Land rights for foreign investors in Türkiye
1) Can a foreign company/foreigner acquire land in the host country, and what forms are permitted: ownership, long-term lease, sublease, servitude?
Foreigners and foreign-controlled Turkish legal entities may acquire land in Türkiye, primarily through ownership and limited real rights such as easement and usufruct, subject to legal limits and security clearances under the Land Registry Law No. 2644 (“Law No. 2644”).
The maximum area permitted is 30 hectares per person nationwide and 10% of privately owned land per district, unless otherwise authorized by the President. These limits apply only to foreign natural persons; foreign-invested Turkish companies are subject instead to Article 36, which allows acquisitions if necessary for their business purposes, without the 30 hectares/10% cap.
Foreign companies established under foreign law may acquire property only under special legislation. Long-term lease and sublease are not explicitly restricted and may be used unless otherwise regulated.
Certain categories of land (e.g., Treasury property, public domain, or restricted/military zones) may require special permission or may be entirely excluded from lease or sublease. All acquisitions are subject to project approval and monitoring by the relevant authorities.
2) Are there restrictions on land categories (agricultural/non-agricultural, border areas, strategic plots, coastal zones) and on size/duration of ownership/use?
Under Law No. 2644, foreigners are prohibited from acquiring land in military and security zones, as well as in other areas classified as strategic by the competent authorities.
Agricultural lands may be acquired only subject to project development obligations within two years, while coastal and other special-use zones are regulated under separate legislation imposing additional restrictions.
The two-year project submission obligation does not apply only to agricultural land; it applies more generally to any acquisition of vacant/undeveloped plots by foreign individuals.
Beyond these categorical limitations, general size caps (30 hectares per person and 10% per district) also apply to foreign natural persons, but not to Turkish companies with foreign shareholders, which follow Article 36 rules.
3) What is the best way to structure the transaction: purchase of shares in a local landholding company, direct land acquisition, long-term lease through an SPV, concession, or PPP?
Under Turkish law, direct land acquisition is the simplest option for foreign individuals, though it is subject to restrictions, particularly in military or special zones.
Foreign legal entities, however, are generally not permitted to acquire land directly unless authorized by special legislation, making share acquisition in a local landholding company a more viable route.
It should be noted that Turkish companies with foreign shareholders are considered Turkish legal entities, and they may acquire land directly if necessary for their business activities, although acquisitions in restricted zones remain subject to approval or notification procedures.
Alternatively, long-term leases, usufruct rights, concessions, or PPP models—often through SPVs—are commonly used in infrastructure and public service projects. Each structure has specific legal and regulatory implications, so the optimal model should be selected based on the project's nature and legal constraints.
4) What approvals and permits are required (government, municipality, land commission, antimonopoly authority), and how long does the process usually take?
In Türkiye, the approvals and permits required for real estate transactions vary depending on the nature of the property and the parties involved. Key steps include obtaining zoning and construction permits from the relevant municipality, registering the transaction with the Land Registry Directorate, and, where applicable, obtaining clearance from the Competition Authority.
Zoning/construction permits are not a prerequisite for a simple property transfer; they become relevant if development or construction is planned after the acquisition.
Foreign buyers must also submit an appraisal report, notarized translations, and a currency exchange certificate evidencing conversion through the Central Bank of Türkiye.
If the property is located in a military or restricted zone, prior approval from the Ministry of Defense or other competent authority is mandatory.
While the standard process typically takes a few weeks, transactions involving foreign investors or special zones may take longer. Competition Authority clearance is only required in cases of mergers/acquisitions that meet turnover thresholds; ordinary property purchases do not usually trigger this requirement.
5) How is land due diligence conducted: boundaries, cadastre, encumbrances, servitudes, disputes, mortgages, designated use, environmental and urban planning restrictions?
The land due diligence process in Turkey begins with the examination of land registry and cadastre records to verify ownership status and boundaries. Encumbrance certificates are used to check for mortgages, liens, and annotations, while zoning status reports reveal permitted uses and construction conditions. However, potential risks such as unregistered easement rights, administrative lawsuits, or environmental restrictions may not be detected in standard reviews and require in-depth legal analysis.
6) Is it possible to change the designated use of land (re-zoning) for the project, what is the process, timing, risks of refusal, and possible appeals?
A zoning plan amendment is a complex process supported by technical and legal reports and can take up to a year. Approval of the amendment depends on compliance with public interest and planning principles. In case of refusal, administrative appeals and judicial remedies are available; however, the predictability and likelihood of success largely depend on a comprehensive legal and technical assessment conducted before filing the application.
7) What mechanisms exist to protect rights: registration of title, title insurance (if available), contractual penalties, international arbitration, investment agreements/stabilization clauses?
Property rights are acquired through registration in the land registry and are guaranteed by the state. Title insurance is not common in Turkey but can be used as an additional safeguard in certain cases. Contractual penalty clauses provide security by ensuring compliance with obligations. Foreign investors may directly access international arbitration under bilateral investment treaties to which Turkey is a party. In large-scale projects, stabilization clauses may also provide predictability against regulatory changes. The effectiveness of these mechanisms depends on contracts being structured flawlessly from a legal perspective.
8) What are the tax and payment aspects: land tax, lease payments/indexation, VAT/profit tax on disposal, incentives for priority investment projects, transfer pricing in land transactions?
Ownership of real property creates property tax obligations, while transactions incur VAT and corporate tax liabilities. For priority investment projects, incentives such as tax reductions, customs duty exemptions, and social security premium support are provided. However, to benefit from these incentives, your project must qualify as a priority investment and the necessary permits must be obtained. For transactions between group companies, compliance with transfer pricing rules and documenting that transactions are conducted at arm's length is a legal requirement.
Authors: Aigerim Sabit Bikmaz, Esra Dicle Ulusoy, Adil Ali Ceylan, Gülendam Tüylüoğlu.
