Investing in Property in Turkey

Property News > Turkey's Tapu ban for foreigners

Constitutional Court calls for a temporary halt on issuing title deeds to foreign buyers

On the 15th April 2008, the Turkish constitutional court ruled that a section of Article 35 of the Title Deed Act ( Tapu ), which governs property acquisition by non-Turkish nationals and foreign companies, was contrary to the Turkish constitution.

This notification was given by letter to all land registries and cadastral offices. The circular letter said that any property transaction concerning foreign companies and individuals was to be put on hold until further notice.

The suspension will be lifted when a new law comes into effect which is expected by 16th July 2008, however a draft proposal has already been submitted and it could happen sooner. The biggest difference in the new law is in the seventh paragraph of article 35 of the Code of Land Registry, which puts a specific limitation on size of the land that is permitted for foreign acquisition.

This measure does not affect the property rights of foreigners who already own property or those still wishing to buy as by the time of completion the deed problem is likely to be resolved. For the majority of purchases final payments will not be made until a Tapu is issued, so prospective purchasers are advised to take legal advice (as with any foreign purchase) and make sure that final payments are not made until this issue is resolved and Tapus are being issued again.

Further info:
Turkish Embassy Info on law change http://www.turkisheconomy.org.uk/ccrt_decision.html