Legal

minimum 400.000 uSD property investment

Purchase of the immovable property at least 400.000 USD or equivalent foreign currency or equivalent amount of Turkish Lira.
Attached annotation at land registration not to sell this property for 3 years and for whom a certificate of conformity is issued by the Ministry of Environment and Urbanization.
Aforementioned amount is only admissible for the properties have been bought on 19.09.2018 or to be bought after this date. For the properties have been bought between 12.01.2017- 18.09.2018 the value of the property must be at least 1.000.000 USD.
More than one property may be bought with the total amount. A sum of all amounts of the properties bought on or after 19.09.2018 must be 400.000 USD in total.
Properties can be bought at different periods.
Types of properties can be dwelling, commercial unit, land, field. For those who purchase construction (land, field) have to submit the project, which they will construct on the property to the relevant Ministry within 2 years.

Property Valuation Report which is formed by the authorized agency is required. Valuation report must be dated back 3 months ago at most. The sale price in the formal deed and marketing value determined by the valuation report must be higher than the amount determined in the Regulation.

Transfer of the sale price can be made in foreign currency or Turkish Lira through the banks. The amounts must be certificated with the bank receipts which shows the money transfer from buyer to seller’s account. Value of Real Estates’ in US dollar currency are calculated taking into account the effective selling rate of the Central Bank of Turkey on the transaction date.
The Real-Estate to be purchased should not be registered to any foreigners’ name and any of family member of the buyer.
The Real- Estate should not be registered to the company of which the buyer is the director or the partner.

Application and Procedure

Buyer should be from the country whose citizens can acquire property or limited in rem right in Turkey and meet the necessary conditions.
Application: The owner of the property or his/her authorized representative should make a preliminary application to the Land Registry Directorate. (Preliminary applications are made before noon by taking sequence number)
If the preliminary application is incomplete, the file will be kept waiting.

Required Documents For Deed Transfer

Tittle deed of the property or information on village/district, block, parcel, independent section number.
Identification document or passport (together with its translation).
“Property Value Statement Document” to be provided from the relevant municipality.
Compulsory earthquake insurance policy for the buildings (house, office, etc.)
One photo of the seller, two photos of the buyer (taken within last 6 months, 6×4 cm. size)
If one of the sides cannot speak Turkish, certified interpreter,
If transaction will be performed with a power of attorney issued abroad, original or certified copy of the power of attorney and its approved Turkish translation.

Financial Aspect of the Procedure

a) Both seller and buyer have to pay the tittle deed fee, calculated according to the selling price, which cannot be less than the “Property Statement Value” to be issued by the relevant municipality. (According to the Charges Law No:492, the title deed fee is 2%.)
b) Revolving Fund fee which is determined by local coefficients has to be paid. (Maximum 128,5 x2,5 TL for 2019)
c) In the ownership transfer transactions in accordance with Article 35 of the Land Registry Law Nr.2644, a fixed fee shall be charged by Land Registry office, in addition to determined revolving fund service fee for the transaction. (for the year 2019: 598,25 TL)

Other Issues For Foreigners Who Wish to Buy a Property in Turkey

The foreigner has to inquire with the Land Registry Directorate if there is any limitation on the property, such as mortgage, arrestment or any obstacle, which prevents the sale of the property.
If the application of the foreigner for buying a property is rejected, appeals can be made to the relevant Land Registry and Cadastre Regional Directorate.
It is advised that foreigners do not work with persons/companies who/which are not expert or reliable.
Having a residence permit is not a condition for the foreigner who wishes to buy a property in Turkey.
If there is a disagreement between the sides on the sale of the property, the case has to be brought before the Turkish courts by referring to judicial authorities.

Legal Restrictions For Foreigners in Buying Property

a) Persons with foreign nationality can buy maximum 30 hectares of property in Turkey in total and can acquire limited rem right.
b) Foreigners cannot acquire or rent property within military forbidden zones and security zones.
c) Persons with foreign nationality can acquire property or limited rem right in a district/town up to 10 % of the total area of the said district/town.
d) Legal restrictions do not apply in setting mortgage for real persons and commercial companies having legal personality, which are established in foreign countries.
e) The properties are subject to winding up provisions in following cases:
If the properties are acquired in violation of laws;
If the relevant Ministries or administrations identify that the properties are used in violation of purpose of purchase;
If the foreigner does not apply to the relevant Ministry within the time in case the property is acquired with a Project commitment;
If the projects are not materialized within the time.