Construction and Consulting

Rules and Regulations about buying property in Turkey

The principles governing purchase of property by foreign (i.e. non-Turkish) nationals in Turkey is governed by the 1934 Property Act (Law Nr. 2644 dated 22 November 1934). The legal framework set up in 1934 was modified for the first time by a by-law (Law Nr. 4916) dated 3 July 2003. This law was predicated on a reciprocity clause; that is to say, citizens of countries whose governments allow Turkish nationals to purchase real estate in their country were to be allowed to purchase real estate in Turkey. However, following steps taken by Turkey's main opposition party CHP, the modifications brought by the 2003 by-law were declared as void by the Turkish Constitutional Court on 26 April 2005, in a decision to enter into effect as of 27 July 2005 and the purchase of real estate by foreign nationals was suspended until a modified law dated 7 January 2006 was brought into effect. This law, Law Nr. 5444, now enacted, instead of being a by-law modifying various paragraphs of the 1934 Property Act, is a fully stated legal text.

For the moment, all overseas nationals are subject to a clearance by the Turkish military authorities before being allowed to proceed with any purchase. This is to establish that the land/property is not in a militarily sensitive area, and that the individual is considered as suitable to own real estate in Turkey. Designation of land suitable for overseas purchasers is expected to be determined at by Land Registry Offices, based on information supplied by the military.

The Council of Ministers is also expected to determine, in the three months following the promulgation of the law, those areas where reserves on purchase due to considerations stemming from irrigation, energy, agriculture, mining, history, religion and culture issues and for preservation of natural flora and fauna are put in effect. Property acquired through inheritance is not subject to the limitations and reserves stated above.

From January 2008, foreign investors are able to apply for a mortgage within Turkey. The revision in existing laws, aims to encourage foreign investment, replacing the previous barrier whereby investors had to finance their Turkish real estate through cash purchases or mortgages arranged within their native country.

These in easy words means that real persons and companies from foreign countries which Turkey has got a contract with are allowed to buy real estate as far as these properties are not close to military areas or other areas with importance of history or special fauna and flora. Persons with citizenship from the following countries are allowed to buy: England, Ireland, Germany, Holland, Norway, Sweden, Denmark, Austria, Switzerland, Belgium, USA, Spain, Italy, Canada, Luxembourg, Australia, France, Greece, Portugal, Poland, Croatia, Israel, Finland, Estonia, Hungary and Russia.