Photo from the archive of "Zagranitsa"
1. Restrictions on area
The total area of real estate owned by a foreign individual on the basis of ownership or obtained by him for use on the basis of a limited property right may not exceed 2.5 hectares (25,000 sq. m.) throughout Turkey. This takes into account both the sale of apartments and commercial real estate - hotels, restaurants, etc. However, the law stipulates that the Council of Ministers may raise this threshold to 30 hectares. In this regard, according to Circular No. 2006-1 of January 20, 2006, adopted by the General Directorate of Land Registry and Cadastre of Turkey, when processing documents in the land registry, a foreigner must sign a statement in which he certifies that the total area of real estate registered to him throughout Turkey (including this one) does not exceed 2.5 hectares, and agrees that, otherwise, he undertakes to vacate the excess area, which will be sold, and the amount received will be transferred to his account.
The new law introduced an additional area restriction: in each province (in Turkish, "il"), no more than five thousandths (0.5%) of the total area of that province may be owned by foreign individuals. At the same time, the Council of Ministers is authorized to set this figure separately for each province, but no more than the 0.5% provided by law. With respect to this restriction, an exception is legal inheritance.
2. Restrictions on the type of real estate
Only real estate that is registered in the land registry as housing or a workplace, or is intended for use for these purposes according to architectural development plans or local architectural plans, may be registered to a foreigner. Here, "workplace" means a complex of real estate used in commercial activities, that is, it can be an office space, or, for example, a hotel or factory with all adjacent buildings. When processing documents, it is necessary to provide an appropriate certificate from the municipality or governorship at the location of the property.
3. Condition of compliance with the "principle of reciprocity"
The "principle of reciprocity" provides for the granting of the same rights to citizens of another country as that country grants to Turkish citizens. That is, a foreigner can purchase real estate in Turkey only if the country of which he is a citizen legally and actually allows Turkish citizens to purchase real estate on its territory. For example, citizens of Russia, Ukraine, and Belarus can purchase only buildings in Turkey, but not undeveloped land plots, while for German citizens there is no such restriction.
4. Other legal restrictions
They concern prohibited military zones and security zones, as well as areas of strategic importance due to their energy, agricultural, subsoil use, environmental, religious, and cultural characteristics. Prohibited military zones and security zones are determined by the Ministry of Defense; other prohibited zones are determined by the Council of Ministers upon submission from relevant state bodies and institutions. In order to simplify bureaucratic procedures, the law obliged the Ministry of Defense to develop maps for all regions of Turkey within three months, indicating real estate objects not subject to sale. But until this information is received for use by the General Directorate of Land Registry and Cadastre, a request will be sent to the relevant military authorities as before.
5. Restrictions for legal entities
Among foreign legal entities, the law permits the acquisition of real estate only to commercial organizations, while various foundations, associations, societies, cooperatives, and state institutions cannot purchase real estate in Turkey. Foreign commercial organizations may purchase real estate in Turkey only under private laws ("On the Promotion of Tourism", "On Industrial Zones", "On Oil"), for which they need to provide permits from the relevant state institutions. It should be noted that the above restrictions do not apply to companies with foreign capital established in accordance with the Law "On Direct Foreign Investments".
Also, the procedure for processing the purchase of real estate in Turkey has been changed and significantly simplified. The burden on the bureaucratic machine has been reduced. If earlier a foreigner had to apply to the Aegean Military Committee to obtain permission to purchase real estate (the procedure took two to three months), then under the new law, the Turkish government obliged the Ministry of Defense to develop maps for all regions of Turkey within three months, indicating real estate objects not subject to sale due to their close proximity to strategic military installations. This means that permission to purchase real estate will be issued to foreigners directly at the Cadastre Office, and TAPU will be processed at the same time. At the same time, with the release of the new law, the procedure for obtaining a residence permit for property owners has been significantly simplified.
Let us recall that in March 2005, the Constitutional Court of Turkey, upon a lawsuit by the opposition, annulled the amendment to Law No. 4916 "On the Procedure for the Acquisition of Real Estate by Foreign Persons in Turkey", which allowed foreigners to buy real estate as individuals. The justifications were an unrefined procedure, non-observance of the "principle of reciprocity", and an insufficient number of restrictions (in particular, the possibility of acquiring land plots larger than 30 hectares and real estate outside municipal boundaries). Initially, the opposition's demands were directed against Greeks buying large plots of land on the Aegean coast. However, at the same time, all private foreign investors also suffered, temporarily losing the opportunity to obtain certificates of ownership for their real estate (TAPU).
Since April 2005, the Turkish government has been developing a new article of the law and a scheme for registering properties by foreigners. And now the new law has come into force, which allows regional cadastral directorates to resume issuing TAPU to foreigners.
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