Yes, foreign investors can buy property in Turkey through a company, but the legal route and permissions depend on whether the purchasing entity is a Turkish company or a foreign company established abroad.[1]
Legal basis and who can buy through a company
Turkey’s Land Registry Law No. 2644 separates rules for foreign real persons from foreign legal entities and companies established in Turkey. Article 35 governs acquisition by foreign real persons, while Article 36 governs acquisition by companies established in Turkey that have foreign shareholders or foreign control, commonly referred to as “companies with foreign capital” (yabancı sermayeli şirketler).[1] A company established in Turkey, even if wholly foreign-owned, is a Turkish legal entity but is subject to Article 36 permissions for property acquisitions in certain locations and for certain uses when foreign shareholding or control thresholds are met.[1][2] Foreign companies established under the laws of other countries can only acquire real estate in Turkey where a specific sectoral law permits it, such as the Petroleum Law, the Tourism Incentive Law, or the Industrial Zones Law.[1]
Buying via a Turkish company with foreign capital
Article 36 of Law No. 2644 allows companies established in Turkey with foreign shareholders or foreign control to acquire real estate and limited real rights in line with their stated field of activity, subject to a governorship permission procedure and security-zone checks.[1] The detailed procedure is set by the Regulation on the acquisition of real estate by companies with foreign capital, which requires an application to the provincial governorship (valilik) to verify whether the property falls within prohibited military zones or security zones and to ensure the acquisition serves the company’s corporate purpose.[2][5] The Foreign Direct Investment Law No. 4875 defines “foreign investor,” “foreign direct investment,” and the principles of national treatment, but does not itself grant a blanket right to acquire real estate without the Article 36 permission process where applicable.[3] The Land Registry and Cadastre Directorate confirms that companies with foreign capital require these checks before registration in sensitive areas.[4]
Can a foreign company established abroad buy directly?
Foreign companies established abroad do not enjoy a general right to buy real estate in Turkey. Article 35 states that foreign commercial companies with legal personality established under the laws of foreign countries may only acquire real estate and limited real rights within the scope of special laws, for example in petroleum, tourism, or industrial zones.[1] Outside such sector-specific frameworks, a foreign company typically cannot purchase freehold title directly. Sectoral laws define the conditions, competent authorities, and any area or usage restrictions, and acquisitions proceed only if the company’s planned activity matches the applicable statute and implementing regulations.[1][3] The Land Registry and Cadastre guidance also reflects this distinction between foreign real persons, foreign-capital Turkish companies, and foreign companies established abroad.[4]
Location restrictions and security reviews
Property acquisitions by companies with foreign capital are screened for national security considerations under Law No. 2565 on Prohibited Military Zones and Security Zones and its implementing regulations.[5] The governorship consults the Ministry of National Defense and other security authorities to determine whether the parcel lies in a prohibited or restricted area, and acquisitions within such zones are not registered or may require additional permissions where allowed by law.[2][5] These security checks are conducted prior to title registration, and the land registry cannot finalize a transfer without a positive clearance where the regulation requires it.[2][4] Separately, general planning, zoning, and land-use rules apply to all buyers, corporate or individual, and the company must ensure the intended use matches its articles of association and the parcel’s zoning status.[2][4]
Process overview at the land registry
The title transfer takes place at the Land Registry Directorate (Tapu Müdürlüğü) once the governorship permission is obtained, where required, and all documents are complete. The land registry verifies corporate documents, the company’s authority to acquire, the property’s identity, and the security clearance status before issuing the title deed (tapu).[2][4] For companies with foreign capital, the governorship permission process runs in parallel or prior to the title appointment, and the application must include corporate documents, shareholding structure, articles of association, and a statement of intended use aligned with the company’s registered field of activity.[2] The land registry’s official guidance outlines document standards, identity and power of attorney (vekaletname) requirements, and the obligation to use sworn translations and notarized or apostilled corporate records where applicable.[4]
Taxes and fees when purchasing through a company
Purchasing through a company does not exempt the transaction from standard transfer charges. Title deed fee (tapu harcı) on conveyances is 4% of the declared transfer value, typically split as 2% by the buyer and 2% by the seller under the Fees Law No. 492 tariff; parties may agree on the commercial burden, but the legal rate is fixed at 4% for the transfer itself.[6] Depending on the property and seller status, value added tax (VAT, KDV) may apply under the VAT Law No. 3065 and its schedules; exemptions and rate variations are statutory and must be evaluated case by case with a tax professional.[6] After acquisition, if the property generates income, corporate income tax applies at the statutory corporate tax rate. The general corporate income tax rate is 25% pursuant to Law No. 5520 as amended by Law No. 7456 effective from the 2023 fiscal period.[7] This information is general; investors should obtain advice tailored to their structure, financing, and the property’s VAT status.
Key differences from individual purchases
Unlike foreign individuals, who can generally acquire properties subject to area caps and mapped security restrictions, companies with foreign capital face a permission procedure tied to their corporate purpose and security screening under Article 36.[1][2] The 30-hectare cumulative cap that applies to foreign real persons under Article 35 does not apply in the same manner to companies with foreign capital, which are instead constrained by security-zone reviews and alignment with their business scope.[1][2] Foreign companies established abroad cannot buy freely unless a special law permits the acquisition for the relevant activity, making incorporation of a Turkish company a common route when corporate ownership is required for operational or structuring reasons.[1][3][4] All registrations remain subject to Turkey’s title system, cadastral verification, and compliance checks by the land registry and security authorities.[2][4][5]
Practical considerations and compliance
Before committing to a transaction, a company should confirm whether the parcel is within a prohibited or restricted zone, align the acquisition with its articles of association, and prepare complete corporate documentation for the permission file.[2][5] Where financing is used, lenders may require evidence of governorship approval and security clearance before disbursement, and all agreements should reflect that completion is conditional on registration. Title deed fees, potential VAT, and ongoing corporate tax obligations should be modelled in advance using current statutory rates and written professional advice.[6][7] This process rewards early legal and tax due diligence with a Turkish counsel experienced in Article 36 procedures and a sworn translator for corporate records, ensuring the land registry will accept and register the deed without delay.[2][4]
Summary
You can buy property in Turkey through a company, but the path depends on the company’s status. A Turkish-incorporated company with foreign capital may acquire property with governorship permission aligned to its business scope and subject to security checks under Article 36. A foreign company established abroad may only acquire where a special sectoral law expressly allows it. All acquisitions pass through the Land Registry Directorate, incur title deed fees at statutory rates, and create ordinary corporate tax exposure on any resulting income. Engage a licensed Turkish lawyer and tax adviser to structure the purchase, manage permissions, and confirm the transaction’s tax profile.
Related Questions:
– Q# Can foreign companies acquire land in Turkish free zones?
– Q# What are the security zone restrictions near military areas for foreign buyers?
– Q# What corporate documents are required for a company to buy property in Turkey?
– Q# How are title deed fees and VAT calculated on corporate property purchases?
References:
[1] Republic of Türkiye. “Land Registry Law No. 2644 (Articles 35–36).” https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=2644&MevzuatTur=1&MevzuatTertip=3
[2] Republic of Türkiye Official Gazette. “Regulation on Acquisition of Real Estate and Limited Real Rights by Companies with Foreign Capital (03.10.2012, No. 28431).” https://www.resmigazete.gov.tr/eskiler/2012/10/20121003-1.htm
[3] Republic of Türkiye. “Foreign Direct Investment Law No. 4875.” https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=4875&MevzuatTur=1&MevzuatTertip=5
[4] General Directorate of Land Registry and Cadastre (TKGM). “Acquisition of Real Estate and Limited Real Rights by Foreigners.” https://tkgm.gov.tr
[5] Republic of Türkiye. “Law No. 2565 on Prohibited Military Zones and Security Zones.” https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=2565&MevzuatTur=1&MevzuatTertip=5
[6] Republic of Türkiye Revenue Administration (GİB). “Title Deed Fees (Tapu Harcı) – Real Estate Transfers.” https://www.gib.gov.tr
[7] Republic of Türkiye Official Gazette. “Law No. 7456 Amending Corporate Tax Rate; Corporate Tax Law No. 5520.” https://www.resmigazete.gov.tr/eskiler/2023/07/20230715-1.htm
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or investment advice. Property law and tax rules in Turkey change frequently. Consult a licensed Turkish lawyer, accountant, or real estate professional before making any purchasing decision.