Acquisition of Real Estate in Türkiye by Foreigners: Key Rules, Restrictions and Exceptions

Işık Hukuk Bürosu

3 hours ago

7 min read

Introduction

Türkiye is a significant real estate market for foreign investors and individual buyers. However, the acquisition of real estate in Türkiye by foreign individuals and foreign-capital companies is subject to certain rules and restrictions under the relevant legislation, primarily the Land Registry Law No. 2644.

The nature of the property, its location, the buyer's nationality or legal status, and the purpose of the acquisition are all important in determining the applicable legal regime.

This article examines the key principles, statutory restrictions, exceptions and main practical considerations regarding the acquisition of real estate in Türkiye by foreign individuals and foreign-capital companies.

Acquisition of Real Estate by Foreign Individuals

Legal Basis and General Principles

The acquisition of real estate in Türkiye by foreign individuals is governed by Article 35 of the Land Registry Law No. 2644.

Under this provision, nationals of countries designated by the President of the Republic, in line with international bilateral relations and national interests, may acquire real estate and limited rights in rem in Türkiye, subject to the statutory restrictions.

As a rule, foreign individuals may acquire different types of property, such as residential units, commercial premises, building plots and agricultural fields. However, where a property is subject to a special legal status, the restrictions and permit requirements arising from the relevant special legislation must also be assessed.

There is no general precondition that the buyer hold a residence permit in Türkiye or establish a company in Türkiye in order to acquire real estate.

Statutory Restrictions

1. Area Limit

The total area of real estate and independent and permanent limited rights in rem that foreign individuals may acquire throughout Türkiye may not exceed 30 hectares. The President is authorised to increase this statutory limit up to twofold.

2. District-Level Ratio Limit

Foreign individuals may acquire real estate and limited rights in rem up to 10 percent of the privately owned surface area of a district. Once this statutory limit is exceeded, acquisition requests will be subject to restriction.

3. Military Restricted Zones and Security Zones

Acquisitions by foreigners are subject to regional restrictions under the Military Restricted Zones and Security Zones Law No. 2565 and other relevant legislation.

Real estate cannot be acquired in military restricted zones or in other areas closed to foreign acquisition under the relevant legislation. In special security zones, permission and review procedures by the competent authorities apply.

It is therefore important to carry out the necessary legal and administrative checks before acquisition, particularly for properties located in areas of strategic or security significance.

4. Development Project Requirement for Undeveloped Land

For undeveloped land purchased by foreign individuals, the project to be developed on the land must be submitted for approval to the relevant Ministry, depending on the nature of the property, within two years.

If this obligation is not fulfilled, or if the conditions set out in the relevant legislation are breached, liquidation proceedings may be initiated in respect of the property.

Properties with Special Status

Where a property is agricultural land, a coastal area, forest, pasture, a protected heritage site or subject to another special legal status, the restrictions, permit requirements and conditions of use under the relevant special legislation apply in addition to the provisions of the Land Registry Law concerning foreigners.

Reviewing the title deed record alone may therefore not always be sufficient. The zoning status of the property, its permitted use, its special status and the sectoral or regional rules to which it is subject should also be assessed before acquisition.

Exceptions

a. Blue Card Holders

Under Article 28 of the Turkish Citizenship Law No. 5901, persons who were Turkish citizens by birth and lost their citizenship by obtaining permission to renounce it, together with their descendants up to the third degree as specified in the law, continue to enjoy the rights granted to Turkish citizens, subject to the exceptions set out in that article and to provisions on national security and public order.

These persons are therefore not subject to the restrictions in Article 35 of the Land Registry Law that apply to foreign individuals when acquiring real estate.

b. Acquisition of Real Estate by Foreign-Capital Companies

i. Companies Within the Scope of Article 36 of the Land Registry Law

Article 36 of the Land Registry Law contains a special provision on the acquisition of real estate by foreign-capital companies established in Türkiye.

This provision lays down special rules for companies with legal personality established in Türkiye in which foreign individuals, legal entities established under the laws of foreign countries, or international organisations hold 50 percent or more of the shares, or have the power to appoint or dismiss the majority of the persons authorised to manage the company.

These companies may acquire ownership of, or limited rights in rem over, real estate in Türkiye only for the purpose of carrying out the business activities specified in their articles of association, and may use such property only for that purpose.

Where required under the legislation, the application for acquisition is made to the Provincial Planning and Coordination Directorate within the Governorship of the province where the property is located. The competent authorities assess the location of the property and its status under the relevant legislation and carry out the necessary administrative process.

Important distinction: Foreign-capital companies that fall outside the scope of Article 36 of the Land Registry Law may acquire real estate under the same rules that apply to domestic-capital companies.

In addition, since Article 36 and the related legislation provide for special exceptions for certain transactions and areas, the company's shareholding and management structure and the nature of the property to be acquired should be assessed in light of the specific case.

ii. Companies Established Abroad

Commercial companies with legal personality established abroad under the laws of their own countries may acquire real estate and limited rights in rem in Türkiye only where permitted by special statutory provisions.

In this context, special laws such as the Turkish Petroleum Law, the Tourism Incentive Law and the Industrial Zones Law may provide a legal basis for acquiring real estate under certain conditions.

As a rule, foreign legal entities other than foreign commercial companies may not acquire real estate in Türkiye.

Key Considerations in the Acquisition Process

Official Form and Registration

In Türkiye, the transfer of ownership of real estate is subject to official form and registration in the land registry.

In addition to land registry offices, real estate sale agreements may also be executed by notaries public since 4 July 2023. In a sale carried out before a notary, the agreement is recorded in the Land Registry and Cadastre Information System (TAKBİS), and the registration of the property in the land registry is carried out by the relevant land registry office.

By contrast, private written sale agreements between the parties do not transfer ownership of real estate. A promise to sell real estate is a legal transaction that creates obligations for a future sale of the property, but does not itself transfer ownership.

Foreign Exchange Purchase Certificate

Under the relevant legislation, in real estate sales where the buyer is a foreign individual, the foreign currency corresponding to the sale price must be sold to a bank operating in Türkiye, and the bank must issue a Foreign Exchange Purchase Certificate (Döviz Alım Belgesi).

The Turkish lira equivalent shown in the certificate is taken into account as the value on which title deed fees are calculated in the official deed.

It is important to check separately the procedures and principles relating to the certificate under the regulations in force on the date of the transaction.

Real Estate Valuation Report

A valuation report is required for certain real estate transactions involving foreign individuals. The transactions requiring a valuation report, and the procedures for preparing it, are determined by the regulations in force of the General Directorate of Land Registry and Cadastre (TKGM).

TKGM Circular No. 2024/2 sets out the implementing principles for valuation reports in real estate transactions involving foreigners.

For transactions aimed at acquiring Turkish citizenship through real estate investment, additional special requirements and assessment procedures apply for determining the value of the property and the amount of the investment.

Pre-Acquisition Legal Due Diligence

It is important to examine the legal status of the property in detail before completing the sale.

In particular, the following should be assessed: mortgages, attachments, annotations, declarations and easements recorded in the title deed; the property's zoning status and permitted use; its relationship to any military restricted or security zones; whether it is located in an area with special status; and any other restrictions on acquisition by foreigners.

For companies, the shareholding and management structure, the business activities set out in the articles of association, and whether the company falls within the scope of Article 36 of the Land Registry Law should also be examined.

Conclusion

Foreigners may acquire real estate in Türkiye within certain statutory limits. For foreign individuals, special rules apply, including area and ratio limits, regional security restrictions and the development project requirement for undeveloped land.

For foreign-capital companies, the shareholding and management structure is decisive in determining the applicable legal regime. Companies within the scope of Article 36 of the Land Registry Law are subject to special rules, while foreign-capital companies outside that scope may, as a rule, acquire real estate under the rules applicable to domestic-capital companies.

Blue Card holders, subject to the exceptions in Article 28 of the Turkish Citizenship Law No. 5901, are not subject to the restrictions that apply to foreign individuals when acquiring real estate.

Since the nature and location of the property, the buyer's legal status and the purpose of the transaction may change the applicable rules, a comprehensive legal review should be carried out, and the legislation and administrative practice in force on the transaction date should be checked, particularly before acquiring high-value properties or properties with special status.

Legal Basis and Sources

Land Registry Law No. 2644, in particular Articles 35 and 36
Turkish Citizenship Law No. 5901, Article 28
Law No. 6458 on Foreigners and International Protection, Article 31
Military Restricted Zones and Security Zones Law No. 2565
Notaries Law No. 1512, Article 61/A
Law No. 7413 on Assistant Judges and Prosecutors and Amendments to Certain Laws
TKGM Circular No. 2022/1 on Foreign Exchange Purchase Certificates in Acquisitions by Foreign Individuals
TKGM Circular No. 2024/2 on Real Estate Valuation Reports
Current circulars, guidelines and practice announcements of TKGM on the acquisition of real estate by foreign individuals and foreign-capital companies

This article has been prepared for publication on the website of Işık Law & Consultancy. It is for general information only and does not constitute a legal opinion or legal advice on any specific matter. Since legislation and administrative practice may change over time, the current rules and the specific circumstances of each case should be assessed before any transaction.

Introduction

The nature of the property, its location, the buyer's nationality or legal status, and the purpose of the acquisition are all important in determining the applicable legal regime.

This article examines the key principles, statutory restrictions, exceptions and main practical considerations regarding the acquisition of real estate in Türkiye by foreign individuals and foreign-capital companies.

Acquisition of Real Estate by Foreign Individuals

Legal Basis and General Principles

The acquisition of real estate in Türkiye by foreign individuals is governed by Article 35 of the Land Registry Law No. 2644.

Under this provision, nationals of countries designated by the President of the Republic, in line with international bilateral relations and national interests, may acquire real estate and limited rights in rem in Türkiye, subject to the statutory restrictions.

There is no general precondition that the buyer hold a residence permit in Türkiye or establish a company in Türkiye in order to acquire real estate.

Statutory Restrictions

1. Area Limit

The total area of real estate and independent and permanent limited rights in rem that foreign individuals may acquire throughout Türkiye may not exceed 30 hectares. The President is authorised to increase this statutory limit up to twofold.

2. District-Level Ratio Limit

Foreign individuals may acquire real estate and limited rights in rem up to 10 percent of the privately owned surface area of a district. Once this statutory limit is exceeded, acquisition requests will be subject to restriction.

3. Military Restricted Zones and Security Zones

Acquisitions by foreigners are subject to regional restrictions under the Military Restricted Zones and Security Zones Law No. 2565 and other relevant legislation.

Real estate cannot be acquired in military restricted zones or in other areas closed to foreign acquisition under the relevant legislation. In special security zones, permission and review procedures by the competent authorities apply.

It is therefore important to carry out the necessary legal and administrative checks before acquisition, particularly for properties located in areas of strategic or security significance.

4. Development Project Requirement for Undeveloped Land

For undeveloped land purchased by foreign individuals, the project to be developed on the land must be submitted for approval to the relevant Ministry, depending on the nature of the property, within two years.

If this obligation is not fulfilled, or if the conditions set out in the relevant legislation are breached, liquidation proceedings may be initiated in respect of the property.

Properties with Special Status

Reviewing the title deed record alone may therefore not always be sufficient. The zoning status of the property, its permitted use, its special status and the sectoral or regional rules to which it is subject should also be assessed before acquisition.

Exceptions

a. Blue Card Holders

These persons are therefore not subject to the restrictions in Article 35 of the Land Registry Law that apply to foreign individuals when acquiring real estate.

b. Acquisition of Real Estate by Foreign-Capital Companies

i. Companies Within the Scope of Article 36 of the Land Registry Law

Article 36 of the Land Registry Law contains a special provision on the acquisition of real estate by foreign-capital companies established in Türkiye.

These companies may acquire ownership of, or limited rights in rem over, real estate in Türkiye only for the purpose of carrying out the business activities specified in their articles of association, and may use such property only for that purpose.

Important distinction: Foreign-capital companies that fall outside the scope of Article 36 of the Land Registry Law may acquire real estate under the same rules that apply to domestic-capital companies.

In addition, since Article 36 and the related legislation provide for special exceptions for certain transactions and areas, the company's shareholding and management structure and the nature of the property to be acquired should be assessed in light of the specific case.

ii. Companies Established Abroad

Commercial companies with legal personality established abroad under the laws of their own countries may acquire real estate and limited rights in rem in Türkiye only where permitted by special statutory provisions.

In this context, special laws such as the Turkish Petroleum Law, the Tourism Incentive Law and the Industrial Zones Law may provide a legal basis for acquiring real estate under certain conditions.

As a rule, foreign legal entities other than foreign commercial companies may not acquire real estate in Türkiye.

Key Considerations in the Acquisition Process

Official Form and Registration

In Türkiye, the transfer of ownership of real estate is subject to official form and registration in the land registry.

By contrast, private written sale agreements between the parties do not transfer ownership of real estate. A promise to sell real estate is a legal transaction that creates obligations for a future sale of the property, but does not itself transfer ownership.

Foreign Exchange Purchase Certificate

Under the relevant legislation, in real estate sales where the buyer is a foreign individual, the foreign currency corresponding to the sale price must be sold to a bank operating in Türkiye, and the bank must issue a Foreign Exchange Purchase Certificate (Döviz Alım Belgesi).

The Turkish lira equivalent shown in the certificate is taken into account as the value on which title deed fees are calculated in the official deed.

It is important to check separately the procedures and principles relating to the certificate under the regulations in force on the date of the transaction.

Real Estate Valuation Report

A valuation report is required for certain real estate transactions involving foreign individuals. The transactions requiring a valuation report, and the procedures for preparing it, are determined by the regulations in force of the General Directorate of Land Registry and Cadastre (TKGM).

TKGM Circular No. 2024/2 sets out the implementing principles for valuation reports in real estate transactions involving foreigners.

For transactions aimed at acquiring Turkish citizenship through real estate investment, additional special requirements and assessment procedures apply for determining the value of the property and the amount of the investment.

Pre-Acquisition Legal Due Diligence

It is important to examine the legal status of the property in detail before completing the sale.

For companies, the shareholding and management structure, the business activities set out in the articles of association, and whether the company falls within the scope of Article 36 of the Land Registry Law should also be examined.

Conclusion

Foreigners may acquire real estate in Türkiye within certain statutory limits. For foreign individuals, special rules apply, including area and ratio limits, regional security restrictions and the development project requirement for undeveloped land.

Blue Card holders, subject to the exceptions in Article 28 of the Turkish Citizenship Law No. 5901, are not subject to the restrictions that apply to foreign individuals when acquiring real estate.

Legal Basis and Sources

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