laws of Turkey: laws of Turkey on property purchase

LAWS

Against a growing demand for the real estate in Turkey the information on the Turkish legislation will be useful. Citizens and legal bodies of the countries with whom agreements have been signed, and the companies founded in Turkey according to the Law № 4875 about direct foreign investments, can get the real estate in Turkey if these objects are not in military men and especially protected zones. The got real estate can be resold or leased, and all profit received from it can freely be translated from Turkey on your bank account.

Real estate acquisition in Turkey foreigners

In connection with revision of the legislation of Turkey in January, 2006 the decision on possibility of purchase of the real estate in Turkey foreign subjects was accepted. The Novel is a reception of real possibility of inheritance, acquisition or sale of property by inhabitants of the majority of the countries of Europe

ТSuch decision means the mutual arrangement in which result the same rights and duties what Turkey offers foreign subjects will be given all citizens of Turkey. On some statistical data for last years coming tourists from Europe is a basic part of all tourists. As it is no wonder, after all a soft climate and a good parity of the price and quality of the real estate of Turkey do the business and under forecasts of experts, already shortly such advantages will involve the foreign capital. It is necessary to notice, that such forecasts are not casual and speak set of the positive moments, as, for example:
Full absence of the visa control, and in case of acquisition of property 0 right to residence reception in this country for a period of 5 years.

Real estate purchase in Turkey - the favorable investment which is bringing in the huge income at constantly growing, 15-20 % year, the prices. That is interesting, the prices will increase even more every year that, certainly, promoted by the future introduction of Turkey into the European Union.

Possible delivery of the got real estate in rent using.

Low, in comparison with many other things the European countries, the prices for the real estate maintenance.

A site which is famous for a soft climate at which very hot summer and warm enough, 18-20 degrees winter, and also a continuous communication and the richest cultural-historical a heritage.

In the beginning of 2006 at last has earned the law which allowed to buy to inhabitants of other countries the real estate in Turkey. Since then sale of the Turkish real estate has started to be adjusted, and though in the second quarter 2008 the developed situation was under the threat of failure because of an interdiction to foreigners to buy the real estate, all was quickly resolved, having risen on the places. The main advantage of the novel was that fact, that in Turkey it is possible not only to buy or sell the real estate foreign persons, but also and to inherit the real estate. Under action to the law inhabitants of the majority of the countries of Europe, and also the Post-Soviet countries have got.

Undoubtedly, that thanks to the novel foreigners were equated to inhabitants of Turkey by the rights concerning the real estate. Now, after some years, it is possible to tell with confidence, that the law has yielded the positive results. Turkey is visited more often by tourists from Europe, Russia and other former countries USSR. These tourists also are potential buyers of the real estate in Turkey. Turkey has proved for a long time not only as the country with a pleasant climate, but also as the state where the market of the real estate and its quality are at high level. The matter is that expenses on the real estate and tax gathering in Turkey much more low, than in the majority of the European countries. And it is not obligatory to live in the bought apartment, after all in Turkey it is possible to lease the real estate without problems.

The law on real estate acquisition in Turkey provides purchase, sale and inheritance of the real estate for citizens of all countries. Registration procedure occupies, approximately from 2 till 5 months. Process of purchase of the real estate in Turkey for all foreign subjects is identical. According to item 35 of the Law on the property №2644 from November, 1934 with changes and additions from July, 2003, "foreign physical persons and the trading companies", forming the legal body, and also created abroad according to the legislation of the country - possess the right to get the real estate which is in limits of borders of Turkish Republic on the basis of a principle of reciprocity. It means that citizens of those states which legislations allow to get the real estate to citizens of Turkey have the right to buy the Turkish real estate. This condition is not obligatory for stateless persons, refugees and the persons who are carrying out investment in sphere of tourism of Turkey.

On January, 7th, 2006 in an official Turkish press the novel №5444 allowing foreign physical persons to get real estate in territory of the country is published. Thus, signed the day before the president of Turkey the document has become effective. The basic changes in comparison with the previous law concern sales of the ground areas in Turkey. Now the maximum area of a site which can be sold to the foreigner or firm with participation of the foreign capital is limited by 25 thousand sq. m. Also procedure of registration of purchase of the real estate in Turkey is changed and essentially simplified. The permission to purchase of the real estate to foreigners will stand out directly in Cadastral management and simultaneously to be made out TAPU.

On July, 15th, 2008

The Republic Turkey law -
the Law on Landed property No 2644
Changes in the Law on Landed property No 2644
It is published in "the Official Newspaper" Turkey¹ on July, 26937 15th 2008

Acceptance date: 03/07/2008

Decision No 5782

1. The law on Landed property No 2644 has been changed from 22.12.1934 in article 35, points 7 and 8.

Foreign subject physical persons and the foreign enterprises registered under laws of the country - legal persons - owners trading the enterprises have no right to get real estate in following zones; systems of water supply, power supply, agriculture, natural resources and deposits, the districts having historical, spiritual and cultural value, special protected zones of protection of flora and fauna, vulnerable and strategically important areas of political value, the real estate protected by the state, the boundary territories connected with them public institutes and the devices, are registered in the basic co-ordinate cards and the plans made on demand and under responsibility of Ministerial council.

Foreign subject physical persons have the right of acquisition in constant using of the real estate in the central and basic areas, within the realised and perspective plans of building of district, at the rate of the ground areas to ten percent.

The ministerial council, taking into consideration fundamental, economic, cultural, protected values, agriculture and environment, bears responsibility for not excess of the above-stated quota on sale. The main Cadastral Management and the Ministries connected with it and departments, their representatives are a part of the commission which at responsibility of Ministerial council develops constant public structures and systems and, investigating a supply and demand in the market, can submit inquiry to Ministerial council.

Till the end of January of the next year governors, municipalities of the central and basic areas should give conformity of actual and perspective plans of building of territories the changed given law of quotas on real estate sale.

Military zones, zones of strategic value with amendments from the law, their cards and co-ordinate values are in jurisdictions of the Ministry of Defence, special protected zones, their cards and co-ordinates - in jurisdiction of the Ministry of Internal Affairs which are given by data in the Main cadastral Management and to the departments connected with it.

2. Article 36 of the Law about the Landed property has been changed in the following form.

Article 36 - the Foreign investors registered as founders, or participants of the enterprises, legal bodies, owners of the companies, carry out the activity in conformity with the Charter of the enterprise and have the right to get and use the real estate. The real estate got on the foreign legal body in Turkey can be used or transferred to long-term using to other foreign legal body or the enterprise with the foreign capital on the same lawful basises. The enterprises registered in Turkey with the foreign capital, owners of real estate, the enterprise, with foreign partners and соучредителями, foreign missions of the companies, Carry out transactions with the real estate according to 35 article of the Law.

According to the Law 2565 About the Forbidden Military Zones and Safety zones from 18/12/1981 and keeping its privacy, the forbidden military zones, safety zones and mentioned in the given law within the limits of 28 articles, the real estate being in strategic zones concerns jurisdiction of the Joint Staff and managements subordinated to it, special protected zones and the real estate which is in them, stands out with the permission of the local governor. All transactions connected with the real estate which is in special protected zones of the state value are subject to the local governor and are carried out through the commission created from corresponding departments.

The real estate got or used in the contradiction with given article of the Law and limiting the granted right, is left to the Ministry of Finance and cancelled in the reserved term through the owner, after the expiry of the term is cancelled by means of indemnification to the owner of cost of property.

Procedure and the guide to action of given articles is developed by Exchequer, the Ministry of Internal Affairs, the Accomplishment and Settling Ministry and the Ministry of National Defense.

Changes to the law on real estate acquisition
Foreigners in Turkey. Quotas for foreigners are defined.

The Turkish parliament quickly tries to resolve the situation which has developed in sphere of the real estate after the decision of the Constitutional court of Turkey about a time interdiction for sale to foreigners of the real estate.

As reception and consideration of documents on reception of certificates on the property right proceeds (TAPU) and in Cadastral Management many statements which expect turn for signing already have accumulated.

The amendments planned by legislators and changes first mentioned only quotas on distribution of the ground areas (according to the Turkish legislation having apartment in an apartment house, the owner automatically becomes the proprietor of a certain share of the earth fixed to the given property). So until recently both suitable for building, and unsuitable it was authorised to give 5 % of a total area to possession foreign physical and to legal bodies. In the new bill the quota is increased to 10 % and the suitable areas undertake a basis for building only.

The constitutional court of Turkey the decision achieves from legislators not only reduction of laws in conformity, but also streamlining and in what that to a measure of simplification of procedures of registration. So many urgent problems which did not rise until recently as the most part of an operating time of an officialdom was required on signing and transfer of papers from one place in another that has led to superfluous bureaucratic red tape already have now emerged. Now all responsibility for it is assigned to Ministerial council and it in turn already has now defined the general scheme of actions.

Real step on a way to the permission of the given situation is that already the decision on definition of accurate borders for the territories forbidden for residing foreign physical and legal bodies now is accepted. These are the territories having strategic cultural-historical and ecological value. Responsibility for definition of exact co-ordinates of such sites is assigned to the Ministry of Defence. And in connection with change of quotas the Main Cadastral Management through the divisions till the end of January, 2009 should will give to Ministerial council on areas and areas the exact areas of the earths which will correspond to the given quota, taking in attention development of infrastructures and an economic situation on places.

Procedure of reception of residence permit to landholders is essentially simplified. According to this law, in Turkey foreign physical persons can get the real estate in the property or receive in using another's real estate according to following conditions:

Reciprocity principle. According to item 35 of the Law on the property №2644 from November, 1934 with changes and additions from July, 2003, "foreign physical persons and the trading companies forming the legal body and created abroad according to the legislation of the country, possess the right to get the real estate which is in limits of borders of Turkish Republic". It means that citizens of those states which legislations allow to get the real estate to citizens of Turkey have the right to buy the Turkish real estate. This condition is not obligatory for stateless persons, refugees and the persons who are carrying out investment in sphere of tourism of Turkey. It provides granting of the same rights to citizens of other country whom this country gives to Turkish citizens. That is the foreigner can get the real estate in Turkey only in the event that the country which citizen he is, legally and actually allows citizens of Turkey to get the real estate in the territory.

Now Turkey observes a principle of reciprocity with 112 countries, including Russia. Recently Russian authorities have allowed getting to Turkish citizens the real estate in Russia on the private person, the exception is constituted only by the ground areas. Thus, since January, 1st, 2004 Russia was included into the list from 24 countries, physical and which legal bodies can get in the building property in territory of Turkey (at purchase of a country house or townhouse the ground area automatically carries over the buyer).

Exceptions of a reciprocity principle. At acquisition by foreign physical persons of real estate presence of conditions of reciprocity is not obligatory for following categories of citizens:
Stateless persons (because of absence of the state in which relation the reciprocity principle is applied);

The Persons possessing the status of the refugee. According to the Law №359 from 26.08.1961.

Century Foreign physical and the legal bodies who are carrying out investment in sphere of tourism. According to the item 8/Е the Law on tourism encouragement № 2634, at acquisition by the mentioned persons of real estate in tourist areas and the centers a principle of reciprocity and others, provided concerning foreigners, legislative restrictions are not applied.

Turkey has joined the Agreement on the legal status of the refugee from 28.07.1951 according to which item 7/2 concerning the persons, and 3 years which have lived on state territory, a reciprocity principle are not applied by the possessing status of the refugee. At the reference the applicant should show the document confirming the status of the refugee.

Legislative restrictions. At real estate acquisition in Turkey foreign physical persons should observe following legislative restrictions:

A. Statutory provision of the Law № 2565 About the closed military areas and safety zones according to which sale, transfer to using, tenancy foreign physical and to legal bodies of the real estate and the property located in military closed areas and safety zones, is not obviously possible.

B. On the foreign subject can be issued only that real estate which is registered in the register of properties as habitation or a complex of the real estate used in commercial activity (office premise, hotel or factory with all adjoining constructions) or is intended for use in these purposes according to architectural plans of building or local architectural plans.

C. Restriction on the area. Purchase of any real estate in the property (apartments, country houses, houses, apartments and commercial objects), the administrative formations located in territory, and also the ground areas the area no more than 2,5 hectares is authorized to foreign subjects.

Positions of item 35 of the Law on the property № 2644 according to which for acquisition by foreign physical persons of real estate by the area over 30 hectares the Cabinet permission (an exception is necessary are constituted by the real estate received by the inheritance).

The note: Item 87 of the Law on village № 442 is cancelled, thereupon foreign physical persons had an opportunity to get the real estate located in a countryside.

Purchase in Turkey the real estate and other property in the property foreign legal bodies.

From foreign legal bodies the law allows to buy the real estate only to the commercial organizations, and various funds, associations, societies, co-operative societies, official bodies cannot get the real estate in Turkey. The foreign commercial organizations can get the real estate in Turkey only within the limits of private laws (the Law on encouragement of tourism, the Law on industrial areas and the Law on oil) for what it is necessary for them to give allowing documents from corresponding official bodies. Restrictions about which it has been told above, do not extend on the company with participation of the foreign capital, founded according to the Law on direct foreign investments.
With change of item 35 of the Law on the property the foreign trading companies had an opportunity to get in Turkey real estate under condition of observance of a principle of reciprocity and the provided legislative restrictions.
The decision on presence of conditions of reciprocity is accepted in coordination with the Ministry for Foreign Affairs. Concerning foreign legal bodies the same legislative restrictions, as concerning physical persons operate.

Transfer of financial assets.

Transfer through banks and private financial structures of financial assets for payment of cost of the got real estate (both by means of a foreign currency exchange, and without it), and also means received as incomes of sale or real estate operation does not come under to any restrictions. There are no legislative restrictions on real estate purchase at its cost, a kind or quantity of got objects on one face.

Order of giving and consideration of demands.

According to item 26 of the Law on the property № 2644 drawing up and the official registration of papers, concerning real estate, are in the competence of Managements of registration of the property. The foreign subjects, wishing to get real estate in the property should address in Management of registration of the property on the real estate location.

Real estate inheritance in Turkey.

Questions of inheritance of the real estate in Turkey are regulated by the Turkish legislation in an order accepted in the majority of the countries. In case of death of the proprietor (foreign subject), the real estate passes to its successors. The introduction into the inheritance occurs in the country which citizen is the successor. Real estate census on the successor occurs in Turkey after representation in Turkish court of the corresponding translated and legalised documents and estate duties payment. In inheritance cases, the authentic wills constituted in the country of the successor affirm only. If the similar will is not available, the law of succession comes into force accepted by the legislation of Turkey. The tax is paid from the sum specified in TAPU.
Owners of the Turkish real estate can receive residence permit. For this purpose it is necessary to address after purchase in embassy of Turkey in Moscow, having shown TAPU (the document certificating the property rights). On its basis make out disposable long-term (term from three months about one year) the visa. After entrance to Turkey it is necessary to address in a foreign department of police where on the basis of the visa within a month-one and a half will issue residence permit for a period of a year which can be enlarged.

Registration of estates in land.

Real estate purchase is registered in cadastral department. For the purpose of documenting of the property registration number is given to the buyer. Certificates of purchase of sale contain in card files of Registration chambers of the real estate and the State ground cadastre. For the executing a process-verbal reflecting the certificate of purchase of sale, sellers and buyers should give the data, containing data from internal passports, names of fathers, the reasons of purchase or sale, a photo 3х4 (by the current moment). To the buyers who are citizens of other countries, the help of the jury translator should be provided.

In inheritance cases, the authentic wills constituted in the country of the successor affirm only. If the similar will is not available, the law of succession comes into force accepted by the legislation of Turkey.

Registration of purchase of the real estate should be spent only through Registration chambers of the real estate or the State ground cadastre. Registration chambers of the real estate and State a ground cadastre in Turkey are similar to corresponding bodies in other countries.

Only the registered real estate is protected from the state and can be to be considered as pledge at reception of the credit or other financial operations. A legal guarantee in case of implicit defects - 3 years. In Turkey there is a title system of registration of estates in land. It means that registration of estates in land is a prerogative of the state body - Cadastral management which grants to the new owner the certificate on property right registration "TAPU". This title means untimely and the absolute power of possession which after purchase and sale making deal cannot be challenged anybody judicially. TAPU represents the document certificating the property right of the given person on concrete object of the real estate. Notaries have no right to make out and register the transaction on real estate purchase and sale. At the notary it is possible to issue only the contract object purchase and sale in which only the price for object and conditions of its payment, however, will be settled will be which subject. But it will not be in an event the document certificating transition of the property right to the new owner. In practice the given contract of purchase consists between the buyer and the agency of the real estate which is carrying out sale of given object. In the contract data about the buyer, the information on got object of the real estate, the price of object and a condition of its payment are specified.

Transfer through banks and private financial structures of means for payment of cost of the got real estate (both by means of a foreign currency exchange, and without it), and also the means received as incomes of sale or operation of real estate, does not come under to any restrictions.

There are no legislative restrictions on real estate purchase at its cost, a kind or quantity of got objects on one face. Owners of the Turkish real estate can receive residence permit. For this purpose it is necessary to address after purchase in embassy of Turkey in the your country, having shown TAPU (the document certificating the property rights). On its basis make out disposable long-term (term from three months about one year) the visa. After entrance to Turkey it is necessary to address in a foreign department of police where on the basis of the visa within a month-one and a half will issue residence permit for a period of a year which can be enlarged.

TAPU (the Document on the property)

TAPU is the unique document certificating the property rights to certain object of the real estate.

According to the Turkish legislation, TAPU the-certificate on the property right to the real estate. TAPU is the unique diploma confirming cession of rights of the property and entire tenancy by the real estate by the buyer. Except a project cost (the given sum is used at calculation of the annual real estate tax), in the document it is underlined:
the address of a site of the earth on which there is a got real estate

a photo of a passport format (at registration 2 photos are required)

the information on ground area registration in cadastral management

the earth area (it is proportional to the size of the got habitation)

a condition of the real estate belonging to the new owner (property/rent)

cost of the got real estate

the information on the previous owner (-s)

the information on the new owner (-s)

date of acquisition of the given real estate the previous owner

new serial number TAPU (changes at each cession of rights of the property)

registration data of new document TAPU

date of acquisition of the given real estate the new owner

the authorized signature and the press of cadastral management

Real estate purchase is supervised by the Ministry of Defense of Turkey.

Turkey is included into number of the countries which pay compliments inflow of tourists and foreign buyers. At such state of affairs of an obstacle on a way of registration of the property look strange enough. Nevertheless the laws operating here are not always clear to Europeans. One of such laws concerns receptions of the permission to real estate purchase. If the object is got on a personal name of the proprietor it is necessary to receive the permission to purchase at Aegean military command, thus procedure can be extended from six weeks before half a year. The way out is: if the foreigner opens the firm the Chamber of commerce authorizes for purchase of the real estate within three days in Turkey. However, about simplification of procedure of registration of the property in Turkey speak for a long time. Officials in Antalya assert, that simplification just about will occur, and then term of registration TAPU (certificates on the property right to the real estate) will be reduced for foreign buyers about two-three weeks. And here in the beginning of 2008 the situation starts to change for the better.