Didim Today

Changes in legal regulations may sometimes confuse administrative authorities in terms of interpretation and application. I recently received an e-mail concerning whether or not a residence permit is required for property purchases by foreigners in Turkey. Dear Berk, there has been quite a stir in Kalkan after a UK buyer was refused their tapu (title deed) due to not having a resident’s permit.

A resident’s permit for UK buyers has never been a requirement. However, the Kalkan tapu office informed the buyer that this has now changed and the law has been recently updated. Can you please confirm whether there is any truth in this as I have checked with our local tapu office in Manavgat, Antalya and they have no knowledge of this change in the law. Many thanks. Maria.

Dear Maria, this approach by the Kalkan Title Deeds Registry Office may be due to new regulations regarding an obligation to obtain a “foreigner identification number” which has been imposed on foreigners for transactions that require a tax number in Turkey.

According to the Law on Extending the Usage of Tax Numbers (Law No. 4358), real and legal persons shall submit their tax number for certain proceedings as determined by the Ministry of Finance. Within this context, the transaction of a property purchase would also require a tax number.

According to the Communiqué of Tax Identification Number dated Aug. 29 2006, (serial no. 3), foreigners can obtain tax identification numbers from tax offices; however, under the Communiqué of Tax Identification Number dated May 22, 2010 (serial no. 4), foreigners can use their “foreigner identification number” as their tax number in Turkey as of July 1, 2010.

Therefore, since July foreigners have been able to submit their foreigner identification number as their tax number for transactions that require a tax number in Turkey, including property purchases.

The foreigner identification number is only provided to those foreigners who acquire a residence permit for at least six months and who are registered at the foreigners’ section of the civil registry records. None of the applicable Turkish laws provide an explicit answer as to how transactions can proceed in cases where a foreigner does not have a residence permit. This complication may be the reason why some title deeds registry offices are interpreting these above laws differently.

From my point of view, according to the Communiqué of Tax Identification Number (Serial No. 4), the regulation under the Communiqué of Tax Identification Number (Serial No. 3) stating that foreigners shall use a tax number will no longer be applicable for those who have already obtained or will obtain a foreigner identification number.

It could also be said that foreigners who are not granted a foreigner identification number may commence the transaction by first providing a tax number.

As I said before, laws can sometimes be interpreted differently, especially at the local level, and the practice of a government office in Kalkan may be different to another government office in Bodrum. Now, in a change that will bring a sigh of relief to many foreigners in Kalkan, the tapu office no longer insists on the production of a foreign identification number.

It has been confirmed that an identification number (and therefore residence permit), is definitely not required when foreigners are buying property. However, the above explanations may not be applicable for other foreign applicants wanting to purchase real estate in Turkey. While UK citizens are not under an obligation to provide a residence permit, other foreign citizens may be required to submit that permit to the Title Deeds Registry Office during their application.

This difference in practice by offices located in different places is usually corrected by a regulation. At this stage, the Turkish Ministry of Internal Affairs is still expected to provide clarification and establish uniformity.

In short, please note that it will be worthwhile for applicants to learn in advance whether a residence permit will be required, at least until a uniform practice is established. You can find out by simply asking at the relevant Title Deeds Registry Office

Berk Cektir http://www.berkcektir.av.tr/ The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this corner. http://www.todayszaman.com/ This e-mail address is being protected from spambots. You need JavaScript enabled to view it