ACQUISITION OF OWNERSHIP AND LIMITED REAL RIGHTS OVER IMMOVABLE PROPERTY BY FOREIGNERS

Acquisition of Real Rights on Immovable Properties by Foreign Natural and Legal Persons

Land Registry Law Article 35

Subject to legal limitations, and in cases where international bilateral relations and national interests so require, foreign nationals who are citizens of countries determined by the President may acquire immovable property and limited real rights in Türkiye. The total area of ​​immovable properties and independent and permanent limited real rights acquired by foreign nationals may not exceed ten percent of the privately owned land area of ​​the district and thirty hectares per person nationwide. The President is authorized to increase the amount that can be acquired per person nationwide by up to twice that amount.

Commercial companies established in foreign countries in accordance with the laws of their own countries may only acquire immovable property and limited real rights within the framework of special legal provisions. Those other than these commercial companies may not acquire immovable property or have limited real rights established in their favor. The limitations set forth in this article do not apply to the establishment of real estate mortgages in favor of these commercial companies or foreign nationals.

The President may determine, limit, partially or completely suspend or prohibit the acquisition of real estate and limited real rights by foreign nationals and commercial companies with legal personality established in foreign countries in accordance with the laws of their own countries, in terms of country, person, geographical region, duration, number, ratio, type, quality, area and quantity.[5]

Foreign nationals and commercial companies with legal personality established in foreign countries according to the laws of their own countries are required to submit the project they will develop on the undeveloped real estate they have purchased to the relevant Ministry for approval within two years. The project, approved by the relevant Ministry with a specified start and completion date, is sent to the land registry office where the property is located to be recorded in the declarations section of the land registry. The relevant Ministry monitors whether the approved project is completed within the specified timeframe.

Maps and coordinate values ​​of military restricted areas, military security areas, and strategic areas shall be submitted by the Ministry of National Defense to the Ministry to which the General Directorate of Land Registry and Cadastre is affiliated, within one year at the latest from the effective date of this Law, and maps and coordinate values ​​of decisions regarding changes to these areas shall be submitted within one month from the date of the changes. Maps and coordinate values ​​of special security areas and decisions regarding changes to these areas shall be submitted by the Ministry of Interior to the Ministry to which the General Directorate of Land Registry and Cadastre is affiliated within the same period. Land registry transactions shall be carried out according to the documents and information submitted pursuant to this paragraph, one year after the effective date of this Law.

Real estate and limited real rights acquired in violation of the provisions of this article, those found by the relevant Ministry and administrations to be used contrary to the purpose of acquisition, those for which no application was made to the relevant Ministry within the specified period, or those for which projects were not completed within the specified period, as well as those acquired through inheritance outside the limitations within the scope of the first paragraph of this article, shall be liquidated and converted into cash if they are not liquidated by the owner within a period not exceeding one year, as determined by the Ministry of Finance, and the proceeds shall be paid to the rightful owner.

General Information on the Subject

According to Article 35/paragraph 1 of the Land Registry Law, the acquisition of immovable property and limited real rights in Türkiye by foreign natural persons requires two steps

It is subject to the basic condition:

1-Complying with legal restrictions,

2-In terms of international bilateral relations and when required by national interest, by the President

being a citizen of the specified countries.

Article 35/paragraph 1 of the Land Registry Law specifies two amounts for foreign natural persons to acquire immovable property and limited real rights

Restrictions have also been imposed:

1-Real estate and independent and permanent property rights acquired in Türkiye by foreign natural persons

the total area of ​​privately owned land in the district cannot exceed 10% of the total area of ​​the district

2- Real estate and independent and permanent property rights acquired in Türkiye by foreign natural persons

The total area cannot exceed 30 hectares nationwide. However, the President can increase this amount up to double

is authorized.

According to Article 35/paragraph 2 of the Land Registry Law, only legal entities established in foreign countries in accordance with the laws of their own countries are subject to this law

Commercial companies can only acquire immovable property and limited real rights within the framework of special legal provisions

For commercial companies other than commercial companies, or other legal entities, real estate and limited real rights

The laws clearly state that they cannot acquire real estate in Turkey. For example, associations established in foreign countries cannot acquire real estate in Turkey.

cannot acquire limited real rights.

Foreign natural persons and commercial entities with legal personality established in foreign countries in accordance with the laws of their own countries

Three additional regulations have been included regarding companies:

–According to Article 35/paragraph 3 of the Land Registry Law, the President may, in cases where the national interest so requires, transfer ownership of the immovable property of these foreigners

limited real rights acquisitions in terms of country, person, geographical region, duration, number, ratio, type, quality, area and quantity

They can determine, restrict, partially or completely suspend, or prohibit [such activities].

–According to Article 35/paragraph 4 of the Land Registry Law, these foreigners may acquire an undeveloped property in Türkiye for the purpose of carrying out a project

If they have purchased the property, they must submit the project they will develop on this property to the relevant ministry for approval within two years.

The project, with its start and end dates determined and approved by the relevant Ministry, is sent to the Land Registry Office

The directorate registers this project in the declarations section of the land registry. The relevant ministry approves the project within the specified timeframe

It tracks whether it has been completed or not.

–According to Article 35/paragraph 2/clause 3 of the Land Registry Law, the restrictions in this article apply to real estate mortgages in favor of these foreigners

Not applicable at the facility.

The previous version of Article 35 of the Land Registry Law concerned the acquisition of immovable property and limited real rights by foreigners through inheritance

It was also regulated separately. The current regulation does not include such a distinction. Therefore, the inheritance of foreigners..

The acquisition of immovable property and limited real rights through this method is also subject to the principles I have stated here.

the Land RegistryLaw, and found to be used contrary to its intended purpose, must be returned within the prescribed time limit.

real estate and limited real rights for which applications have not been made to the ministry or whose projects have not been completed within the specified period

For the liquidation of immovable properties and limited real rights acquired through inheritance in violation of the judgment , the Ministry of Finance shall issue a decree

A period not exceeding one year is given. If the owner does not liquidate within this period, the properties are liquidated by the administration and the proceeds are sold

It is translated and the price is paid to the rightful owner. to note hereis that the property is liquidated and its price is paid.

It must be paid to the rightful owner.

Acquisition of Real Rights by Legal Entities within the Framework of the DYYK (Direct Real Estate Law)

Land Registry Law Article 36

Except for individuals covered under Article 28 of the Turkish Citizenship Law No. 5901 dated 29/5/2009, companies with legal personality established in Turkey in which foreign nationals, legal entities established under the laws of foreign countries, and international organizations hold fifty percent or more of the shares or have the authority to appoint or dismiss the majority of the persons holding the management rights, may acquire and use immovable property or limited real rights to carry out the activities specified in their articles of association.

The same principles apply if the companies mentioned in the first paragraph are directly or indirectly partners in another company established in Türkiye, and the final ownership percentage of the foreign investor in the partner company is fifty percent or more; and also if foreign investors directly or indirectly acquire fifty percent or more of the shares of domestically owned companies that own real estate, and the ownership percentage of foreign investors in existing foreign-owned companies that own real estate reaches fifty percent or more as a result of share transfers.

Subject to the provisions of the Military Restricted Areas and Security Zones Law No. 2565 dated 18/12/1981, the acquisition of immovable property by these companies in military restricted areas, military security zones, and areas determined within the framework of Article 28 of the same Law is subject to the permission of the General Staff or the commands it authorizes; and the acquisition of immovable property in special security zones is subject to the permission of the governorship of the place where the immovable property is located. In the evaluations to be made within the scope of this paragraph, the suitability of the acquisition to national security shall be taken as the basis.

Foreign-owned companies not covered by the paragraphs above may acquire and use real estate and limited real rights within the framework of the provisions applicable to domestically owned companies.

The provisions of this article shall not apply to the establishment of real estate mortgages, acquisitions of property within the scope of the foreclosure of real estate mortgages, transfers of real estate ownership and limited real rights arising from company mergers and divisions, acquisitions of real estate ownership and limited real rights in special investment zones such as organized industrial zones, industrial zones, technology development zones and free zones, and real estate acquired by banks due to transactions considered as loans within the framework of the Banking Law No. 5411 dated 19/10/2005 or for the purpose of collecting receivables, provided that the obligation to dispose of the real estate within a certain period according to the relevant legislation continues.

The use of properties acquired under this article is monitored periodically by the governorates within the framework of land registry records.

If immovable properties and limited real rights are found to have been acquired or used in violation of the provisions of this article, and if they are not liquidated by the owner within the period specified by the Ministry of Finance, they will be liquidated and converted into cash, and the proceeds will be paid to the rightful owner.

The procedures and principles regarding the implementation of this article shall be regulated by a regulation issued by the Ministry of Economy, following the consultation of relevant institutions and organizations.

 General Information on the Subject

Acquisition of immovable property and limited real rights by foreign natural persons and legal entities established in foreign countries is governed by the Land Registry Law

After being regulated in Article 35, Article 36 of the Land Registry Law concerns the rights of foreign natural or legal persons within the framework of the DYYK (Foreign Real or Legal Entities Law)

Companies established in Turkey in which individuals hold a stake above a certain percentage can own real estate and limited property rights

The acquisition of rights has been regulated.

According to Article 36/paragraph 1 of the Land Registry Law;

1-Foreign natural persons (excluding Blue Card holders),

2-Legal entities established under the laws of foreign countries and

3-International organizations

a- those in which they own 50% or more of the sharesor

b- They have the power to appoint or dismiss the majority of those with administrative authority.

Companies with legal personality established in Türkiye can only carry out the activities specified in their articles of association

They can acquire and use real property ownership or limited real rights.

According to Article 36/paragraph 2 of the Land Registry Law, although the share transfers made later did not initially have this percentage, the shares in the company..

It is stipulated that the provisions of this paragraph shall also apply in cases where foreign capital reaches this rate. (Land Registry)

Article 36/paragraph1-2 of the law are subject to the same provisions as domestically owned companies.

It is subject to this. (Land Registry Law, Article 36/paragraph 4)

To carry out the business activities specified in the articles of association of companies falling within the scope of Article 36/f.1-2 of the Land Registry Law.

Acquisitions of real estate in military restricted areas and security zones are also subject to permission. Title Deed

According to Article 36/paragraph 3 of the law;

1- Military restricted areas, military security zones and Article 28 of the Military Restricted Areas and Security Zones Law

Real estate acquisitions in the areas covered are made by the General Staff or by a designated authority

of the commands,

2-Acquisitions of immovable property in special security zones require the permission of the governor's office of the place where the property is located

Of course.

Article 36/paragraph 5 of the Land Registry Law lists certain cases in which this provision does not apply. For example..

In the establishment of real estate mortgages and in the acquisition of real estate ownership through the sale of these mortgages,

The provisions of this article will not apply.

The Ministry of Finance is responsible for the liquidation of immovable properties acquired or used in violation of Article 36 of the Land Registry Law

The Ministry sets a deadline. Properties that are not liquidated within this period will be liquidated by the administration and the proceeds will be sold

It is translated and the cost is paid to the rightful owner.

 

The Importance of the Lawyer

1. Monitoring Legal Restrictions

2. Legal Due Diligence of the Property: Unseen risks in the land registry are examined by a lawyer

3. Obligation to Develop a Project on Undeveloped Properties: When foreigners purchase land or fields (undeveloped properties), they are required to submit a project proposal to the relevant Ministry within two years . Otherwise, the property will be liquidated (forced sale) . A lawyer can prevent the property from being disposed of by the authorities by faking and monitoring this commitment process.