Restrictions and Legal Processes for Foreigners Acquiring Property in Turkey: Navigating Compliance and Opportunities

Introduction

The acquisition of immovable property by foreigners in Turkey is subject to a set of legal restrictions and regulatory processes designed to balance national interests with the promotion of foreign investment. While Turkey encourages foreign ownership to stimulate the economy, legal frameworks aim to control land use, protect national security, and regulate ownership in strategic areas. This article analyzes the restrictions placed on foreign ownership, the legal processes involved, and the challenges encountered by foreign nationals seeking to acquire real estate in Turkey.

Legal Framework Governing Foreign Ownership

1. Turkish Civil Code and Land Registry Law (Law No. 2644)
   • The Turkish Civil Code and the Land Registry Law are the primary legal instruments governing property ownership. The 2012 amendment to Article 35 of the Land Registry Law liberalized the rules for foreign ownership, allowing citizens from more than 180 countries to buy property in Turkey, subject to certain conditions.
2. Limitations on Foreign Ownership
   • Ownership Cap by Region: A foreign individual cannot own more than 10% of the total area within a district.
   • Area Limitation for Individuals: Foreign nationals are restricted to 30 hectares (300,000 square meters) of total land across Turkey, unless presidential approval is granted for additional acquisitions.
   • Strategic and Military Zones: Foreigners are prohibited from acquiring property within military zones, security-sensitive areas, or restricted zones identified by the Ministry of National Defense.
3. Reciprocity Principle and Exceptions
   • Previously, the reciprocity principle required that a foreigner could only purchase property if their home country allowed Turkish nationals to do the same. This rule was abolished in 2012, expanding access to more nationalities.
   • Certain nationalities (such as citizens of Syria) are still restricted from acquiring property for national security reasons.

Types of Property Available to Foreigners

• Residential and Commercial Properties: Foreigners are allowed to buy houses, apartments, and commercial buildings across Turkey.
• Agricultural Land: Acquisition of agricultural land requires compliance with zoning laws and approval by relevant authorities to ensure the land will be used productively.
• Coastal Properties: Foreign ownership is permitted near coasts, except within military and strategic zones.

Legal Procedures for Acquiring Property

1. Preliminary Research and Due Diligence
   • Foreign buyers must conduct due diligence to verify that the property is not located in a restricted area and that it complies with zoning regulations.
2. Obtaining Approval from the Military and Land Registry Offices
   • Although the process of obtaining approval from the military authorities for properties near sensitive areas was simplified, some purchases still require checks from the General Directorate of Land Registry to ensure compliance with security requirements.
3. Signing a Sales Agreement and Title Deed Transfer
   • After the sale is agreed upon, a sales contract is signed before a notary public, followed by the title deed (TAPU) transfer at the local Land Registry Office. Both the buyer and seller must be present, and a certified translator is required if the buyer does not speak Turkish.
4. Tax Obligations and Fees
   • Foreign buyers must register for a Turkish tax number to pay property taxes and fees, including title deed fees and annual property tax.

Challenges and Disputes in Foreign Property Acquisition

1. Property Fraud and Misrepresentation
   • Some foreign buyers face challenges related to fraud or misrepresentation, particularly in off-plan purchases. It is recommended to work with licensed real estate agents and legal professionals to avoid these risks.
2. Disputes over Ownership and Zoning Compliance
   • Ownership disputes may arise if the property is found to violate zoning regulations or if it falls within a restricted area without proper authorization. Such disputes are typically resolved through litigation in Turkish courts.
3. Enforcement of Contracts and Legal Remedies
   • Foreign buyers have the same legal rights and remedies as Turkish nationals in case of disputes. They can seek enforcement of contracts through civil courts or arbitration, depending on the terms of the sales agreement.

Conclusion

Turkey offers significant opportunities for foreigners seeking to invest in real estate, but the acquisition process involves compliance with various legal requirements and restrictions. Understanding the regulatory framework, conducting thorough due diligence, and engaging with professional advisors are crucial steps to ensure a smooth property purchase. The balance between encouraging foreign investment and protecting national interests shapes the legal landscape, requiring foreign buyers to navigate the process carefully.