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| Turkish
real estate law for foreigners |
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To 26.07.2005
due to a judgement of the Turkish constitutional court the original
Turkish real estate law for foreigners was repealed set.
With publication of 07.01.2006 now finally the NEW law stepped
to 26.07.2005 retroactively into force.
Here now the details:
All nationalities may buy, into whose countries also Turks can
acquire landed property.
Foreigners and abroad created companies (only GmbH and AG) may
acquire now “only” still 2.5 hectares (25,000 m
²) per person in Turkey - this number applies cumulatively,
that means that all properties are added, which a foreigner
buys/possesses. But in individual cases a special permission
can be given by up to 30 hectares.
In addition the portion of real estate possession of foreigners
in a region may not do any more than 5 thousandth amounted to
(5 ‰). Here the property by foreign companies are not
by the way along-computed - this applies only to natural persons!!
Foreigners and foreign companies may acquire only real estates
for living and trade purposes and this only in areas with public,
urban building law (Imar) or officially approved private building
law (private Imar). These properties are usually more expensive
than mad village properties, for which many foreigners decided
before. But there is also for foreigners a possibility of acquiring
these concerning the price interesting areas still right. One
must create in addition only a Turkish GmbH - that may each
foreigner - and the purchase of the real estate over the GmbH
to complete, then one may buy in order of size and locally for
an unlimited period properties and receives also a land register
entry for it, only one land register entry for a village real
estate directly on a private foreign person is no longer possible
in accordance with the new law.
The mortgage lien in favor of a foreigner is not affected by
the above restrictions, I.e., a foreigner can possess real estates
for an unlimited period as mortgage on real estate.
Still foreigners in protected zones (e.g. Military areas) may
not acquire real estate property. The areas concerned given
by the government in the next 3 months all Tapuoffices admits,
so that each Tapuoffice can examine this in the future immediately
- thereby
THE EXAMINATION OF THE MILITARY ADMINISTRATION
FALLS IN IZMIR SOON WAY!!!
Thus transfers of title for foreigners are in the future in
1 or 2 working-days possible.
ALL and completed purchases already transacted are not concerned
by the way. If the real estate should lie however e.g. In a
restricted area or exceed the size defaults, then a sales at
foreigners is NOT possible. In case of a transmission of this
real estate, the object would have to be sold then at Turks.
If you have doubts or further questions, then you announce nevertheless
simply to us (by telephone or mail) or call yourselves you the
Turkish message in Germany and you leave itself free of charge
there from the legal department in an advisory manner.
Ankara regulates real estate acquisition for foreigners
Under normal conditions only 2.5 hectares of surface are permissible
from Dr. Sven Klaiber
Cologne (bfai) - the Turkish legislator issued new regulations
to the acquisition of real estates by foreigners. The new law
plans a surface-moderate restriction on 2,5 hectares for natural
persons. Of it the Council of Ministers exceptions can meet.
In addition certain special zones are proven, in which an acquisition
for foreigners is completely forbidden. To foreign legal entities
characteristics apply. The parliament was demanded, there the
constitutional court in Ankara the before times valid legal
situation in its resolution (E 2003/70; K 2005/14) of 14.3.05
for unconstitutional had explained (we reported). Thereby the
liberalization of the Turkish property market, which had carried
out itself more than one and a half years before, went to the
court too far. At that time, I.e. To 19.7.03, the law No. 4916
had stepped into force, which for the first time permitted it
to foreigners to acquire also in rural areas of properties.
Only in military restricted areas the acquisition of land was
forbidden. In addition the law permitted a surface-moderate
acquisition of up to 30 hectares, in exceptional cases and after
an appropriate resolution of the Council of Ministers also more.
On the other hand the oppositional had inserted republican people's
party a condition plea, to which the constitutional court in
the decision quoted above allowed. It set a three-month period
for the legislator to regulate the real estate acquisition right
again. In particular the past delimitation criteria were criticized.
So must be differentiated with the acquisition of land by foreigners
between strategically important and less important national
regions. Also the surface-moderate delimitation on only 30 hectares
went to the court too far.
The legislator remedied that now - although somewhat later than
expected -. The law No. 5444 announced of 29.12.05, in the Official
Journal No. 26046 of 7.1.06, sets the real estate acquisition
for foreigners to a new basis.
Differences becomes now in principle between natural and legal
entities. An acquisition of land is only permitted natural persons
up to 2,5 hectars for work or living purposes according to kind
35 exp. 1 P. 3 of the again seized land register law (tapu kanunu).
After sentence 4 of the regulation the Council of Ministers
in individual cases can permit an acquisition of up to 30 hectars
of surface area.
Invariably remained the principle of the mutuality (reciprocity
embodied in kind 35 exp. 1 land register law; türk.: karsiliklik
ilkesi). This mentioned that only those persons in Turkey may
acquire real estates, their mother country also Turkish citizen
the acquisition of properties permits - a premise unproblematic
in relation to the Federal Republic of Germany.
Which concerns the purchase of land for legal entities, then
these are subject in principle to the regulations planned in
special laws (kind 35 exp. 2 land register law). To emphasize
the law is No. 4875 over foreign direct investments in this
connection. This guarantees kind 3 D in its) foreign enterprises
the acquisition of real property and material rights at real
estates, in the same way, how this is for Turkish citizens the
case. This presupposes however the establishment of an address
in Turkey. Foreign enterprises can therefore so easily acquire,
but do not have for this a separate operational readiness level
locally establish, which becomes then owner of the real estate
to real property in Turkey. That must be not necessarily an
independent subsidiary - like e.g. A GmbH of Turkish right -,
but can also by a dependent branch (Branch, türk.: sube)
take place. Because kind 2 b) of the investment law opens its
material range of application also for the establishment of
such branches.
Article 35 exp. 7 of the again seized land register law authorizes
the Council of Ministers to prove certain special zones in which
for ecological, cultural or strategic reasons acquisition restrictions
apply to foreigners. Beyond that any more than five parts per
thousand of the Bodenoberfläche of a province may not be
held of foreigners.
INFO CHECKS THAT ARE MADE PRIOR TO THE PURCHASE
1. A check is made that there are
no rental agreements or mortgages upon the property
2. That the seller has a legal right
to sell the property and has a TAPU
3. That the property is legally available
for sale and not within an area where foreigners are unable
to purchase.
HOW LONG DOES THE PURCHASE PROCESS TAKE
AND REQUIREMENTS
1. A 10% deposit of the purchase
price will be required.
2. Copies of the buyers passports
and photographs are required and will be forwarded to the Land
Registry Office. Copies of these and official papers will then
be forwarded to the Military Office in Izmir, where necessary
checks will be made to ensure that the property is not within
a military zone and is available for purchase. This process
will take between 1 and 3 months.
3. Following the return of the papers
the purchaser will be contacted whereupon the balance of the
property will be required together with the property tax of
3%.
4. Both the purchaser and seller
are then required to attend at the local Land Registry office
to sign the Land Registry book following which the TAPU is issued
to the purchaser. An interpreter is present to explain this
procedure.
WHAT TAXES AND FEES ARE PAYABLE BY THE PURCHASER
1. A one off tax of 3% of the declared
value of the property payable prior to the issue of the TAPU
2. Interpreter fees at the Land Registry
Office approximately 50 pounds
3. Formal documentation and copies
approximately 180 pounds
4. Water connection fee approximately
55 pounds
5. Electric connection fee approximately
80 pounds
6. Telephone connection fee approximately
15 pounds
7. Education and earthquake insurance
approximately 30 pounds.
FREQUENTLY ASKED QUESTIONS
Question - If I sell my property
can the proceeds go back to the UK?
If you sell your property the proceeds can go back to the
UK
Question - Can I will my property
to my beneficaries?
You can make a Turkish will and leave your property to your
beneficaries. If there is no Will then the property goes to
your next of kind
Question - Do I require a residency
visa to purchase a property in Turkey?
No you do not need a residency visa to buy a property in Turkey.
A residency visa is only required if you wish to stay in Turkey
for longer than three months at one time. If you wish to purchase
a car or have a telephone connection then a residency visa
will be required.
Question - How much will it cost
to furnish my home?
A wide range of traditional and modern furniture is available
in Turkey at very reasonable prices.
Living room sets range between 500 and 1000 pounds
Dining room sets between 200 and 700 pounds
Bedroom sets between 400 and 1000 pounds
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