Tightened restrictions on foreign ownership in Turkey

A new draft law has been drawn up in co-ordination with the General Management of title deeds and Castral Survey, with amendments to relative clauses of the legislation for title deeds. On the basis of this draft, total land owned by foreigners will not exceed 10 Decares (100 Hectares) throughout the country. The draft was prepared in line with the justifications setout in the cancellation, limiting the ownership of property by foreigners in Turkey.

Foreigners are permitted to buy land and property within and adjacent to the municipalities but certain limitations are established for buildings and individual residences in villages. At the same time, the Council of Ministers is authorized for the exemption of regions such as those used for water supply, energy, mining, agriculture and "SIT" areas.

The draft law will be finalised by the approval of the Council of Ministers and is based on reciprocity, whereby individuals and legal entities in foreign countries are permitted to buy buildings or land within and adjacent to the municipalities. The draft law stipulates that the total real estate owned by foreigners will not exceed 10 Decares throughout the country.

It is further stipulated that buildings and flats constructed in such regions must not be larger than 1 Decare. The ownership of property over 10 Decares by foreigners and commercial companies set up abroad in line with the regulations of the country concerned, as well as real estate larger than 1 Decare outside these areas, will be subject to the approval of the Council of Ministers.

Except for legal inheritance, the ownership of real estate beyond these limitations belonging to the deceased will also be subject to the approval of the Council of Ministers, in the absence of such approval, the real estates beyond this limitation inherited by nationals of countries which do not have reciprocity agreement with the Turkish republic will be liquidated and converted into cash. For the restricted possession of property, real foreign entities and commercial companies set up in line with the legislation's of the countries abroad, will be obligated to abide by the rules of reciprocity and the legal limitations set out in the law. The Mortgaging of real estate is not subject to this condition. The Council of Ministers is authorized to take decisions on sales in regions such as those used for water supply, energy, agriculture, mining and "SIT" areas.

Previously the ownership of property over 30 Decares was subject to the approval of the Council of Ministers. the law stipulated that "the council of ministers is authorized to establish the areas not governed by this legislation". The current draft law sets out limits to the ownership of property within and adjacent to the municipalities, whereby the 30 Decares is reduced to 10 Decares and the ownership of buildings in villages is reduced to 1 Decare.

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Comment: nothing to worry about, unless you would like to own an enormous piece of land!