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Dear All,
Please find below the latest situation about real estate acqusition in
Turkey. As you may know the new law regulating real estate acquisition in
Turkey by foreigners was adopted on 29 December 2005, by the Turkish
Parliament and has entered into force. You will find a short information
about the said law below in section 1 and you will also find in section 2
information about the implementation of the new law for Danish citizens.
1- The new law (Law No: 5444) amending Article 35 of the Act on Land
Registry, which draws the legal framework for real estate acquisition by
foreigners in Turkey, together with Articles 16 and 35 of the Turkish
Constitution was adopted by the Turkish Parliament on 29 December 2005 and
promulgated by the President and entered into force. The new law has
foreseen to be applied retroactively beginning from 26 July 2005. Thus, the
new law took the place of the old legislation (Law No: 4916 ) which was
annulled on March 14, 2005 (annullment decision entered into force on 26
July 2005) by theTurkish Constitutional Court.
According to the new law, Article 35 of the Act on Land Registry is, in
summary, regulated as follows:
Citizens and commercial companies of the countries with which reciprocity
agreements have been signed or reciprocity exists in practice may purchase
real estate in Turkey, to use as residence or working place in complience
with the legal restrictions (for example foreigners can not buy real estate
in the military zones according to Law No: 2565).
The total area of real estate on which a foreigner is allowed to acquire
property or restricted property rights cannot be more than 2.5 hectares.
However, this amount can be increased up to 30 hectares with the permission
of the Council of Ministers.
Foreign legal persons, other than the commercial companies, established
according to the law of their own country, cannot acquire real estate in
Turkey.
The Council of Ministers is competent to determine the areas where foreign
real persons and commercial companies cannot acquire real estate on the
grounds of public interest and security reasons (such as the areas which
should be protected because of their flora and fauna, areas that have a
special importance and should be protected because of their qualifications
regarding irrigation, energy, agriculture, mineral deposits, cultural
importance) upon the proposal of related public institutions. The Council of
Ministers is also competent to determine the percentage of area in each city
which could be sold to foreigners. This figure cannot exceed %0.5 of the
total area of the city in question.
The Ministry of Defence should inform the Ministry which oversees the
activities of the Land Registry Authority, about the forbidden military
zones and military and private security zones in 3 months time after the
publication of the new law in the Official Gazette. During the intervening
3 months, the Land Registry Authority should ascertain the status of an
area by asking the related military institutions, before completing the land
registry procedures.
2- As it is stated in the above information, the new law regulating real
estate acquisition in Turkey by foreigners foresees the principle of
reciprocity
which means Danish citizens will be able to buy real property
in Turkey under the same conditions applied to Turkish citizens who would
like to buy real property in Denmark. The Land Registry Authority in Turkey
accepted a legal instrument about the implementation of the said law and
attached to that document a list of the countries with which Turkey has
full reciprocity , of the countries whose nationals need a permission in
order to buy property in Turkey and of the countries with which Turkey has
no reciprocity. Denmark is in the second list attached to the Land Registry
Authority’s legal instrument about the implementation of the said law.
Thus, as Turkish citizens who do not have permanent residence permit or have
not resided in Denmark for a period of at least 5 years can acquire real
property with the permission of the Danish Ministry of Justice, a parallel
procedure will be applied to Danish citizens, who wish to buy real property
in Turkey, as a result of the above mentioned principle of reciprocity. In
line with this explanation, Danish citizens will be able buy property in
Turkey with the permission of the Turkish Ministry of Interior if they do
not have permanent residence permit or have not resided in Turkey for a
period of at least 5 years. Moreover, in parallel with the related Danish
legislation, Danish citizens will be allowed to buy real property in Turkey
to use as a primary residence during their stay in Turkey (which means that
Danish citizens will not be allowed to buy more than one house). In order to
make a land registry deed application to the competent Turkish authorities,
Danes should have a residence permit valid for at least for 6 months or a
work permit in Turkey. According to the information we received from the
land registry authority, permission for real property acqusition will be
issyd in 1-3 months time.
Please note that, a special working group will define the exact land
registry deed procedure for Danish citizens in the begining of March, and
that as a result, the abovementioned information is not yet final.
Yours sincerely,
Makbule Kocak
Legal Counsellor
Turkish Embassy
Tel:39 20 27 88
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