BUYING PROPERTY IN TURKEY: GUIDE FOR FOREIGNERS
Application and Procedure:
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.
- a) Tittle deed of the property or information on village/district, block, building plot, detachment.
- b) Identification document or passport (Together with its translation).
- c) “Property Value Statement Document”to be provided from the relevant municipality.
- d) Compulsory earthquake insurance policy for the buildings (house, office, etc.)
- e) 1 photo of the seller, 2 photos of the buyer (photos to be taken within last 6 months, 6×4 size)
- f) (If one of the sides cannot speak Turkish) certified translator and 2 witness.
- g) (If the power of attorney is prepared abroad) The original or certified copy of the power of attorney and its approved translation.
Information on powers of attorney issued abroad:
– Powers of attorney are issued by the Turkish Embassies or Consulates.
– If the power of attorney which is issued by a notary of a foreign country is certified according to The Hague Convention dated 5 October 1961 and if it bears “Apostille (Convention de La Haye du Octobre 1961)” in French, there is no need for an additional certification of the said power of attorney by the relevant Turkish Consulate.
– If the power of attorney is issued by a notary of a foreign country which is not party to The Hague Convention dated 5 October 1961, the signature of the said notary has to be certified by the relevant authority of the foreign country and then the signature and seal of the said foreign authority have to be certified by the Turkish Consulate in that country.
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 percentage for 2013 is % 2.)
- b) Circulating capital fee which is determined locally has to be paid. (Maximum 70×2.5 TL for 2013.)
- c) At the stage when the Land Registry Directorate inquires with the relevant military authorities whether the property is located within a military or special zone, circulating capital fee for the map prepared by the Cadastre Directorate has to be paid. (323 TL for 2013)
Other points to be noticed by 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 by the foreigner for buying a property is rejected, the act can be appealed to the relevant Regional Office of the Land Registry 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. Likewise, buying a property does not grant the foreigner obtain residence permit 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.
Acquisitions by Foreign Companies:
– Acquisition of property by the companies which are registered in Turkey is governed by the Article 35 of the Land Registry Law No 2644.
- a) Foreign commercial corporations which are established according to the relevant laws of their countries of origin can acquire property and limited in rem rights within the provisions of special laws. These special laws are:
– Petroleum Law No. 6326
– Law on Encouragement of Tourism No. 2634
– Law on Industrial Zones No. 4737
- b) No restriction is implemented in favor of the said commercial companies in establishing mortgage.
- c) Other foreign corporations (i.e. foundation, association,…) cannot buy property and acquire limited in rem right.
Acquisition of Property by Companies with Foreign Capital:
The companies with foreign capital,
– If the foreign investors hold, individually or collectively, 50 % or more shares of the said company,
– If the foreign investors do not hold any share of the said company, but have a right to assign or remove the managers of the said companies on the condition that the said company has a legal personality in Turkey,