We give you some important tips unknown to foreigners investing in Turkish real estate market to get residency or citizenship.
Registration
Property ownership titles may only be approved upon registration at the land registry directorates. Inquiries about properties may be made online at parselsorgu.tkgm.gov.tr, where specific details of the city, district, quarter/village, map section, and plot may be used to look up the property.
Contracts
Preliminary real estate contracts, issued by notaries or entered into by natural persons in writing, do not confer transfer of property per se. They only serve as a commitment for the transfer of ownership; the property in question does not change hands by means of such instruments. A natural or legal person intending to acquire real estate in Turkey is required to apply to the General Directorate of Land Registry and Cadastre together with the owner of the property.
Mortgages
mortgages, liens, and similar types of restrictions that may exist with regard to the said property that would prevent the sale thereof should be checked prior to the initiation of procedures at the respective land registry directorate.
Residence
Foreign nationals do not need to h ave a residence permit as a pre-condition to acquire real estate in Turkey. In addition, foreigners who acquire property in Turkey are granted renewable short-term residence permits under Law No. 6458 on Foreigners and International Protection.
Turkish companies
Companies established in Turkey as a legal entity are considered under the category of foreign-owned companies in accordance with the following conditions:
- Foreign investors hold fifty percent or more of the shares, or
- Foreign investors are entitled to appoint and dismiss the majority of the board of directors
These companies may acquire property and limited rights in rem in order to engage in activities set forth in their articles of association. For this purpose, companies are required to apply first to the governor’s office where the property is located.
In Turkey, only trading companies established according to the laws of their respective countries and having legal personality may acquire real estate and limited rights in rem as foreign legal persons. Legal persons other than such trading companies (foundations, associations etc.), on the other hand, may not acquire real estate and may not have rights in rem. here is no limitation as to the mortgages to be created over the property in favor of foreign natural and legal persons.
Turkish companies with foreign capital, on the other hand, should first file an application at the Provincial Directorate of Planning and Coordination (PDPC) at the local governor’s office where the real estate is located. Once granted a positive response from PDPC, they should then apply to the Land Registry Directorate.
Limited Rights
A natural person of foreign origin may acquire real estate and limited rights in rem anywhere in Turkey of up to 30 hectares. Total acquisition by natural persons of foreign origin may not exceed ten percent of the total district area where private property is allowed.
Natural persons of foreign origin may not acquire and lease real estate within prohibited military zones or military security zones. However, they may acquire and lease real estate within special security zones upon permission of the governor’s office.
Inheritance
In Turkey, foreigners’ right of inheritance is protected. In the event of a foreigner’s death, the real estate owned by them shall pass to their inheritors. If the inheritor is eligible to acquire the real estate (if they are eligible in terms of nationality and if the total limitation conditions per person and throughout the country allow), the inheritor may then keep the inherited property. Otherwise, such person is to transfer the real estate immediately. Otherwise, the Ministry of Treasury and Finance shall sell the real estate and reimburse the price to the inheritor.
Important documents
Document on the current market value of the real estate issued by the relevant municipality. Mandatory earthquake insurance policy for the buildings
POA Abroad
If the procedure is to be conducted by a third person authorized by means of a power of attorney issued abroad, the power of attorney must include the authorization relating to the procedure to take place. Besides, the power of attorney shall meet the following conditions:
- Issued by Turkish consulates at their discretion over real estate
- Issued by competent authorities entitled to issue power of attorneys abroad
- Issued in the language of the country where it is issued
- Includes photo (with a clear seal and signature over the photo)
- Includes the apostil, if issued in a country that is a party to the Hague Convention
- Should have certification of the signature of the official signing the power of attorney by the relevant authority and the signature and seal of such authority should be certified by the Turkish Consulate if the power of attorney is issued in a country that is not a party to the Hague Convention
Citizenship
To apply for Turkish citizenship, acquired a property worth a minimum of USD 250,000 or equivalent foreign currency or Turkish lira with a title deed restriction on its resale no less than three years
Once the land registry procedures are complete, the foreign national may apply to the relevant administrations to claim the right of residence or citizenship by submitting the certificate of eligibility to be issued for the owner.
