Moroğlu Arseven Avukatlık Ortaklığı
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Yes, foreigners can own and occupy real estate and hold shares in property owning companies in Türkiye, subject to certain restrictions..
Foreign individuals must be nationals of countries designated by the President and may acquire up to 30 hectares countrywide, not exceeding 10% of any district's privately owned land. Military clearance is required in security zones.
Foreign commercial companies incorporated under the laws of foreign countries may acquire real estate and limited rights in rem in Türkiye only if permitted by specific laws. Apart from these companies, no foreign legal entity may acquire real estate or limited rights in rem. However, these restrictions do not apply to mortgages established in favour of such companies or foreign individuals. The applicable special laws include the Tourism Promotion Law, the Law on Industrial Zones, and the Turkish Petroleum Law.
The President may impose further restrictions based on national interest, including limits by region, type, or ownership ratio.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
No, the foreign companies are not subject to any financial restrictions for the purchase of real estate.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
The title deed fee of 2 percent of the sales price is payable by both the purchaser and the seller separately when buying real estate. In practice, parties usually agree on imposing the total amount of 4 percent to the purchaser. As a rule, commercial real estate sale and sales made by constructors are subject to Value Added Tax (“VAT”). Additionally, the Turkish Natural Catastrophe Insurance policy is also required to be issued during the title deed transfer while buying a real estate. Further real estate consultant service fee of 2 percent of the sales price + VAT may be requested by the real estate consultants.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
Property owners are responsible for annually paying the property tax collected by the municipalities. The amount of this tax is calculated based on the value of real estates. This tax must be paid every year, starting with the year after buying the real estate.
The taxpayer is the owner of the real estate. The property owner cannot transfer the burden of this tax to the tenant or an occupier. If there is a joint ownership on the real estate, all owners are obliged to share the tax pro rata to their shares.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
Yes, the first delivery of residential or commercial units to (i) Turkish citizens residing abroad for more than six months with a work or residence permit, (ii) foreign individuals not settled in Türkiye, and (iii) institutions with no legal or business center in Türkiye and no permanent establishment here, is exempt from VAT, provided the price is brought into Türkiye in foreign currency.
However, if the property is sold within three years, the previously exempt VAT must be paid with deferred interest before the title transfer.
How is the ownership of Real Estate evidenced in your jurisdiction?
The ownership of real estate is evidenced by registration at Land Registry. This is a public register of titles.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
Land Registry entries are publicly available. Whoever that can prove his/her interest, he/she can examine the information and documents in the Land Registry before the land officer.