Türkçe sürüm: Yabancı Yatırımcı Gayrimenkulü Kendi Adına mı, Şirket Üzerinden mi Almalı?
A foreign investor who wants to buy real estate in Turkey has two main options: buying the property in their own name, or buying it through a company they have set up in Turkey or hold shares in. The two routes are governed by different articles of the law. A foreign individual buying in their own name is subject to Article 35 of the Land Registry Law (Tapu Kanunu): the limits of 10% of the privately owned area of the district and 30 hectares per person nationwide, the obligation to submit a development project within two years for undeveloped land, and the bans in military zones all apply. A Turkish company in which foreigners hold at least half of the capital is subject to Article 36: there is no area limit, but property may be acquired only for the business activities in its articles of association, every acquisition, apart from the statutory exceptions, goes through a security review at the provincial governorship, and use for any other purpose is a ground for the compulsory sale (liquidation) of the property. A company incorporated abroad can acquire real estate only where special laws allow it. Which route is right depends on how the property will be used, whether citizenship or a residence permit is a goal, the tax burden and the exit plan. This guide compares the three routes with references to the legislation and offers investors a decision table.
Short answer: should a foreign investor buy property in Turkey personally or through a company?
1. If you want to live in Turkey or obtain a residence permit or citizenship, buy in your own name. Citizenship through real estate requires the foreigner to buy, in their own name, property worth at least USD 400,000 with a three-year no-sale annotation in the land register (Regulation on the Implementation of the Turkish Citizenship Law, Art. 20/2-b); property bought in the name of a company does not meet this requirement.
2. If you are buying for a business activity such as a factory, warehouse, office, hotel or a rental business, the Turkish company route is often more suitable. A Turkish company with foreign capital may acquire real estate to carry out the business activities in its articles of association (Land Registry Law, Art. 36); the 10% and 30-hectare limits for individuals do not apply to the company.
3. On the company route, every acquisition, apart from the statutory exceptions, goes through a military and security zone review via the governorship. For property outside these zones the process is short; in military forbidden zones, military security zones and strategic zones, separate permission is required.
4. On the personal route there are area limits, an obligation to submit a project for undeveloped land to the relevant Ministry within two years, and military zone bans; property acquired in breach of the rules is subject to liquidation (tasfiye), i.e. compulsory sale by the State with the net proceeds paid to the owner, if the owner does not sell it within the period given (Land Registry Law, Art. 35).
5. The tax burden differs by route: the gain on property bought personally and sold within five years is subject to income tax, while the gain on property sold by a company is subject to 25% corporate income tax. The title deed fee is 2% each for the buyer and the seller on both routes.
Let us decide together which structure to use for your property purchase in Turkey
Send us via WhatsApp the type of property, its province and district, how you plan to use it and whether citizenship or a residence permit is your goal, and we will assess whether to buy personally or through a company, including the title deed, permit and tax aspects. We can correspond in English. Hukukçular Evi Ankara: +90 554 648 37 15
📞 +90 554 648 37 15💬 WhatsApp- Three routes: individual, Turkish company, foreign company
- Buying in your own name: Land Registry Law Art. 35
- Buying through a Turkish company: Land Registry Law Art. 36
- The governorship process and deadlines on the company route
- After the acquisition: use, inspections and share transfers
- Buying in the name of a company abroad
- Taxes and costs
- Citizenship and residence permits
- Which route suits whom? Decision table
- Pre-purchase checklist
- Common mistakes
- Frequently asked questions
Three routes: as an individual, through a Turkish company, or with a company abroad
Turkish law subjects foreigners’ acquisition of real estate to three separate regimes depending on who the buyer is. Foreign individuals are subject to Article 35 of the Land Registry Law and Turkish companies controlled by foreigners to Article 36; companies incorporated abroad under the laws of their own country may acquire real estate and limited real rights only within the framework of special laws (Land Registry Law, Art. 35). This distinction is not a formality: it determines which limits apply, which authority to apply to, what the property may be used for, and whether consequences such as citizenship and a residence permit follow.
Our site has detailed guides (in Turkish) on the general rules, limits and liquidation: Yabancılar Türkiye’de Taşınmaz Alabilir mi? (can foreigners buy property in Turkey?) and Yabancıların Türkiye’de Taşınmaz Edinmesi (acquisition of real estate by foreigners). This article focuses on the investor’s key question: which structure should be chosen for the same investment?
Three regimes for foreigners acquiring real estate
| Topic | Foreign individual | Turkish company with foreign capital | Company incorporated abroad |
|---|---|---|---|
| Legal basis | Land Registry Law, Art. 35 | Land Registry Law, Art. 36 and the 2012 Implementing Regulation | Land Registry Law, Art. 35; only within the framework of special laws |
| Area limit | 10% of the privately owned area of the district; 30 hectares per person nationwide | No area limit; the test is the company’s business activities (its objects in the articles of association) | Under the special law |
| Use requirement | Project submitted for approval within two years for undeveloped land; use in line with the purpose of acquisition | Acquisition and use for the business activities in the articles of association | Project submitted for approval within two years for undeveloped land |
| Prior review | Zone check and valuation report at the land registry office | Military and security zone review via the governorship | Under the special law |
| Citizenship and residence | Possible if the conditions are met | Property in the company’s name does not give these rights to the shareholder | Not applicable |
| Consequence of a breach | Compulsory sale (liquidation); proceeds paid to the owner | Compulsory sale (liquidation); proceeds paid to the owner | Compulsory sale (liquidation); proceeds paid to the owner |
Buying in your own name: Land Registry Law Art. 35
Subject to statutory restrictions, foreign individuals who are citizens of countries determined by the President, in light of bilateral international relations and where national interests require, may acquire real estate and limited real rights in Turkey (Land Registry Law, Art. 35/1). Because the determination of which nationalities may acquire property, and in which regions, is not published as a public list, buyers should confirm with the land registry office before the transaction whether any restriction applies to their nationality.
Area limits. The total area of real estate and independent and permanent limited real rights acquired by foreign individuals may not exceed ten percent of the privately owned area of the district or thirty hectares per person nationwide; the President may raise the nationwide limit per person up to double (Art. 35/2). Where national interests require, the President may also determine, restrict, partially or fully suspend, or prohibit acquisitions by country, person, geographical region, period, number, ratio, type, nature, surface area and amount (Art. 35/3).
Projects on undeveloped land. Foreign individuals must submit the project they will develop on undeveloped land they have bought to the relevant Ministry for approval within two years. The approved project is recorded in the declarations section of the land register, and the Ministry monitors whether it is completed on time. For an investor planning to buy a plot or field and leave it empty for years, this rule is the biggest risk of the personal route.
Liquidation. Real estate acquired in breach of the article, found to be used contrary to the purpose of acquisition, for which no application was made to the Ministry on time, or whose project was not completed on time is liquidated and converted into cash if the owner does not dispose of it within a period not exceeding one year set by the Ministry of Finance (today the Ministry of Treasury and Finance), and the proceeds are paid to the owner (Art. 35). On how to challenge a liquidation decision, see our article (in Turkish) Yabancının Taşınmaz Ediniminde Red ve Tasfiyeye İtiraz Dava Dilekçesi (petition against refusal and liquidation).
Limits and obligations when buying in your own name
| Topic | Rule | Legal basis |
|---|---|---|
| Who may acquire? | Foreign individuals who are citizens of countries determined by the President | Land Registry Law, Art. 35/1 |
| Area limit | 10% of the privately owned area of the district; 30 hectares per person nationwide (the President may raise the per-person limit up to double) | Land Registry Law, Art. 35/2 |
| Power to restrict | The President may restrict or suspend acquisitions by country, region, period, number and amount | Land Registry Law, Art. 35/3 |
| Undeveloped land | The project is submitted to the relevant Ministry for approval within two years and completed on time | Land Registry Law, Art. 35 |
| Military zones | No acquisition in second-degree land military forbidden zones; the President may impose bans in strategic zones | Law No. 2565, Arts. 9 and 28 |
| Valuation report | Required in sales where a foreign individual is a party; usable for 12 months | General Directorate of Land Registry and Cadastre (TKGM) Circulars 2019/1 and 2024/2; Approval of 28 September 2026 |
| Breach | Liquidated and converted into cash if not sold within a period not exceeding one year | Land Registry Law, Art. 35 |
Military and security zones. Law No. 2565 on Military Forbidden Zones and Security Zones provides that foreign individuals and legal entities may not acquire real estate in second-degree land military forbidden zones (Law No. 2565, Art. 9); in zones of strategic importance, the President may decide that foreigners may not acquire real estate and may not rent it without permission (Law No. 2565, Art. 28). Land registry offices carry out the zone check on the basis of the registry records. On what a military security zone annotation in the land register means, see our article (in Turkish) Tapuda Askerî Güvenlik Bölgesi Şerhi (military security zone annotation).
Valuation report. Circular No. 2019/1 of the General Directorate of Land Registry and Cadastre (TKGM) provided that, from 4 March 2019, a property valuation report is required in sales where a foreign individual is a party as buyer or seller. The use of valuation reports in land registry transactions is governed by Circular No. 2024/2; by an Approval (Makam Oluru) of 28 September 2026, the period during which valuation reports may be used in land registry transactions was set at 12 months, and reports used for citizenship purposes may now be prepared by valuation firms licensed by the Capital Markets Board, rather than by a single firm as before. The report also matters for whether the sale price is realistic; declaring a low price causes problems for tax as well as for citizenship and residence applications.
A foreign buyer who does not speak Turkish must have an interpreter present during the transaction, powers of attorney issued abroad must carry an apostille and a certified Turkish translation, and payment must be documented through bank transfers. On source-of-funds checks by MASAK (Turkey’s Financial Crimes Investigation Board), see our articles (in Turkish) Yabancı Uyrukluların Banka Hesabı ve Gayrimenkul İşlemlerinde MASAK (MASAK in foreigners’ bank and real estate transactions) and Gayrimenkul Alım Satımında MASAK (MASAK in real estate sales).
Buying through a Turkish company: Land Registry Law Art. 36
A company that a foreign investor sets up in Turkey, or becomes a shareholder in, is a Turkish company and, as a rule, has the same rights as domestic companies. However, Turkish companies in which foreign individuals or companies incorporated abroad hold fifty percent or more of the shares, or have the power to appoint or dismiss the majority of the persons with management authority, may acquire and use real estate and limited real rights to carry out the business activities set out in their articles of association (Land Registry Law, Art. 36). Acquisitions by these companies are governed by the “Regulation on the Acquisition of Real Estate Ownership and Limited Real Rights by Companies and Affiliates Within the Scope of Article 36 of Land Registry Law No. 2644”, published in Official Gazette No. 28386 of 16 August 2012.
Who is in scope? When calculating the percentage, shares held by persons covered by Article 28 of Turkish Citizenship Law No. 5901 (broadly, former Turkish citizens by birth who renounced citizenship with permission, and certain of their descendants, commonly known as Blue Card holders) and by Turkish citizens residing abroad are disregarded in determining the foreign investors’ shareholding (Regulation, Art. 1/2). Turkish companies in which the company in scope holds shares, provided that the foreign investor’s ultimate direct or indirect shareholding is 50% or more, are also covered, as “affiliates” (iştirak), and are subject to the same rules (Regulation, Art. 3). For publicly held companies, the application must include a Central Registry Agency (MKK) document showing the foreign investors holding 10% or more of the company’s capital through exchange-traded shares and the foreigners holding shares that are not traded on the exchange (Regulation, Art. 4).
The business-activity test. The key to the company route is the articles of association. Real estate may be acquired to carry out the business activities written in the articles and must be used for that purpose. A manufacturer’s factory site or a logistics company’s warehouse easily meets this test. By contrast, a company that wants to buy apartments purely as an investment and rent them out must have activities such as real estate trading, leasing or construction in its articles. If necessary, the business activities should be extended by amending the articles of association before the acquisition. On drafting the articles and setting up a company, see our guide Company Formation in Turkey for Foreigners.
No area limit. The 10% and 30-hectare limits in Article 35 of the Land Registry Law apply to foreign individuals; for companies within the scope of Article 36, the business activities and the security review are decisive instead. This is the main reason why the company route is preferred for agricultural, energy, industrial or tourism investments that require large areas of land.
Exceptions. Creating a mortgage and acquiring ownership through the enforcement of a mortgage, transfers arising from company mergers and demergers, acquisitions in special investment zones such as organized industrial zones, industrial zones, technology development zones and free zones, and real estate acquired by banks through lending transactions or to collect their receivables are outside the scope of Article 36 (Land Registry Law, Art. 36). A company with foreign capital that builds a factory in an organized industrial zone therefore does not go through the governorship procedure; it is subject to the zone’s own legislation.
Acquisitions outside the scope of Land Registry Law Art. 36
| Transaction | Outcome |
|---|---|
| Creating a mortgage | Not subject to the Article 36 procedure |
| Acquiring ownership through enforcement of a mortgage | Not subject to the Article 36 procedure |
| Transfers arising from company mergers and demergers | Not subject to the Article 36 procedure |
| Acquisitions in organized industrial, industrial, technology development and free zones | The zone’s own legislation applies |
| Acquisitions by banks through lending or to collect receivables | Outside the scope as long as the obligation to dispose of the property continues |
The governorship process and deadlines on the company route
A company within the scope of Article 36 applies for the acquisition to the planning and coordination unit of the relevant provincial governorship (called the Provincial Planning and Coordination Directorate in the Regulation) in person, by post or by email (Regulation, Art. 4). The application includes the property’s land registry details and coordinates, an undertaking that the acquisition will be made for the business activities in the articles of association, the authorization document of the company representative, and a trade registry or Central Registry Agency document showing the shareholding structure.
Steps for a company with foreign capital acquiring real estate (Regulation)
| Step | What happens? | Deadline |
|---|---|---|
| 1. Application | The company applies to the governorship with the documents | Before the acquisition |
| 2. Military zone check | Under the Regulation, the governorship sends the property’s coordinates to the General Staff or the command it authorizes; in current practice, the query is answered by the land registry office on the basis of registry records (see the explanation below) | Sent within 3 business days; answer within 15 days, and if no answer is given in time, the property is treated as outside the zones |
| 3. Special security zone assessment | A commission chaired by the governor or a deputy governor designated by the governor assesses the property | 5 days |
| 4. Result outside the zones | The governorship notifies the company and the land registry office | 3 business days |
| 5. Decision inside a zone | Permission from the General Staff or the commands it authorizes is required in military forbidden, military security and strategic zones; permission from the governorship is required in special security zones | Decision within 30 days |
| 6. Registration at the land registry | After notification, the company applies to the land registry office for registration | Within 6 months of notification |
In practice, the process is shorter than in the text of the Regulation. TKGM Circular No. 2018/6 introduced a procedure under which, in provinces where military zone information has been entered in the land register, zone queries for companies within the scope of Article 36 are answered by the land registry office within a maximum of three business days. An Instruction of 21 January 2020 stated that information on military zones had been entered in the land register in all provinces and provided that queries are answered directly on the basis of land registry records, without being referred to the competent commands. The Regulation dates from 2012 and still refers to the “Ministry of Economy”; as ministries have been reorganized since 2012, the competent unit and current practice should be confirmed with the relevant governorship before the transaction.
Although the deadlines look short, they matter for the investment timetable: the governorship process should be started before the sale agreement is signed or a deposit is paid, and the agreement should include a clause providing for the refund of the price if permission cannot be obtained.
After the acquisition: use, inspections and share transfers
Use and inspection. Acquired real estate is used within the scope of the business activities set out in the articles of association (Regulation, Art. 13). Each year at the end of December, the governorship obtains information on the companies’ real estate from the relevant land registry office and checks how it is used; on-site inspections may be carried out. The company is given 30 days to answer questions put to it, and the commission may grant up to six months to remedy a breach.
Liquidation. Real estate found to have been acquired or used in breach of the rules is liquidated and converted into cash if the owner does not dispose of it within the period set by the Ministry of Finance, and the proceeds are paid to the owner (Land Registry Law, Art. 36). Under the Regulation, the governorship notifies the Ministry of Finance (today the Ministry of Treasury and Finance); the company is given six months, which may be extended once by up to six months. At the end of that period the Ministry carries out the liquidation, and the remaining proceeds after costs are deposited into a bank account opened in the owner’s name (Regulation, Art. 14).
Share transfers and changes in the shareholding structure. A company that comes within the scope of the Regulation as a result of a share transfer notifies the Ministry designated in the Regulation (originally the Ministry of Economy; the current competent unit should be confirmed with the governorship) of the details of the transfer within one month (Regulation, Art. 11). For example, a property-owning Turkish company comes within the scope when a foreign investor buys a majority of its shares. If such a company owns real estate in military forbidden, military security or strategic zones, a security review is carried out; if the outcome is negative, the commission may give the company forty-five days to bring the ownership situation into line with national security, which may be extended once by up to six months, after which the liquidation rules apply (Regulation, Arts. 12 and 14). On exiting the investment, selling the company’s shares instead of the property does not require a transfer at the land registry; if the shares are sold to a Turkish buyer, the company may fall outside the scope of Article 36. The tax consequences of a share sale and the reporting obligations relating to foreign capital should be assessed separately.
Obligations after acquisition on the company route
| Obligation | Content | Legal basis |
|---|---|---|
| Use | The property is used within the business activities in the articles of association | Land Registry Law, Art. 36; Regulation, Art. 13 |
| Annual inspection | Each year at the end of December, the governorship obtains the land registry records and checks the use; on-site inspections are possible | Regulation, Art. 13 |
| Time to answer | 30 days for questions put to the company | Regulation, Art. 13 |
| Time to remedy | Up to six months may be granted to remedy a breach | Regulation, Art. 13 |
| Share transfer notification | A company that comes within the scope as a result of a share transfer notifies the Ministry designated in the Regulation within one month; a new security review for property in the zones | Regulation, Arts. 11 and 12 |
| Liquidation | Six months, extendable once by up to six months; then sale by the Ministry and payment of the proceeds to the owner | Land Registry Law, Art. 36; Regulation, Art. 14 |
Buying in the name of a company abroad: why it is usually not possible
Commercial companies with legal personality incorporated abroad under the laws of their own country may acquire real estate and limited real rights only within the framework of special laws (Land Registry Law, Art. 35). They have no general right of acquisition. It is therefore exceptional for a parent company abroad to hold title in Turkey directly; in practice the investor sets up a company in Turkey and acquires the property in that company’s name under Article 36. Even special regimes, such as Turkish Petroleum Law No. 6491 on petroleum exploration and production, often grant a right of use rather than ownership of real estate. On Treasury-owned property, see our article (in Turkish) Yabancılar Hazine Taşınmazı Alabilir mi? (can foreigners buy Treasury property?).
A company abroad may also operate in Turkey by opening a branch; however, because a branch has no separate legal personality, an acquisition in the branch’s name is an acquisition by the foreign company and runs into the same restriction. For an investment that needs real estate, setting up a company is therefore a more suitable structure than opening a branch.
Buying property in your company’s name?
Send us the land registry details via WhatsApp for checking the business activities in the articles of association, the governorship application, the military and security zone review, making the sale agreement conditional on obtaining permission and following up the registration. We can correspond in English. Hukukçular Evi Ankara: +90 554 648 37 15
📞 +90 554 648 37 15💬 WhatsAppTaxes and costs: the differences between buying personally and through a company
The cost of the personal and company routes is similar at the time of purchase; the real difference appears during the years the property is used and at the time of sale.
Title deed fee. On sales of real estate, the title deed fee (tapu harcı) is 2% (twenty per thousand) each for the buyer and the seller (Fees Law No. 492, Tariff No. 4, I-20). Law No. 7566, published in Official Gazette No. 33112 of 19 December 2025, redefined the base of the fee as the declared transfer and acquisition price, which may not be lower than the property tax value. The same Law raised the tax loss penalty (vergi ziyaı cezası) for an underpaid title deed fee from 25% to 100% of the underpaid fee; declaring less than the real price is therefore more costly than before. For a calculation, our (Turkish-language) Tapu Harcı ve Alım-Satım Maliyeti Hesaplama Aracı (title deed fee and purchase cost calculator) can be used.
VAT. On the first delivery of buildings constructed as residences or workplaces, deliveries to foreign individuals not resident in Turkey are exempt from VAT, provided the price is brought into Turkey in foreign currency; if a residence or workplace bought under the exemption is disposed of within three years, the VAT not collected at the time must be paid with deferral interest before the land registry transaction (VAT Law, Art. 13/i). Entities with no legal seat or business center in Turkey, and Turkish citizens living abroad who meet the conditions, may also benefit from the exemption; a company incorporated in Turkey cannot, but if it uses the property in its taxable activities it may deduct the input VAT under the general rules.
Property tax. Annual property tax rates are 0.1% for residences, 0.2% for other buildings, 0.3% for building plots (arsa) and 0.1% for land (arazi, i.e. agricultural or rural land); within the boundaries of metropolitan municipalities and their adjacent areas these rates are increased by 100%, i.e. doubled (Property Tax Law No. 1319). Law No. 7566 caps the increase in 2026 tax values: in the wording of the Law, they may not exceed the 2025 tax values “by more than two times”. The tax is charged to whoever owns the property: the company for property registered in its name, and the foreign owner for property registered in their personal name.
Rental income. If a foreign owner living abroad receives rent from a property whose tenant is a company, the tenant company withholds 20% tax (Income Tax Law, Art. 94/5-a); if all the income has been taxed by withholding, no return is filed. If the tenant is not obliged to withhold, the rental income is declared on an annual return. Rent from property registered in the name of a company is part of the company’s corporate tax base; in addition, leasing must be among the business activities in the articles of association. On the rental income and other taxes of people living abroad, see our article (in Turkish) Yurt Dışında Yaşayanların Türkiye’deki Vergisi (Turkish taxes of people living abroad).
Sale. If property bought personally is sold within five years of acquisition, the gain is subject to income tax as a capital gain (Income Tax Law, Repeated Art. 80, i.e. Art. 80bis); no such tax arises on a sale after five years. For 2026 the exempt amount for such capital gains is TRY 150,000. A company’s gain on selling property, by contrast, is subject to 25% corporate income tax. Law No. 7456, published in Official Gazette No. 32249 of 15 July 2023, removed property acquired from that date from the corporate tax exemption for sale gains; for property recorded in the company’s assets before that date and held for at least two years, 25% of the gain remains exempt. Because the same Law also limited the separate VAT exemption for companies’ sales of real estate to property recorded in the company’s assets before that date, a company’s sale of property acquired from that date is also subject to VAT. For an individual investor planning to sell in the long term, the personal route is therefore more advantageous in this respect.
Comparison of taxes and costs
| Item | In your own name (foreign individual) | Turkish company with foreign capital |
|---|---|---|
| Title deed fee | 2% each for the buyer and the seller | 2% each for the buyer and the seller |
| VAT (first delivery) | Exempt subject to conditions; VAT is paid if sold within three years (VAT Law, Art. 13/i) | No exemption; may be deducted if the property is used in taxable activities |
| Property tax | Paid by the individual as owner | Paid by the company as owner |
| Rental income | 20% withholding if the tenant is a company; otherwise an annual return | Part of corporate income; leasing must be among the business activities |
| Gain on sale | Income tax on a sale within five years; no tax afterwards (Income Tax Law, Repeated Art. 80) | 25% corporate income tax; no exemption and the sale is subject to VAT for property acquired from 15 July 2023 |
| Repatriation of profits | The sale price belongs directly to the owner | 15% withholding on distribution as a dividend; may be reduced by a tax treaty |
On the company route, a dividend distribution is also needed for the profit from a sale to reach the foreign shareholder; for the withholding tax and transfer process at that stage, see our guide Dividend Repatriation from Turkey for Foreign Shareholders. Selling the company’s shares instead of the property requires a separate tax assessment (see, in Turkish, Sermaye İşlemleri ve Pay Devrinde Vergilendirme, on the taxation of capital transactions and share transfers).
Citizenship and residence permits: why you need to buy in your own name
Citizenship. For Turkish citizenship through real estate, the foreigner must buy property worth at least USD 400,000 or its equivalent in foreign currency, which is either subject to condominium ownership or construction servitude (kat irtifakı, the pre-completion form of condominium title) or is a plot with a building on it, with a three-year no-sale annotation entered in the land register (Regulation on the Implementation of the Turkish Citizenship Law, Art. 20/2-b). Before the transaction, the foreign currency amount is sold to a bank operating in Turkey, which in turn sells it to the Central Bank (Regulation, Art. 20/10). The amount was raised from USD 250,000 to USD 400,000 by Presidential Decision No. 5554, published in Official Gazette No. 31834 of 13 May 2022; vacant plots and fields were excluded by Presidential Decision No. 7938, published in Official Gazette No. 32397 of 12 December 2023.
This provision covers personal acquisitions by foreign individuals; property bought in the name of a company in which the foreigner is a shareholder does not meet the citizenship requirement. There is a separate route for investors seeking citizenship through a company: a fixed capital investment of at least USD 500,000 certified by the Ministry of Industry and Technology (Regulation, Art. 20/2-a). In August 2026, the Ministry of Interior announced that many citizenship decisions had been canceled because of irregularities in valuation reports; consistency between the valuation report, the payment documents and the title deed price is therefore vital. For details, see our articles (in Turkish) Yatırım Yoluyla Türk Vatandaşlığı (citizenship by investment), Vatandaşlık Başvurusu İçin Gerekli Belgeler (documents for citizenship applications) and, if the application is refused, Yatırım Yoluyla Vatandaşlık Başvurusu Reddedildi (citizenship by investment refused).
Real estate requirements for citizenship and residence permits
| Goal | Requirement | Property in a company’s name |
|---|---|---|
| Citizenship through real estate | At least USD 400,000; condominium or construction servitude, or a plot with a building; three-year no-sale annotation; foreign currency sold to a bank (Regulation, Arts. 20/2-b and 20/10) | Does not meet the requirement |
| Citizenship through fixed capital investment | At least USD 500,000; certification by the Ministry of Industry and Technology (Regulation, Art. 20/2-a) | A separate route; the Ministry certifies whether the investment qualifies as fixed capital investment |
| Short-term residence permit based on property | A residence used as such; at least USD 200,000 for acquisitions from 16 October 2023; not rented out (Law on Foreigners and International Protection, Art. 31/1-b) | Does not give the shareholder this permit |
Residence permit. Foreigners who own real estate in Turkey may be granted a short-term residence permit (Law on Foreigners and International Protection No. 6458, Art. 31/1-b). The property must be a residence and be used as such (Implementing Regulation of Law No. 6458, Art. 28). According to the Presidency of Migration Management’s application page, for residences acquired on or after 16 October 2023 the value must be at least the Turkish lira equivalent of USD 200,000 as of the acquisition date, and the residence must not be rented out. A provision added to Article 31 of Law No. 6458 by Law No. 7533 gives the Ministry of Interior the power to determine the nature and value of property on which a short-term residence permit may be based. The Law refers to a foreigner who “owns real estate”; since the company’s assets are not the shareholder’s assets, a residence registered in the company’s name does not give the shareholder a residence permit on this basis. In addition, because some neighborhoods with a high proportion of foreign residents may be closed to new residence registrations, the status of the neighborhood should be checked before buying.
Which route suits whom? Decision table
Recommended structure by investment goal
| Goal | Recommended route | Reason |
|---|---|---|
| Living in Turkey or obtaining a residence permit | In your own name | The residence permit is granted to the foreigner who owns the property; a residence worth at least USD 200,000 |
| Citizenship through real estate | In your own name | A personal acquisition, USD 400,000 and a three-year no-sale annotation are required |
| Factory, warehouse, office or hotel | Turkish company | Direct link to the business activities; no area limit; expenses and depreciation in the company |
| Buying several apartments to rent out | Turkish company (leasing must be among its activities) or individual | Business-activity requirement for the company; declaration of rental income and area limits for the individual |
| Buying land to develop a project | Turkish company | The obligation on the personal route to submit the project for approval within two years does not apply to the company; however, construction or project development must be among the company’s business activities, and use is subject to annual inspection |
| Large areas of land (agriculture, energy, industry) | Turkish company | The limits of 30 hectares per person and 10% per district do not apply to the company |
| Long-term individual investment and sale after five years | In your own name | No capital gains tax arises on a sale after five years |
Some investors use both routes: they buy the home they will live in personally and the property their business will use in the company’s name. What matters is that the purpose of each acquisition is set from the outset and that the land registry record, agreements and payment documents are consistent with that purpose.
Pre-purchase checklist
- Check whether the property is in a military forbidden, military security, strategic or special security zone, and check the annotations in the land register.
- If buying in your own name, confirm with the land registry office whether any restriction applies to your nationality and whether the 10% district limit has been reached.
- If buying land, plan the two-year project timetable; if a company is buying, check that its business activities cover construction.
- If buying in a company’s name, check the business activities in the articles of association and the shareholding percentages; start the governorship application before the sale agreement.
- Include a clause in the sale agreement providing for the refund of the price if permission cannot be obtained.
- Make sure the valuation report and the real sale price are consistent; do not declare a lower price.
- Pay from your own account abroad through banks; if citizenship is a goal, obtain the foreign exchange purchase certificate.
- If a residence permit is a goal, check whether the neighborhood is open to new registrations.
- After the purchase, put the property tax declaration and rental income obligations in your calendar.
Common mistakes
- Registering the property intended for citizenship in a company’s name.
- Buying residential property as an investment and renting it out in the name of a company whose business activity is manufacturing.
- Trying to obtain title directly in the name of the parent company abroad.
- Buying land as an individual and not submitting the project to the Ministry within two years.
- Paying the full price before the governorship process is completed.
- Declaring less than the real price at the land registry.
- Buying a majority of the shares of a property-owning Turkish company and overlooking that the company has come within the scope of Article 36 and must notify the Ministry within one month.
- Assuming that rental income and capital gains taxes do not arise because the owner lives abroad.
Frequently asked questions
Can a foreign investor buy property in Turkey in a company’s name?
Yes. A Turkish company in which foreigners hold at least 50% of the shares or can appoint the majority of its management may acquire real estate to carry out the business activities in its articles of association (Land Registry Law, Art. 36). Apart from the statutory exceptions, the acquisition goes through a military and security zone review via the governorship.
Can I get title in Turkey in the name of my company abroad?
As a rule, no. Commercial companies incorporated abroad under the laws of their own country may acquire real estate only within the framework of special laws (Land Registry Law, Art. 35). In practice, a company is set up in Turkey and the property is acquired in that company’s name.
How much real estate can a foreign individual buy in Turkey?
Acquisitions by foreign individuals may not exceed ten percent of the privately owned area of the district or thirty hectares per person nationwide; the President may raise the per-person limit up to double (Land Registry Law, Art. 35/2).
Is there an area limit for a company with foreign capital?
The 10% and 30-hectare limits in Article 35 of the Land Registry Law apply to foreign individuals. For companies within the scope of Article 36, the decisive test is that the property is acquired and used for the business activities in the articles of association.
How long does the governorship process take for a company acquisition?
Under the text of the Regulation, the governorship sends the coordinates to the General Staff or the command it authorizes within 3 business days, and the answer is given within 15 days; however, under TKGM Circular No. 2018/6 and the Instruction of 21 January 2020, military zone queries are now answered by the land registry office on the basis of registry records within a maximum of three business days. The special security zone assessment takes 5 days, and notification for property outside the zones 3 business days. For property inside a zone, the decision is given within 30 days; registration must be requested at the land registry within 6 months of notification.
Can an apartment bought in a company’s name be rented out?
Yes, if leasing is among the business activities in the company’s articles of association. If use outside the business activities is found, the property may be liquidated and converted into cash (Land Registry Law, Art. 36).
When does a foreigner who buys land have to submit a project?
Foreign individuals and companies incorporated abroad must submit the project they will develop on undeveloped land they have bought to the relevant Ministry for approval within two years; if no application is made on time or the project is not completed, liquidation may follow (Land Registry Law, Art. 35).
What does liquidation (tasfiye) mean?
Liquidation (tasfiye) is a compulsory sale of the property: if property acquired in breach of the rules or used for another purpose is not sold by the owner within the period given, the Ministry of Treasury and Finance sells it and pays the proceeds to the owner. On the personal route the period may not exceed one year; on the company route the Regulation gives six months, which may be extended once by up to six months.
Can citizenship be obtained with property bought in a company’s name?
No. Citizenship through real estate requires the foreigner to buy, in their own name, property worth at least USD 400,000 with a three-year no-sale annotation (Regulation, Art. 20/2-b). A separate route of a fixed capital investment of at least USD 500,000 exists for citizenship through a company (Art. 20/2-a).
What is the minimum property value for a residence permit?
According to the Presidency of Migration Management’s application page, for residences acquired on or after 16 October 2023 the value must be at least the Turkish lira equivalent of USD 200,000 as of the acquisition date, and the residence must not be rented out. The legal basis is Law No. 6458, Art. 31/1-b; a residence registered in a company’s name does not give the shareholder this permit.
Is a valuation report mandatory for a foreign buyer?
TKGM Circular No. 2019/1 provided that a valuation report is required in sales where a foreign individual is a party. By an Approval of 28 September 2026, the period for using reports in land registry transactions was set at 12 months.
How much is the title deed fee?
It is 2% (twenty per thousand) each for the buyer and the seller (Fees Law No. 492, Tariff No. 4, I-20). Law No. 7566 set the base as the declared transfer and acquisition price, which may not be lower than the property tax value, and raised the penalty for an underpaid fee.
Is a foreign buyer exempt from VAT?
On the first delivery of buildings constructed as residences or workplaces, deliveries to foreign individuals not resident in Turkey are exempt from VAT, provided the price is brought into Turkey in foreign currency; if the property is sold within three years, the VAT is paid with deferral interest (VAT Law, Art. 13/i). A Turkish company cannot use this exemption.
Do I pay tax when I sell the property?
If property bought personally is sold within five years, the capital gain is subject to income tax (Income Tax Law, Repeated Art. 80); the exempt amount for 2026 is TRY 150,000. A company’s gain on sale is subject to 25% corporate income tax; for property acquired from 15 July 2023 there is no corporate tax exemption, and the sale is subject to VAT.
What should I do about the property if I sell my company’s shares?
A share sale does not require a transfer at the land registry. A company that comes within the scope of the Regulation as a result of a share transfer notifies the Ministry designated in the Regulation within one month of the transfer (Regulation, Art. 11); if it owns property in military zones, a security review is carried out (Art. 12). If the shares are sold to a Turkish buyer, the company may fall outside the scope; the tax consequences should be assessed separately.
Is governorship permission needed to buy a factory in an organized industrial zone?
Acquisitions in special investment zones such as organized industrial zones, industrial zones, technology development zones and free zones are outside the scope of Land Registry Law Art. 36; the zones’ own legislation applies.
Related guides
- Legal Guide for Foreign Investors in Turkey — company, stock exchange, mining, real estate, tax and arbitration
- Company Formation in Turkey for Foreigners — setting up the company that will hold the property
- Dividend Repatriation from Turkey for Foreign Shareholders — getting company profits abroad
- Can a Foreign Company Get a Mining License in Turkey? — the Turkish company requirement in mining
- Yabancıların Miras ve Taşınmaz İntikali — inheritance of real estate by foreigners (in Turkish)
- Yabancı Yatırımcı Gayrimenkulü Kendi Adına mı, Şirket Üzerinden mi Almalı? — Turkish version of this article
Let us set up your real estate investment with the right structure
Send us a summary of your file via WhatsApp for the personal or company route, the articles of association and the governorship process, title deed and valuation, a citizenship or residence application, a liquidation notice or tax on a sale. We can correspond in English. Hukukçular Evi Ankara: +90 554 648 37 15
📞 +90 554 648 37 15💬 WhatsAppImportant note: This article is for general information only; it is not investment or tax advice and does not constitute a legal opinion on any specific acquisition. It is a translation of the Turkish version; in case of any discrepancy, the Turkish version prevails. Legislation relied on: Land Registry Law No. 2644, Arts. 35 and 36; Regulation on the Acquisition of Real Estate Ownership and Limited Real Rights by Companies and Affiliates Within the Scope of Article 36 of Land Registry Law No. 2644 (Official Gazette, 16 August 2012, No. 28386); Law No. 2565 on Military Forbidden Zones and Security Zones, Arts. 9 and 28; TKGM Circulars No. 2018/6, 2019/1 and 2024/2, the Instruction on Queries under Law No. 2565 (21 January 2020) and the Approval of 28 September 2026; Fees Law No. 492, Tariff No. 4, I-20; VAT Law No. 3065, Art. 13/i; Property Tax Law No. 1319; Income Tax Law No. 193, Art. 94 and Repeated Art. 80; Corporate Tax Law No. 5520; Laws No. 7456 and No. 7566; Law on Foreigners and International Protection No. 6458, Art. 31, and its Implementing Regulation, Art. 28; Law No. 7533; Regulation on the Implementation of the Turkish Citizenship Law, Art. 20; Presidential Decisions No. 5554 and No. 7938; Turkish Petroleum Law No. 6491. Amounts, rates and administrative practice may change; the current text and practice on the transaction date should be relied on.


