Acquisition of Real Estate and Real Rights by Foreigners in Turkey

Foreigners acquire real estate and real rights in Turkey in accordance with Articles 35 and 36 of the Land Registry Law No. 6244.

In terms of the Land Registry Law No. 2644

ForeignCompany: Companies with legal personality established in a foreign country and in accordance with the legislation of that country, regardless of the citizenship of their partners or the foreignness of their capital.

CompanywithForeignCapital: Some or all of its partners are foreign (Foreign real persons, foreign legal entities and international organizations have fifty percent or more shares or have the power to appoint or dismiss the majority of the persons who have the right of management) andTurkish companies established according to Turkish law, in Turkey.

According to Land Registry Law Art.36/1 

Real Persons of Foreign Nationality (excluding persons covered by Article 28 of the Turkish Citizenship Law (foreigners with blue cards))

Legal entities established in accordance with the laws of foreign countries and

International organizations which;

  • owns fifty percent or more of the shares, or
  • Have the power to appoint or dismiss the majority of persons who have the right to manage.

Companies with legal personality established in Turkey (Companies with Foreign Capital) may acquire and use immovable property or limited real rights in order to carry out the activities specified in their articles of association.

According to Land Registry Law Art. 36/2

The companies mentioned in the first paragraph

If the foreign investor is a shareholder of another company established in Turkey, directly or indirectly, if the final shareholding rate of the foreign investor in the company is fifty percent or more;

Direct or indirect acquisition by foreign investors of fifty percent or more of the shares of domestic companies which has immovable property and

The same principles apply if the shareholding ratio of foreign investors reaches fifty percent or more as a result of the share transfer in companies with foreign capital, whose immovable property is present.

According to Land Registry Law Art. 36/3

  • Without prejudice to the provisions of the Military Forbidden Zones and Security Zones Law No. 2565, the acquisition of real estate by these companies in military forbidden zones, military security zones and regions determined within the framework of Article 28 of the same Law shall be made by the Chief of General Staff or the commands authorized by it;
  • Real estate acquisitions in private security zones are subject to the permission of the governorship of the place where the real estate is located. In the evaluations to be made within the scope of this paragraph, the compliance of the acquisition with the national security is taken as a basis.

Transactions Out of the Scope of Article LRL-36 in terms of Acquisition Rights of Immovable and Limited Real Rights of Companies with Foreign Capital

According to Land Registry Law (LRL) Art. 36/5

  • In the establishment of immovable pledge, in property acquisitions within the scope of liquidation of the immovable pledge,
  • In the transfer of immovable property and limited real rights arising from company mergers and divisions,
  • Real estate and limited real rights acquisitions in special investment zones such as organized industrial zones, industrial zones, technology development zones and free zones, and
  • The provisions of this article do not apply to immovables acquired by banks due to transactions counted as loans within the framework of the Banking Law dated 19/10/2005 and numbered 5411, or for the purpose of collecting their receivables, provided that the obligation to dispose of them continues within a certain period according to the relevant legislation.

Limits on Acquisition of Real Estate and Limited Real Rights by Foreign Companies

Since ordinary companies do not have legal personality, structures such as ordinary companies, consortiums, joint ventures, etc. do not have the right to acquire real estate within the scope of Article 36 of the Land Registry Law. However, they can acquire real estate subject to the limitations in TK-35 art.

Companies that make foreign direct investments by opening branches in Turkey cannot benefit from this right in Article TK-36. However, they can acquire real estate subject to the limitations in TK-35 art.

The Framework of the Acquisition of Immovable and Limited Real Rights by Foreigners

According to Land Registry Law Art. 35

Foreign Real Persons (Foreign real persons, who are citizens of the countries determined by the President of the Republic, may acquire real estate and limited real rights in Turkey, provided that legal restrictions are complied with. Real estates and limited real estates acquired by foreign natural persons and limited independent and permanent nature The total area of ​​real rights cannot exceed ten percent of the area of ​​the district subject to private property and thirty hectares per capita throughout the country. The President is authorized to double the amount that can be obtained throughout the country per capita.) (TK-35/1)

Foreign Trade Companies (Commercial companies with legal personality established in foreign countries according to the laws of their own country can acquire real estate and limited real rights only within the framework of the provisions of special laws. Those other than these commercial companies cannot acquire real estate and limited real rights cannot be established in their favor. These trading companies and foreign national real persons Limitations in this article do not apply to the establishment of immovable pledge in favor of it. ) (TK-35/2)

(*) Foreign ordinary companies and similar structures, foundations and associations that are not legal entities do not have the right to acquire real estate and limited real rights.