Although foreigners have been permitted to acquire real property in Türkiye for many years, such acquisitions are subject to specific legal rules and procedures. Accordingly, it is important to assess the applicable legal framework and the relevant compliance requirements before proceeding with any transaction. This information note outlines the principal legal framework governing the acquisition of real property in Türkiye by foreign natural persons, foreign legal entities and foreign-invested companies, together with the key procedural requirements and practical considerations applicable in practice.

Pursuant to Article 35 of the Land Registry Law No. 2644 (the “Law”), foreign natural persons who are not Turkish citizens and commercial companies with legal personality incorporated under the laws of a foreign country, provided that they are entitled to acquire real property under the provisions of special laws (collectively, “Foreigners”), may acquire real property and limited rights in rem over real property in Türkiye. Subject to compliance with the restrictions set out in the Law and the relevant secondary legislation, Foreigners may acquire all types of real property, including residential properties, commercial properties, development land and agricultural land. In this respect, the reciprocity requirement previously applicable to the acquisition of real property by Foreigners was abolished in 2012.

Furthermore, foreign nationals whose acquisition of real property with a minimum value of USD 400,000 (or its equivalent in foreign currency) has been confirmed by the Ministry of Environment, Urbanisation and Climate Change (the “Ministry”), provided that an annotation prohibiting the sale of the relevant real property for at least three years is registered with the Land Registry, may become eligible to acquire Turkish citizenship by a decision of the President, subject to the fulfilment of the other requirements set out in the applicable legislation. For more detailed information on this matter, please refer to our information note titled “Overview of the Acquiring Citizenship through Real Estate Invesment” available here.

Legal Framework and General Principles

Under the Law, the categories of foreigners who are eligible to acquire real property or limited rights in rem over real property in Türkiye are determined by the President, taking into account (i) the nationality of the foreign acquirer, (ii) the existing bilateral international relations between Türkiye and the relevant foreign state, and (iii) national interests. In any event, the aggregate area of real property acquired by a foreign natural person may not exceed 10% of the privately owned land within the relevant district or 30 hectares nationwide per person. The President is authorised to increase these thresholds by up to two times and to impose additional conditions based on, among other things, country, person, geographical region, duration, number, ratio, type, characteristics, surface area or quantity.

Where a Foreigner acquires undeveloped real property (such as vacant land, agricultural land, vineyards or orchards), a development project compatible with the nature of the relevant real property must be prepared and submitted to the relevant Ministry for approval within two years of the acquisition. Once approved, the relevant Ministry determines the commencement and completion periods for the project and forwards it to the competent Land Registry Office for registration in the annotations section of the Land Registry. The relevant Ministry subsequently monitors whether the approved project is implemented within the prescribed timeframe.

Notwithstanding the foregoing, the acquisition by Foreigners of real property or limited rights in rem over real property remains subject to the restrictions imposed under the legislation governing special security zones and military security zones. In particular, Foreigners may not acquire real property located within military prohibited zones, military security zones or special security zones, or any other real property that is designated as unavailable for acquisition by foreigners under the applicable legislation.

Real property acquired by Foreigners in violation of the applicable legislation, or lawfully acquired but subsequently determined by the relevant Ministry or other competent authorities to have been used for purposes inconsistent with the purpose of acquisition, as well as real property in respect of which the approved development project is not implemented within the period specified by the relevant Ministry, and real property and limited rights in rem acquired by inheritance in excess of the statutory area limitations prescribed under the Law, must be disposed of by the relevant right holder within the period specified by the Ministry of Treasury and Finance, which may not exceed one year. Failing such disposal, the relevant real property or limited rights in rem will be liquidated through sale, and the sale proceeds will be paid to the relevant right holder.

With respect to the acquisition of Turkish citizenship through real property investment, amendments that entered into force on 1 February 2023 provide that multiple foreign nationals may no longer acquire undivided shares in the same real property for the purpose of submitting separate applications for Turkish citizenship. Accordingly, it is no longer possible for several foreign nationals to purchase separate ownership interests in the same real property (for example, the same independent unit) and individually qualify for citizenship on that basis.

Foreign Invested Companies

Pursuant to Article 36 of the Law, companies incorporated in Türkiye with legal personality may acquire real property and limited rights in rem over real property where foreign natural persons, legal entities incorporated under the laws of foreign countries or international organisations (i) directly or indirectly hold 50% or more of the share capital, or (ii) have the right to appoint or remove the majority of the members of the company’s governing body. Such acquisitions, however, must be made solely for the purpose of carrying out the activities specified in the company’s articles of association.

The same principles also apply in the following circumstances:

• where a company falling within the above scope directly or indirectly acquires an interest in another company incorporated in Türkiye, provided that the foreign investor’s ultimate shareholding in the target company is 50% or more; or
• where foreign investors directly or indirectly acquire 50% or more of the shares in a Turkish-owned company that owns real property, or where, as a result of a share transfer, the foreign investors’ shareholding in an existing foreign-invested company owning real property reaches or exceeds 50%.

Foreign-invested companies that do not fall within the above scope are treated in the same manner as Turkish-owned companies for the purposes of acquiring real property and limited rights in rem over real property.

The use of real property acquired by foreign-invested companies is subject to periodic inspections by the relevant governorates based on the Land Registry records. Where such real property or the related limited rights in rem are found to have been acquired or used in breach of the applicable legislation, they must be disposed of by the owner within the period specified by the Ministry of Treasury and Finance. Failing such disposal, the relevant real property or rights will be liquidated through sale, and the proceeds will be paid to the relevant right holder.

Exception Regarding Blue Card Holders

Pursuant to the Turkish Citizenship Law No. 5901, individuals who were Turkish citizens by birth but subsequently lost their Turkish citizenship upon obtaining official permission to renounce it (i.e., Blue Card holders), as well as their descendants up to the third degree, are treated in the same manner as Turkish citizens with respect to the acquisition of real property and limited rights in rem over real property in Türkiye. Accordingly, their applications are not subject to the restrictions applicable to other foreign nationals.

Overview of the Process and Main Procedures in Land Registry Transactions

Subject to there being no legal restriction on the proposed acquisition, the Land Registry procedures relating to the acquisition of real property or limited rights in rem by a Foreigner are carried out in parallel with the underlying commercial transaction.

Applications may be submitted by the current owner of the real property or their duly authorised representative directly to the competent Land Registry Office, together with the mandatory information and supporting documents required under the Law and the relevant secondary legislation, within the applicable time limits. Alternatively, applications may be initiated through one of the following channels: (i) by contacting the Alo 181 Call Centre; (ii) by scheduling an appointment through the e-Appointment (e-Randevu) service available on the e-Government (e-Devlet) platform; or (iii) by submitting an online application through the Web-Tapu platform.

In addition, the Your Key Türkiye portal and the Investment and Finance Office portal, both established by the General Directorate of Land Registry and Cadastre, provide up-to-date information on the acquisition of real property by foreigners in Türkiye, including application procedures and process guidance, in six languages

Application Documents and Supporting Information

Depending on the nature of the transaction, the following documents and information must be duly submitted in order to complete the relevant Land Registry procedures:

• Identity document or passport: The identity of a foreign natural person is verified based on a valid passport or national identity document issued by the competent authorities of the individual’s country of nationality. The relevant original document must be presented during the application process. Where the passport or identity document is issued in a language using a non-Latin alphabet, a notarised translation prepared by a sworn translator must also be submitted
• Identity Declaration Form: A duly completed Identity Declaration Form published on the official website of the General Directorate of Land Registry and Cadastre must be submitted.
• Photographs: One biometric photograph of each current owner of the real property (or one photograph for each owner if there is more than one owner) and two biometric photographs of the purchaser must be provided. The photographs must have been taken within the preceding six months and measure 6 cm × 4 cm.
• Real Property Valuation Report: For all sale transactions where a foreign natural person is the purchaser, a valuation report (the “Valuation Report”) indicating the current market value of the relevant real property and prepared by an authorised valuation company in accordance with the International Valuation Standards must be submitted. The principal requirements applicable to the Valuation Report are summarised below:
  • A Valuation Report remains valid for three months from its date of issue. Where the same real property is subject to another similar transaction within this period, a new Valuation Report is generally not required. However, if any change affecting the value of the real property (such as a change in property type, dedication of land for public roads or the establishment of an easement) is recorded in the Land Registry, a new Valuation Report must be obtained irrespective of the three-month validity period.
  • All statutory financial obligations arising from the acquisition, including title deed fees, taxes and other applicable charges, are assessed and collected in accordance with the relevant legislation. In addition, where required under the applicable legislation, the market value determined in the Valuation Report must be reflected in tabular form in the official deed executed before the Land Registry Office.
  • Where the real property includes one or more buildings, the Valuation Report must reflect: (i) the market value of the real property as of the transaction date if the buildings have been physically completed; or (ii) if construction is ongoing and condominium easements have been established, the projected value of the real property upon completion of construction.
  • Valuation Reports submitted to the Land Registry Office are scanned electronically and uploaded to the Land Registry and Cadastre Information System (TAKBİS). The reports are not retained in physical form, and the originals are returned to the applicant following the completion of the upload process.
• Evidence of Authority (where the transaction is carried out through a representative):
  • For natural persons: Documents evidencing the representative’s authority, such as a power of attorney, guardianship order or other authorisation document, must be submitted.Where the transaction is conducted pursuant to a power of attorney executed abroad, the original or a certified copy of the power of attorney bearing an apostille, together with its certified translation, must be submitted. If the power of attorney is not apostilled, it must instead be certified by the relevant Turkish Consulate in the country where it was executed.
  • For foreign legal entities:In applications submitted by foreign legal entities for the acquisition of real property, an up-to-date signature circular identifying the authorised signatories and evidencing their authority to represent and bind the company, or another authorisation document issued during the calendar year in which the transaction is carried out that expressly confirms both such authority and the authority to acquire real property, must be submitted. The original authorisation document bearing an apostille, together with its certified translation, must be provided. If the document is not apostilled, it must instead be certified by the relevant Turkish Consulate in the country where it was issued. Where the applicant is a foreign-invested company falling within the scope of Article 36 of the Law, the authorisation document must expressly state that the company is a “Foreign-Invested Company within the Scope of Article 36 of the Land Registry Law No. 2644.” In addition, the documents required under the applicable legislation must be submitted to the Provincial Directorate of Planning and Coordination of the relevant Governorate. Conversely, where a foreign-invested company falls outside the scope of Article 36 of the Law, the authorisation document must expressly state that the company is a “Foreign-Invested Company outside the Scope of Article 36 of the Land Registry Law No. 2644.” Such companies are treated in the same manner as Turkish-owned companies for real property acquisition purposes, and their applications are processed directly by the competent Land Registry Office under the general rules.
•  Compulsory Earthquake Insurance Policy: A valid Compulsory Earthquake Insurance (DASK) policy issued by an authorised insurance company must be submitted for residential properties, commercial premises and other buildings used for such purposes.
• Title Deed or Property Identification Details: Where available, the title deed relating to the relevant real property should be submitted. Alternatively, the application must include the relevant property identification details, including the village/neighbourhood, map sheet, parcel, building and independent unit information.
• Sworn Interpreter: If any party to the transaction does not speak Turkish, a sworn interpreter must be present during all in-person proceedings before the Land Registry Office.
• Municipal Property Tax Value Certificate: An up-to-date certificate issued by the relevant municipality showing the official property tax value (emlak rayiç değeri) of the real property must be submitted.
• Foreign Exchange Purchase Certificate (“FX Purchase Certificate”): As a general rule, the purchase price for acquisitions of real property in Türkiye by foreigners must be paid in foreign currency. Accordingly, prior to the transfer of title, the foreign currency corresponding to the purchase price must be sold to the Central Bank of the Republic of Türkiye (“CBRT“) through a bank operating in Türkiye, and a FX Purchase Certificate evidencing such transaction must be issued. Accordingly, where the purchaser is a foreign natural person, the FX Purchase Certificate must be submitted to the competent Land Registry Office before completion of the title transfer. Where the acquisition is intended to support an application for Turkish citizenship by investment, the applicant must also submit bank receipts evidencing that the purchase price has been paid through the banking system and clearly demonstrating that the payment relates to the acquisition of the relevant real property, in addition to the FX Purchase Certificate.

Conclusion and Assessment

As outlined above, while the acquisition of real property and limited rights in rem over real property in Türkiye by foreigners is permitted under the Law and the relevant secondary legislation, the applicable legal regime, procedures and restrictions vary depending on both the nature of the acquisition and the legal status of the acquirer. In particular, foreign natural persons are subject to additional requirements and restrictions relating to, among other things, nationality, statutory area limitations, the location of the real property, the submission of a Valuation Report and the requirement to obtain a Foreign Exchange Purchase Certificate. By contrast, different legal regimes apply to foreign legal entities and foreign-invested companies.

In this regard, it is important to note that companies incorporated under Turkish law and possessing Turkish legal personality are not regarded as foreign legal entities merely because they are foreign-invested. Accordingly, such companies are generally subject to the same rules applicable to Turkish-owned companies with respect to the acquisition of real property. Against this background, in any real property acquisition involving a foreign element, it is essential to correctly determine the legal status of the acquiring party, conduct an appropriate legal review of the relevant real property in advance, and ensure that all required approvals, eligibility assessments, valuation requirements and documentation are completed before the transaction. Taking these steps is critical to ensuring the smooth completion of the Land Registry procedures and mitigating potential legal risks that may arise following the acquisition.