Real Estate In Turkey - Real Estate Law In Turkey
How and When the Law of Real Estate Ownership for Foreigners in Turkey Was Announced?
The Turkish government has made significant amendments to the Turkey Real Estate Law concerning the conditions that must be available by foreign individuals wishing to own a property in Turkey by approving the law number 6302 on 05.05.2012, which removed some restrictions on the ownership for foreigners. Some facilitations in the conditions has been approved that should be required by foreign individuals wishing to own a real estate in Turkey, with the restrictions imposed on citizens of some neighboring countries to Turkey.
The Law of Real Estate Ownership in Turkey does not Take the Principle of Reciprocity:
Under this law, Turkey has given the right to own the property for citizens of 183 countries without being subject to reciprocity. The most important reason for issuing this law, which opened the way for foreign investors to own a real estate in Turkey, is to increase the investors desire to invest in the real estate sector. The most important part of this law is the removal of reciprocity conditions for foreign investors. Therefore, foreigners are able to purchase a property in Turkey, even though the Turks are not allowed to own a property in the countries to which those foreigners belong. The principle of reciprocity; is the rights and privileges granted by one State to the nationals of the other State and, in return, the same privileges and rights are accorded to the nationals of those States.
Restrictions Which Were included in the Amendments of the Real Estate Law in Turkey:
This law imposes some restrictions on the spaces that can be possessed by foreign individuals. According to the law, the total number of foreign individuals must not exceed %10 of the space of an area, and the total space of land that can be owned by one person throughout Turkey should not exceed 30 hectares, and the right to raise this area to 60 hectares has been granted to the Cabinet, before this law the total space that can be owned by a foreign individual across the country should not exceed 2.5 hectares.
In addition, amendments to the ownership Law in Turkey have linked areas that can be classified as military zones with the approval of the Army Chief of Staff and the leaders they represent, as well as with territories that can be classified as private security zones, which is linked to the approval of the state (province) in which the the property is located.
Turkish Companies with Foreign Capital:
According to article 36 of the law, if the company established in Turkey is with a foreign capital, and foreign individuals, foreign legal entity or international corporation own %50 or more of the capital of this company or has the right to appoint and expel the majority of the company's board of directors, then the company’s right to own a real estate will be Limited enough to cover the company's activities mentioned in the Company's contract.
Unoccupied Land: Real Estate Istanbul
According to Article 35 of the real estate law, foreigners or foreign companies that are established according to their laws must abide that they present the projects that will be developed on an unoccupied land, which was purchased by the concerned ministries within two years from the date of purchase, for the purpose of obtaining the approval of these ministries, according to circular No. 1734 of the Ministry of environment and urbanization, in case of receiving an approvals for the projects that will be developed on the unoccupied lands and are unbuilt to the Directorate of the real Estate Department, it is required to inform the land registry data as the following (the approval of a Project by the ministry, date, day, etc.).
If the approved projects are not reported or not completed within two years, the local administrative units of the Ministry of Finance will contact the Real Estate Department regarding the liquidation of the property, and that is after two years of the ownership date.
Foreigners Wishing to Invest or Purchase a Property in Turkey Are Required to Take into Consideration the Following:
- To find out if they can get the right to own a real estate or limited rights in kind.
- Transferring the ownership of property in accordance with the laws and legislation in force in Turkey.
- The total space of Turkey real estate purchased should not exceed 30 hectares.
- To find out if the properties they want to purchase fall within a security or military zone or areas that are not allowed to sell, because the real estate located in the security zones may not be sold to foreigners.
- To visit the real estate department and take adequate information regarding the property in question, such as whether the landlord has the right to dispose the property or that the property in question is mortgaged or subject to any other action to prevent its sale.
- Not to sign contracts that have the legal characteristics and not to pay any amount as the price of the property, before taking the adequate information about the property concerned from the directorates of real estate records.
- The sale and purchase transaction shall not begin before searching and investigating the persons or companies that sell the property, and in the absence of proof of confidence or seriousness with the seller it is not advisable to deal with him.
- If there is any difference in the buying and selling process, the matter must be referred to the court where the proceedings are held in the Turkish courts. The Turkish Ministry of Foreign Affairs or any foreign representative cannot interfere in the proceedings.
The General Procedures Followed by the Directorates of the Real Estate Department in Accordance with the Circular No. 1734 of the Ministry of Environment and Civilization in Relation to the Ownership of Foreign Property and Limited Rights in Kind:
- Studying the terms of ownership in terms of the nationality of the applicant.
- Checking whether the property is located within a prohibited military zone, military security zone, or strategic location.
- Taking into account the commitments mentioned in the previous circular regarding the determination of ownership of 30 hectares.
According to the circular, the Ministry of Environment and Urbanization stated that properties obtained in violation of Article 35 of the Real Estate Law or properties that are used in a manner contrary to the purposes of ownership they will be subject to liquidation.
List of Certain Conditions and Restrictions Imposed on Foreign Ownership of Turkey Real Estate According to the Countries:
There is no clear list of the names of countries whose citizens can own real estate in Turkey because the laws and decrees section in the Presidency of the cabinet keep this list in their archives and are not shown to the public opinion. However, the information contained in the classifications listed below is collected from the information provided in the press, and it does not have any legal status.
According to the outcomes of research and press studies carried out in this regard, it can be said that the number of countries that can freely own a property in Turkey rose to 129 countries, while the number of countries that imposed on their individuals some conditions, restrictions and approvals are 52 countries. Houses for Sale in Turkey
Countries Whose Citizens Are Entitled to Own a Property in Turkey without Any Conditions:
Saudi Arabia, Kuwait, UAE, Qatar, Yemen, Oman, Sudan, Germany, America, Argentina, Azerbaijan, Bangladesh, Barbados, Belarus, Belgium, Wales, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi, Djibouti, Chad, Jake, Finland, France, South Africa, South Sudan, Georgia, Netherlands, Honduras, Britain, Sweden, Switzerland, Italy, Iceland, Jamaica, Japan, Canada, Montenegro, Kazakhstan, Kyrgyzstan, South Korea, Kosovo, Costa Rica, Luxembourg, Madagascar, Macedonia, Malawi, Malaysia, Mali, Norway, Panama, Turkmenistan, Uganda, Venezuela, New Zealand.
Countries Whose Citizens Have the Right to Own Only One Residential Unit in Turkey:
China, Denmark, Fiji, the so-called State of Israel (Palestine the Occupied), Malta
Countries Whose Citizens Are Entitled to Own a Property in Turkey After the Approval of the Ministry of the Interior:
Australia, Austria, Bahamas, Bahrain, Algeria, India, Pakistan
States Whose Citizens Have the Right to Own Land, Housing Unit, Work Place Only:
Morocco, Hungary, Marshall Islands, Egypt, Micronesia, Vietnam
Countries Whose Citizens Are Entitled to Own a Property in Turkey but under Certain Conditions:
They should not be among persons prohibited by the United Nations, approval by the Ministry of the Interior, a land of construction, housing unity, a place of work only
Not to be within the Black Sea coast, approval of the Ministry of the Interior
Not to be within the Black Sea coast, approval from the Ministry of the Interior, land of construction, housing unity, place of work only
Land, place of work, in a condition that it is not within the border and coastal cities
Housing unit, work place only
Two residential units and one place for work
Approval from the Ministry of Foreign Affairs and Interior, land of construction, Housing unit, work place only
The approval of the Ministry of the Interior, a land of construction, Housing unit, a place of work only
Granting the same rights as the Turks