Service for foreigners to purchase real estate in Turkey

Foreigners who want to buy real estate in Turkey, or who want to buy a house (house) or land in Turkey, should pay attention to the real estate purchasing procedures and conditions. Attempting to purchase real estate without adhering to the regulated conditions and transactions may cause the foreigner to lose rights.

Home purchasing procedures for foreigners are carried out within the framework of the legislation currently in force in Turkey. Accordingly, for foreigners to buy a house, it is necessary to transfer the title deed, just like other citizens. This situation requires official form as per the law. Accordingly, the real estate sales contract will become valid with the signing of the official deed and registration at the Land Registry Office. It is also possible to make a promise contract to purchase a house. However, as a difference, real estate sales promise contracts must be made in the presence of a notary.

The purpose of making a real estate sales promise contract is to want to carry out a debt transaction, but not to transfer the ownership to the other party yet. Contracts made without complying with the formal formal requirements are absolutely void due to non-compliance with the formal form. There are documents that must be submitted to the Land Registry Directorate when foreigners purchase real estate. Upon completion of these documents and positive results of the necessary examinations, a foreign person can obtain a real estate title deed in Turkey as a result of registration.

Conditions for foreigners to purchase real estate in Turkey

The contract must be made at the land registry offices in accordance with the formal requirements.
If necessary for the real estate to be purchased, permission must be obtained from the military authorities in the region.
It should be questioned whether there are any restrictions such as liens or mortgages that prevent the sale of the real estate.
The person who wants real estate must be a person who is allowed to acquire real estate within the borders of the foreign country.
It should be checked whether the person who made the sale and the owner of the real estate are the same person.
- Care should be taken to ensure that the sales contract is made in accordance with the official form requirement at the Land Registry Offices. Official deed and registration are issued in this institution.

-For the real estate to be purchased, permission must be obtained from the military authorities in the region, valid in some districts. So much so that if a real estate is located in a military restricted zone or in an area of strategic importance due to its location, the purchase of real estate may not be allowed.

Limits on Foreigners Buying Real Estate
Foreigners buying a house in Turkey is subject to certain restrictions imposed by legal and injunction decisions. According to Article 35 of the Land Registry Law No. 2644, a foreigner who wants to buy a house in Turkey can buy a house in Turkey within these restrictions. The existence of these restrictions is important for the integrity of the country's territory.

The foreigner who wants to buy real estate must be a citizen of the countries where real estate purchases are allowed within the borders of the country. For example, citizens of the Syrian Arab Republic cannot purchase real estate within the borders of our country today. Information about which country's citizens can buy a house in Turkey can be obtained from the General Directorate of Land Registry or the Turkish Embassy and Consulate.

A real foreign person can acquire immovable property or limited real rights up to a maximum of 30 hectares within the borders of the country. A foreigner who wants to purchase a property of 30 hectares or more will not be able to realize this request due to legal restrictions. We recommend that you get consultancy from Mehran Group regarding the purchase of real estate in Turkey by foreigners. Buying real estate in Turkey by foreigners is a technical issue and foreigners should work with an experienced company.

Another limitation of foreigners purchasing real estate is that foreigners who want to purchase real estate can only purchase real estate up to 10% of the surface area of the district where the real estate in question is located.
There will be no legal restrictions for real estate liens established for foreigners' trading companies.

It is not possible for foreign legal entities to purchase real estate in Turkey. However, since legal entities with foreign capital are established in Turkey, they can purchase real estate as long as they comply with the necessary restrictions and conditions.

Foreigners who want to become Turkish citizens for 400 thousand dollars can get information from our company team.

Documents required for foreigners to purchase real estate in Turkey
In order for foreigners to purchase real estate, the property owner must first make a preliminary application to the Land Registry Directorate. If there are missing documents in the preliminary application, the file is kept on hold, but if there are no deficiencies or defects, the documents required for the real estate sale must be submitted to the General Directorate of Land Registry. We can list the required documents as follows:

Title Deed Certificate of the real estate or village/neighbourhood, island, parcel, building, independent section information.
Identity document or passport (with translation if necessary).
"Property Fair Value Certificate" of the real estate received from the relevant Municipality
Real Estate Valuation Report.
Compulsory earthquake insurance policy for buildings.
1 photograph of the seller and 2 photographs of the foreign buyer (within the last 6 months, 6×4 size).
If there is a party who does not speak Turkish, a sworn translator.
In case of transaction with a power of attorney issued abroad, the original or a certified copy of the power of attorney along with its translation. The power of attorney issued abroad must be issued by the Consulate General or Embassy of the Republic of Turkey. An important distinction regarding power of attorney samples issued abroad is related to the Hague Convention.
Accordingly, if the powers of attorney issued by the notaries of a foreign country are approved in accordance with the Hague Convention of October 5, 1961, contain the approved photograph of the foreigner in the country language and contain the phrase "Apostille (Convention de La Haye du Octobre 1961)", their Turkish translations will now require the approval of the Turkish Consulate. It will not be necessary. On the contrary, the approval of the Turkish Consulate is absolutely necessary for powers of attorney that have not been certified according to the Hague Convention.
What Should Foreigners Pay Attention to When Buying Real Estate?
We can summarize the points that a foreigner should pay attention to when buying real estate as follows:
First of all, it should be inquired from the Land Registry Offices whether there are any restrictions such as liens or mortgages regarding the real estate subject to sale that may prevent the sale. For the sale of real estate, restrictions on the real estate do not prevent the sale. However, it has adverse consequences for the foreigner who purchases it.
The zoning status of the house to be purchased should be checked.
The identity of the person selling the house to be purchased and the title holder should be checked, and caution should be exercised against fake powers of attorney.
The quality of the land to be purchased is very important. If agricultural lands are purchased by showing a low price, it may be possible for a pre-emption right lawsuit to be filed and purchased by the neighboring parcel at the price shown.
A foreigner does not need to have a residence permit to buy a house in Turkey. Foreigners who have been rejected to buy real estate can appeal to the Regional Directorate affiliated with the Land Registry Directorate. It will be beneficial for foreigners who are sure that they meet the necessary conditions to exercise their right to object. If any dispute occurs during the real estate buying and selling process, a lawsuit must be filed in the relevant courts.
Latest legal changes regarding foreigners purchasing real estate in Turkey
Latest Legal Changes and Acquisition of Real Estate by Foreigners in Turkey With the Law No. 6302 on Amendments to the Land Registry and Cadastre Law, significant changes have been made in the conditions required for real estate acquisition by foreigners. With the law adopted on 03/05/2012, the conditions for foreign citizens who want to acquire real estate in Turkey are eased, while some restrictions regarding the countries with which Turkey borders continue.
With the amendment, the law gave citizens of 183 countries the right to acquire real estate in Turkey "without the requirement of reciprocity". Due to the high interest in real estate investment, opening Turkey to acquisitions by foreign investors is the most important reason for this legal change.

It is stated in the second paragraph of Article 1 of the law that the implementation principles of the amending law will be determined by the list approved by the Council of Ministers. According to the list prepared in this direction, the number of countries with the unconditional right to acquire real estate from Turkey, which was 53 before the change, was increased to 183.
The most notable change made within the framework of the law was the removal of the reciprocity condition required for applications. In this way, even if a Turkish citizen cannot acquire real estate in the country of which the foreigner is a citizen, the foreign real person will be able to acquire real estate in Turkish territory.

If it is necessary to explain the concept of reciprocity; The principle of reciprocity states that the ability of a citizen of a state to benefit from certain rights in a foreign state depends on the citizens of the foreign state in question also benefiting from the same rights in the state of which the person is a citizen. Reciprocity; It may arise from a contract between states (political), law or actual practice. In accordance with this principle, the right to land ownership is not granted to individuals, and in its application to nationals, it is essential that the rights that a foreign state grants to its own citizens in the acquisition of real estate are also granted to the citizens of the Republic of Turkey.
Although the principle of reciprocity in the Land Registry and Cadastre Law has not been abandoned since 1934 when it came into force, Article 1 of Law No. 6302 stipulates that "Provided that legal limitations are complied with, natural persons of foreign nationality who are citizens of countries determined by the Council of Ministers in terms of international bilateral relations and in cases where the country's interests require, Turkey They can acquire real estate and limited real rights in . The condition of reciprocity has been abolished.

The article in question imposes a limitation on the amount of real estate acquisitions by foreigners. Accordingly, the total area of real estate and independent and permanent limited real rights acquired by foreign natural persons cannot exceed 10% of the privately owned district's surface area and 30 hectares (300 acres) per person throughout the country. In addition, the Council of Ministers has been authorized to double the 30 hectares that can be acquired per capita throughout the country. As a result of this regulation, foreign citizens will be able to acquire 60 hectares (600 acres) of real estate in Turkey with the decision of the Council of Ministers. Before the change, the total surface area of real estate that foreigners could buy across the country could not exceed 2.5 hectares (25 thousand m2).

In addition, real estate acquisitions in military areas are carried out by the General Staff or the commands authorized by it; In the private security zone, it is subject to the permission of the governorships where the real estate is located.

Acquiring real estate through inheritance will only be possible for foreign heirs who meet the following conditions:
The heir must be a citizen of one of the countries declared by the Council of Ministers.
Immovable property should not be within the borders of prohibited areas (military areas, security zones, etc.).
The total size of the immovable property acquired by an heir through inheritance should not exceed 30,000 m2 and 10% of the surface area of the relevant district.

However, foreign heirs who are not authorized to acquire immovable property by inheritance due to being within the scope of the above-mentioned restrictions are obliged to sell the immovable property to a third party with appropriate conditions within a maximum of one year. Otherwise, the real estate is sold by the Ministry of Finance and the sale price is paid to the heir.

Regarding the acquisition of real estate by commercial companies with legal personality established in foreign countries in accordance with the laws of their own countries;

In the 2nd paragraph of Article 35 of the Land Registry Law, it is stated that commercial companies with legal personality established in foreign countries in accordance with the laws of their own country can only acquire real estate and limited rights within the framework of special law provisions (Tourism Encouragement Law no. 2634, Industrial Zones Law no. 4737, Petroleum Law no. 6326). It is stated that limited real rights cannot be established in favor of commercial companies other than companies and that they cannot acquire real estate. It is stated that the limits in this article will not be applied in the establishment of real estate liens.
In other words, real estate pledges can be established in foreign countries in favor of legal entities established in accordance with the laws of their own countries and foreign nationals.

In terms of foreign capital companies established in Turkey;
In accordance with Article 36 of the Law, if the company established in Turkey has foreign capital; In cases where a foreign natural person, foreign legal entity or international organization owns 50% or more of the capital of the company established in Turkey or has the right to appoint or dismiss most of the members of the board of directors, even if this company is established in Turkey, only in its articles of association. They may acquire and use real estate property or limited real rights to carry out their specified fields of activity.

Pursuant to the same article, the final partnership rate of a company established in Turkey, where 50% or more of the capital is held by a foreign natural or legal person, or where the board members have the right to appoint or dismiss, is also established in Turkey. The same conditions apply if it owns 50% or more. If the final partnership ratio is 50% or more; It may arise when foreign investors directly or indirectly acquire the shares of a company with domestic capital that owns real estate, and the partnership rate of foreign investors in companies with foreign capital that owns real estate reaches 50% or more as a result of the share transfer. In other words, these companies will only be able to acquire real estate ownership or limited real rights in order to carry out the fields of activity specified in their articles of association.
In accordance with the circular numbered 1735 of the Ministry of Environment and Urbanization, the items excluded from limitation are as follows:

– Real estate lien,
– In property acquisitions within the scope of converting real estate mortgage into cash,
-Transfer of real estate ownership and limited real rights arising from company mergers or divisions,
– In the acquisition of real estate property and limited real rights in special investment zones such as organized industrial zones, industrial zones, technology development zones and free zones, and provided that the obligation to dispose of banks within a certain period of time in accordance with the relevant legislation continues, Banking Law No. 5411 dated 19/10/2005 The provisions of this article do not apply to immovable properties acquired due to transactions considered as loans within the scope of this framework or for the purpose of collecting their receivables. Since the restrictions in Articles 35 and 36 are not required for transactions within this scope, applications will be finalized directly by the Land Registry Directorates.

In the same circular, it was stated that the principles regarding the authorization documents issued by the Trade Registry Directorates were rearranged by the General Directorate of Domestic Trade of the Ministry of Customs and Trade. Accordingly, it is necessary to include a statement as to whether foreign capital companies established in Turkey remain within the scope of the regulation. Applications made to the land registry offices will be processed according to this statement.

Accordingly, while foreign capital companies excluded from the scope can obtain real estate ownership and limited real rights within the framework of the provisions that domestic capital companies are subject to; The real estate acquisitions of the companies within the scope will be covered within the framework of the provisions of the "Regulation on the Acquisition of Real Estate Ownership and Limited Real Rights of Companies and Subsidiaries within the scope of Article 36 of the Land Registry Law No. 2644".

Foreign natural persons, commercial companies with legal personality established in accordance with the laws of their own country and companies with foreign capital established in Turkey (Foreign natural persons, foreign legal entities or international institutions own 51% or more of the shares of a company established in Turkey. They carry out the sales transaction with two basic sales contracts: "Sales Contract", which is the way of direct acquisition, and "Real Estate Promise to Sell Contract."

According to Turkish law, the sale of real estate can be completed when the seller and the buyer appear before the relevant Land Registry Office in order to conclude a valid purchase agreement. The parties are obliged to transfer the title deed to be prepared by the relevant land registry officer in order to transfer the ownership and complete the purchase agreement.

In addition, before the sale of the real estate, the seller and the buyer can sign a "Real Estate Sales Promise Agreement", which is a preliminary agreement valid between the parties. In order for this agreement to be binding, it must be prepared by a notary and signed in the presence of a notary, and in order for it to be valid against claims made by third parties, it must be annotated in the land registry.

The buyer or his representative can carry out the purchase of the real estate. However, if the transactions will be carried out through an attorney, the power of attorney to be given to the attorney will be prepared by the notary and signed in the presence of the notary, because according to Turkish Law, the notary has the authority to validate and control the authorization to act on behalf of a person. The power of attorney must contain the full name and addresses of the legal representatives. Foreigners who acquire real estate in Turkey are given a "Short-Term Residence Permit", which is given to each applicant for one year, in accordance with the "Foreigners and International Protection Law". In addition, foreign real persons, like Turkish citizens, have the right to dispose of their real estate; They can sell or rent their real estate to third parties and establish liens on it.

In the sale of real estate, there is no difference between the principles to be applied to a Turkish citizen and a foreign real person. However, if the buyer is a foreigner, the above-mentioned procedure will also be applied in this case.

In addition, every real estate acquisition is subject to some transaction taxes and expenses such as "Title Registry Fee", "Value Increase Tax", "Stamp Tax" and "Notary Expenses". Holding real estate is also subject to "Property Tax", which is a wealth tax.

A real estate sale made by a foreign real person is also subject to an income tax on the capital gain obtained, in case the real estate is disposed of in less than 5 years following the acquisition of the real estate. However, capital gains from real estate sold after 5 years of holding will not be subject to income tax.

Likewise, rental income from rented real estate will also be subject to income tax. However, this tax can only be applied if the real estate owner has financial gain. In other words, the real estate owner who holds the real estate only for his own use will not be subject to any income tax in Turkey. Partners of a company that owns real estate in Turkey are subject to a separate taxation called "Corporate Tax". However, Turkish REITs are exempt from this tax.

Situations in which the application will be rejected without any action:

Situations in which the application will be rejected without any action are stated in the circular numbered 1734 of the Ministry of Environment and Urbanization. According to this;

All legal entities (foundation, association, cooperative, society, community, community, etc. with or without legal entity) other than real persons of foreign nationality and commercial companies with legal personality established in foreign countries in accordance with the laws of their own countries, can acquire real estate in Turkey and obtain limited real estate in their favor. Since it will not be possible to establish a right, requests regarding this issue are rejected directly by the Land Registry Directorates without any correspondence.

Since the acquisition of real estate and limited real rights by foreign nationals in Turkey is limited to 30 hectares, acquisition requests exceeding this amount are directly rejected by the Land Registry Directorates.

If there is no building on the land acquired by the foreigner;

In Article 35 of the Land Registry Law, foreign natural persons and commercial companies with legal personality established in foreign countries in accordance with the laws of their own countries are obliged to submit the project they will develop on the unbuilt real estate they have purchased to the relevant Ministry for approval within 2 years. Circular No. 1734 of the Ministry of Environment and Urbanization states that if the approved project or the relevant letter stating that the project is approved comes to the Land Registry Directorate, the "... project has been approved by the Ministry of..." in the declarations section of the Land Registry. It stipulates that the date will be stated as "Journal".

In accordance with this circular, if no indication is made regarding the approved project within 2 years or if the project is not completed within 2 years, a notification is made by the Land Registry Directorates to the local unit of the Ministry of Finance for the liquidation of the immovable or limited real right at the end of two years from the acquisition.
In accordance with the Circular No. 1734 of the Ministry of Environment and Urbanization, the general procedure to be followed by the Land Registry Directorates for the acquisition of real estate and limited real rights by foreign natural persons:

Examination of the acquisition conditions in terms of the nationality of the applicant

Asking whether the real estate in question remains in Military Restricted Zones, Military Security Zones or strategic areas

Obtaining the commitments specified in the circular in terms of the limitations regarding 30 hectares. According to the relevant circular of the Ministry of Environment and Urbanization, it may be possible to liquidate real estate or real rights acquired contrary to the provisions of Article 35 of the Land Registry Law or used contrary to the purpose of acquisition other than legal obligation.

As Mehran Group, with our 10 years of experience, we offer consultancy services with quality and experienced experts in your housing purchase transactions in Turkey.
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