- Residence permits issued by the relevant police directorates for foreigners whose real estate acquisitions are subject to a residence permit,

 

In case they take action by proxy on the basis of the power of attorney issued from abroad,original of power of attorney with translation

 

or they must have a certified copy with them.

 

B)Before making of sales contract ,foreigner should check from the relevant Land Registry Office like whether the real estate is registered with limited owning or such as whether there is any situation that prevents the mortgage or sale of etc.

 

C. Foreigners who want to buy property in Turkey,

Foreigners should not sign legally binding contracts and foreigners should not making payments without obtaining information about the real estate in question at the Land Registry Offices, provided that they prove that they are related to real estate

 

It would be appropriate for foreigners not to initiate transactions without researching the Seller person or companies, and not to work with individuals or companies that cannot prove that they are serious and reliable.

 

İn case of dispute about the purchase and sale the situation should be brought to the judiciary and a lawsuit should be filed in Turkish courts.It is not possible for the Turkish Ministry of Foreign Affairs and foreign missions to intervene in the judicial process.

 

APPLİCATİON TO THE LAND REGİSTRY OFFİCE:

 

The owner or authorized representative of the person who owns the immovable should pre-application must make a preliminary application to the Land Registry Directorate.

(Pre-applications are usually made before the lunch break, by obtaining the serial number at the Land Registry Office.)

 

If there is a deficiency in the pre-application conditions and it can be completed, the pre-application file is kept.

 

REQUİRED DOCUMENTS FOR APPLİCATİON TO THE LAND REGİSTRY DİRECTORATE AND WHERE TO APPLY

 

APPLİCATİON FOR LAND REGİSTRY

 

The owner of the immovable or the authorized representative of the owner can go to the Land Registry Office with the necessary documents and apply.Also foreigners with turkish citizenship or foreigners has foreigner identification number can take an appointment with online through the Alo 181 call center or through the e-appointment (https://randevu.tkgm.gov.tr/) and WEBTAPU (webtapu.tkgm.gov.tr) service.Deed transactions are carried out only at the title deed directorates, and applications can be made in person or through representatives authorized by a power of attorney issued by a notary public.

 

DEED PROCEDURES AND DOCUMENTS REQUİRED FOR APPLİCATİON:

Foreign identification card or passport (It should not have expired.)

 

İf any immovable title deed document or the island, parcel, building, etc. Information

 

For the purpose of citizenship acquisition immovable’s assessment report showing the market value of the real estate

(The validity period is 3 months after the report is received.)

 

Original of authorization certificate and includes an apostille annotation and translation for commercial companies with legal personality established in accordance with the laws of foreign countries,

 

Compulsory earthquake insurance for residence,workplace etc.

 

If the process is to be carried out through a representative, a power of attorney containing the authority to perform the relevant process.

 

If there is a party who does not speak Turkish, a sworn interpreter and 2 witnesses

 

2 Passport photos of the seller, 1 of the buyer, taken in the last 6 months

 

Financial aspect of the process:

 

Not less than 'Real estate current market value' taken from the relevant municipality and over the selling price,the title deed fee is paid by both the buyer and the seller.

(The title deed fee rate determined according to the Fees Law No. 492 is 2%.)

 

The revolving fund fee determined locally must paid.

5-OTHER İSSUES THAT FOREİGNERS WHO WANT TO ACQUİRE REAL ESTATE İN OUR COUNTRY WİLL PAY ATTENTİON TO:

 

Foreigner should control on real estate, mortgages, foreclosures, etc. issues such as whether there is a restriction or whether there is any obstacle to the sale of the immovable property are relevant from directorate of land registry.

 

It is recommended not to work with people or companies who are not known to be experts and reliable.

 

It is not required that a foreigner has obtained a residence permit in order to acquire real estate in Turkey.

 

THE PROJECT OBLİGATİON IMPOSED FOR THE QUALİFİCATİON OF THE IMMOVABLE PROPERTY

 

Foreigners, provided that the immovable properties purchased are in accordance with the law they can use it for any purpose they want, such as housing, workplace, timeshare.

 

The only exception made in this regard is associated with ”unstructured immovables".The meaning of 'unstructured immovables' a plot without occupancy permit , such as land, fields, gardens, or vineyards.

 

The project to be developed in the unstructured immovable must be submitted to the relevant Ministry within 2 years from the date of purchase of such immovables by commercial companies that are foreign real or legal entities established in accordance with the laws of their own countries in foreign countries.

 

The project, which is approved by the Ministry by determining the start and completion time, is sent to the land registry office where the immovable is located to be recorded in the declarations section. Due to the "Temporary and Foreign Project Identification Warning" being opened in the TAKBİS environment, "……. The project of …….. has been approved by the Ministry. It will be specified as “Date, Journal”. Whether the project is carried out within the specified period is followed by the relevant Ministry.

 

If no notification is made to the land registry directorate within two years from the date of purchase, the relevant provincial units of the Ministry of Finance should be notified for liquidation. If the project is submitted and processed in the land registry and it is reported that it is not completed within the time limit, the immovable property is liquidated by following the same procedure.

 

RESTRİCTİONS DUE TO NATURE OF THE REAL ESTATE:

 

Foreigners acquiring immovables that qualify as agricultural land (vineyards, gardens, olive groves, fields, etc.) must fulfill certain conditions determined by Council of Ministers.

Structured and unstructured immovables of this type does not cause a change in the procedure to be applied.

 

First of all, a commitment is taken by the land registry directorate in the place where the immovable is located.

 

With recognisance foreigner must receive opinion from of the Ministry of Food, Agriculture and Livestock of Turkey.

If the opinion is positive within two year a declaration will be made in the title deed that the project has been prepared and submitted to the approval of the Ministry.

 

If the project is not submitted and approved within this period, liquidation procedures will be initiated.

 

Protected areas: In accordance with the authorized ministries envisaged in the Law No. 2863 on the Protection of Cultural and Natural Heritage; In case the immovables acquired by foreigners remain in archaeological sites,if deemed appropriate from the Ministry of Culture and Tourism of Turkey; If it remains in natural protected areas, the title deed will be carried out if deemed appropriate by the Turkish Ministry of Environment and Urbanization.

 

Plots:The requests of foreigners who want to acquire real estate from the plots are forwarded to the General Directorate of Land Registry and Cadastre to be sent to the Ministry of Interior for permission. After a positive response, the deed transactions are completed.

 

Inherited Immovables

In the historical process, which the Court of Cassation has frequently included in its decisions, the acquisition and inheritance of real estate by foreigners has often been the subject of legislative changes in Turkish Law, and in the pre-republic period, until 1868, in the Ottoman Empire, except for some exceptions, no right to acquire real estate by foreign real persons was recognized.

 

The Law on the "Real Estate Governors of Foreign Citizens" adopted on 08.06.1868 .In accordance with the protocol dated 09.06.1868 signed with the Turkish Republic of Northern Cyprus, it was accepted that the citizens of some countries, except the Hijaz land, were on an equal footing with the Ottoman subjects, and this situation continued until 1914, when the law on the abolition of capitulations came into force.

 

With the Treaty of Lausanne signed on 24.07.1923 it was concluded that reciprocity would be sought in the acquisition of real estate by foreigners.

Article 35 of the Land Registry Law No. 2644 dated 22.12.1934 without prejudice to other legal provisions regarding the limitation up to 2012. Foreign real persons have been granted the right to acquire and inherit real estate in Turkey, provided that it is mutual.

 

As stated in the decision numbered 2015/2585 E. 2016/2423 of the 14th Civil Chamber of the Court of Cassation, inheritance is determined according to the provisions in force at the date of the decedent's death.

 

Because of Court of Cassation pursuant to this decision conditions at the time of death should be determined in all aspects.One of the most common problems in this is about the reciprocity condition which was abolished with the amendment made in the Land Registry Law in 2012.

 

Before date of 2012 on the death of legator,in other words whether there is reciprocity between Turkey and the foreign country regarding the transfer of immovables by inheritance at the date of the transfer of the inheritance through Ministry of Justice İnternational Law and Foreign Relations General Directorate the decision should be made according to the reply of the letter to be asked from the Ministry of Foreign Affairs.

[For the Supreme Court decisions in this direction, see. 14. H.D. 2016/8030 E. 2017/1328 K.; 14. H.D. 2015/7103 E. 2017/313 K.; 14. H.D. 2015/16049 E. 2017/825 K.]

 

At the present time except for the limitations within the scope of Article 35/1 of the Land Registry Law in force immovables inherited by foreigners

and limited owning,ıf it is not liquidated by the owner within a period not exceeding one year to be given by the Ministry of Finance, it is liquidated and converted into value and the price is paid to the right holder.

 

ACQUISITION OF REAL ESTATE BY FOREIGNERS

- REAL PERSONS:

 

 

FOREİGN REAL PERSONS WHO WANT ACQUİRE REAL ESTATE İN TURKEY:

 

Being a citizen of a country determined by the Turkish President and who can acquire real estate and limited owning in Turkey and must meet the eligibility requirements.

 

Real persons of foreign nationality can acquire any kind of immovable (residence, workplace, land, field, etc.) in terms of quality in Turkey, provided that legal restrictions are complied with.

 

In case of acquisition of unstructured immovable(land with no buildings on it, immovables such as fields) by real persons of foreign nationality in accordance with nature of property project should be developed and this project should be submitted to the approval of the relevant Turkish Ministry within two years.

If no application is made to the Turkish Ministry within two years or the project is not completed within the time limit, the real estate in question will be subject to liquidation provisions.

 

REAL ESTATE TO BE PURCHASED BY REAL PERSONS OF FOREİGN NATİONALİTY;

 

*

If the immovable is agricultural land, the opinion of the Ministry of Agriculture and Forestry that it is suitable for acquisition is taken,

 

*

If it is an immovable located in the protected area, the opinion of the Ministry of Culture and Tourism or the Ministry of Environment and Urbanization is obtained, depending on the nature of this area, that the immovable is suitable for acquisition.

 

 

2.2 LEGAL ENTİTİES

 

Foreign trade companies with legal personality established in foreign countries according to the laws of these countries can acquire real estate and limited owning in Turkey only if there are special provisions in the laws.

 

Laws with special provisions in the legislation;

 

Turkish Petrol Law

 

The Law for the Encouragement of Tourism

 

İndustrial Zones Law

 

All legal entities except foreign trade companies with legal personality established in foreign countries according to the laws of these countries

(foundation, association, cooperative, society, community, congregation, etc., with or without a legal entity.)

It is not possible to acquire real estate in Turkey and to establish limited owning in their favor.

 

COMPANİES WİTH FOREİGN CAPİTAL

 

Companies with legal entities established in Turkey can acquire real estate and limited owning in order to carry out the activities specified in the articles of association.

Companies in order to be evaluated as a foreign capital company ;foreign real persons(Except for Turkish citizens and persons within the scope of Article 28 of the Turkish Citizenship Law No. 5901) legal entities or international organization established in accordance with the laws of foreign countries must hold 50% or more of the shares or have the power to appoint or dismiss the majority of the persons with management rights.

 

Without prejudice to the provisions of the Military Forbidden Zones and Security Zones Law No. 2565 in order to determine whether these companies stay in military forbidden zones, military security zones and regions determined within the framework of Article 28 of the same Law (in regions to be determined due to their proximity to military forbidden zones or other strategic reasons, upon the proposal of the General Staff), governorships conduct inquiries regarding their real estate acquisitions.

 

This inquiry made by the governorships is made directly with the relevant land registry directorate , a response is given by the land registry directorate within a maximum of three working days.

 

When it comes to real estate acquisitions within private security zones

foreign must obtain permission from the governor's office where the real estate is located.

 

Companies with foreign capital ,in real estate acquisition applications, the company's officials are required to submit an "authorization document" showing the form of representation and binding.

 

With the authority to acquire real estate in the authorization document company officials credentials must be clearly stated and belong to the year of the transaction.

 

İn the authorization of document for companies with foreign capital must include this Turkish inscription:

2644 sayılı Tapu Kanununun 36. maddesi Kapsamındaki Yabancı Sermayeli Şirkettir

(It is a company with foreign capital within the scope of article 36 of the Land Registry Law No. 2644.)

and must apply with required documents in accordance with the Regulation on Immovable Ownership of Companies and Affiliates within the scope of Article 36 of the Land Registry Law No. 2644 and the Acquisition of Limited Property Rights to the Turkish Provincial Planning and Coordination Directorate of the Governship.

 

Otherwise, in the authorization document for foreign capital companies must include this turkish inscription

2644 sayılı Tapu Kanununun 36. maddesi kapsamı dışındaki Yabancı Sermayeli Şirkettir

(It is a company with foreign capital outside the scope of article 36 of the Land Registry Law No. 2644)

 

Companies with foreign capital, where this phrase is included in the said authorization certificate, are considered as companies with domestic capital in accordance with Article 36, and requests in this regard are concluded directly by the land registry directorates within the framework of general principles.

 

Companies with foreign capital outside the scope of the article 36 can acquire immovable and limited owning within the framework of the provisions to which domestic capital companies are subject

 

Immovable and limited owning acquired outside the provisions of this article,be liquated within the time given by the Ministry of Treasury and Finance.Otherwise immovable and limited owning in kind is converted into a price and the price is paid to the right holder.

 

With 2644 numbered 35.article of the title deed law which regulates the acquisition of real estate and limited owning of foreign real and legal entities in Turkey the provisions of Article 36 regulating the acquisition of real estate and limited owning by foreign capital companies are given below.

 

LEGAL RESTRİCTİONS

 

In Turkey, only the citizens of the countries determined by the President's Decision can have immovables and limited owning rights

 

Foreign national real persons can acquire the total amount of immovables is at most thirty hectares throughout the country.

 

The total area of immovables that can be acquired by real persons of foreign nationality cannot exceed ten percent of the area of the district subject to private ownership.

 

TURKİSH CİTİZENSHİP ACQUİSİTİON THROUGH REAL ESTATE PURCHASE

 

With the change after the date of 18.09.2018 foreigners who purchase real estate worth at least 250.000 USD or equivalent in foreign currency or Turkish Lira can acquire Turkish citizenship by an exceptional way, provided that an annotation is put in the land registry that it will not be sold for 3 years.

 

WHİCH COMPANİES ARE CONSİDERED WİTH FOREİGN CAPİTAL?

 

Every company with a foreign capital element not legally considered as a foreign national company.

Company with a foreign capital element in case the majority shares are in the hands of foreigners or foreigners dominate the managerial staff is consider as foreign national company.

 

In order for a Turkish company to be accepted as a Turkish company with foreign capital within the meaning of article 36 of the Land Registry Law;

 

1)Foreign real persons, legal entities established under the laws of foreign countries and international organizations to have 50% or more of the shares

 

2))Foreign real persons, legal entities established under the laws of foreign countries and international organizations to have the power to appoint or dismiss the majority of persons with management rights

 

3)Companies above referred in case of being a direct or indirect partner in another company established in Turkey ,foreign investor must have 50% or more shareholding rate in the partner company.

 

4)One of the conditions must be fulfilled if foreign investors acquire directly or indirectly 50% or more of the shares of the domestic companies that own the real estate, and that the shareholding ratio of foreign investors reaches 50% or more as a result of the share transfer in the existing foreign capital companies that own the real estate.

 

General rules apply to companies with foreign capital that meet these conditions and are treated like Turkish companies.

 

İmportant note:As a result of share transfer,the company that has acquired the qualification of a foreign capital company ,should notify information about share transfer to the Ministry of Commerce within one month following the share transfer within the framework of Article 5 of the Implementing Regulation of the Foreign Direct Investment Law.Obligation of notification applicable to affiliates only if they own real estate.

 

Companies included in Article 36 of the Land Registry Law ,are companies with legal personality only.

Companies such as consortiums, business partnerships, joint ventures, etc.It is not within the scope of Article 36 of the Land Registry Law, as it does not have a legal personality under Turkish law.On the contrary in investments made through joint ventures a distinction must be made according to the type of joint venture.

 

4.2. What Restrictions Are There in the Acquisition of Real Estate by Foreign Capital Companies?

 

The immovable must not remain within the military forbidden zone, military security zone or the zone determined within the framework of Article 28 of the Law No. 2565.

 

If it stays, it is subject to permission.

 

Companies with foreign capital must obtain permission from the Governor's Office to acquire real estate.

 

Companies with foreign capital only specified in the main contracts

to carry out its activities can buy real estate in Turkey.

 

In the articles of association of joint stock companies, it is regulated that "the subject of operation of the company" is one of the mandatory elements of the contract in limited companies.

 

According to law companies with foreign capital must be specific to the fields of activity included in the company contracts when immovable is purchased.

 

Except fields of activity if companies acquire immovable property for any other purpose, these immovables are liquidated.

 

4.3. Where Should Companies Apply for Real Estate Purchase Transactions?

 

In the certificate of authorization for companies with foreign capital must include inscription

“2644 sayılı Tapu Kanununun 36. maddesi Kapsamındaki Yabancı Sermayeli Şirkettir”(It is a company with foreign capital within the scope of article 36 of the Land Registry Law No. 2644.)and with necessary documents must apply to the Provincial Planning and Coordination Directorate of the Governorship.

 

In the certificate of authorization for companies that are not legally considered as foreign capital companies although there is a foreign capital element in their structure,must include inscription

“2644 sayılı Tapu Kanununun 36. maddesi kapsamı dışındaki Yabancı Sermayeli Şirkettir”

(It is a company with foreign capital outside the scope of article 36 of the Land Registry Law No. 2644)

It is treated like Turkish companies of this type and applications are made directly to the land registry offices.

 

4.4. What are the Documents Required for Application?

 

Application form

 

A Title deed registration information for the immovable and example of a coordinated diameter

 

Ownership of immovable property or limited real rights over immovable property,it is requested for in order to carry out the activities specified in the articles of association of the company, letter of commitment that the immovable property will be used for this purpose with the signature circular of the company official who signed the letter of commitment

 

Company has permission for manage all real estate rights and authorization document showing the representative.

 

İn case of the company's shares are not traded on the stock exchange

documents showing the current situation received in the last month from the trade registry office where the company headquarters is registered, including the names or titles, citizenships and partnership ratios of the foreign partners.

 

İn case of the company's shares traded on the stock change a document showing current situation containing the names or titles, citizenship and partnership ratios of foreign investors who own 10% or more of the company's capital from shares traded on the stock exchange, as well as foreign investors who own shares not traded on the stock exchange and taken from the Central Registry Agency İnc.

 

In companies where foreign investors have the right to appoint or dismiss the majority of managers, although the partnership ratio is below 50%, a sample of the main contract approved by the trade registry office, where the company's headquarters is registered.

 

Foreign partners of names or titles, containing ratios of the nationality of the company from the trade registry office and registered the partnership received in the past month indicates the current status of the document, which within the scope of the regulation regarding joint stock companies, the company's share of partnership structure showing notarized copies of the relevant pages of the book by the relevant company has to be submitted to the trade registry office.

 

4. 4,5 Which ways application process be made?

 

The investor can make application process in person,by mail or by email.During applications made in person,applications will be examined and deficiencies and mistakes that can be corrected immediately are completed without the need for correspondence. Deficiencies and mistakes detected later are notified in writing to the company or affiliate.

 

5. Transaction Costs

 

The foreigner has to pay the title deed fee and revolving fund fee for the title deed transactions in the purchase of real estate in Turkey.

 

From foreign real persons or companies with foreign capital:

The seller and the buyer are asked to pay a title deed fee of 20 per thousand separately,not less than the declared value of the real estate declared by the municipality. If there is a fee exemption, a letter to be obtained from the Tax Office regarding this issue must be submitted.

 

Foreigners who has immovable in Turkey with applying for a short residence permit can obtain a residence permit in Turkey

in accordance with the International Protection Law No. 6458

 

During the old law period a 3-month residence permit was given to the foreigner depending on the real estate.

 

According to the current law, a residence permit for a maximum of 1 year is given to a foreigner who owns immovable property.

 

Family members of foreigners who own immovable property in Turkey and have obtained a residence permit depending on the immovable property can reside in Turkey within the scope of family residence permit. However, the duration of the residence permit of the foreigner who has obtained a family residence permit cannot be longer than the residence permit period of the sponsor. In addition, family members with a work permit do not need to apply for a family residence permit. Because the work permit is also valid instead of the residence permit, there is no need to apply for a second residence permit.

 

 

In order for a foreigner to apply for a residence permit based on immovable property,immovable must be residential real estate and immovable must be used for residential purposes.

 

İn case of family members have a shared or joint ownership right over

the dwelling family members may also apply for a residence permit linked to immovable property.

 

Documents Required for Foreigners with Immovable Property

 

-Residence Permit Application Form

 

-Passport or an original or photocopy of a valid substitue document;

 

-Declaration of having sufficient and regular financial means for the duration of the stay (the Administration may request supporting documents);

 

Valid Health Insurance;

 

Official, e-signed/signed and sealed/stamped title deed showing that the residence belongs to the person.