A Practical Legal Guide for Foreign Investors and International Companies
Last Updated: August 2026

Yes. A foreign-owned company can purchase real estate in Türkiye, but the answer depends heavily on where the company is incorporated and how the ownership structure is organised.

This distinction is critical.

A company incorporated in Türkiye with foreign shareholders is legally a Turkish company with foreign capital. Such a company may, subject to certain conditions, acquire real estate in Türkiye.

By contrast, a company incorporated directly under the laws of another country—for example, a German GmbH, UK Ltd., UAE LLC or US corporation—falls within a substantially more restrictive legal regime if it attempts to purchase Turkish real estate directly.

Therefore, before acquiring an office, factory, warehouse, hotel, commercial property or development land in Türkiye, foreign investors should first determine:

Who will legally own the property: the foreign parent company or a Turkish subsidiary?

The answer may significantly affect the legality of the transaction, approval procedures, taxation, financing and future sale of the investment.

1. What Does “Foreign-Owned Company” Mean Under Turkish Law?

Three different categories must be distinguished:

1. Foreign natural persons
2. Foreign legal entities incorporated outside Türkiye
3. Turkish companies with foreign shareholders

Articles 35 and 36 of the Turkish Land Registry Law No. 2644 establish different rules for these categories. Article 35 principally regulates acquisitions by foreign natural and legal persons, while Article 36 regulates certain companies incorporated in Türkiye with foreign capital.

This distinction produces one of the most important rules for international investors:

A Turkish company does not become a foreign legal entity merely because 100% of its shares are owned by foreigners.

For example:

ABC Holdings Ltd. — United Kingdom
↓ 100% shareholder
ABC Türkiye Anonim Şirketi

ABC Türkiye A.Ş. remains a Turkish legal entity.

Its real-estate acquisitions are therefore principally examined under the rules applicable to companies with foreign capital established in Türkiye, rather than the much more restrictive rules applicable to a foreign company incorporated abroad.

2. Can a 100% Foreign-Owned Turkish Company Buy Property?

Yes.

A company established under Turkish law may generally purchase real estate even where:

• 100% of its shares are owned by foreigners,
• its sole shareholder is a foreign company,
• its directors are foreign nationals, or
• the ultimate beneficial owners are located outside Türkiye.

However, where foreign investors directly or indirectly hold 50% or more of the shares, or where foreign investors have the power to appoint or dismiss the majority of persons exercising management rights, Article 36 of the Land Registry Law becomes particularly relevant.

Such companies may acquire and use real estate and limited rights in rem for the purpose of conducting the activities specified in their articles of association.

Therefore, the answer is not simply:

“Foreign-owned companies can buy anything.”

The more accurate answer is:

“A Turkish company with foreign capital can acquire real estate required or appropriate for the activities described in its corporate purpose, subject to Article 36 and applicable security, zoning and sector-specific restrictions.”

3. The 50% Foreign Ownership Rule

The 50% threshold is particularly important.

Article 36 applies where:

Foreign investors own 50% or more of the company

or

Foreign investors have the right to appoint or dismiss the majority of persons authorised to manage the company.

Accordingly, ownership and control are considered separately.

For example:

Example 1

A Turkish company has:

• German shareholder: 70%
• Turkish shareholder: 30%

Article 36 applies.

Example 2

Foreign investors own only 40%, but contractual or corporate privileges allow them to appoint the majority of management.

Article 36 may again apply because foreign control exists even though the foreign ownership percentage is below 50%.

4. What Happens If Foreign Ownership Is Below 50%?

If foreign ownership remains below 50% and foreign investors do not possess the relevant management control, the special procedure under Article 36 will generally not apply.

The 2012 Regulation governing real-estate acquisitions by companies within Article 36 expressly excludes foreign-capital companies that fall outside Article 36 from its special procedural framework.

This means that a Turkish company with minority foreign ownership may generally acquire real estate under the ordinary rules applicable to Turkish companies, subject of course to:

• zoning legislation,
• agricultural restrictions,
• environmental rules,
• sector-specific legislation,
• protected areas,
• security zones, and
• other restrictions relating to the particular property.

The shareholding structure should nevertheless be checked carefully before every major acquisition.

5. Can the Property Be Purchased for Any Purpose?

Not necessarily.

This is one of the most important restrictions imposed by Article 36.

A qualifying foreign-capital Turkish company may acquire property and limited rights in rem to conduct the activities specified in its articles of association.

Consider a foreign-owned company whose articles state that its principal activities include:

• software development,
• technology consultancy, and
• operation of technology centres.

The company could potentially acquire an office or technology facility required for these activities.

A manufacturing company may similarly acquire:

• factory premises,
• warehouses,
• logistics facilities,
• administrative offices, or
• land intended for its permitted investment.

However, an acquisition entirely unrelated to the company’s stated corporate activities may create legal difficulties.

For that reason, before purchasing valuable real estate, the company’s:

Articles of Association / Esas Sözleşme

should be reviewed.

Where necessary, the corporate purpose may need to be amended before the acquisition, provided the contemplated activity is lawful and regulatory requirements are satisfied.

6. Can a Foreign-Owned Company Purchase an Office in Türkiye?

Generally, yes.

A foreign-owned Turkish company may acquire an office where the property will be used for its business operations and the acquisition is consistent with its corporate activities.

For example:

XYZ Türkiye Ltd. Şti.

may acquire office premises in Istanbul instead of leasing them.

In practice, the legal due diligence should examine at least:

• ownership records,
• mortgages,
• liens,
• attachments,
• usufruct rights,
• easements,
• annotations,
• zoning status,
• building permits,
• occupancy permits,
• condominium title,
• management-plan restrictions, and
• outstanding public or private obligations associated with the property.

The Türkiye Investment Office specifically recommends checking mortgages, liens and similar title restrictions before initiating the transfer procedure.

7. Can a Foreign-Owned Company Purchase a Factory or Warehouse?

Yes, provided the acquisition complies with the company’s corporate purpose and applicable regulatory rules.

This structure is frequently used by international:

• manufacturing companies,
• logistics companies,
• automotive suppliers,
• pharmaceutical businesses,
• technology companies,
• food manufacturers, and
• industrial investors.

For industrial investments, purchasing property within an:

• Organized Industrial Zone,
• Industrial Zone,
• Technology Development Zone, or
• Free Zone

may also benefit from a different procedural regime.

Indeed, certain acquisitions within designated investment zones are expressly excluded from the ordinary governor’s-office approval procedure applicable under the Article 36 framework.

8. Can a Foreign-Owned Company Buy Land?

Yes, but land acquisitions require particular caution.

Purchasing an already completed office or commercial unit is legally very different from purchasing:

• vacant land,
• agricultural land,
• development land,
• forest-adjacent land,
• coastal land,
• industrial land, or
• property situated within protected or restricted areas.

Before purchasing land, investors should investigate not only title ownership but also:

• zoning designation,
• construction rights,
• permitted density,
• road access,
• subdivision restrictions,
• agricultural classification,
• environmental restrictions,
• expropriation risk,
• protected-area status,
• infrastructure,
• municipal plans, and
• whether the contemplated project can legally be constructed.

Foreign investors should never assume that owning land automatically creates a right to build the intended project.

9. Is There a 30-Hectare Limit for Foreign-Owned Companies?

This is an important point.

The well-known 30-hectare limitation applies principally to acquisitions by foreign natural persons under the foreign-individual property acquisition regime.

The Türkiye Investment Office confirms that the 30-hectare limitation and the district-level 10% restriction are rules applicable to foreign natural persons.

A Turkish-incorporated company with foreign capital is governed separately under Article 36.

Therefore, the fact that a Turkish company is 100% foreign-owned does not automatically mean that the same 30-hectare personal limitation applies to the company.

Instead, the acquisition must be examined under Article 36 and the rules applicable to the company’s activities and the specific property.

This distinction may be extremely important for:

• factories,
• energy projects,
• logistics centres,
• tourism developments,
• industrial facilities, and
• large-scale investments.

10. Does the Company Need Permission Before Purchasing?

For companies falling within Article 36, a special procedure may apply.

According to the current guidance of the Türkiye Investment Office, Turkish companies with foreign capital that fall within the relevant regime should initially apply to the competent authority within the Governor’s Office where the property is situated.

Following a positive assessment, the acquisition process proceeds before the Land Registry Directorate.

Accordingly, foreign investors should not treat the transaction as a normal private sale and transfer funds before verifying whether preliminary administrative approval is required.

A typical process may involve:

1. corporate due diligence,
2. title and property due diligence,
3. review of foreign shareholding,
4. assessment under Article 36,
5. application to the competent Governor’s Office unit where necessary,
6. security/restricted-area review where applicable,
7. approval,
8. Land Registry application, and
9. registration of ownership.

11. Are There Transactions That Do Not Require Governor’s Office Permission?

Yes.

Current official guidance identifies several transactions for which the special prior permission procedure does not apply.

These include, among others:

• establishment of a mortgage,
• acquisition resulting from enforcement of a mortgage,
• transfers resulting from company mergers and demergers,
• acquisitions in organised industrial zones,
• industrial zones,
• technology development zones,
• free zones, and
• certain acquisitions connected with banking transactions or collection of receivables.

The specific transaction should nevertheless be reviewed individually before relying on an exemption.

12. What About Military and Security Zones?

Property located in or near military and security zones may be subject to additional restrictions and administrative review.

Therefore, particularly where the property is:

• strategically located,
• near military facilities,
• close to certain border areas, or
• within designated security zones,

the security status of the parcel should be checked before signing an unconditional acquisition agreement.

The Article 36 regime expressly contemplates security-zone restrictions and additional approvals for relevant properties.

For substantial investments, this issue should be investigated during legal due diligence rather than after the purchase price has been paid.

13. Can a Foreign Company Incorporated Abroad Buy Property Directly?

This is where the legal position becomes significantly more restrictive.

Suppose:

Global Holdings GmbH

is incorporated in Germany and has never established a Turkish company.

Can Global Holdings GmbH directly purchase an Istanbul office in its own name?

As a general rule, foreign legal entities incorporated abroad do not have the same broad property acquisition rights available to Turkish-incorporated companies.

According to the Türkiye Investment Office, trading companies established under foreign law may acquire Turkish real estate only in exceptional circumstances where acquisition is permitted by:

• international agreements, or
• specific Turkish legislation.

Examples of special legislation identified by the official investment guidance include:

• Turkish Petroleum Law No. 6491,
• Tourism Incentive Law No. 2634, and
• Industrial Zones Law No. 4737.

Accordingly:

A foreign company’s ability to purchase Turkish property directly should never be assumed.

In many commercial investment projects, establishing a Turkish subsidiary may provide a considerably more practical ownership structure.

14. A Turkish Subsidiary Can Solve the Structural Problem

Consider a UAE company that wishes to establish a logistics centre in Türkiye.

Instead of attempting to acquire the property directly through:

Dubai ABC LLC

the investor may establish:

ABC Lojistik Türkiye A.Ş.

The UAE parent may own 100% of ABC Türkiye A.Ş.

The Turkish company may then acquire the property under the Turkish foreign-capital company regime, provided Article 36 and other applicable requirements are satisfied.

Structurally:

Foreign Parent Company
↓ 100% shareholding
Turkish A.Ş. / Ltd. Şti.
↓
Turkish Real Estate

This is one of the most commonly used investment structures for foreign corporate groups operating in Türkiye.

15. Can a Turkish Subsidiary Be Established Only to Hold Real Estate?

Potentially, yes, but the structure must be designed properly.

Foreign investors sometimes establish a Turkish special purpose vehicle (SPV) whose business activities include:

• acquiring,
• holding,
• leasing,
• developing, or
• managing real estate.

A properly structured real-estate holding company may provide benefits in relation to:

• liability separation,
• financing,
• joint ventures,
• accounting,
• property management, and
• future exit.

However, the company’s articles of association must appropriately reflect the contemplated activities, and the acquisition must comply with Article 36 and all property-specific restrictions.

Artificial structures designed solely to circumvent mandatory legal restrictions may create serious legal and regulatory risks.

16. What Happens if Foreign Investors Later Acquire 50% of a Property-Owning Turkish Company?

Article 36 also addresses this situation.

Imagine:

Anadolu Sanayi A.Ş.

is initially 100% Turkish-owned and already owns a factory.

A foreign investor later acquires 60% of its shares.

The legal analysis does not end merely because the company already owned the property before the foreign investment occurred.

Article 36 extends its framework to situations where foreign investors directly or indirectly acquire 50% or more of a property-owning Turkish company or where foreign ownership in an existing foreign-capital company reaches the relevant threshold following a share transfer.

Therefore, real-estate due diligence should form part of the legal review of Turkish M&A transactions involving foreign investors.

17. Indirect Foreign Ownership Also Matters

Foreign investors cannot necessarily avoid Article 36 simply by using multiple Turkish holding companies.

The legislation also looks at indirect ownership.

For example:

US Parent Inc.
↓ 100%
Türkiye Holding A.Ş.
↓ 70%
Türkiye Operating A.Ş.
↓
Factory

The ultimate foreign ownership structure may still be relevant.

Article 36 expressly extends the rules to specified direct and indirect ownership structures where the ultimate foreign shareholding reaches the statutory threshold.

For international corporate groups, the entire ownership chain should therefore be analysed.

18. Can the Company Mortgage the Property?

Yes.

A foreign-owned Turkish company may generally mortgage property it owns.

Additionally, Turkish law is comparatively flexible regarding mortgages created in favour of foreign natural and legal persons.

The official investment guidance notes that mortgages constitute an important exception to the restrictions governing foreign acquisition of property.

This may facilitate:

• foreign bank financing,
• shareholder loans,
• acquisition financing,
• project finance, and
• international lending structures.

However, Turkish banking, tax, foreign-exchange and financial-assistance considerations should also be examined depending on the financing structure.

19. What Taxes and Costs Arise When a Company Purchases Real Estate?

Several different taxes and transactional costs may arise.

The most common include:

• title deed fee,
• VAT where applicable,
• notary costs where relevant,
• valuation or technical costs,
• legal due diligence expenses,
• compulsory earthquake insurance for qualifying buildings,
• annual property tax, and
• other municipal charges.

Title Deed Fee

Under the current general rule, title deed fees on a sale are calculated at:

2% for the buyer
and
2% for the seller

on the declared actual transfer price, provided that this value cannot be lower than the relevant property-tax value.

The Turkish Revenue Administration confirmed this general rule in its current guidance published in 2026.

The parties may commercially agree who ultimately bears the cost, but this contractual allocation does not necessarily change the statutory tax liability.

20. Is VAT Always Payable?

No.

VAT treatment depends on matters including:

• identity and tax status of the seller,
• type of property,
• nature of the transaction,
• whether the sale forms part of a commercial activity,
• applicable exemptions, and
• characteristics of the building or land.

Therefore, foreign investors should not assume either that:

“All Turkish property acquisitions are subject to VAT”

or that:

“Property purchases are VAT-free.”

The tax structure should be examined before agreeing the net purchase price.

This becomes particularly important for commercial property and high-value development transactions.

21. Real Estate Due Diligence Is Essential

For a corporate acquisition, obtaining the title deed alone is insufficient.

A comprehensive legal due diligence should ordinarily investigate:

Title Ownership

Is the seller actually the registered owner?

Mortgages

Is the property pledged to a bank or another creditor?

Attachments and Liens

Could creditors prevent or challenge the transfer?

Easements

Are there rights of passage, usufruct rights or other rights affecting use?

Annotations

Are there contractual or judicial restrictions recorded in the land registry?

Zoning

Can the investor legally conduct the intended project?

Construction Legality

Does the building have proper construction and occupancy permits?

Condominium Status

Does the independent unit legally correspond to what the investor is purchasing?

Leases

Is the property occupied by tenants?

Litigation

Is there pending litigation concerning ownership or use?

Expropriation

Is the property affected by existing or contemplated public projects?

Environmental Issues

Could contamination or environmental restrictions affect development?

Security Restrictions

Does Article 36 require additional administrative review?

The Türkiye Investment Office specifically advises purchasers to investigate mortgages, liens and other restrictions before initiating the transfer process.

22. Should the Company Sign a Preliminary Purchase Agreement?

Often yes, particularly for significant investments.

However, the contract should contain appropriate protections.

A corporate real-estate agreement may make completion conditional upon:

• satisfactory legal due diligence,
• Article 36 approval,
• zoning confirmation,
• financing,
• release of mortgages,
• removal of attachments,
• regulatory approvals,
• board/shareholder approval, and
• confirmation that the property can legally be used for the contemplated project.

The investor should avoid paying the full purchase price before conditions precedent are satisfied.

Under Turkish law, ownership itself generally transfers through registration at the Land Registry. A preliminary contractual arrangement does not by itself make the purchaser the registered owner.

23. Can a Foreign-Owned Company Purchase Residential Property?

Potentially, yes, if the acquisition is compatible with the company’s legitimate business activities.

However, corporate acquisition of residential property should be considered carefully.

Relevant questions include:

• Why does the company require the residence?
• Will it be used as staff accommodation?
• Will it be leased?
• Is real-estate investment part of the company’s corporate purpose?
• Is the purchase a commercial investment?
• What are the corporate tax implications?
• Will benefits provided to shareholders or managers create separate tax consequences?

Using a corporate entity merely to own the private residence of an individual shareholder may create unnecessary tax, accounting and corporate-law complications.

24. Does Property Purchased by the Company Give the Shareholder Turkish Citizenship?

Not automatically.

This distinction is crucial.

Where real estate is owned by:

ABC Türkiye A.Ş.

the legal owner is the company.

The company’s foreign shareholder does not personally become the owner merely because they own 100% of the company.

Therefore, corporate property acquisition should not automatically be confused with the separate Turkish citizenship-by-investment regime applicable to qualifying foreign individuals.

Investors pursuing citizenship and investors pursuing corporate real-estate ownership may require completely different structures.

25. Can the Company Sell the Property Later?

Yes.

A Turkish company may generally sell real estate that it lawfully owns.

However, the consequences of the sale should be examined from:

• corporate law,
• corporate income tax,
• VAT,
• capital gains,
• accounting, and
• contractual perspectives.

For investment structures, another alternative may be to sell the shares of the property-owning company rather than selling the property itself.

For example:

Asset Sale

Buyer purchases the factory directly from ABC Türkiye A.Ş.

versus

Share Sale

Buyer purchases the shares of ABC Türkiye A.Ş., which continues to own the factory.

These transactions can produce materially different:

• tax consequences,
• liabilities,
• due diligence requirements, and
• contractual structures.

Therefore, an eventual exit strategy should ideally be considered before the original acquisition.

26. Property Acquisition Through an A.Ş. or Ltd. Şti.?

Both Turkish joint stock companies and limited companies can potentially hold real estate.

Limited Company — Ltd. Şti.

May be suitable for:

• smaller investments,
• closely held businesses,
• simple ownership structures, and
• property-holding SPVs.

Joint Stock Company — A.Ş.

May be more suitable where:

• the investment is substantial,
• additional investors may enter,
• project finance will be obtained,
• shares may later be sold,
• private equity investment is anticipated, or
• the Turkish business will become part of a larger corporate group.

For large international real-estate or industrial investments, an A.Ş. may therefore offer greater long-term corporate flexibility.

27. Practical Example

Consider a Dutch manufacturing company planning a EUR 25 million investment in Türkiye.

It intends to:

• purchase industrial land,
• construct a factory,
• employ 200 personnel, and
• operate the facility for at least 15 years.

Instead of purchasing the property directly through the Dutch company, the investor establishes:

Netherlands Parent B.V.
↓ 100%
Türkiye Manufacturing A.Ş.

The Turkish company’s articles of association expressly include manufacturing and acquisition of property required for its operations.

Before the acquisition, lawyers examine:

• Article 36 compliance,
• title records,
• zoning status,
• industrial permissions,
• mortgages,
• environmental restrictions,
• security-zone status,
• construction rights, and
• tax consequences.

Following the required approvals, the Turkish subsidiary purchases the property.

This structure creates a significantly more organised legal framework for both the real estate and the underlying Turkish investment.

28. Common Mistakes Foreign Investors Should Avoid

Foreign companies frequently encounter difficulties because of relatively simple structural mistakes.

The most important are:

Mistake 1 — Assuming the foreign parent can directly buy property

Direct acquisition by a foreign legal entity incorporated abroad is considerably more restricted.

Mistake 2 — Confusing a Turkish foreign-owned company with a foreign company

They are legally different categories.

Mistake 3 — Ignoring the 50% ownership threshold

Article 36 may become applicable.

Mistake 4 — Ignoring indirect ownership

Ultimate foreign ownership can also be relevant.

Mistake 5 — Purchasing property unrelated to corporate activities

The company’s articles of association should be reviewed first.

Mistake 6 — Paying before due diligence

Title ownership alone does not establish that the property is legally suitable for the investment.

Mistake 7 — Ignoring zoning restrictions

Ownership does not guarantee construction permission.

Mistake 8 — Ignoring security-zone restrictions

Administrative approval may be required.

Mistake 9 — Assuming corporate property creates citizenship rights

The shareholder and the company are separate legal persons.

Mistake 10 — Structuring the purchase without considering the future exit

A later asset sale and a share sale can have very different legal and tax consequences.

29. Conclusion: Can a Foreign-Owned Company Buy Real Estate in Türkiye?

Yes—but the corporate structure is decisive.

A Turkish company may be wholly owned by foreign investors and still purchase property in Türkiye.

Where foreign investors hold at least 50% of the shares or possess the relevant management control, the acquisition is principally governed by Article 36 of Land Registry Law No. 2644.

The property must generally be acquired and used in connection with the activities specified in the company’s articles of association, and a Governor’s Office approval procedure may apply depending on the transaction and property.

By contrast, a company incorporated directly outside Türkiye has much more limited rights to purchase Turkish property and may generally do so only where international agreements or specific legislation permits the acquisition.

For substantial foreign investments, a commonly used structure is therefore:

Foreign Parent Company
↓
100% Foreign-Owned Turkish A.Ş. or Ltd. Şti.
↓
Real Estate Located in Türkiye

However, incorporation of a Turkish company should never be regarded as the only step.

Before acquiring the property, investors should conduct a coordinated review covering:

• corporate structure,
• Article 36 compliance,
• title records,
• zoning,
• development permissions,
• security restrictions,
• financing,
• taxation, and
• future exit strategy.