Real Estate Acquisition as a Company
Real Estate Purchase Companies
Foreign Companies
Companies Established in Foreign Countries Pursuant to the Laws of Their Country
Foreign Capital Companies
Companies with Foreign Capital Established in Turkey
Companies with legal personality incorporated in Turkey in which the share of foreign investors in the company is at least 50% (foreign person or foreign company is a shareholder) or in which foreign investors have the power to appoint or dismiss the majority of the persons having management rights.
Companies with Foreign Capital Accepted as Turkish Companies
Companies with legal personality established in Turkey where the share of foreign investors in the company (foreign person or foreign company) is less than 50% or where foreign investors do not have the authority to appoint and dismiss the majority of the persons with management rights.
Companies with foreign capital established in Turkey and companies established in foreign countries according to their own laws are subject to different conditions when buying real estate. These conditions are explained below.
Companies established in foreign countries according to their own laws
DEFINITION: These are companies in which at least 50% of the shareholders in the company are foreign real persons or foreign companies, or foreign real persons or foreign companies that are shareholders in the Turkish company have the authority to appoint and/or dismiss the majority of the persons with management rights.
These companies must first obtain permission from the governorate where the immovable property is located in order to purchase immovable property.
Before Application to the Land Registry (Governorate Permission Procedure)
Companies wishing to acquire immovable property in Turkey shall submit their applications to the Governorate (Provincial Planning and Coordination Directorate) where the immovable property is located. The application documents are prepared in duplicate and submitted to the Governorate.
Documents Required for Application to the Governorate:
Application petition (Annex 1)
Title deed registration information and coordinate diameter sample of the immovable
A letter of undertaking (Annex 2) stating that the ownership of the immovable or the establishment of limited real rights on the immovable is requested to carry out the fields of activity specified in the articles of association of the company and that the immovable will be used for this purpose, and the signature circular of the company official who signed the letter of undertaking
Authorization certificate showing that the company is authorized to dispose of immovable property and its representative
If the shares of the company are not traded on the stock exchange, a document showing the current situation obtained within the last month from the Trade Registry Directorate where the company headquarters is registered, including the names or titles, nationality and shareholding rates of foreign partners
If the shares of the company are traded on the stock exchange, a document showing the current status obtained from the Central Registry Agency A.Ş. containing the names or titles, nationality and shareholding ratios of the foreign investors holding 10% or more of the company capital among the shares traded on the stock exchange and the foreign investors holding shares that are not traded on the stock exchange
A copy of the articles of association approved by the trade registry office where the head office of the company is registered in companies where foreign investors have the authority to appoint or dismiss the majority of the managers although the shareholding rate is below 50%
After Application to the Governorate
If the results of the application are approved by the Governorate, the company official and the land registry offices are informed in writing.
Actions to be taken at the Land Registry after the Governorate Approval
The company must make the application and obtain the title deed within six months of the governorate’s authorization. If this period is exceeded, the application for acquisition of immovable property must be made again.
Land Registry Transactions of Companies Established in Turkey and Authorized by Foreigners
They can buy buildings, workplaces and residences at the land registry.
They can also purchase zoned land without any permission and commitment in the title deed.
When purchasing zoned land, it is obligatory to state in the land registry that “the project to be developed must be submitted to the approval of the relevant ministry within two years.” It is obligatory to make a statement in the declarations section of the land registry.
After the immovable is purchased in the title deed: They are obliged to submit the project to be developed on the zoned immovable they have purchased (project development on the immovable) to the approval of the relevant Ministry within two years.
Specification of the Project : The project is submitted to the approval of the relevant Ministry with the start and end date of the project. A letter stating the start and end dates of the project and the approval of the project is sent to the title deed by the ministry.
The project is completed within the specified period and notified to the relevant Ministry.
Agricultural Lands
Agricultural land acquisition applications: Obtaining a letter of commitment for the purpose for which the immovable will be purchased to be sent to the relevant unit of the Ministry of Food, Agriculture and Livestock. (Annex 3)
The commitment given to the land registry and the information on the immovable property is sent to the Ministry of Food, Agriculture and Livestock by the Land Registry Directorate.
During the sale, the land registry of the immovable is obliged to state “the project to be developed must be submitted to the approval of the Ministry of Food, Agriculture and Livestock within two years.” It is obligatory to make a statement in the declarations section of the land registry
If the letter of the Ministry of Food, Agriculture and Livestock is positive, the sale of the immovable will be realized.
Specifying the Project : The project is submitted to the approval of the Ministry of Food, Agriculture and Livestock with the start and end date of the project. A letter stating the start and end dates of the project and the approval of the project is sent to the title deed by the ministry.
The project is completed within the specified period and notified to the Ministry of Food, Agriculture and Livestock.
Title Deed Transactions
In the land registry and cadastral transactions of commercial companies with legal personality established in foreign countries in accordance with the laws of their own countries, the document issued by the competent authorities of the countries in which they are affiliated showing that these companies are duly established and operating and that they are competent to carry out the relevant land registry transactions includes an apostille annotation in accordance with the La Haye Convention on the abolition of the obligation to certify foreign official documents dated 5 October 1961 and its certified translation, in the absence of an apostille annotation, the same documents containing the certification of the consulate in that country
Application is made to the Land Registry Directorate where the immovable is located with the permission certificate obtained from the relevant Ministry (the relevant institution obtains all permissions including Site, Agricultural Area, etc.).
Title Deed Document of the immovable or village/neighborhood, island, parcel, building, independent section information
Company Authorization Certificate and a copy of the identity and passport of the authorized person.
Obtaining the ‘Real Estate Market Value Certificate’ of the Immovable from the relevant Municipality
Compulsory earthquake insurance policy for buildings (for immovables with building characteristics)
In case of a transaction with an APOSTIL approved power of attorney issued abroad, the NOTARY APPROVED translation and the foreign power of attorney that is the basis of this power of attorney must be attached by the notary.
Title deed fee is paid. A title deed fee of 2% of the sale price is collected separately from the Buyer and the Seller.
Transaction fee is paid. Varies according to cities and years.
If the party does not speak Turkish, a sworn translator is brought.
The title deed is given to the new owner (the representative of the buyer company).
After the reply to the letter is received by the Land Registry Office and the fees are paid, the sales contract (official deed) is issued. The buyer and the seller sign this official deed in front of the officer in charge and after these signatures are completed, the transaction number is taken and the immovable is registered in the name of the new owner.
Companies with Foreign Capital Established in Turkey Accepted as Turkish Companies
Companies with legal personality incorporated in Turkey where the share of foreign investors in the company (foreign or foreign company shareholders) is less than fifty percent or where foreign investors do not have the power to appoint or dismiss the majority of the persons with management rights. In other words, the majority of the shareholders of the company established in Turkey must be Turkish or Turkish companies, or the Turkish or Turkish company in the company must have the power to appoint or remove the majority of the persons with management rights.
Companies with these conditions can purchase real estate by applying to the Land Registry Directorates just like a Turkish company.
For more detail please contatct with us.
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