Non-Turkish citizens can acquire real estate for business or residential purposes in Turkey in accordance with Turkish laws. The legal basis for this situation is found in Article 35 of the Land Registry Law No. 2644.
The said article defines the total area of permanent and limited property rights that foreigners can acquire within Turkey. It has also been stated that the President has the authority to double this area per individual. So this means that the specified limit can be expanded if necessary.
Foreign individuals or corporate entities who want to buy real estate in Turkey are required to apply to the Land Registry Offices. Foreigners who submit the necessary documents in full can acquire real estate depending on whether they belong to one of the country lists defined by the General Directorate of Land Registry and Cadastre and which can acquire property and limited real rights in Turkey.
1. Legal Restrictions for Non-Turkish Citizens to Acquire Real Estate in Turkey
The purchase of real estate within the borders of Turkey by non-Turkish citizens is determined by Article 35 of the Land Registry Law No. 2644. According to this article, foreign individuals and companies can own real estate, subject to certain specified conditions. However, the law regulates this right with certain limitations, and these limitations may vary for individuals and companies.
1.1. Legal Restrictions for Non-Turkish Citizens
Restriction on Nationality: The foreigner who plans to buy real estate must be one of the citizens of certain countries defined by the Council of Ministers, according to international politics and the interests of the country.
Restriction on Property Area: The total area of real estate owned by foreign individuals and the general area of independent permanent real rights cannot exceed 10% of the general surface area of the relevant district.
Restriction on General Area: The total surface area of real estate acquired by foreign individuals cannot exceed thirty hectares per person throughout the country. However, the Council of Ministers can increase this amount up to two times.
Regional Restriction: Foreign individuals must first obtain permission to own or rent real estate in military restricted areas and security zones.
1.2. Legal Restrictions on Foreign Trade Companies Operating in Turkey
These companies can only own real estate and limited real rights within certain legal provisions. For other companies that do not fall into the trade category, real estate acquisition and limited real rights establishment are not allowed. However, these legal restrictions do not apply to real estate mortgages established in favor of foreign trading companies and foreign individuals.
2. Obligation to Submit Projects for Non-Building Real Estate
Non-Turkish citizens and commercial companies established in Turkey in accordance with their national laws are obliged to prepare a project on the real estate (e.g. land, field) that they have acquired that does not contain any structure. This prepared project must be approved by the relevant Ministry within two years. The start and end dates of the project are determined by the relevant Ministry, and after approval, they are forwarded to the relevant land registry office to be added to the land registry. The inspection as to whether the projects are completed within the specified period is carried out by the relevant Ministry. In cases where the property does not comply with the specified conditions, liquidation of the real estate may be requested. "The liquidation process is valid for real estate that does not comply with the rules set by law, is used for purposes other than the specified purpose, or is purchased under the project condition but is not applied to the Ministry within the specified period or the project is not completed on time.
3. The Prohibition and Restriction Power of the Council of Ministers
According to Article 35/3 of the Land Registry Law, the Council of Ministers, when national interests require, purchases real estate and limited real rights by foreign individuals; may define, restrict, suspend temporarily or permanently or take a ban decision in terms of country, individual, region, time period, amount, proportion, type, feature, area and size. The Council of Ministers adjusts these restrictions and prohibitions on a country basis. For this reason, different restrictions may arise for different countries.
4. Real Estate Acquisition Application and Required Documents for Non-Turkish Citizens
It is mandatory for the real estate owner or his authorized representative to apply in advance at the Land Registry Directorate. The documents that non-citizen individuals must provide when making this application are as follows:
• Deed Registry of the real estate or village/neighborhood, island, parcel, building and independent section details,
• ID or passport (with translation if necessary),
• "Property Fair Value Certificate" obtained from the relevant Municipality,
• Compulsory earthquake insurance certificate for buildings (residences, commercial areas, etc.),
• 1 photo of the seller and 2 photos of the buyer (taken within the last half year, 6x4 size).
• If the person performing the transaction does not know Turkish, the need for a sworn translator,
In case of carrying out a transaction with a power of attorney prepared abroad, the original or a notarized copy of the power of attorney along with its translation.
5. Characteristics of Powers of Attorney Issued Abroad
Powers of attorney issued abroad differ from powers of attorney in Turkey with some of their features. Powers of attorney issued abroad can be prepared at the embassies or consulates of the Republic of Turkey. Powers of attorney issued by these embassies or consulates must be certified by the authorized notaries of the country in which they are received, in accordance with the Hague Convention signed on 5 October 1961. If the seal of approval includes the phrase 'Apostille' and is written in French or the official language of the country, these documents and their Turkish translations do not need to be additionally approved at the Turkish Consulate in that country. In powers of attorney issued by notaries in countries that are not parties to the Hague Convention, the notary's signature is approved by the competent authority in that country and the Turkish Consulate.
6. Cost of Acquiring Real Estate in Turkey for Non-Turkish Citizens
For non-Turkish citizens who want to buy real estate in Turkey, there are some expenses that must be covered during these transactions. Title deed fee is collected from the buyer and seller based on the sales price, provided that it is not below the current value of the property purchased from the relevant municipality. Additionally, the determined revolving fund fee is paid. In addition, the service fee corresponding to the debts arising from the transfer of ownership is collected by the Land Registry Directorate.
7. Points to be Considered in the Acquisition of Real Estate by Non-Turkish Citizens
There are some issues that non-citizens who want to acquire real estate should pay attention to in order to prevent problems that may arise due to non-Turkish citizens not being familiar with the legislation and practice in Turkey. Accordingly, usufruct, mortgage, lien, etc. on the real estate. Issues such as whether there are any restrictions or whether there is any obstacle to the sale of the real estate should be checked by the relevant Land Registry Office. If the application to acquire real estate is rejected, an objection can be made to the Regional Directorate to which the Land Registry Directorate is affiliated. It is not required for a non-citizen to have a residence permit to acquire real estate in Turkey. In addition, in case of any dispute between the parties regarding the acquisition of real estate, the situation must be referred to the judicial authorities and a lawsuit must be filed in the courts of the Republic of Turkey.