Property Purchasing For Foreign Companies

Real Estate Acquisition by Foreign Companies in Türkiye: Legal Framework and Requirements

Foreign companies seeking to invest in Türkiye often look into purchasing real estate or establishing limited real rights. However, the acquisition process is governed by strict regulations. Only foreign trade companies with legal personality—established in accordance with the laws of their own countries—may acquire real estate and limited real rights in Türkiye, and only when special provisions in Turkish laws explicitly allow it.

Below is a clear, structured guide to how foreign companies and foreign-capital companies can legally acquire real estate in Türkiye.

1. Foreign Companies Acquiring Real Estate in Türkiye

Trade companies established abroad according to the laws of their own country may acquire real estate in Türkiye only if specific laws permit it. These special laws include:

• Turkish Petroleum Law

• Tourism Encouragement Law

• Industrial Zones Law

If a foreign company’s intended real estate acquisition does not fall under these laws, acquisition is not permitted.

Additionally, not all legal persons can acquire property in Türkiye. The following entities cannot acquire real estate or establish limited real rights:

• Foundations

• Associations

• Cooperatives

• Societies and communities

• Congregations

• Any legal or non-legal persons other than foreign trade companies with legal personality

2. Real Estate Acquisition by Foreign-Capital Companies in Türkiye

Companies established in Türkiye may acquire real estate and limited real rights for activities defined in their articles of association.
A company is considered a foreign-capital company when:

• Foreign real persons (excluding Turkish citizens and persons covered under Article 28 of Turkish Citizenship Law No. 5901),
  or

• Legal persons established abroad,
  or

• International organizations

hold 50% or more of the shares or have the authority to appoint or dismiss the majority of persons with management rights.

2.1 Requirements for Foreign-Capital Companies

Foreign-capital companies must submit a certificate of authorization when applying for real estate acquisition. The certificate must:

• Identify the company’s authorized representatives

• Clearly grant them the authority to acquire property

• Include full identity details

• Be valid for the year of the transaction

The certificate must also contain the phrase:
“Foreign-Capital Company outside the scope of Article 36 of the Land Registry Law No. 2644.”

Companies carrying this phrase in their authorization certificate are treated as domestic-capital companies for real estate acquisition purposes.

3. Security Zone Restrictions

Regardless of the type of company, real estate acquisitions are subject to restrictions under Law No. 2565 on Military Prohibited Zones and Security Zones.

Before any purchase is approved:

• Governorates conduct an inquiry to determine whether the property is located within:

  • Military prohibited zones

  • Military security zones

  • Areas designated under Article 28 of Law No. 2565 for strategic or security reasons

This inquiry is performed directly through the land registry office, which must respond within a maximum of three business days.

If a property falls within a prohibited area, acquisition will not be allowed.

4. Liquidation of Improperly Acquired Real Estate

If a foreign-capital company acquires real estate outside the permitted legal framework, the Ministry of Treasury and Finance may require its liquidation within a specified period.

If the company fails to comply:

• The property will be converted into monetary value, and

• The proceeds will be paid to the right holder

This ensures strict enforcement of acquisition limitations.

Conclusion

Türkiye permits real estate acquisition by foreign companies and foreign-capital companies only under clearly defined legal conditions. Companies must ensure compliance with:

• Special sectoral laws

• Authorization certificate requirements

• Military and security zone restrictions

By following these regulations, foreign investors can securely acquire property and establish a legal presence in Türkiye’s growing and strategically vital real estate market.

This article was prepared by senior lawyer Yaşar Aksanoğlu, an expert in Foreigner Legal Services in Türkiye. To learn more or connect professionally, visit:

🔗 Website: https://www.galleconsulting.com
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