Real estate investment can be a good investment option for foreigners, and Turkey has emerged as a popular destination for property investment in recent years. With its strategic location, growing economy, and transparent legal framework, Turkey offers numerous opportunities for domestic and international investors. In this article, we will examine the critical aspects of the legal framework for real estate investment in Turkey, providing a comprehensive understanding of the regulations and procedures involved.
Foreign Ownership and Acquisitions
Turkey has a relatively liberal approach to foreign ownership of real estate. Foreign nationals, individuals and legal entities can freely acquire real estate in Turkey, with a few restrictions in specific areas for national security reasons. However, consulting with a local lawyer or expert is essential to navigate the regulations and ensure compliance with applicable conditions.
What Kind of Restrictions That Turkey Impose on Foreigners While Buying a Property?
Foreign investors who want to buy real estate in Turkey must meet specific legal requirements. Foreigners can purchase real estate in Turkey. However, the purchase is subject to various conditions. Article 35 of the Land Registry Law No. 2644 is the relevant regulation. Moreover, Turkey applies some restrictions on selling property to foreigners. These sanctions are evidently listed below:
- If a person threatens Turkey’s national security, they cannot get property in Turkey.
- Foreigners should not be sentenced in their original country if they want to buy a property.
- Foreigners cannot purchase immovable property in military exclusion zones and security zones.
- The real estate purchase by real persons is limited to 30 hectares per person throughout the country. Only the President can increase this to 60 hectares.
- For foreigners to purchase real estate in Turkey, the total area of the real estate purchased cannot exceed 10% of the size of the district subject to private property.
- Legal entities other than commercial firms cannot invest in real estate in Turkey.
What Should Foreign Investors Consider When Making Real Estate Investment in Turkey?
Foreigners should pay attention to some conditions when buying real estate in Turkey. First, a lawyer or a real estate consultancy service provider should follow all legal processes related to the property, especially the title deed.
1) Firstly, the zoning status of the property to be purchased should be questioned.
2) Preliminary agreement to sell executed only before a notary public is needed for sale. Official transactions must follow the necessary procedures in the land registry offices.
3) The first thing that foreigners should pay attention to when buying a property in Turkey is whether the property has a mortgage or a lien that will prevent it from being sold. Buying property with a mortgage or lien can lead to significant rights losses. Information on this issue can be obtained from the General Directorate of Land Registry and Cadastre.
4) The authorization of the owner and the property seller to be purchased should be checked. Additionally, buyers pay attention to the issue of making these transactions with a fake power of attorney.
5) Foreigners do not need a residence permit to purchase real estate in Turkey.
6) After the foreigner applies to buy real estate in Turkey, this application may result in rejection. Against this situation, a lawsuit can be filed in Turkish courts, and an objection can be made to the regional directorates of land registry offices through a petition.
How Does the Process of Citizenship Through Real Estate Investment Work?
Turkey has become an attractive destination for individuals seeking citizenship through real estate investment. With its rich cultural heritage, vibrant economy, and strategic location, Turkey offers a unique opportunity to obtain a second passport through property ownership. Whether you’re considering investing in Turkish real estate or simply curious about the possibilities, this guide will provide valuable insights into the Turkish citizenship program and real estate for sale in Turkey.
On September 18, 2018, according to the new regulations published in the Official Gazette, foreigners who meet any of the specified conditions can acquire Turkish citizenship with the decision of the Turkish President. These rules are:
- It is buying real estate for at least USD 400,000 or its equivalent in foreign currency because it will not be sold for at least three years.
- It is also possible for gaining Turkish citizenship to be realized due to purchasing more than one real estate. In such cases, for foreign citizens to acquire Turkish citizenship through real estate investment, all of their immovable properties must have separate title deeds, each of properties must belong to the same investor and all of them must have an annotation that they cannot be sold for three years.
Documents Required for Foreigners to Buy Real Estate in Turkey
Firstly, foreigners must first submit an application if they want to purchase property in Turkey. The Land Registry Office is the recipient of this application. The documents that must be included in the applications to be made by real persons can be listed as follows:
- Foreigner’s identity card and passport
- The title deed of the immovable
- Fair value certificate for the real estate planning to be purchased
- Photo of seller and buyer
- Compulsory earthquake insurance policy if the immovable is a residence, workplace, etc.
- If the purchase is to be realized with a power of attorney made abroad, the original, certified copy and translation of this power of attorney is required.