Acquisition of Property by Foreigners in Turkey

Acquisition of Property by Foreigners in Turkey

real-estate-is-not-easy

The real estate sector in Turkey has gained tremendous value over the last fifteen years and offers attractive opportunities for foreign investors. Many investors from Europe and America, especially from the Middle East countries, have turned these possibilities into opportunity. In other words, these developments are promising for the Turkish real estate sector and the economy and positively affect Turkey.

According to the Article 35 of the Law No. 2644, which entered into force on May 18, 2012, the reciprocity clause was lifted in real estate acquisition of real persons of foreign nationality in our country. With this amendment, citizens of 183 countries are entitled to real estate acquisition without reciprocity clause. Even if the Turkish citizens can not acquire real estate in the country where the foreigner is a citizen of, these foreign nationals may acquire real estate in Turkey. There are some limitations besides these developments. These limitations are;

  1. In the country as a whole, a foreign national may acquire maximum 30 hectares real estate and be entitled to a limited real right.
  2. Foreign nationals are not allowed to acquire real estate in military prohibited zones and security zones and unless they have permission, to rent any real estate in these areas.
  3. Foreign natioanls may acquire real estates and be entitled a limited real right up to 10% of the county where their private property is located.
  4. Legal restrictions are not applied for real estate pledge in favor of real persons and trade companies with legal personality established in accordance with their own legislation.
  5. According to the legislation in force in Turkey, sales contract of a real estate property is required to be signed by the official deeds and registration to be signed at the devolved Land Registry Offices. It is possible to sign a” preliminary contract for sale” before the notary public. However, it is not possible to acquire real estate property through a “preliminary contract for sale” signed before a notary public or through an external sales contract.

According to the legislation in force in Turkey, sales contract of a real estate property is required to be signed by the official deeds and registration to be signed at the devolved Land Registry Offices. It is possible to sign a” preliminary contract for sale” before the notary public. However, it is not possible to acquire real estate property through a “preliminary contract for sale” signed before a notary public or through an external sales contract.