In the Republic of Türkiye, the acquisition of immovable property by foreign natural persons and by legal entities with foreign capital takes place within the framework of the relevant legislation, in particular Articles 35 and 36 of Title Deed Law No. 2644 (Tapu Kanunu).
1. Mandatory Requirements for Property Acquisition by Foreign Natural Persons (Title Deed Law Art. 35)
The legal process for property acquisition by foreign natural persons is based in particular on the principles of transparency and valuation.
A. Foreign Exchange Purchase Certificate (DAB) Requirement
✦ Practice: Since 24 January 2022, submission of a Foreign Exchange Purchase Certificate (Döviz Alım Belgesi, DAB) is mandatory when foreign natural persons acquire immovable property by purchase.
✦ Procedure: To pay the sale price of the property, the foreign currency must be exchanged in the name of the Central Bank of the Republic of Türkiye (TCMB) through a bank operating in Türkiye, and the DAB for this transaction must be submitted to the Land Registry Directorate (Tapu Müdürlüğü).
✦ Declaration: The sale price declared at the land registry must match the Turkish lira amount recorded on the DAB.
B. Mandatory Property Valuation (Appraisal) Report
✦ Practice: In all purchase and sale transactions to which foreign natural persons are a party, a Property Valuation Report prepared by an institution licensed by the Capital Markets Board (SPK) or the Banking Regulation and Supervision Agency (BDDK) must be obtained in order to determine the current market value of the property.
✦ Use: The report certifies that the sale price declared at the land registry is consistent with the actual value of the property.
C. Current Value Thresholds for Residence Permit and Turkish Citizenship
✦ Short-Term Residence Permit (2023 Current Value): The foreigner must acquire a residential property worth at least the Turkish lira equivalent of USD 200,000.
✦ Turkish Citizenship (Exceptional Route): The foreigner must acquire immovable property worth at least the Turkish lira equivalent of USD 400,000, and an annotation that it will not be sold for 3 years must be entered on the title deed.
2. Legal Scope of Property Acquisition by Foreign Companies (Title Deed Law Art. 36)
Property acquisition in Türkiye by companies with foreign capital is specifically regulated by Article 36 and the provisions of Law No. 5444.
A. Scope and Definition
Companies subject to permission:
1.Foreign Companies: Foreign legal entities established under the laws of their own countries.
2.Local Companies with Foreign Capital: Companies established in Türkiye in which foreign investors hold fifty per cent or more of the share capital or have the right to appoint the majority of those who will manage the company.
B. Acquisition Procedure (Permission Requirement)
Property acquisition in Türkiye by foreign companies and companies with foreign capital within this scope is subject to a permission procedure depending on the nature of the property to be acquired:
✦ Acquisition Without Permission (General Rule): No permission from the Governor's Office is required for built property (buildings, offices, factory buildings, etc.) that companies will acquire for use in the fields of activity stated in their articles of association.
✦ Acquisition With Permission (Special Cases/Exception):
Unbuilt Property: For unbuilt property (land, fields, vineyards, orchards, etc.) that companies will acquire, permission must be obtained before the acquisition by applying to the Governor's Office (Provincial Planning and Coordination Directorate).
Restricted Areas: Regardless of the nature of the property (built or unbuilt), if it is located in military restricted zones, special security zones or areas of strategic importance, special permission must be obtained from the relevant authorities.
✦ Link to Field of Activity: Whether with or without permission, property acquisition by companies must be consistent with the company's purpose of establishment and the field of activity stated in its articles of association.
3. General Legal and Financial Restrictions
✦ Property Acquisition Limit (Natural Persons): A foreign natural person may acquire a maximum of 30 hectares of immovable property across the country, and this acquisition may not exceed 10% of the surface area of the district in which the property is located.
✦ Title Deed Fee: In purchase and sale transactions, a Title Deed Fee (Tapu Harcı) totalling 4% must be paid on the declared sale price, 2% each from the buyer and the seller.
✦ Compulsory Insurance (DASK): Submission of a Compulsory Earthquake Insurance policy is mandatory for buildings.
