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Smart Guide To Acquiring Property & Citizenship In Turkey By K&p Legal Law Firm

Smart Guide to Acquiring Property & Citizenship in Turkey by K&P Legal Law Firm

This written in collaboration with K&P Legal Law Firm lawyers who aim to assist individuals and organizations wishing to buy property and gain citizenship in Turkey.

This guide provides information on the real estate market in the country, which has progressed in an investor-friendly fashion in the last decade and a half. The guide consists of information on residential, office, retail, logistics, and hotel markets in the country and the procedures that invest during the process of acquiring citizenship. In addition to being one of the world’s fastest growing economies, Turkey also supports international investors’ growth via a business-friendly agenda and through access to a large domestic market and neighbouring international markets.

Turkey’s location, at the crossroads of Europe, Central Asia, and the Middle East, provides easy access to the European, Middle Eastern, North African, Central Asian, and Gulf markets. More than half of the world’s trade takes place within a four-hour flight radius of Turkey – a key reason why multinational companies have chosen Turkey as a strategic regional hub for their operations.

As K&P Legal Law firm we would like to strongly recommend you to use the chance of investing in property in Turkey if you have the opportunity and we will be here to ensure the legal endorsement you need during the process.

A. PROPERTY ACQUISITION IN TURKEY BY FOREIGNERS

  1. Identify the property you want to purchase according to the budget and desired criteria and contact the seller. (Reported by K&P Legal)
  1. Check the registry details of the property together with the seller or the seller’s representative at the Directorate of Land Registry. (Reported by K&P Legal)
  1. An appraisal report that shows the actual value of the property shall be issued by a company authorized for property appraisal. (Obtained by K&P Legal)
  1. Apply to the Land Registry Directorate with the documents required to start the sales procedures of the property. (Done by K&P Legal)
  1. The document shall be checked by the Directorate of Land Registry, and any incomplete items shall be completed. The parties shall be informed about the fees they are to pay for the transaction. (Reported by K&P Legal)
  1. Deposit the fees. Pay the cost of the property to the seller. Payment can be made via BANK to make it more secure. In that case, the contract price deposited to the recipient’s account shall be blocked and it shall be transferred to the seller’s account after the contract is signed.
  1. Sign the official contract issued by the Directorate of Land Registry for the sale, under the presence of a public officer, and the sales transaction will be completed when the contract is signed.

 

QUESTIONNAIRE:

Is a residence permit required for property acquisition by foreign real persons?  

Article 35 of the Land Registry Law No. 2644, amended with the Law No. 6302, specifies that “Provided that legal restrictions are complied with, foreign origin real persons who want to become citizens of the country as defined by the President where required for international bilateral relations and interests of the country may acquire property and limited real rights in Turkey. Real persons who are citizens of a country in the list of specified countries are not required to obtain a separate residence permit to acquire a property and limited real rights.

What are the restrictions for property acquisition by foreigners?

First, the country of the foreigner desirous of acquiring a property must be among the countries cleared by Turkey for property acquisition as specified in Article 35. Property acquisition by foreign real persons is only possible within the scope of legal restrictions further to Article 35 of the Land Registry Law 2644. Foreigners may not acquire properties in military forbidden zones further to the Military Forbidden Zones and Security Zones Law No.2565. A foreign real person may acquire properties and restricted real rights of up to 30 hectares maximum. The President may increase this size up to two times. Total area of properties acquired by foreign real persons and independent and continuous limited real rights may not exceed ten percent (10%) of the surf ace area of the subject district of the private property. Acquisition by foreigners is not possible at the places included in strategic areas and special security zones defined by the President as areas where foreign real and legal persons may not acquire properties.

Are there any liabilities required on the part of a foreigner who acquires a land without any building?

Any foreigner who acquires a land without any building is required to develop a project on the acquired land within 2 years from the date of acquisition and submit the project for the approval of the related ministry depending on the type of the project. The time frame for completing the project shall be determined by the relevant ministry. (Review of regulations to extend the time frame is underway).

Which documents are required for property acquisition?

  1. The property’s Title Deed or details of village/quarter, section, parcel, building, independent unit,
  2. Identity card or passport (together with the translated copy thereof where required). Submission of the same is compulsory in order to identify the nationality of the foreigner,
  3. Property appraisal report issued by any of the organizations authorized by the Board of Capital Markets (SPK) for property assessment at http://www.spk.gov.tr/SiteApps/SirketIletisim/List/gds ) .
  4. ''Real Estate Market Value Document” of the property from the related Municipality,
  5. Compulsory earthquake insurance policy for buildings (residences, workplaces... etc.),
  6. One photograph of the seller and two photographs of the buyer (taken in the last 6 months, at a size of 6x4),
  7. Certified interpreter if there is a party who fails to speak Turkish, h. If an action is to be carried out with a power of attorney issued abroad, the translation and the original or approved copy of the power of attorney.

How to appraise value for properties required for citizenship at land registry?

The sum of receipts evidencing payments must have a value equal to USD 250,000 according to the USD selling exchange rate of the Central Bank of Turkey on the date prior to the date of deposit. The amounts listed in the appraisal report and the official bill may not be less than the sum of values in the receipt.

The exchange rate of which date shall be considered for bank receipts evidencing payments?

If the receipt is paid in Turkish Lira, the selling exchange rate of the Central Bank of Turkey on the date prior to the date of payment shall be considered to calculate USD equivalent of the receipt amount

Can a person acquire the property of a company in which he/she is a shareholder, and apply for citizenship?

No, they can’t. The property to be acquired by foreign nationals through actual sale or a sale promise should not be registered to the title of the legal entity of the company that the real person owns or manages.

How to appraise value if multiple receipts with different dates are presented (paid in Turkish Lira)?

The sum of values calculated on the basis of the effective selling exchange rate of the Central Bank of Turkey on the workday prior to the date when each receipt is issued must be USD 250,000.

How to appraise value if payments are made after the selling transaction?

Effective selling exchange rate of the Central Bank of Turkey on the date prior to the payment date for receipt and prior to the selling transaction for the value on the official title deed shall be considered. In that case, both values are required to reach USD 250,000.

Does the seller of the property matter in the application for citizenship?

Properties sold or subject to a sale promise must be registered in the name of Turkish citizens. Furthermore, they should not be any properties transferred by a foreign real person after 12 January 2017. (Including self, spouse and children of the foreign person who acquires it)

  1. CITIZENSHIP BY PROPERTY ACQUISITION

An agreement shall be reached for the property to be purchased. The value of the property must be minimum USD 250,000.

A “property assessment report” shall be obtained by applying to one of the organizations authorized by Board of Capital Markets (SPK) for property assessment

Application shall be made to the directorate of land registry with the required documents.

The directorate of title deed checks whether the receipt, appraisal report, and the declared values satisfy the criteria required in the directive.

If the required conditions have been satisfied, the title deed fee required to be paid for action and the revolving fund payment shall be communicated to the related person by SMS.

The appointment time to sign the contract after the payment of the fees shall be communicated by SMS.

After the contract is signed and completed, a statement indicating that the property may not be sold for three years shall be registered and the title deed of the property shall be handed over to the landlord.

Following the completion of the transaction, the directorate of land registry sends the transaction documents via the system to the General Directorate/Regional Directorate to issue the “certificate of conformity” for citizenship application.

The ‘certificate of conformity’ issued after the necessary checks have been completed is sent for action to the General Directorate of Census and Citizenship and General Directorate of Immigration Administration with an official letter, and for information to the related individual by e-mail.

QUESTIONNAIRE

Is it possible to sell the property before 3 years?

Action shall be taken according to the response to be received from the Provincial Directorate of Census and Citizenship.

Can I apply for a long-term residence permit (up to 5 years if the passport date of expiration is appropriate) if I am not interested in getting Turkish Citizenship?

Yes, if you fulfil the relevant six criteria.

Can I purchase multiple properties to apply for Turkish citizenship?

Yes, it is possible to purchase multiple properties.

Do I have to buy all those properties at the same time?

Application can be made for properties which are purchased at different times.

Can I apply through a proxy for property acquisition to obtain exceptional Turkish citizenship?

It is possible if clearly stated on the power of attorney (K&P Legal Law firm can handle all the bureaucratic procedures on behalf of you and your family)

Can I apply for exceptional Turkish citizenship if I buy some shares of a property?

Yes, if the value of the acquired share is minimum USD 250,000.

Can I apply for citizenship if I buy the property with a mortgage loan?

In that case, the net down payment of the loan amount shall be considered. The down payment should be minimum USD 250,000 also for legally mortgaged sales

How to appraise value for properties required for citizenship at land registry?

The sum of receipts evidencing payments must have a value equal to USD 250,000 according to the USD selling exchange rate of the Central Bank of Turkey on the date prior to the date of deposit. The amounts listed in the appraisal report and the official bill may not be less than the sum of values in the receipt.

The exchange rate of which date shall be considered for bank receipts evidencing payments?

If the receipt is paid in Turkish Lira, the selling exchange rate of the Central Bank of Turkey on the date prior to the date of payment shall be considered to calculate USD equivalent of the receipt amount.

How to appraise value if payments are made after the selling transaction?

The sum of values calculated on the basis of the effective selling exchange rate of the Central Bank of Turkey on the workday prior to the date when each receipt is issued must be USD 250,000.

How to appraise value if multiple receipts with different dates are presented (paid in Turkish Lira)?

The sum of values calculated on the basis of the effective selling exchange rate of the Central Bank of Turkey on the workday prior to the date when each receipt is issued must be USD 250,000

Can foreigners owning or shareholding a foreign capital company apply for citizenship with a property owned by the company?

The property to be acquired by foreign nationals through actual sale or a sale promise should not be registered to the title of the legal entity of the company that the real person owns or manages.

Does the seller of the property matter in the application for citizenship?

Properties sold or subject to a sale promise must be registered in the name of Turkish citizens. Furthermore, they should not be any properties transferred by a foreign real person after 12 January 2017. (Including self, spouse and children of the foreign person who acquires it)

How to transfer the selling cost of the property?

Must be deposited and documented as bank remittance, EFT etc. by the buyer or the buyer’s representative to the bank account of the seller or the seller’s representative. The transfer/payment of price for properties owned by public institutions and ventures such as TOKI and Emlak Konut may also be reported with the approved bank receipt or an official letter indicating the price of the property purchased.

Where to obtain the appraisal report and is there a validity term for it?

The appraisal report shall be obtained from the appraisal organizations posted on the web page of the Board of Capital Markets (SPK) (http://www.spk.gov.tr/SiteApps/SirketIletisim/List/g ds). It is valid for three months beginning from the date of issue. It shall be considered applicable until the transaction is completed from the date it is given.

How to obtain a “Certificate of Conformity”?

The directorate of land registry, who processes the commitment foreseen in the regulations according to the related Directive and its practical communiques, submits all documents to the General Directorate of Land Registry and Cadastre or the related regional directorate. The General Directorate/Regional Directorate inspects the documents of the transaction, issues a Certificate of Conformity, and sends it to the General Directorate of the Immigration Administration and the General Directorate of Census and Citizenship Affairs by official means, and to the related person by e-mail. Foreigners who obtain the certificate of conformity shall initially apply to the Provincial Directorate of Immigration Administration for a residence permit and then to the Provincial Directorate of Census and Citizenship for citizenship.

Can I apply for Turkish citizenship with a preliminary contract for sale?

An application can be made with a promise that the property would be transferred and released in three years through a notarized contract if minimum USD 250,000 or equivalent amount was paid as down payment for any property.

What should be the attribute of the property?

The attribute of the property does not matter for citizenship through property purchase. (It may be a residence, workplace, land, field, yard etc.) However, for any commitments through notarized promise of sale, the property must have an established common hold or construction servitude.

How should the appraisal report be issued?

A property appraisal report representing the market value (present market value/present value) is required. The appraisal report must be based on the value on the date of the report for buildings which are completed on the ground, and the value to occur upon completion of building for properties which have not been completed or the construction of which is ongoing and for which a construction servitude was established.

In summary, all the above-mentioned services will be provided to you by K&P Legal Law Firm to ensure your legal security within all of these procedures. For more information, you may visit our website : www.kplegal.com.tr  or directly contact us. 

Mrs. Can Aline Bragiotti  -  Mr. Erdal Kardas

Attorneys at Law / K&P LEGAL LAW FIRM

 

 

 

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