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1. REGISTRATION PROCEDURE
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The process of purchasing real
property in Turkey can be shortly described as follows:
Choice of real estate.
Contract execution.
Deposit payment by the Buyer.
Receiving of permission for the Buyer as a foreign citizen to purchase real
property in Turkey
Transfer of ownership certificate (TAPU) to the Buyer and payment of the
remaining amount.
Key transfer, settlement.
The purchase contract mentions:
names and the address of the Buyer and the constructing company/the Seller
contract (buying) price of real property
deposit amount and the schedule of payment of the remaining amount
transaction registration terms and execution of TAPU
additional transaction terms (Constructing company/Seller services, terms of
objects delivery and costs)
When the Buyer pays the deposit he must submit a copy of his valid passport and
2 pictures of the passport format. These documents must be prepared by all
transaction participants in whose favor TAPU will be executed.
In accordance with the Turkish legislation TAPU is the only document certifying
the right of ownership to some real estate object. At the Cadastral Office where
TAPU are kept and distributed one may obtain all information concerning the real
estate object – who used to own the object before the new transaction, whether
it is encumbered with any debts or lawsuits, etc. A TAPU contains info about the
type and the address of real property, purchase date (date of a new TAPU
execution), land ownership share, location where the real estate object is
situated as well as the object price (this sum is used when the annual real
property tax is calculated and is also paid by the state if an insured accident
occurs). The cost may differ several times from the real price of purchase that
is beneficial when paying a tax, but it reduces the amount of state insurance
payments. A TAPU sample can be found on the TAPU page.
When you buy real property through our company you buy a “turnkey property” and
there is no additional fee for the transaction registration and TAPU execution.
At the receipt of TAPU the Buyer pays the remaining amount (or pays in
accordance with the schedule) and enters into the right of ownership.
The permission for foreign citizens to purchase real property in Turkey is
usually issued after 3-5 months from the date of application. TAPU can be
executed only after the receipt of such permission. In case you purchase real
property through our company the cost of permission execution is also included
into the object price.
Real property maintenance includes the following taxes and dues:
Annual real property tax – 0.1% of the property cost stated in the TAPU (can be
paid in two installments, the first one in May, the second one in November)
Ecological tax the amount of which is determined by the location of an object
and its size – 10-40 Euros/year
Annual payments for the maintenance of pools, sports grounds, saunas and other
facilities if there are any on the territory of complexes – usually from 150 to
400 Euros/year.
Public-service charges :
Electricity - 0,10 euro/kWt, including taxes
Water - 0,8 euro/m3, including taxes
Gaz - ballon 8 lt - 15 euro, modern complexes are equipped with centralized gas
and heat supply and they are paid for in accordance with the meter reading.
And the last issue that needs to be solved to lead a calm life in Turkey –
that's the issue of what one should get before coming – a visa or a residence
permit. Before the purchase of real property the rights of potential buyers are
equal to those of tourists - entrance to the country for 2-3 months depending on
the citizenship.
To prolong a visa one may use the following methods:
Without leaving the country apply to a local police foreign department to
prolong visa for another 3-6 months, this method should work for all real
property owners and their first degree relatives.
After the receipt of TAPU apply to the same local police foreign department to
receive a residence permit for a period of 1-2-5 years.
IMPORTANT TO KNOW !
The declared buyer or his representative officially named by him are the only
persons who are entitled to sign TAPU and must be personally present at the
final execution of documents.
Turkish real property objects are usually sold with a complete interior
furnishing installed and decorated (finished walls, ceilings, floors, kitchen
furniture, bathroom equipment, connection to life-support systems) for
additional price furniture and conditioners may also be installed.
For a very long time our company collaborates with large suppliers of furniture
and household appliances what allows us purchasing high-quality items at a
wholesale price. |
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REAL ESTATE ACQUISITION OF FOREIGNERS IN
TURKEY |
I.REAL ESTATE ACQUISITION OF FOREIGN REAL PERSONS IN
TURKEY
Real estate acquisition of foreign real and legal persons has been regulated in
the article 35 of the Land Registry Law numbered 2644 with law numbered 5444 and
dated December 12,2005 which was established in the Official Gazette of 26046
numbered and dated January 7,2006. New fundamental principles was regulate with
this new law for acquisition real estate of foreign real persons and and trade
companies having legal personality and established in foreign countries
according to the laws of these countries in Turkey.
New form of the article 35 of the Land registry Law is as follows:
“With the reservation of reciprocity and compliance with legal restrictions,
foreign real person can acquire real estates for the purposes of using as
residence or business aims in Turkey that are separated and registered for these
purposes in the implemented development plans or localized development plans.
The same conditions shall be stipulated in the establishment of limited real
rights on real estates. The total area of the real estates and limited real
rights on real estates that a real person of foreign nationality can acquire all
over the country can not exceed 25.000 m2. Within the same conditions set out in
this paragraph Council of Ministers is authorized to increase the area up to 30
hectares.
Companies having legal personality established in foreign countries according to
the laws of these countries can acquire real estates and limited real rights on
real estates in Turkey according to the provisions of special laws.
In case of establishing mortgage in Turkey in favor of foreign real persons and
trading companies having legal personality established in foreign countries
according to the laws of these countries the conditions and restrictions set out
in first and second paragraphs shall not be applied.
With the exception of foreign real persons and trading companies having legal
personality established in foreign countries according to the laws of these
countries, no one can acquire real estates and limited real rights on real
estates in Turkey.
For the real estates acquired through legal inheritance by citizens of a country
that have reciprocity with Republic of Turkey, the conditions and restrictions
set out in the first paragraph shall not be applied. For the real estates
acquisition by means of transactions depending on death apart from legal
inheritance, the conditions and restrictions set out in the above paragraphs
shall be applied. Real estates and limited real rights on real estates acquired
through legal inheritance by citizens of countries that do not have reciprocity
with Republic of Turkey shall be liquidated after their transfer transactions
are performed.
De jure and de facto circumstances shall be taken as basis in determination of
reciprocity. In implementation of this principle for the citizens of countries
that have not granted land ownership rights, it's stipulated that the rights
granted by a foreign country for real estate acquisition to its own citizens
should also be granted to citizens of the Republic of Turkey.
The Council of Ministers is authorized to determine the places where foreign
real persons and trading companies having legal personality established in
foreign countries according to the laws of these countries can not acquire real
estates and limited real rights on real estates within the areas in terms of
irrigation, energy, agriculture, mine, and protected areas, and belief and
cultural featured areas and special protection areas and touchy areas due to
flora and fauna features, strategic areas due to public interests and country
security by means of the proposals of relevant public institutions and
organizations with registry based coordinated maps and plans, and the rate of
the areas where foreign real persons can acquire real estates not more than 5
per thousand according to the provinces and provinces’ areas. Proposals of the
public institutions and organizations within these scope shall be examined,
appreciated and submitted to the Council of Ministers by means of a commission
that carries out studies within the authority set out in this paragraph and
constitutes of relevant representatives of administration in the structure of
the ministry that General Directorate of Land Registry and Cadastre is related
to.
Map and coordinate values concerning the military forbidden zones, military and
private security zones and strategic zones that are determined after the
enforcement of this law and their alterations shall be given without any delay
by the Ministry of National Defense to the ministry that General Directorate of
Land Registry and Cadastre is related to.
The parcels needed to be expropriated or to be annotated on land register due to
be in the areas determined in the above paragraphs shall be notified by relevant
institutions to relevant Land Registry Offices.
The real estates and limited real rights on real estates acquired contrary to
the provisions of this article or determination of misuse according to the
purpose of acquisition without legal necessity shall be converted to value and
paid to owner of unless the real estates liquidated by the owner within the
period given by Ministry of Finance.”
I.1.RECIPROCITY PRINCIPLE
In the new regulation, instead of exact equivalent implementation of reciprocity
principle, it's stipulated that the rights given by a foreign country to its own
citizens or trade companies having legal personality and established according
to its own laws, should also be given to citizens and trade companies of the
Republic of Turkey.
The Council of Ministers expressed what should be understood from the
reciprocity principle in its decision dated May 29, 1940 and numbered 2/13394.
According to this decision, in addition to legislative regulation of reciprocity
principle, practical applicability of it is also required for its existence. By
this decision, in which it's taken into consideration that reciprocity in law
will not indicate actual situation, restrictions encountered in a foreign
country by the citizens of the Republic of Turkey, in case of their application,
are wanted to be taken as a basis in implementation of reciprocity. Therefore,
for the existence of reciprocity between our country and a foreign country about
real estate acquisition, reciprocity must be both in law and in practice.
According to this principle, for real estate acquisition of a foreign country's
citizen or trade company in our country, the citizens and trade companies of the
Republic of Turkey should also have the right to acquire real estate in this
foreign country and this right must be accepted by laws and must be practically
applicable.
I.2.EXCEPTIONS OF RECIPROCITY PRINCIPLE
Although the first condition is reciprocity for real estate acquisition of
foreign real persons in our country, reciprocity principle has some exceptions
in terms of real persons. These exceptions are as follows:
a. Since haymatlos persons have no state citizenship, there isn't any state to
decide about reciprocity. For this reason, haymatlos persons are exempted from
reciprocity principle.
b. According to the article 7/2 of "Convention on Legal Situation of Refugees"
dated July 28, 1951 and ratified by Turkey with the law dated August 26, 1961
and numbered 359, the refugees are exempted from reciprocity principle in a
country after three years of residence. The refugees in Turkey are also
subjected to the same provision. It is enough for refugees to prove this
situation with an official document for exemption.
c. According to the article 8/E of the Law for Encouragement of Tourism numbered
2634, foreign real and legal persons who want to make investment for tourism
objective in Turkey, can acquire real estate by the decision of the Council of
Ministers in tourism areas and centers being exempted from reciprocity principle
and restrictions formulated for foreigners.
I.3.LEGAL RESTRICTIVE PROVISIONS
The second condition for real estate acquisition of foreign real persons in our
country is to comply with restrictive provisions involved in law. Some
restrictions are involved in our laws concerning real estate acquisition of
foreigners. These restrictive provisions are as follows:
a. According to regulations involved in the Military Forbidden Zones and
Security Zones Law numbered 2565 which restricts geographically real estate
acquisition of foreigners in our country, it is not possible to sell, transfer
and rent real estate located within military forbidden zones and security zones,
to foreign real and legal persons.
b. According to the article 35 of the Land Registry Law numbered 2644, foreign
real persons can not acquire real estate more than 2,5 hectares in our country,
however for acquisition up to thirty hectares, decision of the Council of
Ministers is required. Legal inheritance is exception of this rule.
I.B. REAL ESTATE ACQUISITION OF FOREIGN trade companies having legal personality
IN TURKEY
Companies having legal personality established in foreign countries according to
the laws of these countries can acquire real estates and limited real rights on
real estates in Turkey according to the provisions of special laws.
Relevant special laws:
- Law for Encouragement of Tourism numbered 2634
- Petrolium Law numbered 6326
- Industry Regions Law numbered 4737
In case of establishing mortgage in Turkey in favor of foreign real persons and
trading companies having legal personality established in foreign countries
according to the laws of these countries the conditions and restrictions set out
in first and second paragraphs shall not be applied.
With the exception of foreign real persons and trading companies having legal
personality established in foreign countries according to the laws of these
countries, no one can acquire real estates and limited real rights on real
estates in Turkey.
I.C.REAL ESTATE ACQUISITION OF FOREIGN CAPITAL COMPANIES
The expression of "foreign capital companies" is usually confused with the
expression of "foreign company".
First of all, it should be stated that "foreign capital companies" are
established according to the provisions of the Turkish Trade Law in Turkey and
enrolled in Turkish Trade Register. In other words, these countries are
subjected to the legal provisions of the Republic of Turkey. Only, the whole or
part of their capital belongs to foreign real and legal persons. Availability of
foreign shareholders within the company will not include it within the status of
foreign legal personality; because nationality of the company and nationality of
its shareholders are different matters.
The Law for Encouragement of Foreign Capital numbered 6224 and dated January 18,
1954 was repealed by Foreign Direct Investment Law numbered 4875 and dated June
5, 2003 that entered into effect being published in the Official Gazette
numbered 25141 and dated June 17, 2003, new provisions were adopted to encourage
and increase foreign direct investments, to protect rights of foreign investors,
and to transform permission and ratification system to informative systems in
realization of foreign investments.
With regard to the subject, a circular numbered 1363-100/841 and dated August 7,
2003 was announced to all our units through our regional directorates and it was
stated that implementation would be carried out within the framework of the
following statements.
By the Foreign Direct Investment Law numbered 4875, foreign investors are
subjected to equal treatment with domestic investors; permissions and
ratifications like investment permissions, company establishment permissions,
were removed. Moreover, companies having legal personality that foreign
investors participate in or establish, in our country, are allowed to acquire
real estate or limited real rights in areas where acquisition of these rights is
allowed for Turkish Citizens.
Companies established according to the repealed Law numbered 6224 or that will
act according to the Law numbered 4875 which is about the activities of foreign
capital companies in our country, are considered as companies of the Republic of
Turkey, according to criteria of establishment place or administration center.
For this reason, real estate acquisition and other demands concerning land
register of foreign capital companies that either obtained activity permission
according to the repealed Law for Encouragement of Foreign Capital or will act
according to the Foreign Direct Investment Law numbered 4875, are concluded by
relevant Land Registry Offices implementing the same methods and rules as for
companies established according to the Turkish Trade Law, after examining
authorization documents given by the Trade Register Authorities that indicate
the competent person and competence for real estate acquisition of the company.
II.TRANSFER
It is free to transfer through banks and private financial institutions, revenue
and value of sale earned from real estate and real rights acquired by foreigners
with or without exchange of foreign currency.
III.AUTHORITY OF APPLICATIONS
By the article 26 of the Land Registry Law numbered 2644, the duty and
authorization to regulate contracts concerning property and real rights
excluding property were given to Land Registry Offices.
Foreigners who want to acquire real estate or benefit from real rights apart
from property will make their applications to the Land Registry Office where the
real estate is located.
Detailed information about the subject can be provided from the General
Directorate of Land Registry and Cadastre.
IV. REQUIRED DOCUMENTS FOR APPLICATION
There is no difference between Turkish citizens and foreigners in terms of
required documents for application.
IV.A. In terms of Real Persons,
a. Title deed of the real estate if available, otherwise a document indicating
the city block and parcel of the real estate or verbal statement of the owner.
b. Identity card or passport of foreigner given by his/her own country and two
small photographs.
c. If the person applying for demand is representative, a power of attorney of
the representative, and identity card with photograph, two small photographs of
the representative, and if some of the purchasers are not present during the
transaction, identity card with photograph, two small photographs and power of
attorney of the representatives that represent the purchasers, are required.
IV.B. In terms of Legal Persons
a. Companies established according to the Foreign Direct Investment Law numbered
4875 will show competence document given by Turkish Trade Registry, a document
given to the person assigned basing on this, and signatures certificate.
b. Foreign trading companies established in foreign countries according to their
laws are required, in compliance with the legislation of their country, to show
a document having the effect of competence document given by relevant
authorities.
With regard to charges and taxes required to be paid in the course of
transactions, there is no difference between persons of foreign nationality and
citizens of the Republic of Turkey. However, when asking the competent military
post to determine whether the real estate demanded by real or legal person of
foreign nationality is located out of Military Forbidden Zones and Security
Zones or not, if any control in the field is needed to mark on map of 1/25000
scale where the real estate is, a kind of service value will be paid according
to transaction named “showing the parcel in its place.”
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