In recent years, Turkey has witnessed a growing trend among foreign investors seeking to invest in real estate. Arab investors, in particular, have shown significant interest in exploring valuable lands and making strategic land investments in Turkey.
The attractive conditions and diverse landscapes in Turkey, combined with well-developed transportation networks, make major cities the preferred choice for real estate investments among foreign investors.
Beyond transportation infrastructure, factors such as healthcare, entertainment, and similar amenities further enhance the appeal of real estate investments for foreigners. Additionally, investing in real estate in Turkey offers substantial advantages, including the potential to acquire Turkish citizenship.
Related: Real Estate Construction Law Services
Foreigners’ Real Estate Investment in Turkey:
- Legal Framework: Foreign individuals can purchase land in Turkey under specific conditions. The most crucial condition is that foreigners can acquire a maximum of 30 hectares of land in Moreover, foreigners have the right to own real estate up to 10% of the total private property in the district where the property is located. The transfer of ownership is formalized through a legally binding contract and a title deed issued by the Land Registry Directorate. Foreign buyers are required to be citizens of selected countries that have reciprocity agreements with Turkey. During the purchase process, foreign investors must initially apply to the Land Registry Directorate. During the application process, they need to submit the title deed, identity card, and a document indicating the current value of the property. If either the buyer or seller does not speak Turkish, a certified interpreter must be present. To qualify for Turkish citizenship through investment, foreign investors are required to purchase real estate worth at least $400,000.
- Investment Opportunities: Real estate investment offers significant long-term profit potential. Location plays a critical role in determining the success of an Investing in areas with high development prospects can maximize returns. Major metropolitan cities like Istanbul, Ankara, and Izmir are particularly attractive to foreign investors. Besides monetary gains, owning property in Turkey also provides the opportunity to obtain Turkish citizenship. Another significant advantage of land investment is that it allows foreign investors to live in Turkey comfortably without dealing with issues such as rent and property maintenance.
- Utilizing Purchased Land: The most lucrative use of purchased land is locating it in central areas, as this can increase its value over time. Such land can be selected for various projects, including residential buildings, hospitals, shopping centers, and Land can also be used for constructing individual properties or apartment complexes, with substantial profits potentially realized from construction activities. Additionally, land can be leased, providing financial benefits to investors while adhering to mutually agreed-upon terms.
Legal Limitations:
- Land Size Restrictions: Foreign individuals cannot purchase more than 30 hectares of real estate in Turkey, except when the President decides to increase this limit, allowing a foreign individual to acquire a maximum of 60
- Land Area Limitation: The total area of the property cannot exceed 10% of the district’s total private property area.
- Special Security Zones: In cases where the property is located in Special Security Zones, permission must be obtained from the governorship of the relevant region.
- Military Security Zones: For properties within Military Security Zones, permission must be obtained from the military authorities in the region.
- Land Development Requirement: If the purchased land is undeveloped, such as vacant land or fields, a development project must be initiated within two years and submitted for approval by the relevant ministry; otherwise, the land may be liquidated.
- Agricultural or Specially Protected Areas: For properties located in agricultural zones or Specially Protected Areas, approval regarding the suitability of the property for sale must be obtained from the relevant ministries.
Foreign Individuals’ Real Estate Acquisition: Under Article 35 of the Land Registry Law, citizens of 184 countries (subject to change) can purchase various types of real estate in Turkey without reciprocity requirements or legal restrictions.
Specific information about which nationalities can purchase real estate in Turkey can be obtained from Turkish Embassies/Consulates and the General Directorate of Land Registry and Cadastre. It is worth noting that, with the exception of Syrian citizens, nationals from Arab and Islamic countries are also eligible to purchase real estate in Turkey.
Real Estate Acquisition by Foreign Legal Entities: Foreign commercial companies established in accordance with the laws of their home countries can only acquire real estate in Turkey if there are specific legal provisions allowing such acquisitions.
Other legal entities, excluding foreign commercial companies, are generally not permitted to purchase real estate. However, companies established under Turkish law and meeting the criteria for foreign capital companies can acquire real estate for the purposes specified in their articles of association.
Conclusion: Real estate investment in Turkey presents an enticing opportunity for foreigners seeking growth and diversification of their investment portfolios. Understanding the legal framework and the various factors that influence investment success is crucial for foreign investors.
Turkey’s strategic location, growing economy, and vibrant real estate market make it a promising destination for foreign investors looking to capitalize on their investments while enjoying the benefits of Turkish citizenship. For more detailed guidance and legal advice on real estate investments in Turkey, consult with experienced legal professionals like Bayraktar Attorneys.
