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PURCHASING A
PROPERTY IN TURKEY
This page updated
on 15.February.2006 ..!
"As it has been announced
earlier in 26.July.2005"
previous legislation applicable for foreigners, who wish to purchase land or
property in Turkey, had been ruled to be unconstitutional by the Turkish
Constitutional Court. The amended law, which was presented before the court, had
been
unfortunately been rejected. Therefore, until the law is ratified and approved
by the Parliament any applications made by the foreigners to the land
registry office will be received to check and put into order but
land registery offices will not issue title deeds
yet.
UPDATE by 27.January.2006 ! But, Turkish National assembly has
agreed and signed new law for foreign citizens buying property in Turkey (dated
29.12.2005). According to new law foreign citizens can only buy property in
areas where they have been designated and planned as business and
residential reasons. Also, this law brings limitation for the sizes of the land
and properties that foreign citizens can own. ei; 2,5hectar maximum. This
limitation can only be changed upto 30.hectar by government for other reasons if
needed.
We are still
waiting for further details to come to
District Land
Registry offices
(Tapu Mudurluklerine) about how this new law will be proceed. Title deeds may be started to issue soon
within a few weeks time once the procedure rules annouced by government. Please check it before you make your arrangements.
We have
further information available if needed.
Please contact us.
NEW UPDATE by
15.February.2006 ! We finally have the
more detail about the new law and the details of the process. Please see below
information given by local English news paper in Fethiye (Land of Light - Local
English newspaper by 11.02.2006);
"Yücel
Yalçın, the Director of Registration of Title Deeds in Fethiye, furnished the
following information in this regard. “We received the circular on Friday and we
started accepting applications as of Monday, the 30th of January, 2006. We shall
endeavour to fulfil the formalities on these applications in shortest possible
time. Just as in the previous law, we shall continue to carry out our
correspondence with the Ministry of National Defence to establish whether the
land in question is within the forbidden zone and subject to limitations due to
national security.”
"Article
35 of the law on registration of title deeds, relating to sales to foreigners,
which was cancelled on the 26th of July, 2005, was amended and came into force
as of the 23rd of January, 2006.
Circular No. 2006/1 provides for foreign nationals and business concerns to own
land in Turkey on the basis of reciprocally between the countries.
The amended article sets forth certain conditions for foreign citizens and the
land they wish to own as follows: “Legal foreign entities may own real estate in
Turkey for business offices or residences, provided that it is in line with the
conditions of reciprocally and within the provisions of existing laws, on land
allocated for this purpose in the national and local development plans. The
total land owned by foreign nationals may not exceed 2,5 hectares. However, the
Council of Ministers may increase this limit to 30 hectares Based on this law,
only the real foreign entities and business concerns established in accordance
with the laws in their own countries may own real estate in Turkey.”
Furthermore, expatriates and foreign business concerns may not buy land on
locations under protection for purposes of irrigation, energy, agriculture,
mining, historical, religious and cultural values, and national security. The
land purchased within a city may not exceed 5 per thousand of dimensions of the
area in its boundaries.
Yücel Yalçın, the Director of Registration of Title Deeds in Fethiye, furnished
the following information in this regard. “We received the circular on Friday
and we started accepting applications as of Monday, the 30th of January, 2006.
We shall endeavour to fulfil the formalities on these applications in shortest
possible time. Just as in the previous law, we shall continue to carry out our
correspondence with the Ministry of National Defence to establish whether the
land in question is within the forbidden zone and subject to limitations due to
national security.”
RULES FOR
PURCHASE OF PROPERTY FOR GUIDANCE:
PURCHASE
PROPERTY WITH THE CONSULTANCY AN ADVICE OF AN ENGLISH SPEAKING TURKISH LAWYER OR
AN EXPERT AND TRUSTABLE ESTATE AGENCY.
Foreign citizens
may purchase property in Turkey, subject to the following conditions:
(a) The property
can be paid for in either Turkish lira or foreign currency. There are also no
restrictions about the transfer of foreign currency or Turkish Lira from a
Turkish or foreign bank.
(b) Applications
should be made to the District Land Registry office (Tapu ve Kadastro
Mudurlugu), when a suitable property for purchase is found.
According
to recent changes
in Turkish legislation (i.e. on 29.12.2005) now permits foreigners to buy a
property in the boundaries of a municipality, i.e. council district (Belediye)
and other places where they are reserved, planned and designated as
business and residential areas. However, it is still necessary to obtain
permission from the Military, prior to purchase.
Note: Turkey and
the UK have a bilateral agreement to avoid double taxation. Tax of the property
in Turkey is payable to the Turkish tax authorities as the relevant law
requires. There are some nationalities that they can not buy
property in Turkey yet. Please check it before you make your arrangements.
Above
information may have little changes according to detailed rules of title deed
transfer procedures that we are waiting to come to
District Land
Registry office form government. Please check it before you make your
arrangements.
Basic procedure of buying a
property in Turkey
Step#1.
Finding a property that you want "You need good advice about location, quality,
financing and price"
Step#2.
Checking the title deed, planning and permissions of the property with local
authorities "making sure it is clean - FREEHOLD"
Step#3.
Signing a contract between buyer & seller within the control of your legal
advisor or solicitor or notary and paying the deposite.
Step#4. Making
application to land registry office for deed transfer (this may take afew months
until military permission arrives)
Step#5.
Completing property work, payments and legal papers between parties according to
contract signed and completing deed transfer once military permission arrives.
If you have any further enquires please
contact us for updated information |