Turkey: Acquisition of Real Estate by Foreign Investment in Turkey

Last Updated: 9 November 2010
Article by Ilayda Balkan

Legislation regarding purchasing of real estate in Turkey by foreign investments have changed many times over the past years. Supreme Court decisions, international or political developments and economic necessities are some of the pushing factors of such amendments.

Primarily it should be clarified that, "Foreign Company" does not correspond "Company with Foreign Investment". In practice, the company incorporated in Turkey by foreign shareholders and/or with foreign capital, is considered as a Turkish Company since such company is formed in accordance with Turkish Commercial Law and is registered to Chamber of Commerce Trade Registry. However, the term of "foreign company" corresponds to companies established in foreign country in accordance with its local law. The objective of this review is to mention briefly about the rules of procedure and recent changes on acquisition of real estate by "Companies with Foreign Investment" incorporated in Turkey.

The legal framework on the acquisition of real estate by a company with foreign investment in Turkey is regulated by Property Act No. 2644, Article 36. Accordingly, companies incorporated in Turkey by foreign investors may acquire property rights and/or exercise limited real rights on a real estate, only for the purposes of conducting the activities referred to in their Articles of Associations. This principal is also applicable both for the transfer of property to another company with foreign investment and for the transfer of a company holding such real estate rights with national capital to a company with foreign capital participation through share transfer.

Procedures and principles about the implementation of the Property Act, Article 36 are noted by the Regulation Regarding Acquisition of Immovable Properties by Companies with Foreign Investment which was again recently modified at October 6, 2010. Pursuant to current Regulation, acquisition process is implemented by Governorates who act as clearance providers in case of such an inquiry by a company with foreign investment. Accordingly the companies willing to acquire a property in Turkey shall apply to the Governorate Provincial Planning and Coordination Directorate at the location of property by presenting the required information and documents:

  1. Petition for application,
  2. Abstract of title and land volume certificate with coordinates in relation to the property,
  3. An affirmative covenant submitting that the property will be used in the purpose of company's 'Field of Activity' defined in its 'Articles of Association' and a signed commitment by the authorized signatures of company executives with power to represent and bind the company,
  4. A company resolution authorizing the signature powers for the purposes of such acquisition,
  5. In case company's shares are not listed in the stock exchange; a transcript received in last one month from affiliated Trade Register Office that proves and identifies the current foreign shareholders,
  6. In case company's shares are listed; a document received from Central Register Institution including: names or titles, allegiances and percentage of shares of foreign shareholders holding 10% or more of company's capital with the stocks listed in stock exchange and a certificate showing the foreign shareholders holding the stocks that are not listed in stock exchange.

The proceedings under the Regulation Regarding Acquisition of Immovable Properties by Companies with Foreign Investment are put in operation thereby with submitting the documents in whole and complete to the Governorate. Applications may also be made by post and there is no requirement for physical attendance for delivery of documents. In repetition of inquiries by same company within the same year of the first application documents noted above in subsection (c) and (d) are not required to be resubmitted.

The processing of the application and clearance can be summarized briefly as:

  1. The companies willing to acquire an immovable property apply to the Governorate Provincial Planning and Coordination Directorate at the location of immovable property due to submit the information and documents stated above.
  2. Governorate sends the abstract of title and land volume certificate with coordinates to the General Staff (Army) and makes a request to be informed if the property is located in military forbidden zones or not. Related military unit shall respond within 15 days even it is approvable or not. In case the request is not responded within 15 days it will be deemed that the property is not in military forbidden zones.
  3. Governorate concurrently makes a request to Provincial Security Directorate and Provincial Gendarmerie Command in accordance to be informed about if the property located in any special security zones or not and similarly if the application is not responded within 15 days, the property is deemed to be out of any special security zones.
  4. For the immovable properties located in military forbidden zones or military security zones, Governorate makes a request to General Staff again if the acquisition is approvable within the considerations of State security or not. Again similarly if there is no response within 15 days the acquisition is regarded to be approvable as for the State security reasons.

By means of these bureaucratic arrangements a resolution is pushed to be issued within 15 days of application in order to avoid any delay.

Following the end of such inquiries the Governorate informs the company and the Land Registry Office in writing of its clearance for the transaction valid for three months meaning that the transaction needs to be finalized before such deadline or the procedure for clearance shall be repeated.

In cases of local capital companies with real estate assets transferring shares to foreign investors, this information is to be submitted to Treasury Undersecretary by the company, under the provisions of Foreign Direct Investment Law Application Regulation. Treasury conveys the information about the company transferred to foreign capital (investment) to General Directorate of Land Registry and Cadastre and the same procedure above summarized is applied to the company' s real estate assets whose shares are to be transferred.

At the end of an evaluation if such a real estate kept by foreign investment company is not in compliance with State security or the relevant commitments provided at the acquisition stage for use of property and company's field of activity defined in its Articles of Association, then the company will be informed in writing and has 30 days to respond back to relevant Governorate and otherwise it will be assumed that it accepts the incompatibility. Separately the Commission may allow 45 days to company for making relevant adjustments if possible and this time allowance may be extended for another 6 months. If such adjustments are not made, the Ministry of Finance may take action to liquidate the real estate within 6 months.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions