LEGAL INFORMATION AND F.A.Q
The ownership is anchored in article 35 of the Turkish Constitution. This article stipulates that anyone is entitled to ownership and that these rights can only be restricted by other legal stipulations. The restrictions may consist, for instance, of zoning schemes, restrictions applicable to foreigners and matters such as having the right of way.
The ownership regulations are elaborated in the Turkish Civil Code. This describes how ownership is acquired. For the purchase of real estate by a foreign person, especially the entry in the land register is important.
In Turkey there are regional directorates of the land register in 15 places, which are subdivided in provincial or district offices. In principle, the land register is accessible to everyone.
In Turkey the ownership of real estate is obtained by entry in the land register (article 633 Turkish Civil Code) and the simultaneous delivery of the real estate. These two steps must be taken in the way described in the Turkish Civil Code; moreover, all formalities must be fulfilled. Any non-observance of the formalities will result in failure to acquire the real estate, which in turn causes great disappointment to both the buyer and the seller.
If you are relocating to Turkey for more than six months then you are well advised to apply to the Turkish Government Office for a residents. They will issue a document for you to present to the police neared your new home who in return will process the application
Kusadasi City Centre Bazaar
REAL PROPERTY ACQUISITION OF FOREIGNERS IN TURKEY
The article 12 of the Constitution of the Republic of Turkey has stated 'Every person has individual, inviolable, untransferable and unrenouncable fundamental rights and freedoms.' and has also involved the foreigners in the content of this provision. However, the article 16 of our constitution concerning the status of the foreigners has stated ' The fundamental rights and freedoms may be limited for foreigners by law in accordance with the international law' and clarified by this provision that the rights and the freedoms of the foreigners in our country may be arranged and limited as different from what it is for the Turkish citizens, if necessary.
The article 1 of the Protocol under the European Human Rights and Main Provisions Agreement has also guarantied these rights, but accepted at the same time that the individuals may be deprived of their ownership in accordance with the General Principles of the Law of Nations.
Taking these facts into consideration and considering the political, economic and social conditions and public order, sovereignty and security of our country, some legal restrictions have been brought on the real property acquisition of foreigners in Turkey.
I. REAL PROPERTY ACQUISITION OF FOREIGN NATURAL(REAL ) PERSON IN TURKEY
II. REAL PROPERTY ACQUISITION OF FOREIGN LEGAL PERSON (ENTITY) IN TURKEY
III. TRANSFER OF FUNDS
IV. APPLICATION PLACE
I. REAL PROPERTY ACQUISITION OF FOREIGN NATURAL ( REAL ) PERSON IN TURKEY:
Real property acquisition of foreign natural person in Turkey has been arranged by the article 35 of the Land Registry Act numbered 2644.
he article 35 of the Land Registry Act has stipulated that purchasing and acquiring real property of foreign natural person via inheritance and other ways in Turkey must be mutual and must be suitable for legal limitations.
II. REAL PROPERTY ACQUISITION OF FOREIGN LEGAL PERSON (ENTITY) IN TURKEY:
As a general rule, (exclusion of some exceptions ) real property acquisition right has not been recognized to the foreign legal entities in our legislation. Although foreign legal entities have no possibility to acquire real property in our country as a general rule, changing conditions and legal arrangements put out concerning the enterprises necessary for economy of our country have brought out some exceptions for the rule of inability to acquire real property of foreign legal entities.
a.
In the article 10 of the Law of Encouragement of Foreign Capital numbered 6224 has been stated 'Foreign capital and enterprises working in same sectors may also profit under same conditions from all rights, exemptions and facilities recognized to internal (native) capital and enterprises' and real property acquisition right and other authorities have been recognized to the foreign capital companies in Turkey by this provision.
b.
According to the article 8/E of the Tourism Encouragement Law numbered 2634, in the process of real property acquisition within the mentioned areas, foreign legal entities which will establish commercial enterprise in order to realize commercial activities in tourism sector within the areas available to tourists and regions may be excepted from conditions and restrictions taken part in the article 35 of the Land Registry Act and in the article 87 of the Village Law by decision of the Council of Ministers.
Also, Ministry of Tourism has authority of renting and allocation of real properties assigned to the Ministry of Tourism within the tourism centers and areas to the foreign natural and legal person having tourism investment certificate as well as establishing charges on these real properties including real and permanent rights in accordance with the article 8/D of the mentioned Law.
c.
Foreign banks establishing their branches in Turkey by decision of the Council of Ministers can acquire real property which is necessary for realization of their banking activities according to the Banking Law numbered 3182.
d.
According to the final form of Oil Law numbered 6326 which has been changed by the Law numbered 1702 gives permission of acquiring land as working areas in Turkey to the foreign legal entities.
Kusadasi Blue Flagged Sandy Beaches
MUTUALLITY PRINCIPLE
The mutuallity must be actual and legal. Therefore, the real property acquisition of foreign natural person in our country depends on some laws:
1.
The Turkish citizens must have the same rights which are supported by the laws in foreign country.
2.
This right must be put into practice actually.
The natural people who are citizens of the following countries are free to acquire the real property in Turkey: Federal Republic of Germany, USA, Argentina, Australia, Austria, Barbados, Belgium, The Republic of Dominic, El Salvador, France, Gabon, Guatemala, Netherlands, England, Ireland, Spain, Italy, Canada, The Turkish Republic of The Northern Cyprus, Colombia, Luxemburg, Malawi, Egypt, Norway, The Central African Republic, Panama, Peru, Somalia, Chile, Tanzania, Venezuela, Israel.
The real property acquisition of the natural people who are citizens of the following countries depends on some provisions and permissions: Cibuti, Chad, Czechoslavakia, The Republic of China, Denmark, Ethiopia, Morocco, Philippines, Finland, Ghana, South Korea, Haiti, Croatia, Sweden, Switzerland, Japan, Macedonia, Mexico, Nepal, Nicaragua, Pakistan, Pole, Portugal, Singapore, Sirlanka, Togo, Trinadat-Tobago, Uganda, Jordan.
The natural people who are citizens of the following countries can not acquire the real property in Turkey because we do not have the mutuallity principle with these countries: Afghanistan, Albania, Azerbaijan, Bulgaria, United Arab Emirates, Bahrain, Algeria, Indonesia, India, Georgia, Iran, Iceland, Iraq, Qatar, Kazakhstan, Kuwait, Libya, Cuba, Hungary, Lebanon, Niger, Oman, Uzbekistan, Rumania, Russia, Saudi Arabia, Syria, Tunisia, Turkmenistan, Yugoslavia.
The Present Time Maps are essential for all these countries.
THE EXCEPTIONS OF THE MUTUALLITY PRINCIPLE
a.
According to the contract - The Legal Condition of The Refugees dated 21 July 1951- The mutuallity provision is not needed in case the people prove that they are refugees and have been living at least for three years in Turkey with an official certificate. This provision is not valid for the stateless because there is no country that provides a citizen. In that case The Restrictive Decisions are valid for getting real property and inheritance rights.
b.
According to the article 8/E of the Tourism Encouragement Law numbered 2634, in the process of real property acquisition within the mentioned areas, foreign legal entities which will establish commercial enterprise in order to realize commercial activities in tourism sector within the areas available to tourists and regions may be excepted from conditions and restrictions taken part in the article 35 of the Land Registry Act and in the article 87 of the Village Law by decision of the Council of Ministers. (RECENTLY, THE LAWS CHANGED WHAT ENABLES YOU TO ALSO BUY A GROUND OR A PROPERTY IN THE SECTOR "VILLAGE".)
THE LAW RESTRICTIVE DECISIONS
The first principle for foreigners to acquire the real property is mutual contract. The second one is the restrictive decisions.
a.According to the Law of The Military Forbidden Regions and Safety Regions, the real properties in the military forbidden regions and safety regions can not be sell, transferred and rent for.
b.According to the article 36 of the land Registry Act numbered 2644, the foreign natural people in our country cannot acquire more than 30 hectare property, but they can be acquired only by Council of Ministers. Legal inheritance is out of this law.
The all details can be found in the related laws and articles.
III. TRANSFER OF FUNDS
The real property revenues and right in rem revenues relating to real property and selling price of real properties owned by foreigners via exchanging or without exchanging are transferred freely by banks or by private financing organizations.
IV. APPLICATION PLACE
The task of preparation of contracts in the field of real rights and governing these procedure are given to the Director of Land Registry according to the article 26 of the Land Registry Law numbered 2644.
Foreign person who wants to own real property and to make use of real rights related to the land will apply to the Directorship of Land Registry in the location of the real property.
Kusadasi Kervan-Saray
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BUYERS GUIDE |
The system of property ownership in Turkey is based on the title of the property being registered the Land Registry.
Who Can Own Property in Turkey?
First the 'reciprocity principle' must apply between the country of the person wishing to obtain acquisition of ownership. In other words, if a Turkish citizen can become the owner of real estate in the UK, then the same right applies to a UK citizen in Turkey.
Selling Property in Turkey
Capital gains made from the sale of a property will be taxable in Turkey if the owner is a Company. Individuals do not have to pay capital gains, provided they have owned the property for one year. In the UK capital gains may be taxable depending on the individuals situation. Current tax conditions were originally agreed in a double taxation treaty signed in 1986. These were amended in October 1988 and cover the reciprocal agreement in relation to income tax and corporation tax in Turkey and income, corporation and capital gains taxes in the UK.
Property Buying processes in Turkey for foreign citizens are straightforward:
1)
Once you have decided which property to buy you need to sign an "agreement" with the Estate Agency and pay minimum 10% of the price as deposit to reserve it, and stop it being sold by the property owner to somebody else, until the procedures are all done.
A photocopy of your passport, details of your mother's & father's names and 4 passport size photos are needed at this point.
2)
We go to the "deed office" to start the process of buying your property...
3)
In Turkish Republic, the Goverment needs 3-4 weeks to approve your permit to buy property.
4)
As soon as permission is received from the "deed office" we will let you know and you can arrange your flights and come to transfer the property into your name. The Agent + property buyer + property seller goes to the "deed office" to transfer the property with an authorized translator. After you pay the purchase tax ( %0,15 from buyer % 0,15 from seller) and earthquake insurance (these are required) the "deed office" transfers the property to you as the new owner of the property on the land register, and they give you immediately the "TAPU" in the land register which is signed on your name(s). This page in the land register proves you as an owner of the property
Usually transfer of registering is completed in 1-2 hours...
The purchase price specified in the sales contract is not entered in the page in the land register. In Turkey there is a so-called value mirror. This means that the minimum price can be entered in the title deed. This is a legal process which can save you money but of course the actual purchase price can be entered in the title deed if your desire (this means, however, that the vendor and yourself will have to pay a lot more tax on the sale). The entered minimum price does not have any significance in terms of a possible resale. You, as the owner, can determine the selling price.
The presence of a sworn interpreter during the registration at the Land Registry Office is required by law. The translation is confirmed by the interpreter's signature: Euro 30
!!IMPORTANT!!
THE TAPU IS ONLY ISSUED AT THE LAND REGISTRY OFFICE IN THE PRESENCE OF A SWORN INTERPRETER. NEVER ACCEPT A TRANSFER OF OWNERSHIP THROUGH A LAWYER, A NOTARY OR THROUGH SO-CALLED FRIENDS OR ACQUAINTANCES!
Kusadasi Yatch Marina in Old Times
F.A.Q
What nationalities can buy in Turkey?
Turkey has a reciprocal agreement for the purchase of land and properties with the following countries; Germany, Austria, Switzerland, Belgium, Holland, England, Ireland, Spain, Italy, Canada, Luxembourg, Norway, Australia, France, Greece, and some other African and South American states.
Where in Turkey can foreign nationals buy?
Freehold property or land may be purchased by the above listed foreign nationals, from a Turkish national or another foreigner, provided the property is in the local district.
What documentation will I need ?
Your passport is the only documentation you will need to purchase a property in Turkey.
Do I need to obtain citizenship before I buy ?
No, non citizens and non residents can buy a property in Turkey.
Do I need a visa entering Turkey ?
Yes, most nationalities require a Visa to enter Turkey. This can be obtained at Immigration once you arrive in Turkey - Visitors Visas currently cost € 10 for an Irish National and STG£ 10 for a UK Citizen. Prices vary depending on nationality, so if you hold another passport, please check with your local Turkish Embassy.
How long can I stay in Turkey on the normal Visitors visa?
Visitors Visas are valid for 3 months.
Yes, longer term residency visas can be obtained from your local Turkish Embassy prior to travelling to Turkey. They are normally issued for periods of one year. Alternatively you can opt to take a day trip or overnight trip to a Greek Island towards the end of your 3 month period and purchase a new visa valid for 3 months on re-entry to Turkey.
No, Foreign Nationals are not eligible for mortgage or other financial borrowings.
How will I pay for my purchase?
Most customer arrange finance in Europe prior to travelling to Turkey or arrange it as soon as they return home. The most popular financing methods in our experience are re-mortgaging existing properties at home, personal savings or personal loans.
However, most people do open bank accounts so funds can be transferred prior to travelling and so funds are available for contract completion. Direct Debits can also be set up to pay utility bills.
As a property owner, do I need to register for Tax in Turkey?
Yes, but this is a very straight forward procedure which we can guide you through.
Can I get house and contents insurance in TurkeyText ?
Yes, many well known international insurance companies and local Turkish companies offer building and contents insurance. Earthquake Insurance is now compulsory in Turkey and is readily available and a straight forward transaction.
How will I set up Utility Services - Gas, Electricity, Telephone? There are once off set up costs ,Telephone Lines are not currently offered to non nationals but Mobile phones with Pay As You Go Cards are readily available we can help you with this service at a small charge.
How will I pay these bills when I am not in Turkey and if the property is being rented?
If you have not set up a bank account to pay utilities when you are not in Turkey, then we can provide this service for you at a small charge.
Is satellite TV available in Turkey ?
Yes, a wide range of satellite TV services are available in Turkey we can set-up this service for you at a small charge. .
Will I be able to rent my property on long term or short term basis and if so what can I expect to get rental ?
Turkey is an ever increasing destination for Europeans, and resorts are also popular with Turkish tourists during the summer months.
Long term Rentals are normally on 6 month or 1 Year Basis. 6 month rentals would normally only be for summer months, so if you want to use your property then long term options would not be feasible.
Properties can also be let out on a daily and weekly basis. Prices are property and time of year dependent. We can give you an idea of what you could hope to achieve for your specific property and managed these rentals on your behalf for a management fee.
If I want to sell my property in Turkey, are there any restrictions and what are the costs ?
Resale costs would be approximately 5% comprising of sales tax, local documentation and legal fees. Property may be sold to Turkish, or foreign nationals without restriction. Because of the change in law (Decree 32 August 1989) the lira is now convertible so proceeds of the sale of a property can be converted to whatever currency and subsequently transferred to any country you choose.
What are the medical and dental care facilities in Turkey?
Yes, Turkey has both public and private facilities available. Private facilities are to a very high standard and costs are approximately 40-50% cheaper than other European countries.
Can we get private health insurance in Turkey ?
Yes, Private Health insurance is readily available in Turkey and costs again are considerably cheaper than at home. Individuals who are travelling to Turkey for 3 months or less and hold private health insurance at home should be covered, but please check this with your Insurer before travelling. For those looking to spend longer periods of time or retire in Turkey, then we would recommend that you explore the Global Policy currently on offer with VHI or are covered by an Insurer in Turkey.
Will I have to pay tax or charges when bringing funds into Turkey ?
There are no government charges for transferring funds but your bank at home will charge you transfer fees and receiving banks in Turkey normally have a small charge also. There are government tax charges when buying a property and annual property taxes also
If I sell my property, can I freely transfer my funds out of Turkey ?
Yes, Turkey has a very liberal investment climate, including free (international) movement of capital, profits, dividends and salaries, free-trade zones and subsidies. Again small bank charges may apply.
Can I will my property to my beneficiaries ?
You can make a Turkish Will and leave your property to your beneficiaries, however if you hadn't made a will, the property goes to your next of kin.
Is there capital gains tax charges or any other taxes if/when I sell my property in Turkey ?
Capital gains from the sale of a property is taxable in Turkey if the owner is a Company. Individuals do not have to pay capital gains, provided they have owned the property for one year.
Can I bring my pet to Turkey ?
Yes, currently you can bring one cat, one dog, one bird or ten fish to Turkey by obtaining a certificate of origin and a certificate of health not more than 15 days prior to travelling. Airlines will also need to be advised of your intention to bring a pet with you when booking your flights.
What legal representation should I have when buying a property in Turkey?
Under Turkish Law, no legal representation is needed when buying or selling a property in Turkey as all documentation issued by the Land Registry Office are legally binding in their own right. Hanay Estate Agency will manage the entire buying and selling process on your behalf but some individuals feel more comfortable having legal representation. We can recommend a number of independent lawyers to you if you wish to employ one.
Source : Turkish Republic Land Registery Office - Directorship of Foreign Affairs Office
