Purchasing Turkish Real Estate via a Corporate Entity
For many foreign investors, buying property in Turkey through a registered company offers a viable solution to overcome certain restrictions. It also serves as a strategic choice for those looking to engage in business operations post-purchase. Here’s a detailed guide on how you can set up a company in Turkey and buy property.
Why Buy Property Through a Company in Turkey?
- Circumventing Restrictions: Some foreign nationals face legal hurdles when purchasing property in Turkey directly. Setting up a company can be a way to navigate these challenges.
- Business Operations: Large investors often purchase land and property through limited companies to facilitate business operations.
- Legal and Financial Benefits: A company structure can offer tax advantages and other financial benefits.
Setting Up a Company in Turkey
To purchase property through a company, you need to establish a foreign capital company. This company will be subject to Turkish law, even though its capital belongs to a foreign national.
Steps to Establish a Company and Buy Property
- Document Preparation
- Power of Attorney (POA)
- Passport Copies
- Two Passport-Sized Photos
- Application Process
- Submit the documents to relevant authorities.
- Prepare Articles of Association.
- Apply to the tax authority and start the preparation of company books.
- Verification and Registration
- Tax officials will check the legal address.
- Final permission will be granted, often facilitated by a lawyer.
- Property Purchase Process
- Prepare a second POA for a solicitor to complete the purchase.
- The solicitor will apply to the governor for permission to buy a home.
- Obtain military clearance.
- Final Purchase
- After governor’s permission, make an application to the Land Registry with the seller.
Costs of Setting Up a Company in Turkey
- Initial Setup: Approximately £2,500 for setting up a limited company.
- Annual Fees: Around £2,000 per year, covering registry submissions and accounting fees.
Benefits of the Foreign Direct Investment Law (2003)
The Foreign Direct Investment Law grants foreign investors the same rights and treatment as domestic investors in Turkey. This legislation has lifted many of the previous restrictions and permissions required for foreign investments.
