An Investment Opportunity: Buying Property in Turkey
This article aims to give guidance to foreigners who wish to purchase property in Turkey. Purchasing property in Turkey is not as difficult as it looks for foreigner buyers. Having said that, it is strongly advise you to seek legal consultancy in order not to make a wrong investment/ lose yourself in paper work.
Until 2012, there used to be a reciprocity condition for foreigners who are willing to purchase property in Turkey. However, as per Art number 35 of the Turkish Land Registry Code which became in force on 18.05.2012, the reciprocity condition is abolished. Since then, foreigners have been able to purchase any kind of real estate such as house, office, land etc… Of course there are some legal restrictions in this regard:
– Individual foreigners, who buy property without a construction, have to submit a construction project to the Ministry Office within 2 years.
– Property ownership can only be transferred at the relevant Land Registry Directorates by signing an official deed and registry. Please note that you, as a foreigner, do not have to be present before the Land Registry Directorate or even come to Turkey for you planned purchase. You can authorise a lawyer by issuing a Power of Attorney and let your lawyer handle the complete purchasing process for you. Once the paperwork is done, you lawyer can provide you with the official title deed via courier which shows you are the owner of the real estate.
– Please bear in mind that you can also sign a property sales commitment agreement before a notary. With that agreement, the land owner promises you not to sell the property to anyone else but you. However, you should remember that this document is just a commitment agreement and it is not possible for the legal ownership of the property to be transferred with this agreement.
– Foreign individuals can’t purchase property more than 30 hectares in total, can’t buy or rent a property within security and military restricted/forbidden zones.
– Above mentioned restrictions are not applicable in setting mortgage for real persons as well as companies that have legal personality in Turkey and also established in foreign Countries.
The Application Procedure
Either the land owner or his/her proxy can submit a preliminary application before the Land Registry Directorates. In order for the application to be considered complete, all the required documents should be in place. Otherwise the application will be kept waiting.
Property Purchase by Foreign Companies
Real estate can be purchased both by the companies which are officially registered in Turkey and companies with a foreign capital.
Should you think that we missed a subject in this brief article, please contact to your lawyer. Acacia International Lawyers would be glad to help you in your property acquisition if you need further clarification or help.