What is the difference between freehold and leasehold property in Turkey?

If you are living abroad and considering buying property in Turkey, this is probably your first question: what exactly is the difference between “freehold” and “leasehold” under Turkish law?

Short answer

Freehold exists in Turkey as full ownership (mülkiyet) recorded in the Land Registry (tapu), giving the owner the right to use, benefit from, and dispose of the property without time limitation, subject to law and third-party rights. Leasehold, as a separate form of ownership common in some common-law countries, does not exist in Turkish law. Instead, long-term occupation or use is created either by a lease contract (kira sözleşmesi), which is a personal right, or by registering a limited real right such as a usufruct (intifa hakkı) or a construction right/superficies (üst hakkı) in the Land Registry. These limited rights do not transfer ownership of the land or unit; they grant use or construction powers for their term. [1][4][5]

Freehold ownership in Turkish law

Freehold ownership is defined in the Turkish Civil Code (Türk Medeni Kanunu) as the comprehensive right to use, enjoy, and dispose of a thing within the limits of the legal order, including immovable property. Ownership is acquired and transferred for immovables by registration in the Land Registry (tapu sicili), except in cases prescribed by law. The Civil Code is the primary legal basis for ownership, with the Land Registry Law (Tapu Kanunu) governing the establishment, registration, and publicity of rights over immovables. [1][4]

For apartments and other multi-unit buildings, Turkey uses “condominium ownership” (kat mülkiyeti) under Law No. 634. Condominium ownership is a form of full ownership of an independent unit in a completed building, together with a proportional co-ownership share of the land and common parts. Before a building is completed, a “construction servitude” (kat irtifakı) may be established, which converts to condominium ownership upon issuance of the occupancy permit and registration. Both forms are registered at the Land Registry, and condominium ownership is considered a freehold right in the specific unit. [3]

What “leasehold” means in Turkey

Turkish law does not recognize a distinct “leasehold estate” that is a time-limited ownership interest separate from freehold. Instead, there are two main pathways to secure long-term use without owning the property. The first is a lease agreement under the Turkish Code of Obligations (Türk Borçlar Kanunu). A lease is a contractual, personal right between lessor and lessee, effective against third parties only if and to the extent it is recorded as an annotation in the Land Registry within the limits allowed by law. Leases are widely used for residential and commercial occupation but do not transfer real rights in rem unless supported by registration as limited rights recognized by the Civil Code. [2][1]

The second pathway is a limited real right registered on title, most commonly a usufruct (intifa hakkı) or a construction right/superficies (üst hakkı). A usufruct grants the holder the right to use the property and take its fruits while ownership remains with the titleholder. A construction right (üst hakkı) allows the holder to construct and maintain a building on or under another’s land and to own that structure independently from the land for the duration of the right. Both are established and protected through registration in the Land Registry and are enforceable against third parties. They are time-bound or otherwise limited as specified in the Civil Code and the constitutive deed. [1]

Registration and protection of rights in the Land Registry

The Land Registry Law sets the framework for registering ownership and limited real rights and for annotating certain personal rights, providing publicity and protection to those rights against third parties. Rights in rem such as ownership, usufruct, easements, and construction rights must be registered to be effective against all. Personal rights, like lease agreements, can be annotated (şerh) in the Land Registry to provide limited protection within statutory limits. The Turkish Civil Code permits annotation of certain personal rights for up to ten years, after which re-annotation would be required to maintain protection through the registry. This mechanism is often used to strengthen long-term commercial leases but does not convert a lease into an ownership right. [4][1]

For condominiums, the Condominium Law details how independent unit ownership, common areas, management plans, and land shares are recorded, and it clarifies that the condominium title is a full real right over the independent unit. Purchasers of units shown as “kat mülkiyeti” in the title deed hold freehold title to that unit, while any registered limited rights or annotations affecting the unit will appear in the encumbrances section of the deed. [3]

Practical implications for buyers comparing “freehold” and “leasehold”

A buyer in Turkey typically acquires freehold ownership recorded as either full land ownership, co-ownership, or condominium ownership of an independent unit with its proportional land share. This is different from systems where buyers may choose between freehold or leasehold tenure. In Turkey, the buyer’s title deed (tapu) shows the type of right acquired and any encumbrances. If the property is subject to a registered usufruct, easement, or construction right, the buyer acquires ownership subject to that encumbrance, and the holder of the limited right retains their use or construction entitlement as registered. Reviewing the title’s encumbrance section during due diligence is essential to identify any such rights. [4][3]

If a long-term occupation arrangement is needed without acquiring ownership, parties often use a lease agreement and, where appropriate, register an annotation to protect the lessee’s position for up to the legal limit. Alternatively, they may establish a limited real right such as a usufruct or construction right, which is stronger against third parties because it is a right in rem rather than a personal right. Each of these structures has legal and tax consequences that depend on the instrument used, the duration, and the parties’ status. Professional legal advice is recommended to assess the correct structure for a specific project or personal situation. [1][2][4]

Summary

In Turkish law, “freehold” corresponds to full ownership recorded in the Land Registry, including condominium ownership of an apartment. “Leasehold” as a time-limited ownership estate does not exist. Long-term use without ownership is created either by contract (lease) or by registering a limited real right such as usufruct or a construction right. The key practical difference is that ownership confers comprehensive, indefinite rights within the law, while leases and limited real rights are narrower, time-bound, and must be properly documented and, where applicable, registered to be effective against third parties. This is general information; if your situation involves financing, development, or complex occupancy structures, consult a licensed attorney for tailored advice.

Related Questions:
– Q# What does “kat mülkiyeti” (condominium ownership) mean on a Turkish title deed?
– Q# How do I check for encumbrances and annotations on a Turkish tapu?
– Q# Can a long-term lease be protected at the Land Registry in Turkey?
– Q# What is a “üst hakkı” (construction/superficies right) and how is it used?

References:
[1] Republic of Türkiye – Legislation Information System (Mevzuat). “Turkish Civil Code No. 4721.” https://www.mevzuat.gov.tr/MevzuatMetin/1.5.4721.pdf
[2] Republic of Türkiye – Legislation Information System (Mevzuat). “Turkish Code of Obligations No. 6098.” https://www.mevzuat.gov.tr/MevzuatMetin/1.5.6098.pdf
[3] Republic of Türkiye – Legislation Information System (Mevzuat). “Condominium Law No. 634 (Kat Mülkiyeti Kanunu).” https://www.mevzuat.gov.tr/MevzuatMetin/1.5.634.pdf
[4] Republic of Türkiye – Legislation Information System (Mevzuat). “Land Registry Law No. 2644 (Tapu Kanunu).” https://www.mevzuat.gov.tr/MevzuatMetin/1.3.2644.pdf
[5] General Directorate of Land Registry and Cadastre (TKGM). “Land Registry – General Information.” https://www.tkgm.gov.tr/en

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.

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