Our article discusses in detail what foreigners need to pay attention to when acquiring property in Turkey, the conditions to which the purchase process is subjected, and the limitations of the purchase process. Acquiring a house or real estate in Turkey is a very important topic for foreigners, and we recommend that interested parties read carefully.
The acquisition of real estate by foreigners in Turkey is based on Articles 35 and 36 of the Land Registry Law No. 2644. According to the amended Article 35 by Law No. 6302, the 'reciprocity condition' for foreign nationals and legal entities to acquire real estate in our country has been abolished.
According to Article 35 of the Land Registry Law, foreigners who comply with the limitations determined by the President can purchase real estate without the need for a 'reciprocity condition' and by adhering to legal limitations. There is also no requirement for a residence permit for a foreigner to acquire real estate in Turkey.
Especially, we recommend that foreign individuals (persons) obtain professional legal assistance to avoid losses while purchasing real estate or acquiring limited real rights in our country.
What are the Limits on Foreigners Acquiring Property in Turkey?
Although it is possible for citizens of foreign countries to purchase real estate in Turkey, there are limitations to acquiring property, which can be listed as follows:
It is necessary to be a citizen of one of the countries determined by the President.
The total area of the real estate acquired by a foreign national should not exceed the limitations foreseen across the country and in the district. The total area of the real estate purchased by foreigners in Turkey should not exceed 10% of the district area subject to private ownership. However, the total area of real estate and independent and permanent limited real rights acquired by foreign nationals cannot exceed 30 hectares per person across the country, even if in different cities. In some cases, this limit can be expanded up to 60 hectares. The President has the authority to make this expansion.
Before acquiring real estate, foreigners must obtain permission from military authorities in the region. If the property is located within a security zone, the sale process to foreigners will not be possible.
The acquisition of real estate must not be restricted, stopped, or banned by a Presidential decree.
Legal entities other than commercial companies cannot purchase real estate in Turkey. Commercial companies can make this investment after presenting their projects related to the property they want to buy. If the property acquired in this way is used for purposes other than those of the project, the relevant Ministry will liquidate the property. Similarly, foreign individuals who purchase undeveloped land (such as a plot or field) are required to submit the project they will develop to the approval of the relevant Ministry within 2 years.
It is not possible for citizens of countries bordering Turkey to acquire real estate from Turkish provinces adjacent to their own country.
In addition to these limitations, the President has the authority to impose additional restrictions or limitations. The President may introduce restrictions not mentioned above as required by the interests of the country. This limitation could also be in the form of a complete ban.
Formalization of Contracts
According to the prevailing legislation in Turkey, official contracts aiming at the transfer of real estate ownership must be made at the Land Registry Directorates where the property is located. Furthermore, it is also possible to sign a "promise to sell contract" in the presence of a notary before the official sale. However, promise to sell contracts executed only in the presence of a notary are not sufficient for the sale. Official procedures in accordance with the required procedures must be conducted at the Land Registry Directorates.
The acquisition of ownership of the property, for which the sales contract is formally executed, is possible with the registration to be made at the Land Registry Directorates.
How Much Tax and Expenses Will Foreign Individuals Pay in Acquiring Real Estate in Turkey?
Both the buyer and the seller pay a title deed fee on the sale price, which must not be less than the "Property Declaration Value" obtained from the relevant Municipality. (According to the Stamp Duty Law No. 492, the title deed fee rate for 2024 is set at 4%)
Revolving fund fee, also known as the regional coefficient (varies by province and district)
In addition to the determined revolving fund fee for transactions involving contracts that incur a debt of property transfer according to Article 35 of the Land Registry Law No. 2644, a fixed service fee is collected by the Land Registry Directorate.
Condition of Presenting a Project for Unconstructed Real Estate
Foreign nationals and commercial companies with legal personality established under the laws of their own countries in foreign countries must develop a project for the unconstructed real estate (land, field) they purchase and submit this project for the approval of the relevant Ministry within two years. This project is approved by the relevant Ministry with specified commencement and completion times, and it is sent to the land registry office where the property is located to be recorded in the declaration section of the land register. The relevant Ministry monitors whether the approved project is completed within the specified period. Otherwise, liquidation is requested. Properties that can be subject to liquidation include properties acquired in violation of legal provisions, properties identified by the relevant Ministry and administrations as being used contrary to the purpose of acquisition, and properties for which the relevant Ministry was not applied within the period or whose projects were not completed within the period in acquisitions subject to the project condition.
The President's Authority to Prohibit Property Purchases
The President has the authority, in cases required by the interests of the country, to define, limit, partially or completely suspend, or prohibit the acquisition of real estate and limited real rights by foreign nationals and commercial companies with legal personality established under the laws of their own countries in foreign countries. This authority can be applied in terms of country, individual, geographical region, duration, number, ratio, type, quality, area, and quantity.
Key Considerations for Foreigners Acquiring Real Estate in Turkey
Foreigners wishing to acquire property in our country should not sign legally binding contracts or make payments without obtaining information about the property in question at the Land Registry Directorates, provided they can prove their interest. It is advisable not to start transactions without researching the seller individuals or companies and not to work with individuals or companies that cannot prove they are serious and reliable.
Before the purchase of real estate, foreigners are also required to obtain permission from military authorities in the region. If the property is located within a security zone, the sale process to foreigners will not be possible, so it is important to clarify this issue before making any payment.
After a foreigner applies to purchase real estate in Turkey, this application may be rejected. In such a case, the person can file an appeal with the Regional Directorate to which the Land Registry Directorate is affiliated.
In case of any dispute regarding the sale, it is necessary to take the matter to court and file a lawsuit in Turkish courts.
Frequently Asked Questions
Can citizens of every country purchase real estate in Turkey?
Not every foreigner is permitted to purchase real estate in Turkey. If the legal limitations are met and the necessary documents specified in the law are possessed, real estate can be purchased by citizens of countries that are determined by the General Directorate of Land Registry and Cadastre to be eligible for acquiring real estate and limited in rem rights in Turkey.
Is it possible for a foreigner to acquire property through inheritance?
Being a citizen of a foreign country does not prevent one from being an heir in Turkey according to Turkish law. However, it must be clearly understood from the population records whether foreign nationals are eligible as heirs. The transfer of inheritance to foreign nationals is based on inheritance certificates issued by the courts of the Republic of Turkey or issued by their competent authorities and confirmed (recognized) by Turkish courts as compliant with the provisions of Turkish laws regarding inheritance procedures. Foreign real individuals who will inherit real estate must be from countries whose citizens can acquire real estate in our country, and the real estate must not be located in an area where foreign acquisition is prohibited. Otherwise, the transfer of the real estate to the foreign individual must be made followed by liquidation procedures. The procedures and conditions for the liquidation of real estate acquired in violation of legal provisions or determined by the relevant Ministry and administrations to be used contrary to the purpose of acquisition are specified in the relevant legal provisions.
Is it possible for individuals who were born Turkish citizens but lost their citizenship by obtaining permission to renounce it to acquire real estate?
In our country, individuals who fall under Article 28 of the Turkish Citizenship Law No. 5901 are provided with a "Blue Card," an official document that allows them to benefit from the rights stated in the mentioned article. Those who lose Turkish citizenship by permission under Article 28 of the Turkish Citizenship Law No. 5901 and their children processed together can finalize their requests related to the acquisition, transfer, inheritance, and separate in rem rights of real property at the Land Registry Directorates without being subjected to the legal restrictive provisions applied to foreigners, just like the requests of Turkish citizens.
Are there any differences in real estate acquisition for citizens of the Turkish Republic of Northern Cyprus?
Citizens of the Turkish Republic of Northern Cyprus benefit from the same rights granted to citizens of the Republic of Turkey regarding the acquisition of real estate in our country, according to the "Agreement between the Government of the Republic of Turkey and the Government of the Turkish Republic of Northern Cyprus on Providing Additional Facilities to the Citizens of Both Countries." Therefore, they are exempt from the legal restrictive provisions applied to the real estate acquisition of foreign real persons.
Are there any cities in Turkey where foreigners cannot purchase real estate?
In 1980, the sale of property to foreigners was banned in Hatay. Also, a decision by the Council of Ministers in 2011 completely banned such property sales from treasury lands. Furthermore, the acquisition of real estate by foreigners was banned in the provinces of Hatay, Kilis, and Mardin due to public interest and national security reasons according to the Council of Ministers' decision dated October 27, 2008.
How does real estate acquisition work for dual nationals?
In the acquisition of real estate by dual nationals, the conditions of the country that allows the foreign real person to acquire real estate under the best conditions or the country of their choice are considered. In the acquisition of real estate in our country by Turkish and foreign nationals, Turkish citizenship is taken as the basis.
Can foreign real persons acquire Turkish Citizenship through a promise of sale contract?
Promise of sale contracts are preliminary agreements and do not qualify as sales. However, according to the regulation made with Article 20 of the Regulation on the Implementation of the Turkish Citizenship Law, promise of sale contracts for real estate subject to condominium ownership or construction servitude, where a minimum of 400,000 US Dollars or equivalent foreign currency or equivalent Turkish Lira is deposited in cash, will be considered equivalent to obtaining citizenship through exceptional means after the commitment not to transfer and cancel the property for three years is annotated in the land registry.
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