INTRODUCTION

Foreign individual persons and Turkish companies with foreign shareholders may acquire all types of real estate in Türkiye (such as residential properties, workplaces, land, and agricultural land), provided that the legal restrictions are complied with.

For real estate classified as land and agricultural land, different legal requirements apply. In particular, there is an obligation to undertake the development of a project on the relevant real estate within two years, and the fulfillment of this obligation is subject to supervision by the relevant authorities.

IS THE ACQUISITION OF REAL ESTATE CLASSIFIED AS AGRICULTURAL LAND SUBJECT TO PERMISSION?

Yes. Unlike real estate classified as land, the acquisition of agricultural land is subject to the approval of the relevant Provincial Directorate of Agriculture and Forestry.

A written undertaking must be submitted to the relevant Land Registry Office stating that an “agricultural project” will be developed on the agricultural land. The agricultural project will be reviewed by the commission established under the Provincial Directorate of Agriculture and Forestry where the property is located.

IS THERE ANY AREA LIMITATION FOR THE ACQUISITION OF AGRICULTURAL LAND?

Yes. The applicable limitations are determined by the relevant Ministry and may vary depending on the province and district where the property is located.

WHO MAY SUBMIT THE APPLICATION?

The application may be submitted by the foreign individual or their legal representative. However, under the relevant legislation, the foreign purchaser is required to appoint a Turkish citizen as a legal representative.

WHAT DOES A TURKISH LEGAL REPRESENTATIVE MEAN?

A Turkish legal representative refers to a Turkish citizen appointed by the foreign investor to follow the acquisition process and carry out the agricultural project to be submitted.

In addition, all notifications and warnings addressed to the foreign investor will be made through the Turkish citizen legal representative.

WHAT IS THE SUBJECT MATTER OF THE UNDERTAKING REQUIRED FROM THE INVESTOR DURING THE ACQUISITION PROCESS?

The undertaking relates to:

• The intended use of the relevant parcel; and

• The obligation to develop an agricultural activity project concerning the property and submit it for the approval of the relevant Ministry within two years from the acquisition date.

IS THIS UNDERTAKING REGISTERED IN THE LAND REGISTRY?

If the Provincial Directorate of Agriculture and Forestry approves the acquisition of the property, an annotation must be registered in the declarations section of the land registry stating:

“There is an obligation to submit the project to be developed for Ministry approval within two years.”

The annotation shall include the date of approval and the journal number of the approval process.

IS THERE ANY SANCTION IF THE UNDERTAKEN PROJECT IS NOT DEVELOPED OR SUBMITTED?

If the project is not submitted or no annotation is made in the land registry confirming that Ministry approval has been obtained, the property will be subject to liquidation procedures.

In other words, the purchase price of the property will be refunded to the investor and ownership of the property will be lost.

However, in practice, it is observed that such liquidation procedures are generally not carried out.

IS THE ACQUISITION OF REAL ESTATE CLASSIFIED AS LAND SUBJECT TO PERMISSION?

No. Such acquisitions may generally be completed within the framework of applicable legislation without obtaining prior approval.

However, there is an obligation to develop a project on the property and submit such project to the Ministry for approval within two years.

An annotation regarding the obligation to develop the project must be registered in the declarations section of the land registry.

If no annotation is made confirming that the relevant project has been submitted or approved, the property will be subject to liquidation procedures.

CAN COMPANIES ESTABLISHED IN FOREIGN COUNTRIES ACQUIRE REAL ESTATE?

Companies established abroad as legal entities under the laws of their respective countries cannot directly acquire real estate in Türkiye.

However, acquisition of real estate may be possible with the approval of the relevant Ministry within the scope of special legal provisions.

CAN TURKISH COMPANIES WITH FOREIGN CAPITAL ACQUIRE REAL ESTATE?

A distinction is made for Turkish companies with foreign capital.

Companies established in Türkiye as legal entities may acquire real estate and limited real rights in order to carry out the activities specified in their articles of association.

For a company to be considered as having foreign capital within this scope:

• Foreign individuals,

• Legal entities established under the laws of foreign countries, or

• International organizations

must directly or indirectly hold 50% or more of the shares, or have the authority to appoint or dismiss the majority of persons holding management rights.

ARE TURKISH COMPANIES WITH FOREIGN CAPITAL SUBJECT TO THE UNDERTAKING REQUIREMENT WHEN ACQUIRING REAL ESTATE?

Yes.

For acquisitions of real estate classified as agricultural land or land, an undertaking must be submitted stating that a project will be developed on the property.

Based on this undertaking, an annotation must be registered in the declarations section of the land registry stating:

“There is an obligation to submit the project to be developed for Ministry approval within two years.”

While the acquisition of agricultural land is subject to approval by the relevant authorities, acquisitions of real estate classified as land are not subject to an approval requirement.

Conclusion

Foreign individual persons and Turkish companies with foreign capital may acquire real estate in Türkiye subject to certain legal restrictions and obligations.

For agricultural land acquisitions, approval from the relevant authorities is required, whereas land acquisitions generally do not require prior approval. However, in both cases, where applicable, the investor must undertake to develop a project on the property and submit it for Ministry approval within two years.

Submitted for your information and evaluation.