Detailed Information About the Real Estate Law in Turkey
by alex donvour Economic consultantHow and when was the announcement of real estate
ownership law for foreigners in Turkey?
The Turkish government has made significant amendments to
the Turkish Real Estate Law regarding the conditions that must be met by
foreign individuals wishing to own real estate in
Turkey by approving the law number 6302 on 05.05.2012, where they
lifted some restrictions on the ownership of foreigners. And
provided some facilities in the conditions to be met by foreign individuals
wishing to own real estate in Turkey, with restrictions imposed on citizens of
some neighboring countries of Turkey.
The law of property ownership in Turkey does apply the
principle of reciprocity
With this law, Turkey has given the right of property
ownership to 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 real estate in Turkey, is to increase the desire of
investors to invest
in the real estate sector. The most important part of this law is
canceling the reciprocity conditions for foreign investors. Thus, individuals
from foreign countries are able to buy
a property in Turkey, although Turks are not allowed to own the property in
those countries to which those individuals belong. The principle of reciprocity
is the rights and privileges granted by one State to the nationals of the other
State, and the same privileges and rights are accorded to the nationals of
those States.
Restrictions included in amendments to the law of real
estate ownership in Turkey
This law imposes some restrictions on areas that can be
owned by foreign individuals. According to the law, the total of what foreign
individuals own must not exceed 10% of the area space, and the total space of
land that can be owned by one person throughout Turkey should not exceed 30 ha
Acres, The right to raise this area to 60 hectares is given to the cabinet,
moreover, before this law, spaces that can be owned by the individual did not
exceed 2.5 hectares across the county.
In addition, the 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 land
that can be classified as special security zones, Where it is linked to the
approval of the state (province) where the property is located.
What about foreign companies established outside Turkey?
According to Article 35 of the Turkish Real Estate Law,
foreign commercial companies, which have the status of legal entities and are
incorporated according to the laws of their country, can own real estate in
Turkey under special legal provisions (Tourism Marketing Law No. 2634,
Industrial Areas Law No. 4737, Oil Law No. 6326), And other business companies
established outside the country cannot own real estate in Turkey.
Turkish companies with foreign capital
According to article 36 of the law, if the company
established in Turkey is foreign capital, and individuals are foreigners,
foreign legal entity or international corporation owns 50% or more of the capital
of this company or has the right to appoint and dismiss the majority of the
company's board of directors, thus, The Company's right to own real estate is
limited enough to cover the Company's activities contained in the Company's
contract.
Empty lands
According to Article 35 of the Real Estate ownership Law,
foreign individuals or foreign companies established in accordance with the
laws of their country are obliged to submit the projects that will be developed
on the vacant, non-built lands and that were purchased by the concerned
ministries within two years from the date of purchase. According to Circular
No. 1734 of the Ministry of Environment and Urban Civilization, in the case of
approvals for projects that will be developed on empty lands that are not built
to the Department of Real Estate Department, it is necessary to inform the
registration data in the following form (the project was approved 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, where this shall be two years after the date of acquisition.
Foreigners wishing to invest or purchase property in
Turkey are required to take into account the following matters:
- Finding
out if they can get the right to own real estate or limited rights in
kind.
- Transfer
of ownership of property in accordance with the laws and legislation in
force in Turkey.
- The total
area of property purchased in all Turkey should not exceed 30 hectares.
- Getting
to know if the properties they want to buy fall within a security or
military zone or areas that are not allowed to sell, because properties
located in the security zones may not be sold to foreigners.
- Visiting
the real estate department and getting sufficient information regarding
the property in question, such as whether the landlord has the right to
dispose of 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 getting sufficient information
of the property concerned from the directorates of real estate records.
- The
sale and purchase transaction shall not begin before the search and
investigation of the persons or companies selling the property, and in the
case of lack of trust or seriousness with the seller, it is not advisable
to deal with.
- 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 conduct of the case.
General procedures adopted by the directorates of the
real estate department in accordance with Circular No. 1734 of the Ministry of
Environment and urbanization in regard to the ownership of foreign property and
property limited rights
- Examining
the terms of ownership in terms of the nationality of the (applicant).
- Investigating
the property in question whether the property is located within a
prohibited military zone or military security zone or in strategic
locations.
- Take
the undertakings mentioned in the previous circular regarding the
determination of 30 hectares of ownership.
According to the circular issued by the Ministry of
Environment and Urbanization, 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 the acquisition will be subject to liquidation.
List of special conditions and restrictions on foreign
ownership of real estate in Turkey by country
There is no explicit list of countries whose citizens can
own real estate in Turkey because the laws and decrees section of the
Presidency of the Council of Ministers have kept this list in their archives
and not shown to the public opinion, but the information contained in the
classifications listed below has been collected from the press and do not have
any legal status.
According to the results of research and press studies
carried out in this regard, it can be said that the number of countries that
can freely own property in Turkey rose to 129 countries, while the number of
countries that imposed on their members some conditions and restrictions and
approvals are 52 countries.
Countries whose citizens are entitled to own property in
Turkey without any conditions
Saudi
Arabia, Kuwait, UAE, Qatar, Yemen, Oman, Sudan, Germany, America,
Argentina, Azerbaijan, Bangladesh, Barbados, Belarus, Belgium, 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, Iceland, Jamaica, Japan,
Kazakhstan, Kyrgyzstan, Republic of Korea, South Africa, Sweden, Switzerland, Kosovo,
Costa Rica, Luxembourg, Madagascar, Macedonia, Malawi, Malaysia, Mali, Norway,
Panama, Suriname, Turkmenistan, Uganda, Venezuela and New Zealand.
Countries whose citizens are entitled to own only one
home in Turkey
China, Denmark, Fiji, the so-called State of Israel
(Occupied Palestine), Malta
Countries whose citizens are entitled to own real estate
in Turkey after the approval of the Ministry of the Interior
Australia, Austria, Bahamas, Bahrain, Algeria, India,
Pakistan
Countries whose citizens have the right to own a land, a
dwelling, a place of work only
Morocco, Hungary, Marshall Islands, Egypt, Micronesia,
Vietnam
Countries whose citizens are entitled to own real estate
in Turkey but under special conditions
Country |
State requirement |
Iran |
Shall not be among persons prohibited by the United
Nations, approval by the Ministry of the Interior, a land of construction, a dwelling, a workplace only |
Russia |
Not be within the Black Sea coast, approval from the
Ministry of the Interior |
Ukraine |
Shall not be within the Black Sea coast, approval from the
Ministry of the Interior, an urban land, a
dwelling, a workplace only |
Greece |
Land, workplace, provided that it is not within the border
and coastal cities |
Albania |
A dwelling and a workplace only |
Jordan |
Two homes and one workplace |
Iraq |
Approval from the Ministry of Foreign Affairs and
Interior, land of construction, dwelling, workplace only |
Tunisia |
The approval of the Ministry of the Interior, the land of
the building, the dwelling, the workplace only |
Northern Cyprus |
Granted the same rights as the Turks |
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Created on Sep 24th 2018 07:35. Viewed 521 times.