The Turkish real estate market is developing day by day. Foreigners have been presenting an increasing demand for real estate, especially among the southern and western coasts of Turkey. It is possible for foreign citizens to acquire real estate in Turkey however it is subject to various legal restrictions.
The legal grounds for acquisition of real estates and rights in rem by foreign natural and legal persons in Turkey are articles 35 and 36 of the Land Registry Law No 2644. The citizens of the countries, which are determined by the President under the authorization granted in the Land Registry Law, may acquire real estates and limited rights in rem in cases where it is necessary for the country’s benefits and in accordance with the international bilateral relations, provided that the legal limitations are complied. The current law concerning real estate acquisitions by foreigners, has made the procedure more attainable. The principle of reciprocity has been abandoned for foreign citizens whom willing to acquire real estate in Turkey.
First of all, it should be noted that, pursuant to Article 237 of the Code of Obligations No 6098, the contract must be formally concluded and registered in order for the sale of immovable to be valid. According to the current legislation in Turkey official contracts aiming at the transfer of immovable property must be made at the Land Registry Offices where the immovable is located and it is also possible to apply to any Land Registry Offices in Turkey.
Land registration procedures such as sale, grant, transfer by inheritance, and mortgage are carried out only through the Land Registry Offices, and the ownership of real estate can be transferred by official deed and registration signed by the land registration authority. There are some legal documents that needed to be translated by a certified translator for the application. A foreigner intending to acquire real estate in Turkey should apply the Land Registry Office together with the owner of the real estate. Even if foreign citizens are not present in Turkey, it is possible to authorize an attorney to carry out this procedure on behalf of them.
Foreign citizens are required to provide the following documents in their application to the relevant Land Registry Office for the acquisition of real estate:
- Identity documents or passports,
- Residence permit issued by the relevant police directorates for foreigners who must have a residence permit.
- In case of making transactions by proxy on the basis of the power of attorney issued from abroad, the original of the power of attorney together with its translations or have a certified copy with them.
It is also possible to sign “agreement for the promise of sale” before the notary public. However, an “agreement for the promise of sale” signed before the notary public or any contract of sale issued outside will only constitute a preliminary agreement that entitles one to request the real estate to be sold. It is not possible to directly transfer real estate ownership by an agreement for the promise of sale.
Foreign citizens do not need to have a residence permit or do not need to be a Turkish citizen in order to be able to acquire real estate in Turkey. In addition, foreigners who have real estates in Turkey are issued short-term residence permits for up to two years under the Foreigners and International Protection Code numbered 6458. Foreign citizens, like Turkish citizens who owns property in Turkey, have the right to dispose of their real estate; they can sell, rent and pawn their real estate to third parties.
Foreign citizens who purchase real estate worth minimum USD 400,000 are eligible to apply for Turkish citizenship through specific processes. After the land registry procedures are completed, the foreign national may apply to the relevant administrations to claim the right of residence or citizenship by submitting the certificate of eligibility to be issued for the owner.
As previously stated, foreign residents can purchase real estate in Turkey; nevertheless, there are several difficulties that foreigners should be aware of in order to avoid complications that may occur. At present, citizens of total 184 countries may acquire real estates from Turkey. However, the procedure for the acquisition of real estate may differ between these countries. The information in this article is provided for general information purposes only. There could be various practices that may change according to the citizens of different countries and disparate needs may arise during this process. Each citizen may have different situations due to their own special conditions. For this reason, it is in your best interest to consult an attorney of law before taking any decision that will affect this process. In case of any dispute regarding the purchase and sale, the situation should be brought to the judiciary and a lawsuit should be filed in Turkish courts.
Considering all these issues explained above, it would be beneficial to continue this process in the presence of an attorney at law in order to prevent problems that may arise from ignorance of the legislation and practice.
Yazar: Aybüke TÜTER