Guide For Purchase Of Property In Turkey By Foreign Companıes
Companies may be defined as:
a. DOMESTIC COMPANIES: Established as per Turkish Law and registered to Turkish Trade Registry
b. FOREIGN COMPANIES: Established in foreign companies and established as per their own legislation.
Domestic companies may also be divided into two as:
a. Domestic Companies with Domestic Capital
b. Domestic Companies with Foreign Capital
DOMESTIC COMPANIES WITH FOREIGN CAPITAL
These are the companies that established by foreign investors in Republic of Turkey or foreign investors act as shareholders of a Turkish legal entity.
Foreign investor may be defined as;
a. Real persons having foreign nationality
b. Turkish citizens residing abroad/ foreign legal entities established as per their own legislation/international organizations
Foreign Direct Investment is also defined as;
(i) establishing a new company or branch;
(ii) being a shareholder to an existing company via purchase of share outside of securities exchanges or at least 10% share from securities exchanges or right of vote at same percentage.
If the property acquired by foreign companies are categorized, it may be classified as;
a. Industrial or commercial enterprises.
b. Purchasing immovables and real estate.
c. Acquiring restricted real rights on energy, tourism, mining, port and shipyard sectors.
Domestic companies with foreign investments are allowed to purchase property in Turkey with the same principles applied to Turkish citizens as per Article 3/d of Foreign Direct Investment Law No 4875 and dated 05/06/2003.
“It is allowed for foreign investors’ companies established in Turkey or participate in other companies to purchase property or acquire restricted real rights at regions that are also allowed for Turkish citizens.”
As per Article 36 of Land Law No 2644, domestic companies with foreign investment (more than 50% share within the domestic company or having competence of appointing board of directors of the domestic company is sought) may purchase property or may acquire restricted real rights in Turkey with the condition that such activities are made to sustain aim and scope of the domestic company.
The companies that are not within the scope of the Law No. 2644 are specifically labeled as “As per Article 36 of the Law No. 2644, this domestic company with foreign investment is not within the scope of the referred Law”.
However, if the property is within prohibited military territory, security zone or strategic zone, permission of the Presidency of General Staff or the commands authorized by the Presidency of General Staff; If the property is in private security zone, permission of the governorship is required.