FOREIGNERS NEED TO BE CAREFUL BUYING A PROPERTY IN TURKEY.
It is possible for foreigners to buy a property in Turkey. With the amendment in Article 35 of the Land Registry Law No. 2644, which entered into force on May 18, 2012, foreigners have been entitled to acquire immovable property from Turkey without seeking the condition of reciprocity. With this amendment, citizens of 183 countries can acquire immovable property “without the requirement of reciprocity” and by complying with legal limitations.
Legal restrictions on the acquisition of immovable property by foreigners
1- It should be among the countries whose citizenship is allowed.
2- The total area of the purchased property should not exceed 10% of the district area.
3- A real person of foreign nationality can buy a maximum of 30 hectares of immovable property throughout the country. But in some cases this limit can be extended to 60 hectares.
4- Foreigners cannot acquire immovable property unless they obtain permission in military forbidden zones and security zones. It cannot buy and rent in these areas.
5- Legal entities other than trade firms cannot buy immovable property. Trading companies must present their projects in order to purchase the property. If the project is used out of purpose, it is liquidated.
How to apply?
The immovable owner or authorized person must make a preliminary application to the Land Registry Directorate(Tapu Office). If there is a deficiency in the pre-application requirements, the file is kept pending until it is completed.
1-Identity document or passport (Translation required)
2-Compulsory earthquake insurance (DASK) policy in case the immovable property is a building
3-“Real estate fair certificate” obtained from the relevant municipality
4-Foreign identity declaration form
5-1 photograph of the seller, 2 photographs of the buyer
6-Real estate valuation report (taken within the last 3 months)
7-If the purchase will be made with a power of attorney issued abroad, the original or certified copy of this power of attorney and its translation are required
8-Foreign exchange purchase document. It is mandatory to make payments for purchase processing in foreign currency.
Things to be Careful on Purchasing the Property
1-Whether there is a restriction on the immovable property such as mortgage, lien, beneficial ownership, etc.; Whether there is an obstacle to the sale of the real estate should be checked from the relevant Land Registry Directorate.
2- Whether the immovable is earthquake resistant or not, if the land is to be purchased, the zoning status, how many floors construction permits and square meters permits should be checked.
3-Residence permit is not required for foreigners to buy immovable property from Turkey. But if the applicant wants to get a residence permit through property, the minimum amount should be $75000.
4-Work with good and experienced lawyers in the field. Because real estate buying and selling transactions differ for foreigners. For this reason, law offices that regularly work with foreigners will help you better in order to follow the developments closely and not to lose your rights or time.
How to get Foreign Currency Certificate(Döviz Alım Belgesi)?
Before the title deed transactions, the money in foreign currency up to the entire value of the immovable property must be sold to a bank operating in the Republic of Turkey by stating the reason.
It is not possible to use the foreign currency in the purchase of immovable property by the exchange office or if it is exchanged by hand.
The sale of the currency to the bank must be done before the title deed.
Then, the currency is sold by the bank to the Central Bank and the payment is made to the relevant person in Turkish Lira.
The foreign exchange purchase document must be submitted to the land registry office before the sale.
Our office is in partnership relations with Türkiye Finansbank A.Ş. and this foreign exchange purchase document can be obtained by us within only 1 day.
What should be included in the foreign exchange purchase document
1-Name-surname of the foreign national who exchanged the foreign currency
2-Passport number or foreigner’s identity number of the foreign national who exchanges the currency
3-The equivalent of the currency purchased in TL and in foreign currency
4-A statement stating that the transaction took place within the scope of “Article 13 of the Capital Rights Circular”
What are the costs of title deed transfer?
1-Title Deed fee: In case of transfer or acquisition of a real estate, a total of 4% fee is paid, 2% by the buyer and 2% by the seller.
2-Revolving capital price: 1298,5 (for 2023)
3-Realtor Commission: 2% of the sales price + VAT (20%)
As Cebeci&Bayram Law Firm, we provide consultancy services to our clients in the purchase and sale of real estate. In the process, we follow each step closely, provide the necessary information and documents, and in the end accompany the client at the signing stage. You can get consultancy service from us in order to avoid irreversible loss of rights in the future.
Stj. Av. Nurseli İzel PAÇACI