Inheritance and Real Estate Transfer in Turkey for Foreigners

1. Introduction: Why Foreigners Need a Clear Succession Plan in Turkey

Over the last decade, Turkey has become a preferred destination for foreign buyers: apartments in Istanbul, seafront villas in Antalya, investment flats in urban transformation projects, or commercial properties rented to Turkish companies. Once a foreigner acquires property in Turkey, the next key legal question is unavoidable:

What happens to the Turkish assets when the owner dies?

For many international families, the deceased may have:

• One or more passports
• Spouse and children living in different countries
• Bank accounts and companies in several jurisdictions
• A property portfolio that includes Turkish real estate

In such cases, inheritance and real estate transfer in Turkey is not just a family matter, but a multi-jurisdictional legal process. Without proper planning, heirs may face:

• Delays at the Turkish courts
• Frozen bank accounts
• Problems at the Land Registry (Tapu Müdürlüğü)
• Double taxation or confusion about reporting obligations

This article explains step by step how inheritance and real estate succession works in Turkey when foreigners or foreign-owned assets are involved, and what you can do in advance to protect your family and investments.

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2. Legal Framework: Which Law Governs a Foreigners’ Estate in Turkey?

2.1. Main sources of law

When a foreigner dies owning assets in Turkey, several legal texts become relevant, especially:

• Turkish Civil Code (Türk Medeni Kanunu – TMK) – defines who the legal heirs are, how heir shares are calculated, reserved portion (forced heirship), wills, and succession rules.
• Law on International Private and Civil Procedural Law No. 5718 (IPPL) – determines which country’s law applies to inheritance when there is a foreign element.
• Land Registry legislation – regulates registration and transfer of ownership over immovable property.
• Inheritance and Gift Tax Law – sets the tax rules for inherited assets and gifts.

These tools interact in a specific way when there is a foreigner in the picture.

2.2. Movable vs. immovable property: a crucial distinction

Under Turkish conflict-of-laws rules, a fundamental distinction is made between:

• Immovable property (real estate) – land, apartments, villas, offices etc. located in Turkey
• Movable property – bank accounts, cash, vehicles, shares, bonds, jewellery and other movable assets

In simplified terms:

• Real estate located in Turkey is subject to Turkish inheritance law.
• Movable assets are in principle governed by the national law of the deceased, unless a specific conflict rule leads to a different result.

So, if an Italian citizen dies leaving:

• An apartment in Istanbul
• A bank account in Rome
• Shares of a Turkish company

the succession of:

• The Istanbul apartment will be governed by Turkish inheritance rules.
• The Italian bank account will generally follow Italian law.
• The Turkish company shares may be qualified as movable assets and follow the deceased’s national law, but Turkish company law and practice of the Trade Registry may still play a role.

For real estate located in Turkey, heirs and shares will therefore almost always be calculated under Turkish law, even if all heirs are foreigners and have never lived in Turkey.

2.3. What if the deceased had multiple nationalities or lived in Turkey?

Some foreigners in Turkey have:

• Dual or multiple citizenship (for example, Turkish plus another nationality)
• Long-term residence or permanent family life in Turkey

In these situations, the conflict-of-laws analysis can be more complex. However, from a practical point of view, you should keep two rules in mind:

1. Turkish real estate is almost always governed by Turkish inheritance law, regardless of nationality.
2. If the deceased also had Turkish nationality, Turkish law and courts will usually play a stronger, central role in the entire succession.

Therefore, any foreigner who owns property in Turkey should plan assuming that Turkish inheritance rules will definitely affect their real estate.

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3. Who Inherits? Turkish Heirship Rules Applied to Foreigners

3.1. Can foreigners inherit in Turkey?

Yes. As a rule, foreign nationals can be heirs and beneficiaries under Turkish law. There is no general prohibition against foreigners inheriting real estate or movable assets in Turkey.

In practice, foreigners acquire the inherited property:

• Either directly in their own name (their name appears on the title deed), or
• Indirectly, through shares in a Turkish company that owns the property.

However, there are a few limitations for citizens of some countries for reasons of reciprocity or national security. These are exceptional, and most nationalities can freely inherit and own property in Turkey. If your passport is from a country with a more complex political relationship with Turkey, you should obtain a tailor-made legal assessment in advance.

3.2. Legal heirs under Turkish law

When Turkish succession rules apply, the law divides relatives into heir classes (zümre). In general terms:

1. First class heirs – children and their descendants
2. Second class heirs – parents and their descendants (siblings etc.)
3. Third class heirs – grandparents and their descendants

The spouse does not belong to a single class but has a separate status and inherits together with the blood relatives.

If a closer class exists, more distant classes are excluded. For example:

• If the deceased leaves children, parents and siblings do not inherit.
• If there are no children, but there are parents and siblings, they will inherit together with the spouse.

3.3. Typical heir shares for foreigners owning real estate in Turkey

When Turkish law applies to real estate, the shares are determined according to the usual rules, regardless of nationality.

A few typical scenarios (assuming no will that changes the shares, and just to illustrate):

1. Deceased leaves spouse and children
   • The spouse typically receives one-quarter (1/4) of the estate.
   • The children share the remaining three-quarters (3/4) equally.
2. Deceased leaves spouse and parents, but no children
   • The spouse generally receives half (1/2).
   • The parents share the other half.
3. Deceased leaves only children, no spouse
   • The children inherit everything equally.

These shares apply to Turkish-law-governed assets, including real estate located in Turkey. If the deceased also had assets in other countries, those may be distributed differently under foreign law.

3.4. Reserved portion (forced heirship) and its impact

Turkish law protects “reserved heirs” (saklı paylı mirasçılar). Typically:

• Children,
• Spouse, and
• In some cases, parents

have a minimum share that cannot be completely removed by will. Even if the deceased signs a will leaving everything to one child or to a third person, the other reserved heirs can challenge the will and claim their reserved portion.

For foreign investors, this means:

• You cannot simply exclude your spouse or children from inheriting your Turkish property by a will.
• Sophisticated planning (company structures, lifetime transfers, etc.) must still comply with reserved portion rules, otherwise heirs can bring actions to reduce dispositions infringing their rights.

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4. Practical Steps: How Heirs Obtain Inheritance Rights in Turkey

When a foreign property owner dies, the heirs cannot simply “use” the property and assume everything is legally fine. To obtain control over Turkish assets, formal procedures must be followed.

4.1. Certificate of inheritance (veraset ilamı)

The first key document is the certificate of inheritance. This court order (or notarial deed, in some cases) confirms:

• Who the heirs are
• Their respective shares

For foreigners, there are two main paths:

1. Certificate issued by a Turkish court or notary
   • Heirs file a petition before a Turkish court (Sulh Hukuk Mahkemesi) or apply to a notary.
   • The court or notary examines civil status documents, marriage certificates, birth certificates, and sometimes foreign law and documents.
   • Once the certificate is issued, it will be used for the Land Registry and banks.
2. Foreign certificate of inheritance recognised in Turkey
   • In some cases, heirs may obtain an inheritance certificate from the home country.
   • If international conventions or Turkish private international law allow, that foreign document may be presented to Turkish authorities with apostille and sworn translation.
   • However, for real estate, Turkish courts and land registries are usually more comfortable with a Turkish certificate.

In practice, heirs often prefer to obtain a veraset ilamı in Turkey to avoid doubts at the Land Registry.

4.2. Required documents for foreign heirs

Although requirements vary by case, foreign heirs should expect to provide:

• Death certificate of the deceased (official, apostilled if foreign, translated into Turkish)
• Family registry documents or equivalent showing spouse, children, and other relatives
• Passports and ID copies of heirs
• Marriage certificate and birth certificates where necessary
• Any existing will (Turkish or foreign)
• Power of attorney (POA) if a Turkish lawyer or representative will handle the process on their behalf

All documents in foreign languages must be properly translated into Turkish by a sworn translator and notarised. If issued abroad, they typically require an apostille or consular legalisation.

4.3. Role of Turkish courts and notaries

Turkish courts and notaries will:

• Verify the validity of documents
• Determine which law applies (Turkish law vs. foreign law for some assets)
• Analyse the existence and validity of any wills
• Calculate each heir’s share

The output of this process is the certificate of inheritance, which becomes the starting point for any subsequent title transfer or bank transaction.

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5. Transfer of Real Estate Title to Foreign Heirs

Once the heirs obtain the certificate of inheritance and other necessary documents, they must proceed to the Land Registry (Tapu Müdürlüğü).

5.1. Registration of inheritance at the Land Registry

The transfer is not automatic. Even if heirs are clearly identified, the property still appears in the deceased’s name until formal steps are taken.

The typical process is:

1. Tax obligations checked – inheritance and gift tax registration and relevant declarations may be required at the tax office.
2. Application at the Land Registry – heirs (or their lawyer via POA) submit:
   • Certificate of inheritance
   • Identity documents or passports
   • Tax numbers for each heir
   • Property details (existing title deed, parcel information)
   • Translations and notarised copies of foreign documents
3. Registration in the names of heirs – the Land Registry officer examines the file and, if everything is correct, records the property in the names of the heirs as co-owners according to their shares.

From that moment, the heirs are the official owners of the Turkish real estate.

5.2. Can one heir buy out the others?

Yes. After registration, the heirs become co-owners. They can:

• Keep the property jointly,
• Conclude a partition agreement and distribute the assets, or
• One heir can buy the shares of the others so that the property eventually belongs to a single person.

These subsequent transfers may require:

• A sales contract before the Land Registry
• Payment of title deed fees and possibly capital gains tax if there is a gain at the time of sale

For families living scattered across different countries, it is often practical to authorise a trusted Turkish lawyer through a specific POA to manage these sales or transfers.

5.3. Powers of attorney for heirs living abroad

Heirs living outside Turkey may not wish to travel just to sign documents. In that case, they can issue a power of attorney (POA) in favour of:

• A Turkish lawyer, or
• A trusted person in Turkey

The POA must:

• Be issued before a Turkish consulate abroad or a local notary in the foreign country,
• Be legalised / apostilled,
• Be translated into Turkish and notarised in Turkey.

The wording of the POA is important. It should explicitly authorise:

• Application for inheritance certificates (if needed)
• Filing any court petitions
• Handling tax procedures
• Signing documents at the Land Registry
• Selling, mortgaging, or otherwise disposing of the property (if intended)

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6. Inheritance Tax and Other Financial Aspects for Foreigners

6.1. Is there inheritance tax in Turkey?

Yes. Turkey applies a specific Inheritance and Gift Tax on assets acquired by way of death or gift. The tax is:

• Progressive, with several brackets
• Payable by the heir, not by the estate as such
• Calculated on the value of the asset located in Turkey

For example, if a foreign heir receives an apartment in Istanbul, they will be liable for Turkish inheritance tax on the market value of that property, according to the latest valuation basis accepted by the tax office.

6.2. Double taxation risks

Foreigners must also consider their home country’s tax rules. Several scenarios are possible:

• Some countries tax their residents on worldwide inheritance, including assets in Turkey.
• Others only tax inheritances related to their own territory or do not levy inheritance tax at all.
• There might be double taxation treaties between Turkey and the heir’s or deceased’s country, providing methods to avoid paying tax twice.

Because each country has its own rules, any serious succession planning should involve:

• A Turkish tax lawyer or accountant for the Turkish side, and
• A local adviser in the heir’s home country.

The goal is to coordinate the two systems and avoid unpleasant surprises.

6.3. Practical tax and cost planning

Foreign property owners can take several practical measures:

• Keeping records and valuations up to date – to support a realistic market value and avoid disputes with the tax office.
• Structuring ownership (for example, through a company) where appropriate, while respecting local and foreign tax rules.
• Considering lifetime gifts or inter vivos transfers, bearing in mind both Turkish gift tax and reserved portion rules.
• Planning ahead for liquidity – heirs may need cash to pay inheritance tax; if the estate is “asset-rich but cash-poor”, they could be forced to sell quickly.

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7. Wills, Testamentary Dispositions and Foreign Elements

7.1. Can a foreigner make a will under Turkish law?

Yes. Foreign nationals can draw up a Turkish will for their assets in Turkey. The will can be:

• An official will drawn up in front of a notary,
• A holographic will written, dated and signed entirely by hand, or
• An exceptional will under special circumstances (such as disaster, war etc.).

Using a notary will is highly recommended, especially in cross-border cases, because:

• The notary verifies identity and capacity,
• The will is kept in official records,
• It is much harder to challenge authenticity later.

7.2. Interaction between Turkish wills and foreign wills

Many foreigners already have a will in their home country. When they acquire property in Turkey, several options exist:

1. Single worldwide will – one will governing all assets worldwide.
2. Separate wills – one will for Turkish assets, another will for home-country assets.

Separate wills can be useful, but must be carefully coordinated so that:

• The Turkish will explicitly limits itself to assets in Turkey, and
• The foreign will excludes Turkish assets, to avoid conflict or double revocation.

Any will involving Turkish assets should be drafted with a clear understanding of:

• Turkish forced heirship rules
• Conflict-of-laws provisions
• The practical requirements of the Land Registry and courts.

7.3. Limits of testamentary freedom: you cannot disinherit everyone

Even if a foreigner makes a valid will under Turkish law, he or she cannot freely dispose of the entire estate if Turkish forced heirship rules apply to the relevant assets.

For example:

• A foreign father owning an apartment in Istanbul cannot validly leave the entire property to a friend and exclude his spouse and children completely.
• The spouse and children can file a reduction action (tenkis davası) and claim their reserved portion.

This is a major difference from jurisdictions that allow almost full testamentary freedom. Foreigners coming from those systems should pay special attention to Turkish reserved shares.

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8. Special Issues: Bank Accounts, Companies and Mortgages

8.1. Turkish bank accounts of a foreigner

Bank accounts held in Turkey in the name of the deceased will usually be frozen once the bank becomes aware of the death. To access them, heirs must:

• Present the certificate of inheritance,
• Provide ID documents and tax numbers,
• Comply with any additional internal bank requirements.

Whether Turkish law or foreign law governs the succession of those accounts may depend on the conflict of laws and the nature of the asset, but in practice banks usually require a Turkish inheritance document for compliance.

8.2. Turkish companies and shares

If the deceased owned shares in a Turkish company (for example, a limited company owning several apartments), the succession may involve:

• Updating the share ledger and corporate documents,
• Registration at the Trade Registry,
• Possible amendments to the articles of association or shareholder agreements.

If the company itself owns real estate, the Land Registry records may not change immediately; the shareholder structure changes first. However, inheritance and corporate law interact, and both lawyers and accountants usually need to be involved.

8.3. Mortgages and other encumbrances on inherited property

If the Turkish property is mortgaged or subject to other encumbrances (like liens or annotations), heirs will inherit both the asset and the burden.

Key points:

• The mortgage does not disappear upon the owner’s death.
• Heirs inherit the property with the mortgage, but they are not personally liable beyond the value of the estate unless they accept the inheritance unconditionally.
• Banks may require re-negotiation or may keep the existing loan conditions, depending on the contract.

Heirs should carefully evaluate:

• The market value of the property
• The debt level and repayment conditions

In extreme cases, heirs may consider waiving the inheritance if the estate is clearly insolvent.

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9. Common Pitfalls and Practical Tips for Foreigners

9.1. Ignoring Turkish law and relying only on home-country rules

One of the most frequent mistakes is to assume that the law of the foreigner’s home country will automatically govern everything, including Turkish real estate. This is usually wrong.

Because Turkish law almost always applies to immovable property located in Turkey, any estate plan that ignores Turkish rules is fragile and may be challenged later by heirs.

Tip: Always include a Turkish-law analysis when preparing your estate plan if you own property in Turkey.

9.2. No paperwork or outdated documentation

Inheritance procedures are document-driven. Problems often arise because:

• Family status documents are incomplete or inconsistent
• Wills are not properly signed or are lost
• Spouses or children from earlier marriages are not clearly documented

For international families, it is essential to keep:

• Marriage certificates
• Birth certificates of children
• Divorce decrees
• Adoption records

in a form that can be used and legalised for Turkish inheritance proceedings.

9.3. Using generic powers of attorney

Many foreigners sign standard POAs that are not specifically tailored for inheritance and real estate transfer. Later, when heirs need to act, the POA may be insufficient for more complex steps (court petitions, sales, tax procedures).

Tip: When planning your Turkish investment, prepare a carefully drafted POA that covers:

• Court actions
• Notarial procedures
• Bank dealings
• Land Registry operations
• Sale or mortgage where desired

so that your trusted representative can handle matters efficiently if something happens to you.

9.4. Not addressing forced heirship and family conflict

In blended or international families, there may be:

• Children from different marriages
• Partners who are not formally married
• Religious or cultural expectations that differ from Turkish law

Forced heirship rules can lead to conflicts if expectations are not managed.

Tip: Discuss with a Turkish lawyer how reserved shares work, and combine:

• Company structures, where appropriate,
• Lifetime transfers that respect mandatory rules,
• Transparent communication with family members,

to reduce the risk of litigation among heirs.

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10. Checklist for Foreigners Owning Property in Turkey

To put all of the above into a practical format, here is a succession planning checklist for foreign property owners in Turkey:

1. Identify your Turkish assets
   • Real estate (apartments, villas, land, commercial property)
   • Bank accounts, company shares, vehicles etc.
2. Clarify which law applies
   • Understand that Turkish law will almost certainly apply to real estate in Turkey.
   • Check conflict-of-laws and possible interaction with your home country’s law for other assets.
3. Map your family situation
   • Spouse (current, ex-spouses)
   • Children (including from previous marriages, adopted children)
   • Dependent relatives
4. Understand Turkish forced heirship
   • Identify who your reserved heirs are.
   • Estimate the minimum shares that must go to spouse and children.
5. Review existing wills and estate planning documents
   • Do you have a will in your home country?
   • Does it mention Turkish assets?
   • Should you create a separate Turkish will for property located in Turkey?
6. Consider tax implications
   • Ask for an estimate of Turkish inheritance tax on your property.
   • Coordinate with tax advisers in your home country to avoid double taxation where possible.
7. Prepare high-quality documentation
   • Keep official copies of your marriage and birth certificates, in a form that can be apostilled or legalised.
   • Store documents so that your heirs can easily locate them.
8. Set up powers of attorney
   • Designate a trusted Turkish lawyer or representative.
   • Ensure the POA covers court, tax, banking, and Land Registry dealings and, if desired, the power to sell or mortgage.
9. Communicate your plan
   • Inform your family where your documents are, and which lawyer in Turkey they should contact.
   • Explain the overall structure: which assets are in Turkey, what the plan is, and which rules apply.
10. Review periodically

• Revisit your plan when you:
  • Buy or sell property,
  • Get married, divorced, or have a new child,
  • Change your main residence or tax residence,
  • Acquire or lose a nationality.

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11. Conclusion: Protecting Your Family and Investment

Foreigners who invest in Turkish real estate usually focus on:

• Purchase contracts
• Title deed checks
• Rental returns and resale value

But a truly complete strategy must also include a plan for what happens after the owner’s death. Because Turkish law governs real estate located in Turkey and contains mandatory heirship rules, ignoring succession can expose your family to:

• Court disputes,
• Frozen assets,
• Delays in accessing property or bank accounts,
• Unexpected tax liabilities.