The first question facing foreign nationals who wish to acquire a dwelling or land in Türkiye is whether this possibility is open to everyone to the same extent. The legislation has not prohibited property ownership by foreign nationals altogether; instead, it has placed acquisition within a defined framework by reference to criteria such as nationality, the size of the immovable property, the region in which it is located and the intended use. A transfer that falls outside this framework cannot be expected to produce legal effect.
In practice, the real difficulty arises less from ignorance of the restrictions than from technical errors made during the stages of the transaction. Taking over an immovable property that carries encumbrances, failing to query its zoning status, failing to verify the selling party’s authority to represent, or failing to complete the transfer in the prescribed official form may produce severe consequences for the foreign purchaser. The greater part of such losses can be prevented by a proper examination of the register carried out before the sale.
In this briefing note we examine in detail the acquisition limits applicable to foreign natural and legal persons, the matters that must be verified before a purchase decision is taken, the documents required for the application to the land registry directorate, and the course to be followed where the request is refused.
Restrictions on Property Acquisition by Foreign Nationals
It is legally possible for foreign nationals to purchase immovable property in Türkiye; that possibility, however, is not unconditional. The legal basis of the matter is Article 35 of the Land Registry Act No. 2644. The principal restrictions arising from that provision are as follows:
- Proportion of surface area. The total area of the immovable properties acquired by a foreign national may not exceed 10% of the surface area subject to private ownership in the district concerned.
- Upper limit of area per person. For natural persons, the total area that may be acquired throughout the country has been set at 30 hectares. In certain cases this upper limit may be raised to as much as 60 hectares; the power to do so lies with the President.
- Nationality requirement. Where the purchaser of the immovable property is a natural person, it is required that the country of which he or she is a national be among the countries permitted by the President.
- Prohibited regions. Military prohibited zones and security zones are areas entirely closed to acquisition by foreign nationals. In such places foreign nationals may neither purchase nor lease immovable property.
- Legal persons. Foreign legal persons other than commercial companies are not permitted to make investments in immovable property in Türkiye. Commercial companies may invest only after submitting the project relating to the immovable property they intend to acquire; where the property is subsequently used contrary to the purpose of the project, the relevant Ministry liquidates it.
The headings listed above do not constitute an exhaustive list. The President may introduce further restrictions not set out above to the extent required by the interests of the country; that power may extend as far as prohibiting acquisition altogether in certain cases.
Compliance with the limits is a matter that directly determines the validity of the transaction. Since a purchase carried out contrary to the law will produce no legal effect, the restrictions must be examined one by one in respect of the particular immovable property before the transfer, and the process must be conducted with legal support.
Matters to Be Verified Before Purchase
For the foreign purchaser, the decisive stage is the examination carried out before signature at the land registry.
It must first be investigated whether there is any entry capable of impeding the transfer of the immovable property. The purchase of a dwelling encumbered by a mortgage or an attachment may lead to serious loss of rights; information on this point may be obtained through the General Directorate of Land Registry and Cadastre. At the same stage, querying the zoning status of the immovable property must likewise not be neglected.
The second point of control is the verification of the parties and of authority. Who the registered owner of the immovable property is, and whether the person conducting the sale holds authority to represent, must additionally be confirmed. Since attempts at transfer by means of forged powers of attorney are encountered in practice, the authenticity of the power of attorney lies at the centre of this examination.
In addition, the following matters must also be observed:
- Where the purchase is to be conducted through an intermediary undertaking, the reliability of that firm is of importance in itself; at this point it is appropriate to obtain legal advice from a lawyer.
- A promise-to-sell agreement drawn up before a notary alone does not suffice to transfer ownership. In order for the transfer to be completed, the official transaction must be carried out at the land registry directorate in accordance with the prescribed procedure.
- A foreign national wishing to purchase immovable property is not required to have obtained a residence permit beforehand.
- Where the application made to the land registry directorate is refused, an objection may be lodged with the Regional Directorate to which that directorate is attached.
- Should a dispute arise between the parties during the purchase process, the competent forum is the Turkish courts; the action is brought before those courts.
As will be seen, the headings to be observed are both numerous and mutually complementary. The omission of even one of these points may produce consequences that are difficult to remedy afterwards; for that reason it is recommended that the process be conducted with legal support from beginning to end.
Documents to Be Submitted to the Land Registry Directorate
The first step for a foreign national wishing to acquire immovable property in Türkiye is to make an application to the Land Registry Directorate. The documents required for applications made by natural persons may be summarised as follows:
- The identity document and passport of the foreign applicant
- One photograph each of the purchaser and the seller
- The title deed of the immovable property subject to transfer
- The current market value certificate relating to the immovable property to be purchased
- Where the immovable property is a structure such as a dwelling or business premises, the compulsory earthquake insurance policy
- Where the transaction is to be carried out under a power of attorney drawn up abroad, the original of that document, a certified copy and its translation
General Assessment of the Process
Above we have addressed separately the restrictions foreign nationals encounter when purchasing immovable property in Türkiye, the conditions to which purchase is subject, what must be verified before acquisition, and how the application to the land registry directorate takes shape.
Although the matter appears on its face to be a straightforward sale and purchase transaction, it is an area dense with technical detail. In order for the process to be completed without difficulty, it is necessary to proceed by consulting a lawyer at every stage and to assess the limits arising from the legislation in advance in respect of the particular immovable property.
Independent Legal Assessment
A significant proportion of disputes concerning acquisition by foreign nationals arises from deficiencies that emerge after the title transfer and become difficult to correct at that stage. Where matters such as the purchaser’s nationality, the location and area of the immovable property and the intended use are assessed together before the transaction, both the risk of invalidity and the likelihood of economic loss are markedly reduced.
In a specific purchase transaction it is appropriate to give priority to the following matters:
- Confirming from official records whether the immovable property falls within a military prohibited zone or a security zone
- Confirming in advance that acquisition is permitted in respect of the purchaser’s nationality and that the area limits have not been exceeded
- Examining, before the sale, the mortgages, attachments and other encumbrances on the land register together with the zoning status
- Scrutinising with care the authority of the seller or of the seller’s representative, particularly in the case of powers of attorney drawn up abroad
- Ensuring that the transfer is not confined to a promise to sell before a notary but is completed by official deed at the land registry directorate
- Planning from the outset, against the possibility of refusal of the application, the option of objecting to the Regional Directorate and the applicable time limit
Independent Legal provides advisory services at every stage of foreign nationals’ investments in immovable property in Türkiye, from examination of the land register to completion of the transfer and, where required, the conduct of the administrative objection process.