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Buying real estate in Turkey - Marmaris
land
Foreigners may purchase
land and property in Turkey in their own names provided that properties
are located in towns (i.e. there must be municipality in the area where
the property is and the property must be situated within the boundaries of
that municipality or borough), not in villages or rural areas and outside
of military zones.
In order to acquire the
title of a property, an application has to be submitted to the local Land
Registry Office in which the property is situated. After carrying out
necessary searches and checks for the abovementioned requirements, the
transfer of the title is done by the Land Registry Office. During the
transaction, the proofs or the documents concerning the transfer of the
full purchase price into Turkey must be presented to the Land Registry
Office. Also a one per cent duty (i.e. tax) both for the purchaser and
seller is due and collected during the transaction. There exists an annual
property tax, collected by the municipalities (i.e. local governments) at
the rate of 0.3 per cent for private buildings. The newly built properties
are exempt from the annual property tax for 5 years. All properties are
subject to revaluation for every five years for tax purposes. The acquired
property may be resold or rented out and the proceeds may be transferred
out of Turkey. Different regulations apply when a property is purchased
for business related purposes.
Property Purchasing Laws
and Procedures in Turkey
Turkey is becoming a popular holiday destination with its
immense unspoilt coastline and Mediterranean climate which offers
all-year-round sunshine. Buying property in Turkey is now seen as a good
future investment considering the fact that Turkey is on the verge of
becoming a member of the EU and has one of the fastest growing emerging
markets in the world.
Here we will give you the essential but general information
regarding the path to ownership of a property in Turkey according to
Turkish Laws (article 35 of the Turkish Constitution) and which problems
might arise during the process. Different properties are subject to
differing laws (depending on location). Because the following is general
information only.
Turkish Property Legislation
Buying real estate in Turkey
Access to Real
Estate
Legal entities with foreign capital,
established and registered under rules of Turkish Commercial Code can
acquire real estate with the same principles as Turkish nationals. The
principle of reciprocity is still valid for foreign real persons.
Ownership is defined in article 35 of the Turkish
Constitution. This article stipulates that anyone is entitled to ownership
and that these rights can only be restricted by other legal stipulations.
The restrictions may consist, for instance, of zoning schemes,
restrictions applicable to foreigners, etc.
The ownership regulations are elaborated in the Turkish Civil
Code, article 633. This mainly explains how ownership is acquired. For the
purchase of property by a foreign person, the registration of the land is
especially important. In Turkey there are regional directorates of the
Land Registry Department, which are subdivided in provincial or district
offices and they are all controlled by the state.
Property Registration and Delivery
In most European countries the buyer and seller go to a
public notary to have the property put in the name of the new owner. The
public notary is responsible for the correct settlement of this procedure.
The public notary is also responsible for the delivery, which often takes
place in the form of a ‘deed of transfer’ and the entry in the property
register.
A solicitor or notary
services are not necessary
in turkey since the
land registry office ‘Tapu’. deals with these duties, however
perhaps you may wish to use the services of a lawyer for your own peace of
mind.
In contrast to this, the entry in the property register in
Turkey is not performed by a public notary, but by an official of the
Property Registry Department. It is legally compulsory for both sides
(the seller and the buyer) to be present at the entry. It is possible to
authorize another person to do so but the authorization requires a
notorial deed. As a security measure, it is also advisable to authorize
the sale through an official notary.
The delivery of the deed of transfer
does not require the
intervention of a public notary in Turkey. The only applicable stipulation
concerning the delivery is that it takes place in writing. After the entry
and delivery the property register issues a proof of ownership, which is
called ‘Tapu’. The ownership is only obtained at the moment that
the building's, if under construction, has been completed and the full
amount has been paid.
Mainly there are no legal restrictions against foreigners
regarding the acquisition of property ownership. However, the Village Act
and the Military Prohibited and Security Areas play an important role;
Article 87 of the Village Act denies the right to foreigners to ownership
of property that is outside the centre of a village in case the cadastral
division of this area had not been arranged yet or it may belong to the
Ministry of Forest. Also, the act regarding Military Prohibited and
Security Areas can be an impediment and therefore restrict the acquisition
of property by foreigners if the property is located within a particular
distance of military sites or strategically important areas.
The major legal restrictions mentioned above may in turn
change or even be (partly) cancelled by more recent legislation which is
closely related to the promotion of the economic position of Turkey or the
adjustment of regulations and laws to EU or tourism promotions for
foreigners etc.
Who can bay?
Mutuality principle
The mutuality must be actual and legal. Therefore, the real property
acquisition of foreign natural person in Turkey depends on some laws:
1.The Turkish citizens must have the same rights which are supported by
the laws in foreign country.
2.This right must be put into practice actually.
The natural people who are citizens of the following countries are free to
acquire the real property in Turkey: Federal Republic of Germany, USA,
Argentina, Australia, Austria, Barbados, Belgium, The Republic of Dominic,
Brazil, Bosnia-Herzegovina, El Salvador,Finland, Sweden, Kenya, Malaysia
France, Gabon, Guatemala, Netherlands, England, Ireland, Spain, Italy,
Canada, The Turkish Republic of The Northern Cyprus, Colombia, Luxemburg,
Malawi, Egypt, Norway, The Central African Republic, Panama, Peru,
Somalia, Chile, Tanzania,Turkmenistan, New Zealand, Republic of South
Africa, Federal Republic of Yugoslavia(Serbia) Venezuel,Israel.
The real property acquisition of the natural people who are citizens of
the following countries depends on some provisions and permissions: Cibuti,
Chad, Denmark, Philippines, Ghana, South Korea, Haiti, Croatia,Iran,
Switzerland, Japan, Lebanon, Macedonia, Mexico, Nepal, Nicaragua,
Pakistan, Poland, Portugal, Singapore,Uzbekistan, Greece, Sri Lanka, Togo,
Trinadat-Tobago, Uganda, Jordan.
The natural people who are citizens of the following countries can not
acquire the real property in Turkey because we do not have the mutuallity
principle with these countries: Afghanistan, Albania, Azerbaijan,
Bulgaria, United Arab Emirates, Bahrain, Algeria, Armenia, Ethiopia,
Palestine, Indonesia, India, Iceland, Iraq, Qatar, Kazakhstan, Kuwait,
Libya, Cuba, Hungary, Niger, Oman, Rumania, Russia, Saudi Arabia, Syria,
Tunisia, Ukraine.
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