Guide to the Acquisition of Real Estate by Foreigners in Turkey
This memorandum describes the processes and conditions about the acquisition of a real estate by foreigners in the Republic of Turkey.
The main purpose of this memorandum is to provide information about how foreigners can acquire real estate in the Republic of Turkey and how they can acquire Turkish citizenship through such an investment.
B. LEGAL GROUNDS
Acquisition of the property by foreigners in Turkey has been regulated under the Land Registry Law (“LRL”) numbered 2644. The provisions of the main legislation in which the conditions and rules for the acquisition of Turkish citizenship are regulated under the Turkish Citizenship Law numbered 5901 (“Code”) and the Regulation on the Enforcement of the Turkish Citizenship Law (“Regulation”). Several revisions have been introduced on acquiring Turkish citizenship with the amendment of the Regulation, which was published and entered into force on the Official Gazette dated 19.09.2018 and numbered 106 (“Amendment”).
C. LEGAL CONSULTANCY SERVICES
Our legal consultancy services with regards to the acquisition of real estate in Turkey and acquisition of Turkish citizenship will be provided under 5 (five) main headings as follows:
I. ISSUANCE OF POWER OF ATTORNEY
According to the legal consultancy service to be provided, a power of attorney will be prepared, which includes the authority to purchase real estate and apply for Turkish citizenship on behalf of the client.
Afterwards, in the appointment received from the Republic of Turkey Doha Embassy Consulate Branch, the necessary documents are submitted and a power of attorney with a QR code is being approved and issued. With this QR code on power of attorney, the original version of PoA would be obtained from any Notary in the Republic of Turkey without the need to be physically sent.
II. DRAFTING SHORT DUE DILIGENCE REPORT ON THE IMMOVABLE PROPERTY
Following the issuance of PoA, in case any of our clients decide to acquire any immovable property in the Republic of Turkey, we will be drafting a due diligence report on the immovable property, which provides our clients whether there is any restriction on the property or not, zoning status of the property reflects the reality or not, and it has any liability in terms of property tax or not. In the event that it is decided to acquire the immovable property following the legal due diligence report, the application procedures of acquisition of the property are carried out.
After drafting the short due diligence report, with the approval of the client, the real estate sales transactions get started to be carried out by us.
III. PROCESSES ON SALE OF PROPERTY
1. DRAFTING PRE-SALE AGREEMENT
As a result of the short due diligence report, if the client decides to purchase the immovable property, the pre-sale agreement which is drafting the rights and obligations of the buyer and seller, is being concluded in negotiation with the property owner and/or authorized representative of her/him.
This pre-sale agreement puts the seller under the obligation to carry out the title deed transactions and protects the buyer.
2. PRELIMINARY APPLICATIONS
Following the execution of the pre-sale agreement, the owner of the immovable property or his/her authorized representative has to make a preliminary application to the Land Registry Directorate.
Should the seller party is a Turkish citizen, the preliminary appointment can be scheduled from the e-government portal (http://turkiye.gov.tr) or the online appointment system of the Land Registry Directorate (https://randevu.tkgm.gov.tr/) or calling “181” or “+90 (312) 593 99 00” (from abroad).
3. PREPARING REQUIRED DOCUMENTS
Afterward scheduling an appointment from the Land Registry Directorate, it is obligatory to be ready with the documents listed below on the date of appointment. Those are as follows;
1. Title Deed (it will be provided by the seller),
2. Copy of the Buyer’s Passport (with notarized translation),
3. “Current Value Statement of Property” (provided from the municipality by the seller),
4. Real Estate Valuation Report (mandatory to be obtained from authorized institutions- immovable properties worth $ 250,000 or more are eligible for citizenship),
5. Compulsory Earthquake Insurance Policy (it will be provided by the seller),
6. 1 (one) Photo of the Seller / 2 (two) Photos of the Buyer (photos shall be taken within the last 6 months, in the size of 6×4),
7. Identity Statement Form (it will be filled in by us on behalf of the client),
8. Power of Attorney which is including the authority to purchase the real estate.
9. Original Receipt (in case of acquisition real estate with the purpose of acquisition of Turkish citizenship, it must prove the at least $ 250,000 has been transferred from the buyer to the seller)
4. TRANSFER PROCESS OF THE IMMOVABLE PROPERTY
At the date and time of the appointment;
⮚ The seller and the buyer or their authorized persons submit the documents,
⮚ The sale agreement is concluded by both parties in the presence of the deed officer,
⮚ The property is registered on behalf of the buyer,
⮚ The official title deed is delivered to the buyer.
We would like to point out that if the immovable property is purchased for Turkish citizenship, 3-year non-sale annotation/commitment is issued. Moreover, a letter of confirmation is being requested for the conformity of such investment with the purpose of Turkish citizenship by writing to the Ministry of Environment and Urbanization. The approval letter of the Ministry of Environment and Urbanization is obtained within 1 (one) week at last and the Turkish citizenship application process begins.
D. APPLICATION FOR RESIDENCY PERMIT
If the immovable property is acquired for Turkish citizenship, the residency permit application for Turkish citizenship is made as a pre-condition for the Turkish citizenship application. The necessary information and documents are being prepared and this residence permit is being acquired in 3 (three) days.
E. APPLICATION FOR TURKISH CITIZENSHIP
According to the abovementioned Code and Regulation, the foreigners who have purchased a real estate worth at least $250,000 or equivalent foreign currency of Turkish Liras are entitled to apply for Turkish citizenship, provided that an annotation stating that it is not to be sold for three years added to the title deed. The necessary information and documents are being prepared for the foreigner who meets those requirements and the application for Turkish citizenship is being submitted by us. It will take 3 (three) – 6 (six) months.
It should be noted that the foreigner’s spouse and child under the age of 18 are also entitled to apply for Turkish citizenship.
If the application is approved, Turkish citizenship is deemed to have been acquired. Subsequently, the client is being invited to Turkey for the issuance of a Turkish passport and identity and registration of the fingerprint.
Kılınç Law & Consulting