Acquisition of real estate and citizenship in Turkey, What Foreigners Need to Know About Acquiring Real Estate in Turkey
The acquisition of real estate titles in Turkey is only approved through registration at the land registry offices.
Pre-contracts for real estate, either prepared by notaries or entered into in writing with individuals, do not constitute the transfer of ownership by themselves. These pre-contracts merely serve as a commitment towards the transfer of ownership, and the property does not change hands through such documents.
There may be encumbrances such as mortgages, seizures, or other types of restrictions on the property that could prevent its sale, and it is necessary to verify these before initiating any procedures at the relevant land registry office.
Queries related to properties can be made online through parselsorgu.tkgm.gov.tr, where information such as province, district, neighborhood/village, map sheet, and parcel details can be used to inquire about the property. This enables access to essential information about the property, including its current status, from anywhere in the world. However, the personal information of the property owner cannot be accessed.
Foreign nationals do not need to have a residence permit as a prerequisite to acquiring real estate in Turkey. Additionally, foreigners purchasing real estate in Turkey are granted a renewable short-term residence permit in accordance with Law No. 6458 on Foreigners and International Protection.
An individual or legal entity intending to acquire real estate in Turkey must apply to the General Directorate of Land Registry and Cadastre together with the owner of the property. Furthermore, they can schedule appointments without the need to visit the directorate’s offices in person by calling the 24/7 service hotline at Alo 181 or by visiting randevu.tkgm.gov.tr.
On the other hand, Turkish companies with foreign capital must first apply to the Provincial Directorate of Planning and Coordination (PDPC) in the province where the real estate is located. After receiving a positive response from the PDPC, they should then apply to the Land Registry Office. These companies can submit their applications in person, by mail, or via email.
General Information
In Turkey, the term “foreigner” is defined in three categories concerning the acquisition of real estate:
Foreign individuals
Foreign legal entities
Turkish companies with foreign capital
Article 35 of Law No. 2644 on Land Registry specifies the provisions regarding the acquisition of real estate by foreign individuals or legal entities. Article 36 outlines the provisions concerning companies with foreign capital.
Countries whose citizens have the right to acquire real estate in Turkey are determined by the Council of Ministers, which may impose special conditions on real estate acquisition if deemed necessary.
Legal Restrictions on Real Estate Acquisition by Foreign Individuals
If permission is granted, foreign individuals can acquire any type of real estate (residential, commercial, land, agricultural areas, etc.) in areas where private ownership is allowed.
If there are no previously constructed buildings on the acquired real estate, the foreign owner must apply to the relevant public authority within two years to develop a project.
A foreign individual can acquire real estate and limited real rights up to 30 hectares anywhere in Turkey. The Council of Ministers may grant larger areas if deemed appropriate.
Foreign individuals are not allowed to acquire or lease real estate in prohibited military zones or military security zones. However, they can acquire and lease real estate in private security zones only with the permission of the governorship.
The total acquisition by foreign individuals cannot exceed ten percent of the total area where private ownership is allowed. If the ten percent limit is exceeded, permission for real estate acquisition by foreigners will not be granted.
Acquisition of Real Estate and Limited Real Rights by Legal Entities
In Turkey, only commercial companies established in accordance with the laws of their respective countries and having legal personality can acquire real estate and limited real rights as foreign legal entities. Other legal entities such as foundations, associations, etc., cannot acquire real estate and limited real rights.
Commercial companies established in foreign countries and having legal personality according to their own laws may be allowed to acquire real estate in exceptional cases. This is possible only if provided for by international agreements or special laws. Special laws that contain provisions on this matter include Law No. 6491 on Turkish Petroleum, Law No. 2634 on Tourism Promotion, and Law No. 4737 on Industrial Zones.
Note: Regarding mortgages, an exception is provided for mortgages created in favor of foreign individuals and legal entities on the property, with no restrictions.
Acquisition of Real Estate and Limited Real Rights by Foreign-Invested Companies Established in Turkey
Companies established as legal entities in Turkey are considered as companies owned by foreigners under the following conditions:
- Foreign investors owning fifty percent or more of the shares, or
- Foreign investors having the right to appoint and dismiss the majority of the board of directors.
These companies can acquire real estate and limited real rights to carry out the activities specified in their articles of association.
For this purpose, companies must first apply to the governorship where the real estate is located.
On the other hand, if the property to be acquired is located in a prohibited military zone or a military security zone, the acquisition of real estate will be subject to the approval of the General Staff. If the property is located in a private security zone, it will be subject to the approval of the governorship of the relevant region.
If the real estate acquisition application is approved, the governorship will inform the Land Registry Office in writing to register the company/business and the property.
The following procedures do not require permission from the governorship; therefore, applications to the Land Registry Office can be made directly without obtaining permission:
- Creating a mortgage
- Acquisition of real estate as part of enforcing a mortgage by the mortgagee
- Transfer of ownership of real estate and limited real rights resulting from company mergers and separations
- Acquisition of real estate in organized industrial zones, industrial zones, technology development zones, and free zones
- Acquisitions resulting from transactions recognized as loans within the relevant banking regulations or arising from the collection of receivables.
Inheritance
In Turkey, the inheritance rights of foreigners are protected. In the event of the death of a foreigner, the real estate they own passes on to their heirs. If the heir is eligible to acquire the real estate (subject to nationality requirements and as long as the individual and country-specific total restriction conditions allow), the heir can retain the inherited property. Otherwise, the individual must immediately transfer the real estate. Otherwise, the Ministry of Treasury and Finance will sell the real estate and pay the proceeds to the heir.
Acquisition of Turkish Citizenship through Real Estate Purchase
Foreign individuals are granted the right to acquire Turkish citizenship through exceptional procedures if they purchase real estate valued at $400,000 or more.
For this purpose, foreigners must:
Purchase real estate worth at least $400,000.
In their citizenship application, they must declare that they have purchased the real estate for this purpose, specify this purpose in the title deed, and declare in the section where statements are made on the form that they will not sell the real estate for three years.
Once the title deed procedures are completed, the foreign individual can apply to the relevant authorities and request a residence permit or citizenship for the property owner by sending the suitability certificate to be issued for the real estate.
Tapu Procedures Requirements
- Title deed registration of the property or village/neighborhood, map sheet, parcel, building, and independent unit information
- Photographic identification or passport issued by the country of nationality of the foreign individual (Identity cards and passports issued in alphabets other than Latin must be accompanied by notarized and sworn translations)
- If the transaction involves representation, a document relating to representation (guardianship decision, authorization document, power of attorney, etc.)
- Document issued by the relevant municipality regarding the current market value of the property
- Mandatory earthquake insurance policy for buildings
- One photograph of the seller and two photographs of the buyer (taken within the last six months and sized 6×4 cm)
- Sworn translator if one of the parties does not speak Turkish
Power of Attorney Issued Abroad
If the transaction is to be conducted by a third party authorized through a power of attorney issued abroad, the power of attorney must contain authorization regarding the procedure to be performed. Additionally, the power of attorney must meet the following conditions:
- It must be issued by Turkish consulates at their discretion regarding real estate.
- It must be issued by the competent authorities authorized to issue powers of attorney abroad.
- It must be issued in the language of the country where it is issued.
- It must contain a photograph (with a clear seal and signature over the photograph).
- If issued in a country that is a party to the Hague Convention, it must contain an apostille.
- The signature authentication by the relevant authority and, if the power of attorney is issued in a country not party to the Hague Convention, the signature and seal of the relevant authority must be authenticated by the Turkish Consulate.
Additionally, the application must include a notarized and sworn Turkish translation of the power of attorney that meets the necessary criteria.
Exceptional Citizenship Acquisition
With the addition of subparagraph (b) to Article 12 of Law No. 5901 on July 28, 2016:
Those who obtain a residence permit in accordance with subparagraph (j) of Article 31 of Law No. 6458 by making investments in the scope and amount determined by the President.
Foreigners holding a Turquoise Card
Can acquire Turkish citizenship by the decision of the President of the Republic of Turkey.
According to the new regulations published in the Official Gazette on September 18, 2018, the scope and amounts determined are as follows. Foreigners who meet any of the following conditions can acquire Turkish citizenship by the decision of the President of the Republic of Turkey:
Having made a fixed capital investment in the amount of at least $500,000 or its equivalent in foreign currency, as determined by the Ministry of Industry and Technology.
Having acquired real estate in the amount of at least $400,000 or its equivalent in foreign currency with a restriction not to sell for at least three years, as determined by the Ministry of Environment, Urbanization, and Climate Change.
Having created employment for at least 50 people, as determined by the Ministry of Labor and Social Security.
Having deposited at least $500,000 or its equivalent in foreign currency in banks operating in Turkey for at least three years, as determined by the Banking Regulation and Supervision Agency.
Having purchased government bonds in the amount of at least $500,000 or its equivalent in foreign currency with a condition to hold for at least three years, as determined by the Ministry of Treasury and Finance.
Having purchased real estate investment trust share or venture capital investment fund share in the amount of at least $500,000 or its equivalent in foreign currency with a condition to hold for at least three years, as determined by the Capital Markets Board.
Having contributed at least $500,000 or its equivalent in foreign currency, as determined by the Insurance and Private Pension Regulatory and Supervisory Authority, in funds determined by the Insurance and Private Pension Regulatory and Supervisory Authority and remaining in the system for at least three years, to be deposited in the individual pension system.
