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 29, 2005 which was established in the Official Gazette of 26046 numbered and dated January 7,2006.  By this regulation, new fundamental principles is regulated for real estate acquisition of foreign real persons and trade companies having legal personality and established in foreign countries according to the laws of these countries in Turkiye. 

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 Turkiye 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 2.5 hectares. Within the same conditions set out in this paragraph Council of Ministers is authorized to increase the area up to 30 hectares.       

In case of establishing mortgage in Turkiye in favour 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 Turkiye. 

For the real estates acquired through legal inheritance by citizens of a country that have reciprocity with Republic of Turkiye, 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 Turkiye shall be liquidated after their transfer transactions are performed.    

As KARAL LAW OFFICE for presenting faster, more qualified and trustworthy services to our clients, continually we are giving services regarding the regulations in the Turkish Acts pertaining the Real estate acquisition of foreign persons in Turkiye and regulations in foreign countries pertaining the Real estate acquisition of Turkish Citizens in foreign countries by taking the precedent decrees of AIHM into account. 

Another point that should be insisted on this issue is to determine within which frame Reciprocity Principle should be examined. Also ‘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 Turkiye. 

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 the regulation, practical applicability of it is also required for its existence.

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 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 Turkiye 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 Turkiye are also subjected to the same provision.

It is enough for refugees to prove this situation with an official document for exemption.

c. In case of establishing mortgage in Turkiye in favour 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.

REAL ESTATE ACQUISITION OF FOREIGN trade companies having legal personality IN TURKIYE 

By the amendments performed in the 35th article of the Land Registry Law 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.

Relevant special laws are as follows:

- Law for Encouragement of Tourism numbered 2634

-  Petroleum Law numbered 6326

- Industry Regions Law numbered 4737

In case of establishing mortgage in Turkiye 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 Turkiye. 

REAL ESTATE ACQUISITION OF FOREIGN CAPITAL COMPANIES  

The expression of Foreign Capital Companies is usually confused with the expression of Foreign Company.  Foreign Capital Companies are established according to the provisions of the Turkish Trade Law in Turkiye and enrolled in Turkish Trade Register. In other words, these countries are subjected to the legal provisions of the Republic of Turkiye.

Real estate acquisition or restricted law real right acquisitions in the regions that are subjected to acquisition of  Citizens of Republic of Turkiye  is released free for foreign capital companies and are concluded implementing the same methods and rules as for local companies and permissions and approval processes such as investment permissions and company foundation permissions are removed according to the Foreign Direct Investment Law numbered 4875.

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.

REAL ESTATE ACQUISITION STATISTICS OF FOREIGN REAL PERSONS IN OUR COUNTRY 

a) REAL ESTATE ACQUISITION OF SYRIA CITIZENS IN OUR COUNTRY 

The properties of Syria Citizens are acquisitions that are acquired before law to annex of Hatay by Turkiye in1939.  The properties of Syria Citizens that are acquired after this date are arisen as a result of cadastral determinations and inheritance processes regarding decree of courts.

b) REAL ESTATE ACQUISITION OF GREEK CITIZENS IN OUR COUNTRY 

Greek Citizens can not acquire properties from coast and border zones except legal inheritance. With the exception of not being coast and border zones they can have acquisitions in internal zones in the frame of legal restrictions. Property acquisitions of Greek Citizens of Turkish origin are released free for all locations in our country with the exception of not being security zones and military restricted zones.

c) REAL ESTATE ACQUISITION OF ISRAEL CITIZENS IN OUR COUNTRY 

Israel Citizens can acquire one domicile regarding reciprocity basis with the condition of having 6 months valid residence permit.

d) FOREIGN TRADE COMPANIES

According to the article 35 of the Land Registry Law judicial trade companies that are founded in foreign countries regarding laws of their own countries can only have restricted law real rights on real estates and properties according to the Special Laws.

e) REAL ESTATE ACQUISITION OF FOREIGN CAPITAL COMPANIES 

Real estate acquisition or restricted law real right acquisitions in the regions that are subjected to acquisition of Turkish Citizens is released free for foreign capital companies and are concluded implementing the same methods and rules as for local companies and permissions and approval processes such as investment permissions and company foundation permissions are removed according to the Foreign Direct Investment Law numbered 4875.

The 4775 numbered law is cancelled with the reason of being unconstitutional and it is known that it is stil in Constitution Court.