PublicationsTurkey’s Requirements For Foreigners’ Property Ownership And Turkish Citizenship

I. INTRODUCTION

Globalization has boosted foreigners’ property ownership and citizenship applications for commercial or personal purposes. Turkey continues to be a popular choice among other countries due to its advantageous location with enhanced social and economic conditions.  As a result, one of its standard formal processes concerns foreigners’ real estate transactions and citizenship applications. Below, we provide an overview of these subjects.

A) Turkey’s Requirements for Foreign Property Ownership:

I) Ownership by Natural Persons:

Foreign natural persons designate non-citizens in a country. They are allowed to own private property if they meet specific criteria.

Turkey stipulates its terms for property ownership by foreign natural persons in article 35 in Law no. 6302, which amended Land Registry Law no. 2644 on 18.05.2012. (The effective regulations no longer require the principle of reciprocity for property ownership by foreign natural persons.) Turkey imposes the following requirements for foreign property acquisition:

• Article 35 in Land Registry Law no. 2644 stipulates that the President can restrict, partially or entirely prevent, or forbid property ownership by foreign natural persons, or impose specific criteria as to the country, person, location, period, number, ratio, type, quality, area, and quantity if national interests are at stake.
• Under the same law, if a person comes from a country whose property ownership is allowed per the Presidential Decree, they can buy property in Turkey. Currently, citizens from 183 countries can own property in Turkey; however, the complete list of those countries is confidential.
• Foreigners cannot purchase property in restricted military areas.
• If a foreign natural person has no building on their property, they must submit a construction project to the approval of the relevant Ministry within two years.
• A foreign natural person can own a property of a maximum of 30 hectares across the country, which may be doubled with authorization by the President.
• A foreign natural person’s total property area cannot exceed 10% of the relevant district.
• Under the Presidential Decree, foreign natural persons cannot own property in certain areas due to the public interest and national security.
• Former Turkish citizens and their children can complete their real estate transactions with Land Registries like current Turkish citizens without being exposed to legal restrictions imposed on foreigners.
• People with Greek nationality and Turkish origin can purchase property with a “certificate proving their Turkish origin,” subject to the terms applicable to foreigners.
• Citizens of the Turkish Republic of Northern Cyprus can complete transactions like Turkish citizens under the “Agreement between the Republic of Turkey and the Turkish Republic of Northern Cyprus on Granting Additional Capabilities to the Citizens of Both Countries.”
• When dual citizenship holders wish to apply for or purchase a property in Turkey, they will be deemed citizens of the country that offers better living conditions. If a person holds both Turkish and foreign citizenship, they will be considered Turkish citizens.
• As an exception, if the Ministry of Environment, Urbanization, and Climate Change identify a foreign natural person as the registered owner of property worth at least $1,000,000, that person may be granted Turkish citizenship provided that the property is annotated not to be sold for three years.

II) Ownership by Legal Entities:

Turkish legislation defines foreign legal entities as joint-stock companies, foundations, and trusts.

Legal entities incorporated as per their home country’s legislation are allowed to own property in Turkey. Identification of foreign status depends on the following factors: the location of the legal entity’s headquarters, the citizenship of shareholders, the citizenship of the controlling state, the country holding the capital, and the place of incorporation.

Foreign legal entities can own property in Turkey only when the specific laws allow it. As a result, only the legal entities prescribed in Tourism Encouragement Law no. 2634, Industrial Zone Law no. 4737, and Petroleum Law no. 6326 can buy property in Turkey. Accordingly:

• Tourism Encouragement Law no. 2634 defines certain companies as travel agencies. Property on heritage sites and touristic locations can be allocated to the Ministry upon request. The Ministry can also give its properties to Turkish and foreign natural persons and legal entities. Likewise, a presidential decree can hold these purchases exempt from restrictions imposed on foreigners.
• Under Industrial Zone Law no. 4737, industrial zones can be created by applying to the Ministry of Industry and Technology or selecting a location ex officio. The President can also allow the creation of industrial zones upon proposal by the Ministry. Industrial zones cannot be used for other purposes.
• As per Turkish Petroleum Law no. 6491, a mineral rights holder can obtain the right to use a region required for oil processing in or around the place of exploration or operation specified in their license through agreement or takeover, even if it is private property.

B) How to Become a Turkish Citizen

Non-citizens meeting the criteria defined in Turkish Citizenship Law no. 5901 can become Turkish citizens.

1. If no special terms apply, candidates must:

• have lived in Turkey for the last five years concerning the application date;
• prove their willingness to move in Turkey by purchasing property, building business, and investing in Turkey; transferring their headquarters to Turkey; working at a Turkish workplace with a work permit; and graduating from a Turkish university;
• have no severe illness;
• conform to social norms in public places, act reliably, and respect the customs and values of the society;
• meet the Turkish language requirements (be able to hold daily conversations);
• have income and profession to earn a living for themselves or people supported by them;
• not threaten national security and public order;

2. Exceptions are as follows:

• If a child is born in Turkey but holds no citizenship since they have no parents or nationality or cannot hold citizenship due to their national legislation, they will be granted Turkish citizenship. Moreover, a child found in Turkey is deemed to have been born in Turkey unless held overseas.
• A foreign minor adopted by a Turkish citizen can become a Turkish citizen. Situations threatening national security and public order are reserved.
• If a Turkish Republic of Northern Cyprus citizen wishes to get Turkish citizenship, they must apply in writing, and the Ministry must approve their application.
• Under the legislation, foreigners can get Turkish citizenship upon the Ministry’s proposal and the Cabinet’s resolution, regardless of other requirements for Turkish citizenship, unless a threat to national security and public order exists.
• If a child has lost their Turkish citizenship since their parents have renounced their Turkish nationality, they can choose to become Turkish citizens again by applying for Turkish citizenship in writing within three years since they have reached the age of majority.
• Immigrants who have completed the relevant procedures can become Turkish citizens with the resolution of the Cabinet.
• Foreigners can also get Turkish citizenship if they have been married to a Turkish citizen for at least three years.

II. Why It Is Better to Complete This Process through an ALSP

ALSPs recruit skilled and agile teams to resolve any legal matter quickly with the right approach. Citizenship and property ownership comprise delicate issues that would be difficult for foreigners to understand; therefore, the relevant procedures could be challenging for them to handle. In that case, they can get help from a competent and reliable consulting team that will focus on their policies and address them quickly.

People might sometimes wish to keep these procedures confidential. If so, they can rely on ALSPs to manage this whole process diligently by functioning as a corporate law firm while working independently and respecting the client’s privacy.

Şengün & Partners’ ALSP team leverages its members’ existent experience to master specific fields of law, being wildly successful in the procedures of citizenship acquisition and property ownership. The team completes the whole process effectively with a creative, flexible, and agile mindset to help clients achieve the intended results as quickly as possible.