The real estate sector in Turkey is governed by a well-defined legal framework that regulates company formation, property acquisition, construction, leasing, and financial operations. This framework is essential for both domestic entrepreneurs and foreign investors who seek clarity and legal certainty in conducting business.
In this article, we explore the core Turkish legislation that applies to real estate companies and property investments, highlighting their practical effects and legal responsibilities.
1. Turkish Commercial Code (TCC) – Law No. 6102
The backbone of commercial activity in Turkey, the Turkish Commercial Code (Türk Ticaret Kanunu) governs:
- Company incorporation and registration
- Corporate governance and liability
- Financial reporting and independent audit
- Legal personality of companies
Application in Real Estate:
- Real estate companies must be incorporated as legal persons (Ltd. or A.Ş.)
- Defines shareholders’ liability and management structure
- Regulates share transfers and company dissolution
2. Title Deed Law (Tapu Kanunu) – Law No. 2644
This law regulates the ownership, registration, and transfer of immovable property in Turkey.
Key Provisions:
- Article 35: Foreign persons and companies can acquire property under certain conditions
- Requires title registration at local Land Registry Directorates (Tapu Müdürlükleri)
- Legal ownership begins only after title deed registration (not just contract signing)
For Companies:
- Real estate firms must use their corporate legal identity to acquire property
- Foreign-owned Turkish companies may face restrictions in military or special zones
3. Zoning Law (İmar Kanunu) – Law No. 3194
This law governs urban planning, land use, and building regulations in Turkey.
Main Topics:
- Zoning plans prepared by municipalities
- Construction permit procedures
- Regulations for road setbacks, building heights, and use types
Application:
- Real estate companies must apply for:
- Construction permits (Yapı Ruhsatı)
- Occupancy permits (İskân Belgesi)
- Unauthorized construction is subject to demolition and penalties
4. Law on the Regulation of Real Estate Trade – Official Gazette No. 30442 (2018)
This regulation standardizes the real estate brokerage sector. It applies to companies engaged in:
- Buying and selling on behalf of clients
- Renting or managing real estate
- Providing consultancy services
Requirements:
- Must obtain a Real Estate Trade Authorization Certificate
- Employ staff with Level 5 MYK certificate (Professional Competence)
- Register in the Real Estate Trade Information System (TTBS)
Non-compliance results in administrative fines, and closure of the business.
5. Construction Law and Building Inspection Law – Law No. 4708
Applies to companies engaged in construction and project development.
Key Aspects:
- Requires developers to obtain contractor registration
- Buildings must undergo independent inspection at each stage
- Architects and engineers must sign off on:
- Project drawings
- Safety measures
- Construction quality
Real estate companies working as developers or contractors must strictly follow these rules to ensure project legality.
6. Capital Movements Law and Foreign Direct Investment Law – Law No. 4875
These laws regulate foreign investment in Turkey and how foreign funds enter or exit the country.
For Foreign Investors:
- Real estate companies with foreign shareholders must notify:
- Ministry of Industry and Technology
- Central Bank of the Republic of Turkey (CBRT) via annual FDI reports
- Profit distribution or repatriation is allowed, but requires:
- Proper board resolutions
- Tax clearance
- Notification to financial institutions
7. Tax Procedure Law and Corporate Tax Law – Law No. 213 & Law No. 5520
These laws impose tax and accounting rules on real estate companies, including:
- Corporate tax (25%)
- Value Added Tax (1%, 8%, or 20%)
- Withholding and stamp duties
- Requirement to maintain statutory books
- Monthly, quarterly, and annual tax filings
Violations lead to heavy penalties, blacklisting, and criminal prosecution.
8. Condominium Law (Kat Mülkiyeti Kanunu) – Law No. 634
If a real estate company builds apartments or commercial units, this law regulates:
- Division of ownership into independent sections
- Registration of title deeds for each unit
- Creation of a condominium management structure
- Common area rights and responsibilities
This law is crucial when selling units off-plan or managing mixed-use buildings.
9. Law on Environmental Impact Assessment – Law No. 2872 (EIA Regulation)
Large-scale real estate projects (e.g., malls, resorts, complexes) must undergo an Environmental Impact Assessment (ÇED) if they meet certain thresholds.
- Applications must be made to the Ministry of Environment
- Failure to obtain EIA approval can halt construction
- Public consultation may be required
10. Personal Data Protection Law (KVKK) – Law No. 6698
Real estate companies collect sensitive client data (e.g., ID numbers, addresses, financials). KVKK requires:
- Registration in the VERBIS data system
- Legal basis for data collection and use
- Drafting and publishing of privacy policies
- Handling of data subject rights (access, correction, deletion)
Non-compliance can result in administrative fines up to millions of TL.
Conclusion
Turkey’s real estate sector is governed by a comprehensive network of laws that regulate every aspect—from property registration to urban planning, taxation, and privacy. Investors and developers must fully understand these legal instruments to operate effectively and lawfully.
Failure to comply with even a single piece of this legislative puzzle can result in severe legal, financial, and operational consequences. Thus, consulting specialized real estate attorneys, tax advisors, and urban planners is not optional but vital for long-term success.
INTERN LAW FACULTY STUDENT
YAĞMUR YORULMAZ
Yanıt yok