[virtuecat]

Real Estate
The rules regulating the real estate acquisition of foreigners in Turkey have been redefined in the new legislation

Real estate acquisition of foreigners in Turkey

Real estate acquisition of foreigners should be examined under three main titles:

1. Real estate acqusitions of foreign real persons
2. Real estate acquisitions of foreign legal persons
3. Real estat acquisitons of companies with foreign capital.

Real estate acquisitions of foreign real persons
Real estate acquisition of foreign real persons are regulated in the article 35 of the Land Registry Law numbered 2644. According to the article;
With the reservation of reciprocity and compliance with legal restrictions, foreign real person can acquire real estates for the purposes of using as residence or business aims in Turkey that are separated and registered for these purposes in the implemented development plans or localized development plans.
The same conditions shall be stipulated in the establishment of limited real rights on real estates.
The total area of the real estates and limited real rights on real estates that a real person of foreign nationality can acquire all over the country can not exceed 25.000 m2. Within the same conditions set out above, Council of Ministers is authorized to increase the area up to 30 hectares.
In case of establishing mortgage in Turkey in favor of foreign real persons the conditions and restrictions set out above shall not be applied.
De jure and de facto circumstances shall be taken as basis in determination of reciprocity. In implementation of this principle for the citizens of countries that have not granted land ownership rights, it's stipulated that the rights granted by a foreign country for real estate acquisition to its own citizens should also be granted to citizens of the Republic of Turkey.

Real estate acquisition of foreign companies
The expression of 'foreign company” is usually confused with the expression of 'foreign capital company”. “Foreign company” refers the legal personality whichisestablished in foreign countries according to the laws of these countries.
Real estate acquisition of foreign companies are regulated in the article 35 of the Land Registry Law numbered 2644. According to the article, foreign companies can acquire real estates and limited real rights on real estates in Turkey according to the provisions of special laws.

Relevant special laws comprise;

• Law for Encouragement of Tourism numbered 2634,
• Petrolium Law numbered 6326,
• Industry Regions Law numbered 4737

In case of establishing mortgage in Turkey in favor of foreign companies, the conditions and restrictions set out above shall not be applied as is the case in foreign real persons.

Real estate acquisition of foreign capital companies
'Foreign capital companies' are established or participated by foreign investors in Turkey according to the provisions of the Turkish Commercial Code and enrolled in Turkish Trade Register. The companies which are established in Turkey within the framework of the Turkish Commercial Code and have their management centre here are considered to be “Turkish companies” regardless of the citizenships of their shareholders.
Foreign Direct Investment Law numbered 4875 states that companies may freely acquire real estate or limited rights in rem through a legal entity established or participated by foreign investors in Turkey, provided such acquisitions are permitted for Turkish citizens.
For detailed information, please visit the website of Ministry of Public Works and Settlement
General Directorate of Land Registry and Cadastre.

http://www.investinturkey.gov.tr