PROPERTY PURCHASE IN TURKEY
WHICH FOREIGN COUNTRY NATIONALS ARE ALLOWED TO ACQUIRE IMMOVABLE WITHIN TURKEY?
In particular, we should note that all citizens of 183 countries approved by the Presidency will acquire property within the borders of Republic of Turkey.
There is no published complete list of countries that can acquire property. However, upon your intention to acquire property, we may make inquiries from the relevant Land Registry Directorates.
RESTRICTIONS TO FOREIGNERS IN PROPERTY ACQUISITION
Acquisition of property by foreign country nationals are regulated in accordance with the relevant legislation and Land Registry Law numbered 2644.
According to the Land Registry Law; foreigner real persons are allowed to acquire up to 30 hectares and/or up to 10% of the area of the district subject to private ownership.
In some regions determined by Law No. 2565 on Military Forbidden Zones and Security Zones, foreigners’ acquisition of property is restricted.
Before the acquisition of the property, necessary correspondence will be made with the relevant Land Registry Office and approval is obtained for the area where the property is located.
Permission must be obtained from the relevant institutions in order to acquire property in protected areas, agricultural lands, and islands.
Foreigners are free to acquire property such as workplace, residence, land, garden etc..
SELECTION OF PROPERTY
There are many parameters in the selection of property by foreigners such as the type, location, security, strength of the building, transportation, and the structure of the building.
The main point to be determined here is the main reason for property acquisition. In other words, it is necessary to determine whether the property is for investment or use.
In particular, we would like to note that the main applicant may find the property agent, project and property with his/her own research, as well as recommendation can be made by lawyers.
DOCUMENTS NECESSARY FOR PROPERTY SALES
- Valid Passport
- Biometric Photo
- Power of Attorney
- Potential Tax Identification Number for Foreigners (Will be provided by Lawyers)
- Mandatory Expert Report (Will be provided by Lawyers)
- Exchange Certificate (Will be provided by Lawyers)
- Mandatory Earthquake Insurance (Will be provided by Seller)
- Property Market Value Certificate (Will be provided by Seller)
POWER OF ATTORNEY
All the processes of property acquisition are carried out by lawyers authorized by buyer with the power of attorney. With the power of attorney, bank account opening, property acquisition will be made without the need for the buyer to be in Turkey.
The content of the power of attorney to be issued has been carefully arranged by lawyers. The draft prepared by the lawyers is sent to the buyer.
In order to process with power of attorney in all Land Registry directorates in Turkey, the power of attorney must be “statutory form of power of attorney”. The power of attorney required for property acquisition must bear the photo of the grantors.
This power of attorney should be issued in one of the following three ways;
-May be issued in notary public offices within the border of Turkish Republic,
-May be issued in local notary public offices in the country you are currently located, should be Apostilled after taking the Ministry of Foreign Affairs approval,
-May be issued with a sworn translator from the Turkish Consulate of your country.
For Clients who want to issue a power of attorney through the Turkish Consulate, a sworn translator and consular appointment will be arranged by lawyers. Then, clients can go to the consulate on the appointment day and time and complete their transactions.
EXCHANGE CERTIFICATE
In the acquisition of real estate by foreigners in Turkey, before the acquisition, the purchaser, seller of the real estate or representatives of the T.C. in USD, EUR or GBP. It is a document issued upon its sale to the Central Bank. According to the legislation, this document must be submitted to the relevant Land Registry Directorate before purchasing. Because, as a result of this regulation, a separate exchange rate calculation will not be made for the value of the promise to sell contract to be drawn up in the official deed to be drawn up at the Land Registry Directorate or the notary public, and the amounts in the Foreign Exchange Purchase Document will be taken as a basis.
PROPERTY PAYMENT
The most important issue in the payment of the purchase price of property is that all payments must be made from the buyer’s bank account to the seller’s bank account.
In addition, land registry information should be written in the receipt statement when paying the sale price of the property.
As a result, the names of the buyer and seller and the information about the paid property should be clearly visible in the receipt stating that the sale price of the property has been paid.
Thus, possible loss of rights is minimized and the amount paid is assured. In addition to these, one of the most important issues is that the property acquisition cost must be paid simultaneously with the deed transfer. Payment during the title transfer transaction eliminates all possible risks.
TITLE DEED TRANSFER
After the necessary documents are completed and the buyer and seller agree on all matters, an application is made to the relevant Land Registry Directorate for the deed transfer.
First of all, the parties are in the Land Registry Directorate and mutually declare the transfer price of the title deed. The Land Registry Directorate carries out the necessary inspections and controls for the power of attorney, expert report and other documents.
Later on, the title deed fee of %4 calculated over the sales price, and a revolving fund fee declared by the Land Registry Directorate.
After the payment of the title deed fee and the revolving fund fee, the parties are present for signature at the Land Registry Directorate for the deed transfer. The point to be considered here is that the deed transfer and the payment of the title deed sales price should be simultaneous. When it comes to the signing stage for the deed transfer, the lawyer provides the transfer organization of the deed transfer price. Following the payment of the deed transfer price, the title deed is received with signature.
