Inheritance in Turkey when a foreigner owning real estate or a company dies often raises complex questions about which country’s law applies, which court is competent and how heirs can actually transfer or liquidate assets in Turkey. For families living abroad, the combination of Turkish succession rules, private international law and corporate rules can be confusing. This overview explains the main legal principles and practical steps from the perspective of Turkish law.
1. Which law applies to the inheritance?
Under the Turkish Private International Law Code (Law No. 5718), the starting point is the national law of the deceased:
- As a rule, succession is governed by the law of the deceased’s nationality at the time of death (movable assets, bank accounts, receivables, etc.).
- However, for immovable property located in Turkey, Turkish law applies regardless of the deceased’s nationality (lex rei sitae principle).
This means that:
- A foreigner’s apartment in Istanbul or land in Bodrum will be inherited according to Turkish Civil Code rules (heirs, reserved shares, shares of spouse and children, etc.).
- Their movable property and rights abroad may follow their own national law and be handled by foreign courts.
For company interests, there is a double layer:
- Succession aspect: who becomes the heir to the shares is determined by the applicable succession law (often the national law of the deceased).
- Corporate aspect: how those shares can be transferred and registered is governed by the law of the company’s seat and its articles of association (for Turkish companies, Turkish Commercial Code).
2. Immovable property (real estate) owned by a foreigner in Turkey
If a foreigner dies while owning real estate in Turkey:
- Opening of the estate and certificate of inheritance
Heirs must obtain a certificate of inheritance (veraset ilamı) from a Turkish court or, in some cases, a Turkish notary.- Foreign probate decisions can sometimes be recognised, but in practice, Turkish authorities usually require a local certificate of inheritance.
- Foreign death certificates, family records or wills must be legalised or apostilled and translated into Turkish by a sworn translator.
- Application of Turkish inheritance rules
Turkish law will decide:- Which relatives are legal heirs;
- The shares of spouse and children;
- Reserved portions (saklı pay) for close relatives; and
- Whether any will dispositions are valid as to Turkish immovables.
- Land registry transfer
After obtaining the certificate of inheritance and paying any inheritance and gift tax, heirs can apply to the land registry (tapu müdürlüğü) to register their names.
If a foreign heir is not allowed to own that type of real estate under current restrictions, the property may need to be sold and the proceeds paid to the heir instead of registering title.
3. Shares in a Turkish company owned by a deceased foreigner
For a foreigner who was a shareholder of a Turkish company (limited liability company, joint-stock company, etc.):
- Heirs as successors to shares
As a rule, shares are part of the estate and pass to the heirs. The applicable succession law determines who inherits, but: - Corporate rules and articles of association
The Turkish Commercial Code and the company’s articles of association may:- Require approval of the general assembly or managers for transfer of shares;
- Grant other shareholders pre-emption or purchase rights;
- Allow the company to refuse entry of an heir as a partner and pay compensation instead.
- Practical steps
- Obtain a certificate of inheritance showing the heirs and their quotas.
- Present it to the company and update the share ledger and, where relevant, the trade registry.
- Check if any shareholder agreements or special clauses restrict transfer to heirs.
4. Foreign heirs, documents and taxation
Heirs often reside outside Turkey and may never have dealt with Turkish authorities before. Typically required steps include:
- Collecting foreign documents (death certificate, family registration, will, probate order).
- Ensuring apostille/legalisation and sworn Turkish translations.
- Appointing a Turkish lawyer via a notarised and apostilled power of attorney.
- Filing inheritance and gift tax returns within statutory periods and arranging payment.
Failure to comply with formalities may delay or block the registration of real estate or shares in the heirs’ names.
5. Planning before death: wills and structuring
A foreigner who owns significant assets in Turkey should consider:
- Making a will that is valid both under their national law and, as far as possible, consistent with Turkish formal requirements.
- Being aware that, for immovable property in Turkey, Turkish forced heirship rules may still apply, limiting the share that can be freely disposed of.
- Reviewing company articles of association and shareholder agreements to clarify what will happen to shares on death (automatic transfer, buy-out clauses, valuation methods, etc.).
6. Conclusion
When inheritance in Turkey when a foreigner owning real estate or a company dies is at stake, families must navigate both international private law and detailed Turkish substantive rules. Because each case involves a mix of nationalities, assets and corporate structures, obtaining tailor-made legal advice in Turkey is essential to secure heirs’ rights, avoid procedural pitfalls and complete transfers efficiently.
Lawyer Ferhat Küle provides legal consultancy about this subject. Contact us to benefit from our services.
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