STEPS OF BUYING A PROPERTY IN TURKEY  

Listing:

• Who can buy?

• How to find your dream house?

• Building your own…

• Your tax position

• Visa requirements

• Insurance

• Final touches

• Investment & Business Opportunities

• When you decided to sell

• Properties with buildings or projects

• Land upon which to build

• Property purchasing laws and procedures in Turkey

Who can buy?

Most foreign nationals can purchase property in Turkey providing:

There is a reciprocal agreement between the government of Turkey and that of the purchaser; such an agreement does exist between Turkey and the U.K or other countries.

Real estate acquisition of foreign real and legal persons has been regulated in the article 35 of the Land Registry Law numbered 2644 that was modified by the article 19 of the Law numbered 4916 and dated July 3, 2003. By this amendment new regulations have been introduced concerning real estate acquisition, in our country, of real persons of foreign nationality and trade companies having legal personality and established in foreign countries according to the laws of these countries, and article 36 of the Land Registry Law was abrogated and its content was added to the article 35. Besides, the article 87 of the Village Law numbered 442 was completely abrogated.

New form of the article 35 of the Land registry Law is as follows:

"With the reservation of being reciprocal and complying with legal restrictions, real persons of foreign nationality and trade companies having legal personality established in foreign countries according to the laws of these countries, can acquire real estate within the boundaries of the Republic of Turkey. In implementation of reciprocity principle, it is essential that real estate acquisition rights given by a foreign country to its own citizens and to trade companies established in foreign countries according to the laws of these countries, are also given to the citizens and trade companies of the Republic of Turkey.

Real estate acquired through legal inheritance by citizens of a country that does not have reciprocity with Turkey and real estate located in the areas subjected to legal restrictions, are liquidated after being transferred by inheritance and converted to its value.

Real estate acquisition of real persons of foreign nationality and trade companies having legal personality and established in foreign countries according to the laws of these countries, more than thirty hectares, depends on permission of the Council of Ministers. This provision is not implemented for real estate transferred by the way of legal inheritance. Real estate acquisition of real persons of foreign nationality more than thirty hectares through transactions depending on death apart from legal inheritance is also subjected to permission of the Council of Ministers. If permission is denied, the exceeding part is converted to value by means of liquidation.

In case of registration of limited real right on real estate in favor of real persons of foreign nationality and trade companies having legal personality and established in foreign countries according to the laws of these countries, reciprocity principle is not stipulated.

Which Countries Can Buy Real Estate In Turkey 2004-2005

 How to find your dream house?

Without making several visits in different seasons to the area in which you want to purchase, it is difficult to assess the pros and cons of a site or property, which seems to be ideal. A quaint, rustic position in summer may turn out to be cut off by a raging torrent of spring rains, or marvellously green hillside position with a stunning view in spring could well be an arid, waterless waste in summer.
You should also decide whether you intend to have sole use of your house, or rent it at some periods. Anyone intending rentals as a business proposition should bear in mind that, unless a substantial number of properties are owned and maintained by you, rentals are likely to cover the costs maintaining the property at best.

Building your own

 Due to the current building boom architects abound. Some are excellent, other not. Before engaging an architect you are advised to see plenty of his/her previous works in studio, not just in a portfolio, and keep your lawyer close by when drawing up contracts. As your home is created you will be in constant contact with your architect, so it is a good idea to choose someone you can communicate with easily.

 Your tax position

 A tax agreement between Turkey and the U.K or with some others. has been ratified which prevents double taxation. The professional advice of your lawyer and accountant is strongly recommended.

Visa requirements

To reside in Turkey for longer than 3 months a Residence Permit is required. These are obtained by formal application to the Police Authorities and Foreigner's Department in the town where you are resident. The procedure is simple, but time consuming. Make sure you have plenty of passport-sized photographs before you start.

Insurance

When the deeds of your piece of Turkey are finally in your hands, do not forget to insure your investment. Insurance policies based on Turkish Lira values can depreciate rapidly because of high inflation. Policies operating in the hard currencies are available and worth investigating.

Final touches

It is rarely worthwhile to import bulky furniture from home, so while you are waiting for paperwork to be completed or for the electrician to finish the wiring, take opportunity to see what is available in Turkey. The difference in climate and lifestyle means that you will need a fresh eye for colour and furniture. There are many glossy home furnishing magazines, and even if you do not understand the text, prices and stock lists are easy to figure out.
Try and visit as many people in their own homes as possible to glean ideas and to help you build up your own Aegean identity. If you lack time or confidence, there are many skilful interior designers to consult.

Investment & Business Opportunities

All non-Turkish nationals wishing to start companies in Turkey should apply to the General Directorate of Foreign Investment in Ankara for official approval of the project. In general, Turkey's policy is to encourage and welcome foreign investors so the formalities are relatively straightforward. Helpful booklets in English may be obtained from Consulates, which explain both the application procedure and the economic framework of the system. As in all official matters, the assistance of a competent legal advisor and translator (if needed) is absolutely essential.
Foreign Investment Companies can benefit from a wide range of tax concessions and incentive programs, which are particularly favourable when the company is operating in a sector or geographical area that is valuable to the country. For example, an advanced technological enterprise committed to employing and training local people in the under-populated northeast would be considered to be more desirable than a disco in the Aegean.
The official road to a legal business is not a hard one, and beats any alternatives, but one would be wise to carry out detailed feasibility studies of a new project before making major decisions.

When you decided to sell

Your original investment and any profit after tax can be freely taken out of Turkey. Again, you would be wise to consult your lawyer prior to selling.

Property Purchasing Laws and Procedures in Turkey

Foreign people are increasingly interested in purchasing property in Turkey particularly along the southern and western coast of Turkey as more and more foreigners wish to have pied-à-terra.

Turkey is becoming a popular holiday destination with its immense unspoilt coastline and Mediterranean climate, which offers all-year-round sunshine.  Not only this, but buying property in Turkey is 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, we encourage you to consult an expert or visit our company in Turkey, Ozgen Real Estate and Property Management.  We specialise in real estate in addition to architectural projects and construction.  By doing so you can avoid the possibility of heartbreaking disappointment (i.e. when you learn that due to unseen regulations, your dream of a summer house on your purchased land can only be that, a dream).  Buying property in Turkey can be a complex matter and knowledgeable, professional service is required. 

Turkish Property Legislation

Ownership is anchored 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.

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 authorise another person to do so but the authorisation requires a proxy deed.  As a security measure, it is also advisable to authorise 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 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.

Finally

Buying real estate in Turkey involves many regulations. Not only must formal regulations be taken into account, but foreigners must also heed the various legal exceptions to acquire real estate.

The zoning schemes, the antecedents of the selling party and the legal restrictions imposed by Turkish property legislation are some important aspects that must be approached objectively, reliably and professionally.

Ozgen Real Estate and Property Management offers you very valuable assistance and allows you to have an objective and thorough investigation carried out regarding the property in which you are interested. Our well-educated staff are fluent in English, and are happy to help you. So please do not hesitate to contact us either through email or fax or in person for any additional information.