ACQUISITION OF REAL ESTATE BY FOREIGNERS

Natural Persons:

Foreign natural persons, who would like to acquire real estates in our country:

• Should be citizens of the countries determined as eligible for acquisition of real estates and limited rights in rem in our country by the President and should meet the criteria for acquisition.
• Natural persons of foreign origin may acquire any real estate in areas where private property is allowed (residence, workplace, land, field etc.), provided that legal limitations are observed.
• If natural persons of foreign origin acquire unbuilt real estates (real estates with no built structures thereon, such as land and field), then a project is to be developed depending on the nature of the real estate and such project is to be submitted to the relevant Ministry for approval within two years. If the Ministry is not applied or the project is not completed within two years, then such real estate shall be subject to provisions on nationalization.

 If the real estate to be purchased by natural persons of foreign origin:

• Is agricultural land, then opinion shall be sought from the Ministry of Agriculture and Forestry, and,
• Is a real estate in a protected site, then opinion shall be sought from the Ministry of Culture and Tourism or Ministry of Environment and Urban Planning, to the effect that the real estate is fit for acquisition.

Legal Persons

Incorporated trading companies established in foreign countries according to the laws of such countries may acquire real estates and limited rights in rem only if there are special provisions to such effect in the applicable laws. It is impossible for any legal persons except the trading companies established in foreign countries according to the laws of such countries (incorporated or unincorporated foundations, associations, cooperatives, societies, groups, communities etc.), on the other hand, to acquire real estates and to have rights in rem created to their favor in our country

LEGAL LIMITATIONS

Only citizens of the countries determined by the Presidential Decree may acquire real estates and limited rights in rem in our country. However;

• Total area of real estates that may be acquired by a natural person of foreign origin throughout the country is maximum thirty hectares.
• Total area of the real estates that may be acquired by natural persons of foreign origin may not exceed ten percent of the area, where private property is allowed.
• If the real estate intended for acquisition is included in a “Special Security Zone”, authorization is required from the governorship of the place, where the real estate is located.
• Natural persons of foreign origin and the incorporated companies established in foreign countries under the laws of their own countries are develop a project in relation with the unbuilt land they bought within two years and such project to be developed is to be submitted to the relevant Ministry for approval.
• Incorporated trading companies, which are established according to the laws of their own countries, may acquire real estates and limited rights in rem only in case there are special provisions in the applicable laws. Any legal persons other than such trading companies may not acquire real estates and may not have limited rights in rem created to their favor.

INHERITANCE

The rights of the inheritors are preserved on the real estates acquired by the foreigners in our country. However, in case of real estates acquired through inheritance that exceed the limitations set forth in article 35 of the Land Registry Law, the Ministry of Treasury and Finance grants a period of one year to the owner of the real estate. If the owner fails to dispose of the real estate within the period granted, then the said Ministry receives the real estate and an appropriate amount shall be assessed for the same and such amount shall be paid to the right holder.

HOW TO APPLY FOR LAND REGISTRY PROCEDURES

The owner of the real estate or authorized representative of the owner may visit the Land Registry Directorate with the necessary documents and may file an application. (Applications are usually filed before the noon break, by taking a ticket number at the Land Registry Directorate.) Moreover, foreigners, who are also citizens of Turkey, may make an appointment through the center Alo 181 or online using e-appointment (https://randevu.tkgm.gov.tr/) and WEBTAPU (webtapu.tkgm.gov.tr) services.

An application filed before the Land Registry Directorates is processed according to the “Circular Regarding Workflow and Delegation of Authority at the Land Registry Offices and the Annexed Guide” numbered 2014/1 in terms of flow of procedures and other matters.

• In our country, land registry procedures take place at the land registry directorates only, and the application may be filed both personally and also through representatives, who are authorized by a power of attorney issued before a notary public. Procedures performed at the land registry directorates are received through information and application units at the directorates and such units provide the necessary information.
• Unauthorized people, who promise to accelerate the procedures before the land registry directorates, must not be given credit.

DOCUMENTS NECESSARY FOR APPLICATION AND PROCEDURES

The identity document or passport* of the foreign country issued by the competent authorities of the country of citizenship will be relied upon to identify the natural persons of foreign origin and must be presented to the officer during application. Expired passports or identification documents may not be used for land registry procedures.

For citizens of the Palestine State only: in order for any identity document or passport other than an identity document and passport issued by their own countries, i.e. an identity document or passport issued by other countries (certificate of a refugee, travel etc.), to be used for land registry transactions, it must be presented along with a Certificate of Residence Permit issued by the General Directorate of Migration Management.

A valuation report showing the market rate of the real estate needs to be submitted for all the transactions of sale involving foreign natural persons both as a purchaser and as a seller.

Such report must be prepared by the valuation firm in accordance with international valuation standards and must be approved.

Valuation report is required both to protect the foreign investor so that the foreigners, who purchase real estates in Turkey, know the actual value of the real estates that they purchase, and to create a value map for real estates at the General Directorate of Land Registry and Cadastre.

For land registry and cadaster procedures of the incorporated companies established in foreign countries according to the laws of their own countries, on the other hand, a certificate of authorization issued by the competent authorities of their country to prove that the company is duly established and active and is also competent to perform land registry procedures must be presented.

For this document, original containing apostille according to the Hague Convention of 5 October 1961 Abolishing the Requirement of Legalization for Foreign Public Documents and certified translation are sought; in case of no apostille, the documents are to be certified by the Consulate of the Republic of Turkey in such country.

Compulsory earthquake insurance policy issued by the insurance companies against any possible damages after an earthquake must be presented.

Procedures for transfer by inheritance for foreign natural persons are performed based on the certificates of inheritance issued by the courts of the Republic of Turkey or issued by the competent authorities of their countries of origin and certified by the Turkish Courts.
 

Sale Procedure

Sale Procedure for Natural Persons

POWER OF ATTORNEY

With the exception of power of attorney issued at Consulates of the Republic of Turkey, any power of attorney issued in foreign countries must meet the following requirements:

• It must be issued in the official language of the country of issue in a manner to contain the photo of the person concerned,
• It must contain “Apostille” under Convention Abolishing the Requirement of Legalization for Foreign Public Documents (Hague Convention) or it must be certified by the Consulate of the Republic of Turkey in the country, where the notary certifying the power of attorney is located,
• It must contain authorization for the requested transaction,
• It must be presented to the land registry directorate along with notarized Turkish translation. In addition to the foregoing requirements for power of attorney issued in foreign countries, the photo on the power of attorney must be certified by the issuing official by seal or embossed stamp or signature or stamp, depending on the position of the official issuing the power of attorney.

The requirements sought for the power of attorney containing apostille:

• Apostille may be affixed directly on the document itself or on another paper to be attached thereto. If the apostille is on another document, then it must be attached to the certified document, and the seal of the certifying authority must be affixed on the physical attachment point.
• Apostille may be in the official language of the authority issuing it or may be in another language. A sample power of attorney with apostille
• However, the title of the apostille must absolutely be in French, reading «Apostille Convention de La Haye Du 5 Octobre 1961».
• A duly filled in apostille certifies authenticity of the signature, title of the person signing the document and, when necessary, certifies that the seal or stamp on the document is authentic. Signature, seal or stamp on the apostille shall be exempt from any verification.
• In addition, attention must be paid to the fact that the document and the relevant apostille must be issued by different authorities.

FINANCIAL ASPECT OF THE TRANSACTION

Land Registry Fee

Land registry fee of 20 over one thousand shall be collected separately for the seller and the purchaser based on the value declared for the sale, provided that it shall not be less than the real estate value declared by the relevant municipality. (In case of exemption from fees, a letter issued by the Tax Office to evidence the same must be presented)

Circulating Capital

Circulating Capital charges are collected (Varies depending on the local coefficient applicable for the locality, where the real estate is located)

Mortgage Procedure

Sale Procedure Template for Foreign Natural Persons

1. The purchaser and the seller agree on the real estate.
2. An application is filed with the land registry directorate along with the necessary documents.
3. The officer makes the necessary examinations.
4. Procedure starts if the documents are full.
5. The person concerned is informed by SMS if the documents turn out to have any shortcomings.
6. Fee and circulating capital charges are reported by SMS.
7. Once the payment is made, land registry directorate is informed as necessary through the system.
8. The procedure is completed, official deed is issued and the person concerned is informed by SMS about the time to show up for signature.
9. Signatures are affixed and the title deed of the real estate is delivered to the foreign natural person owning the real estate/ their representative.