Real Estate Acquisition by Foreigners 1 Real estate

Real Estate Acquisition by Foreigners 1 - Real estate acquisition by foreign real persons Legal framework of acquisition of real estate by foreigners in Turkey has changed with the amendments made to the Land Registry Law No. 6302 (Published in the Official Gazette dated 18 May 2012). BEFORE AFTER • • Reciprocity principle Cancelation of Reciprocity principle Nationals of countries specified by the Ministerial Cabinet may acquire immovable and limited right in rem. • Max size of immovable properties that could be acquired : 2. 5 hectares. • Max size of immovable properties that can be acquired : 30 hectares. • Foreign real persons and legal entity commercial companies may purchase lands from the planned areas (Such as from residential or business zones). • Foreign real persons and legal entity commercial companies may purchase lands and areas, whether they are in the planned or unplanned area and classified as agricultural lands or not. (Plans must be prepared in two years time)

Real Estate Acquisition by Foreigners 2 - Real estate acquisition by foreign companies • Commercial companies, which are incorporated in foreign countries in accordance with laws of their origin countries and which possess legal entity characters, may acquire immovable and limited right in rem only within the frames of provisions of special statutes. • No restrictions have been brought regarding immovable pledges. Mortgages shall be freely established in favor of foreign real persons and foreign legal entity commercial companies, regardless of whether they are within the list specified by the Ministerial Cabinet or not.

Real Estate Acquisition by Foreigners 3 - Real estate acquisitions by foreign capital companies • Foreign capital companies which are established in Turkey and are registered in Turkish Commercial Registries are legally accepted as 'Turkish companies”. • Foreign capital companies shall acquire real estate in Turkey. • In order to acquire the land, foreign capital companies have to apply to the Provincial Directorate of Planning and Coordination, which is an organizational unit of the Governorship.