Didim Today

Today I would like to go to my inbox and respond to a question about property purchase and company establishment. Here is the question: “Dear Sir, I am a British citizen and would appreciate some advice on what areas in Turkey foreigners can legally purchase property or land. Previously the understanding was that foreigners can only buy land or property in a town that has a belediye [municipality].

Therefore, I am unable to purchase in a village. However, after just completing the past 18 months travelling and renting between Köyceğiz, Muğla and the Reşadiye and Hisarönü peninsulas, I was interested in the prospect of purchasing a house in Bozburun on the Hisaronu Peninsula. I believed this would be legal as Bozburun has its own belediye and indeed has foreigners living in the immediate area.

However, further enquiries told me I cannot buy as the belediye does not have an Implementary Development Plan "Uygulama İmar Planı." A suggestion given to me was that I could purchase if I set up a Turkish company in my name.

Hoping you can clear up my confusion and clarify in simple terms;

(a) Where exactly a foreigner can/cannot buy?

(b) The process and implications of setting up a company?” For a foreigner to purchase property in Turkey, the process may be lengthy because when you apply to a title deed office they need to get permission from the military and municipality. The process is based on a couple of stages that include a property check at the title deed office. This is best done by a lawyer who can assess and carefully examine whether there are any liens or obstacles to transferring the title.

The other step is the permission process for foreign purchase. This is given by military headquarters and basically indicates whether or not the property is located in a prohibited military zone. Another stage is the notary process for the granting of a power of attorney to the lawyer who will be representing the buyer during the purchase process.

The final stage is the conclusion of title transfer at the land registry office. It would be best for you to get information directly from a title deed office, the municipality and the military headquarters. The second part of your question is about the establishment of a company.

Foreigners can establish companies in Turkey. I have written several articles regarding company establishment previously. Please refer to these links for more information: http://www.todayszaman.com/columnist-185788-incorporated-companies-under-turkish-law.html and http://www.todayszaman.com/columnist-185575-limited-companies-under-turkish-law.html. In case you establish a company in Turkey and want to purchase a property, when it comes to the provisions of the Property Act numbered 2644, the procedure is still the same.

Again, an Implementary Development Plan is required. If you are intending to have business related to the property or if your business in Turkey requires that the company you want to establish needs property such as an office or factory building, you may register the property in the name of the company, but you will not be able to use this property outside the scope of your business. Companies established in Turkey by foreign investors may freely acquire property in Turkey as long as the property acquisition is in line with the purpose of the company.

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