Incorporated companies established in Turkey may acquire real estates and limited rights in rem in order to operate as set forth in their articles of association. In order for a company to be accepted to have a status of a company with foreign capital, natural persons of foreign origin (except for Turkish citizens and the persons falling within the scope of article 28 of the Turkish Citizenship Law No 5901), legal persons established under the laws of foreign countries or international organizations should own 50% or more of the shares or should be authorized to appoint or dismiss majority of the persons authorized to manage.
Provided that the provisions of the Military Forbidden Zones and Security Zones Law No 2565 will be reserved, acquisition of real estates by such companies will be subject to inquiry by governorships to determine whether they remain within military forbidden zones, military security zones and the zones defined within the framework of article 28 of the same Law (in areas to be determined upon suggestion of the General Staff due to proximity to military to forbidden zones or other strategic reasons). Such inquiry by the governorship takes place directly before the relevant and registry directorate and the land registry directorate responds within not later three business days.
In case of acquisition of real estates within special security zones, on the other hand, authorization is required from the governorship of the place, where the real estate is located.
Companies with foreign capital need to submit their “certificates of authorization” showing the authorized representatives as well as manner of representation and binding in their applications to acquire real estates. Certificate of authorization must clearly contain the authorization to acquire real estates and the personal particulars of the people authorized to act for the company and it must be dated in the same year with the procedure.
The letter of authorization pertaining to companies with foreign capital must include the phrase “Company with Foreign Capital within the Scope of Article 36 of the Land Registry Law No 2644”, and an application must be filed before the Urban Planning and Coordination Directorate of the Governorship with the necessary documentation under the Regulations Regarding Acquisition of Real Estate Ownership and Limited Rights in Rem by the Companies and Enterprises within the Scope of Article 36 of the Land Registry Law No 2644.
The letter of authorization pertaining to other companies, on the other hand, must include the phrase “Company with Foreign Capital excluded from the Scope of Article 36 of the Land Registry Law No 2644”. The companies with such phrase in the letter of authorization in question, on the other hand, are treated like companies with national capital under article 36, and any requests in this respect are consummated directly by the land registry directorates within the framework of general principles.
Companies with foreign capital excluded from the scope of article 36 may acquire real estates and limited rights in rem within the framework of the provisions governing companies with national capital and use and exercise the same.
Real estates and limited rights in rem acquired to the contrary of the provision of such article shall be disposed within the period granted by the Ministry of Treasury and Finance. Otherwise, the real estate or the limited right in rem shall be received and an appropriate amount shall be assessed for the same and shall be paid to the right holder.