Real estate acquisitions of foreign individuals in Turkey is mainly governed by the Articles 35 and 36 of the Land Registry Law numbered 2644 (the “Law”).
According to the Law, Council of Ministers – in compliance with legal restrictions, bilateral international relations and national interests– is authorized to determine the countries of the citizens who are authorized to acquire real estate in Turkey. It is highly advisable for prospective foreign purchasers to contact their local legal advisor to discuss the specific requirements applicable to the acquisition of a particular piece of real estate to someone of their nationality.
The total area of the real property that a foreign individual is permitted to acquire in Turkey is 30 hectares. Council of Ministers is authorized to increase this amount up to 60 hectares per person. The total area of the real property that can be acquired by foreign individual in one district cannot exceed 10% of the total area of private properties in such district.
To acquire real estate in Turkey, the parties of the concerned acquisition transaction must submit an application to the Land Registry that the concerned target real estate is registered with. After completing the pre-sale approval process, the actual title transfer procedure can be followed. As per the Turkish laws, real estate transfers are subject to the execution of real estate sale and purchase agreement before the Land Registry which the concerned immovable is registered with. The Agreement should be executed by and between the owner of the immovable and the acquiring party (individually or through their attorneys) and certain documents should be prepared for such transaction (i.e. document evidencing the property value to be obtained from the Municipality, obtainment of property insurance policy, if necessary etc.). While signing the sale agreement before the Land Registry, the seller (the owner of the immovable) confirms and declares that it has duly received the acquisition consideration from the acquiring party. Payment terms should be discussed and agreed with the seller side.
The respective costs that shall arise during such sale (including the duties, taxes and fees) should be considered by the acquiring foreigner.