Legal bases of property purchase in Turkey

In the official newspaper of the Turkish Government the new law №5444 allowing foreign persons to get real estate on territory of the country is published. The law is accepted by Turkish parliament on December, 29th, 2005.
 
1. Restrictions on the premises:

The total area of the property belonging to the foreign physical person on the property right, cannot exceed 2,5 hectares (25 thousand sq.m.) all over Turkey. Thus, according to accepted by General Cadastral Authority of Turkey the Circular №2006-1 dated January, 20th, 2006, while registrating documents in the ground register, the foreigner has to sign the statement where he assures that the total area of the property he owns all over Turkey does not exceed 2,5 hectares, and agrees that otherwise, he is obliged to release excess premises which will be sold, and the money received will be transferred into his account.

2. Restrictions on the type of property:

The immovable property that is registered in the ground register as habitation or a workplace can be registered to the foreigner. Here "workplace" means the complex of immovable property that is used for commercial activity - it can be both office premise, and hotel or factory with all adjoining constructions.
 
3.  Condition on following ‘reciprocity principle’:

At present Turkey keeps a principle of reciprocity with 95 countries. Since January, 1st, 2004 Russia and Ukraine are included in this list. Citizens of these countries are allowed to get buildings in Turkey (apartments, country houses, townhouses, commercial objects). Besides, the ground being under a building automatically starts belonging to the buyer.

4. Other legal restrictions:

Other restrictions concern forbidden military zones and safety zones, and also the areas having strategical significance concerning specific features - power, agricultural, subsoil, ecological, religious, cultural. Forbidden military zones and safety zones are defined by the Ministry of Defence, other forbidden zones are defined by Council of Ministers on representation of state structures and establishments.

Restrictions for juridical person:

From foreign juridical persons the law allows to get property only to the commercial organizations. Various funds, associations, unions, cooperative societies, official institutions cannot purchase property in Turkey.
Please, notice that the above-mentioned restrictions are not applied to the companies with the foreign capital, founded according to the Law on direct foreign investments.

Grounds

The ground area in Turkey is a piece of land without constructions which is given to the citizen or is purchased by him for rest (with the right to build the house with or without the right of residing registration, with the right to build economic constructions and structures, with the right to be engaged in agricultural activity)

The Turkish legislation does not allow the citizens of Russian Federation to purchase the separate ground area. But there is a way out. First, the citizen of Russia, with the help of the authorized representative, can register a company in Turkey with 100 % foreign capital and then as a juridical person can purchase grounds. The process of registration will cost from $2000 (it depends on a nominal capital).

The second variant is to conclude the contract with the builder. Then after the payment for the ground you can register to your name this object that will be already ready and sanctioned by municipality. The price for the ground depends on the distance from the sea.

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