THE
PERSONS’ OF FOREIGN NATIONALITY ACQUIRING REAL ESTATE IN
REPUBLIC OF TURKEY
Acquiring
immovable for foreign real and legal persons in Turkey was regulated
by Article 19 of the Code dated 03.07.2003 and dated 4916 and Article
35 of amended Deed Code numbered 2644.
Provided
that being mutual and legal limitations were conformed to, real
persons of foreign entity and commercial companies that were founded
in foreign countries pursuant to laws of such countries may acquire
immovables within the borders of Republic of Turkey. In the
application of reciprocity, it is essential that the foreign country
grants the same rights to citizens or commercial companies of
Republic of Turkey as it grants to its own citizens or commercial
companies with legal entity that were founded pursuant to the laws of
such county.
The
immovables that the citizens of the states of countries that do not
have reciprocity with Republic of Turkey acquired through
inheritance, and the immovables in areas subject to legal limitations
are liquidated and turned into cash after completing succession
procedures.
Acquisition
of immovables more than thirty hectares by real persons of foreign
nationality and commercial companies in foreign countries that were
founded pursuant to the codes of such countries is subject to the
permission of Council of Ministers. This provision is not applied for
the immovables that was inherited by legal bequest. And acquisition
of immovables more than thirty hectares by real persons of foreign
nationality via dispositions other than legal inheritance is subject
to the permission of Council of Ministers as well. If the permission
is not granted, exceeding amount is liquidated and turned into cash.
In order
to ensure social benefit and security of the country, Ministry of
Development and Housing selects the regions where this specification
is invalid”.
Principle
of reciprocity
Council of Ministers explained in its Decree dated
29.05.1940 and numbered 2/13394 how principle of reciprocity.
According to the Decree, for the existence of reciprocity, actual
application thereof is required as well as legal arrangement. In the
decree in which the fact that legal reciprocity would not show the
actual situation is taken into consideration, it was required the
limitations which citizens of Republic of Turkey would face, in case
of application in foreign countries to be taken as the basis.
Therefore, in order to mention the existence of reciprocity between
our country and a foreign state in the issue of immovable
acquisition, such reciprocity should be legal and actual.
Accordingly, acquisition of immovable in our country by a citizen or
commercial company of foreign nationality depends on the fact that
citizens and commercial companied of Republic of Turkey can acquire
immovables in that country and are granted the right to do so and
that this right can actually be applied.
In
the new arrangement, in addition to the legal and actual reciprocity,
instead of applying the principle of reciprocity one to one, the
basis that the foreign country grants the same rights to the citizens
and commercial companies of Turkey, as it does to its own citizens
and commercial companies with legal entity that were founded pursuant
to its laws was included.
In acquisition of real estate by the citizens of both
the countries that have reciprocity with Turkey (87 countries) and
those that do not have (35 countries), the decision is made after
analysis of their applications by Council of Ministers.
Exclusion of principle of reciprocity
The
first condition of the acquisition of immovables in our country by
foreign real persons is reciprocity, but there are some exceptions
for the real persons. These exceptions are as follows:
a.
As the stateless are not of any nationality, there is not a
respondent country with which principle of reciprocity may be
determined. Therefore, stateless are exempted from principle of
reciprocity.
b.
According to provision of Article 7/2 of “Act on Legal Status
of the Refugees” which was approved by Turkey with the Code
dated 26.08.1961 and numbered 359, refugees become exempted from
principle of reciprocity, after their three-year residence in the
country they took refuge in. Refugees in Turkey are subject to the
same provision. For exemption, it is sufficient for the refugees to
prove their status with legal documents.
c .
According to Article 8/E of Tourism Incentive Law numbered 2634,
foreign real and legal persons that wish to make tourism investments
in Turkey may acquire immovables in tourism regions and centers
without being subject to the principles of reciprocity and legal
limitarions for the foreign persons.
Legal
limitations
Second condition for acquisition of immovables by
foreign real persons is conforming to the limiting provisions imposed
through law.
Concerning
acquisition of immovables by foreign people, there are some
limitations in our law. These limiting provisions are as follows:
a.
According to the arrangements within Military Banned Zones and
Security Zones Law numbered 2565 that limit acquisition, transfer and
lease of immovables by foreign people, immovables within military
banned zones and security zones is not possible.
b.
Article 35 of Deed Law numbered 2644 imposed the rule that foreign
real persons cannot acquire immovables of more than 30 hectares in or
country, that they acquire more than this merely with Decree of
Council of Ministers, and that legal inheritance is not included in
this provision.
c.
As Article 87 of Village Code numbered 442 was abolished with the new
arrangement, foreign real persons became eligible to acquire
immovables in villages.
ACQUISITION
OF IMMOVABLES IN TURKEY BY FOREIGN LEGAL PERSONS
With
the change in Article 35 of Deed Law, acquisition of immovables in
Turkey by all foreign commercial companies became possible, provided
that principle of reciprocity is present and they conform to the
legal limiting provisions.
For
foreign commercial companies, condition of reciprocity and conforming
to the legal limitations were imposed, as well as for foreign real
persons. Whether there is a reciprocity between our country and a
foreign country is determined by asking Ministry of Foreign Affairs.
The
rules valid for foreign real persons in terms of legal limitations
are valid for foreign commercial companies as well. Additionally, the
rule that reciprocity is nor requested when a limited real right is
being constituted for foreign real persons is imposed for the foreign
commercial companies as well.
ACQUISITION
OF IMMOVABLE BY COMPANIES WITH FOREIGN CAPITAL
The
term companies with foreign capital is often confused with the term
foreign company. First of all, it should be stated that companies
with foreign capital are founded in Turkey pursuant to the provisions
of Turkish Commercial Code and registered in Turkish Commercial
Registry. Therefore, these companies are subject to legal rules of
Republic of Turkey. Only a part or all of their capital belongs to
foreign real or legal persons. Having foreign shareholders does not
make the company a foreign legal person, because nationality of the
company and nationality of its shareholders are two different issues.
“Direct
Foreign Investments Law” dated 5 June 2003 and numbered 4875
that was entered into effect by being published in Official Gazette
dated 17 June 2003 and numbered 25141, and Foreign Capital Incentive
Law dated 18.01.1954 and numbered 6224 were arrogated and new terms
are imposed for encouraging and increasing foreign investments,
protecting rights of foreign investors’ rights, transforming
permission and approval system into information system in realization
of foreign investments.
Notice
on the issue dated 07.08.2003 and numbered 1363–100/841
announced to all our units through our regional directorates and it
was notified that the application will be carried out within the
framework of following terms:
With
Foreign Direct Investments Code numbered 4875, foreign investors were
subjected to the equal treatment with domestic investors; permissions
and approvals such as investment permission, company foundation
permission were abolished; the companies with legal entity founded or
participated in our country by foreign investors to acquire immovable
ownership or limited real right in the regions open for the
acquisition by the citizens of Republic of Turkey is decontrolled.
Companies
that would activate pursuant to the Code numbered 4875 concerning the
activities of companies with foreign capital in our country or that
were founded pursuant to the Code numbered 6224 that ceased to have
effect, are considered as Republic of Turkey companies with foreign
capital in terms of foundation place and administration. Therefore,
acquisition of immovables by companies with foreign capital that
obtained activity permission pursuant to Foreign Capital Incentive
Code numbered 6224 that ceased to have effect and that would realize
activities pursuant to Foreign Direct Investments Code numbered 4875
and other requests aimed at deed registry are completed by the
related Deed Registry Directorates by evaluation of their authority
certificates that were issued by commercial registry offices by being
subject to the same terms and procedures as the companies that were
founded pursuant to Turkish Commercial Code, and that show the
authority and authorized person of the company to acquire immovables.
TRANSFER
It
is free to transfer the revenues of the immovables and real rights
obtained by foreigners either by exchanging currency or without
exchanging and sales prices via banks and private finance
institutions.
I.
APPLICATION AUTHORITY
Pursuant
to Article 26 of Deed Code numbered 2644, duty and authority to issue
agreements concerning ownership and real rights other than ownership
is granted to Deed Registry Directorates.
Foreign
people that wish to acquire immovables or make use of real rights
other than ownership will apply to Deed Registry Office of the place
where the immovable is located.
Detailed
information on the issue may be obtained from General Directorate of
Land Registry.
II.
REQUIRED DOCUMENTS FOR APPLICATIONS
In
terms of required documents for application there is no difference
between Turkish citizens and foreign people.
A)
FOR REAL PERSONS
1-
Title deed of the immovable, if any and document stating its block
and plot no, if not or oral declaration of the owner,
2-
Identity card or passport of the country of nationality and two
snapshots,
3-
If the person requesting is representative, power of attorney
concerning representation and identity card with photograph of the
representative and snapshot, if there are the ones among the buyers
that do not participate in the operation in person, identity cards,
snapshots with photograph of their representatives and documents
concerning their representation.
B)
FORE LEGAL PERSONS
1-
Companies that were founded pursuant to Foreign Direct Investments
numbered 4875 should submit certificate of authority obtained from
Commercial Registry Office, list of authorized signatures and power
of attorney issued to the authorized person,
2-
Companies that were founded in foreign countries pursuant to the laws
of such country should submit a document equivalent of the
certificate of authority obtained from related authorities pursuant
to the regulations of the country it was founded.
As
for the charges and taxes required to be paid during deed operations,
there is no difference between people of foreign nationality and
citizens of Republic of Turkey.
However,
in order to determine whether the immovables that real and legal
persons of foreign nationality that wish to acquire immovables in our
country are within Military Banned Zone and Security Zones,
authorized military authority is asked, and during this procedure, if
land should be visited in order to mark the place where the immovable
is located on map of 1/25000 scale, floating assets service charge is
collected according to the procedure of “show the lot on-site”.
COUNTRIES
THAT HAVE RECIPROCITY WITH TURKEY IN THE ISSUE OF ACQUISITION OF
IMMOVABLES
1. GERMANY, UNITED STATES OF AMERICA,
ANDORRA, ARGENTINA, AUSTRALIA, AUSTURIA, BAHAMAS, BANGLADESH,
BARBADOS, BELGIUM, BELIZE, BENIN, BOLIVIA, BOSNIA-HERZEGOVINA,
BOTSWANA, BRAZIL , DENMARK, DOMINIC REPUBLIC, EQUADOR, EL SALVADOR,
ESTONIA, IVORY COAST,
PHILIPPINES, FINLAND, FRANCE, GABON GANA,
GUINEA, GRANADA, GUATEMALA, GUYANA, REPUBLIC OF SOUTH AFRICA,
HAITI, CROATIA, NETHERLANDS, HONDURAS, ENGLAND, IRELAND, SPAIN,
ISRAEL, SWEDEN, SWITZERLAND, ITALY, JAMAICA, JAPAN, CAMERUN,
CANADA, TRNC, COLOMBIA,
COREA (SOUTH), COST RICA, LATVIA,
LICHTENSTEIN, LLITHUANIA, LUXEMBOURG, HUNGARY, MALAWİ, MALAYSIA,
MALI, MALTA, MAURITUS, MEXICO, MONACO, MAURITANIA, MOZAMBIC,
NIGERIA,
NICARAGUA, NORWAY, CENTRAL AFRICAN REPUBLIC, PANAMA,
PARAGUAY, PERU, POLAND, PORTUGAL,
SAN MARINO, SENEGAL, SERBIA
AND MONTENEGRO (YUGOSLAVIA) SINGAPORE, SOMALI, SRI LANKA,
SWAZILAND, CHILIE, TANSANIA, URUGUAY, VENEZUELA, NEW ZELAND, CABO
VERDE ISLANDS.
GREECE-
Requests of real persons of Greek nationality concerning acquisition
of immovables in our country will be brought to conclusion pursuant
to the notice still in force dated 22.3.2000 and numbered
1361-121-T/302-317.
COUNTRIES
THAT DO NOT HAVE RECIPROCITY WITH TURKEY IN THE ISSUE OF ACQUISITION
OF IMMOVABLES
AFGHANISTAN, UNITED ARAB EMIRATES, BURMA,
ALGERIA, CZECH REPUBLIC, INDONESIA, ERITRE ,
ARMENIA, ETHIOPIA,
FIJI, INDIA, IRAQ, ICELAND, CAMBODIA, QATAR, COREA (NORTH),
KUWAIT,
CUBA, LAOS, LİBYA, MALDIVS, MONGOLIA, NEPAL,
NIGERIA, OMAN, PAPUA NEW GUINEA, SLOVAKIA,
SUDAN, SURINAM,
SAUDI ARABIA, THAILAND, TUNUSIA, VIETNAM, YEMEN.
THE
COUNTRIES THAT CAN ONLY ACQUIRE BUILDING OWNERSHIP IN OUR COUNTRY
AZERBAIJAN, BAHRAIN, BELARUS, CHAD, CHINA, MOROCCO, GEORGIA, IRAN
(under condition f five-year residence and permission from related
Ministries), KAZAKHSTAN, KENYA, KYRGYZ REPUBLIC, MACEDONIA,
EGYPT, MOLDOVA, NAMIBIA, UZBEKISTAN, ROMANIA, RUSSIAN FEDERATION,
SLOVENIA, TAJIKISTAN, TURKMENİSTAN, UGANDA, UKRAINE, JORDAN.
Purchasing
of an immovable
Purchasing-sales
procedure of any immovable is carried out by Regional Land Registry
Directorates.
Documents
required in deed registry procedure
Turkish
translation of the passport by the sworn translator from the notary
Buyer’s
Father’s Name
2 newly shot
snapshot of 3 X 4 size.
During land
registry procedure, a sworn translator witnesses to the
purchasing-sale procedure,
After the
signatures are put, buyer is submitted “Title Deed” which
is the certificate for the property he/she purchased.
Purchasing-sale
tax of 2% overt the market value is paid by the buyer during sales.
In addition to
this, an expense of 500 YTL for the charges, correspondences and
sworn translator is paid.
(Moreover,
property tax of 02% over the market value is paid to the municipality
that the property is within.)
Land registry
procedures are completed within 6 or 12 weeks after their initiation.
The reason for such long duration is correspondences (correspondences
between authorized institutions and land registry directorates in
order to determine whether the property sold is within military
borders)
