INVESTMENT GUIDE
What Foreigners Looking to Acquire Real Estate in Turkiye must know
In Turkiye, acquisition of title to property ownership can only be registered in the directorates of the land registry.
Preliminary real estate agreements made by notaries or entered into by natural individuals in writing, don’t confer any transfer of property by itself. They serve only as an obligation for the transfer of ownership of the property; it is not the case that the property in question is not transferred through these instruments.
The burdens of mortgages, liens, and similar types of restrictions that may exist with regard to the said property, which could hinder the sale thereof should be inspected prior to the beginning of procedures with the appropriate 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 most basic information regarding the property’s real estate and its current condition can be accessed online from any place in the world. The personal information of the owner remains inaccessible however.
Foreign nationals do not have to have a residence permit as a condition to purchase property in Turkiye. In addition, foreigners who buy property in Turkiye can obtain renewable short-term residence permits under Law No. 6458 on International and Foreign Protection.
A legal or natural person intending to acquire real property in Turkiye must apply to the General Directorate of Land Registry and Cadastre together and the person who owns the property. In addition, they may call the Alo 181 Call Center, offering service around the clock, or visit randevu.tkgm.gov.tr to set up an appointment without needing to visit the directorates’ offices in person.
Turkish firms with foreign capital, on the other hand need to file an application to the Provincial Directorate of Planning and Coordination (PDPC) located at the local governor’s office , where the real estate is located. After receiving a favorable response from PDPC, they should then submit an application at the Land Registry Directorate. They can submit their application by mail, in person or by e-mail.
General Information
In Turkiye the term “foreigner” will be classified under three categories related to the acquisition of real estate
Foreign natural persons
Foreign legal persons
Turkish companies with foreign capital
Article 35 of Law No. 2644, on Land Registry sets out provisions concerning the acquisition and use of real property by foreign natural and legal entities. Article 36 contains provisions regarding foreign-owned companies.
Countries whose nationals are qualified to purchase real estate in Turkiye are set through the cabinet of Ministers, who may additionally set specific conditions for acquisitions if deemed essential.
If granted permission natural persons of foreign origin can acquire real estate within areas where private property is allowed (residential commercial, residential or agricultural land etc. ).
If the real property purchased does not include any existing construction, the owner of the foreign origin is to apply to the relevant public authority within two years to create a plan.
A natural person who is of foreign nationality can purchase real property and limited rights in rem anywhere in Turkey that is up to 30 acres. In addition, the Cabinet of Ministers may grant more areas if they believe it appropriate.
Natural individuals of foreign national origin are able to not acquire or lease real estate in prohibited military zones or military security zones. However, they may purchase and lease real estate within special security zones upon approval from the governor’s office.
The total amount of acquisitions by natural persons from a foreign country cannot surpass ten per cent of total district area , if private property is allowed. Foreigners’ request for acquisition will not be accepted in case the ten percent limit is exceeded.
In Turkey the only trading businesses established according to law of the respective countries and having legal personality may acquire real estate and limited rights to rem as legal entities from abroad. Legal persons other than such trading businesses (foundations organizations, foundations, etc. ) On the other side, are not able to acquire real estate and may not enjoy rights in rem.
Real estate acquisition by trading companies established in foreign countries according by the legislation of the respective countries and possessing legal personality, on the contrary, can be granted in exceptional cases and only as per the terms of international conventions or special laws. The codes that are specific and with provisions on this matter is Law No. 6491 regarding Turkish Oil, Law No. 2634 concerning Tourism Incentive, and Law No. 4737 on Industrial Zones.
Note: In relation to mortgages, an exception is 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 classified under the category of foreign-owned businesses as per the following criteria:
Foreign investors hold fifty percent or more the shares, or
Foreign investors have the right to appoint and dismiss most of the directors of their company.
They may also acquire property and limited rights in rem in order to be involved in the activities specified in their articles of association.
For this reason, companies are required to apply first to the governor’s office of where the property is situated.
However, if the real estate intended for acquisition is located in a prohibited military zone or a zone of military security the acquisition of real estate must be subject to permission by the General Staff; and if the property is situated in the security area that is private, it must be subject to approval from the office of the governor of the area in question.
If there is a positive settlement of the request to purchase real property, the governor’s office must notify the enterprise/company and the Land Registry Office in writing so that the registration can be made.
The procedures listed below do not require the approval of the governor’s office. Therefore, the application to the Land Registry Office may be directly submitted without requesting permission.
In the process of mortgage creation
The acquisition of real estate in the context of paying off a mortgage 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 organized by the government and industrial zones. development zones, as well as free zones
Acquisitions realized due to the operations deemed as loans in the context of relevant banking legislation , or for the purpose of collection of receivables
In Turkey, foreigners’ right of inheritance is protected. In the event of death of a non-native the real estate held by them passes onto their beneficiaries. If the beneficiary is able to take possession of the property (if they qualify by virtue of nationality and if the total limitation requirements per person and throughout the country allow) the beneficiary may be able to keep the property they inherit. In other cases, the person has to transfer the real estate immediately. If not, the Ministry of Treasury and Finance will auction the real estate and pay the purchase price to the inheritor.
Natural persons from abroad can become a Turkey citizen by investment through unique procedures when they purchase real estate valued at USD 250,000 and more.
To achieve this the foreigners are:
Shall purchase real estate worth at the minimum of USD 250,000
In the application for acquisition that they purchased the estate to be used for this purpose. the title deed should mention this intention, and the foreigner should declare that they will not be selling the property for three years in the section of the form in which declarations are made.
Once the land registry procedures are complete after which the foreign national is able to submit an application to the relevant authorities to be granted the right of citizenship or residence through the submission of the certificate of eligibility that will be issued to the owner.
Registry of land for the real estate, or details on villages/quarters, the map, construction, plot or an independent section
Passports or photo IDs issued by the nation of which the foreigner is a resident (notarized translated and authenticated copies should be presented in the case of ID cards and passports issued with other alphabets than the Latin alphabet)
If the procedure involves representation, then a document concerning representation (order regarding guardianship, letter of authorization and power of attorney etc.)
Document describing the current market worth of the real estate that is issued by the local municipality
Mandatory earthquake insurance policy for buildings
A photograph of the seller and two photos of the purchaser (taken within the period of six months prior to the sale, size 6×4 cm)
A certified interpreter is needed if the party does not speak Turkish
If the procedure will be carried out by a third-party authorized by means of a power of attorney that was issued overseas, this power should include the authorization relating to the procedure being carried out. Besides, the power of attorney shall meet the following requirements:
They are issued through Turkish consulates, at the discretion of their respective on real estate
Issued by competent authorities entitled to issue powers of attorney abroad
The language used is that of the country where it was issued.
Included photo (with a clear seal and signature above the photo)
It also includes the apostil if issued in a country that is a party to the Hague Convention
Must be accompanied by a certificate of the signature of the official signing the authority. the authority responsible and the seal and signature of the authority concerned should be verified from the Turkish Consulate in the event that it is issued in a country that was issued in a state that is not a member of the Hague Convention
The application must also include a notarized and certified Turkish translation of the power of attorney that is in compliance with the requirements.
Astonishing acquisition of citizenship
With (b) prepended with the 1st paragraph Article 12 of the Law No. 5901 promulgated on the 28th of July in 2016;
Those who obtain the residence permit pursuant to (j) in the 1st paragraph Article 31 of Law No. 6458, through investing within the limit and amount determined by the President
Foreigners who have the Turquoise Cards of other countries.
may acquire Turkish citizenship on the basis of the decision of the President of the Republic of Turkiye.
The amount and scope of eligibility as per the new regulations published in the Official Gazette on 18 September 2018. The definitions below are as follows. Foreigners who satisfy any of the following criteria could be eligible for Turkish citizenship subject to the approval by Turkey’s President: Republic of Turkiye:
The minimal fixed investment in capital of at least USD500,000, or similar foreign currency, as certified with the Ministry of Industry and Technology
Acquiring a home worth the minimum of USD 400,000 or equivalent foreign currency with the restriction of a title deed on its resale period of at least three years, as verified with the Ministry of Environment, Urbanization and Climate Change
The creation of jobs for at least 50 people, as verified through the Ministry of Labor and Social Security
The minimum amount of USD 500,000 or an equivalent amount of foreign currency into banks that are operating in Turkiye with the condition it is not deducted for at least three years as attested in the Banking Regulation and Supervision Agency
Buy government bonds with an amount of at least USD 500,000 or equivalent foreign currency, subject to the condition that they cannot be offered for sale for at least 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 that are worth a minimum in USD 500 000 or the equivalent in foreign currency under the condition that they are not sold for a minimum of three years, as attested through the Capital Markets Board of Turkiye
Making a minimum deposit in USD 500 000 or equivalent foreign currency in a fund that is deemed to be a foreign currency by the Insurance and Private Pension Regulation and Supervision Agency with the condition that it remains under the public pension system for a minimum of three years, as attested in the Insurance and Private Pension Regulation and Supervision Agency
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