Buying land as a foreigner – key facts and expert advice
In a major investment destination such as Turkey, you should take advice before you commit to buying any kind of property or land
which is why we at Maher Real Estate Investment offer you some essential pointers on buying land, particularly for foreign buyers
First
What are the conditions for a foreigner to own land in Turkey?
Broadly speaking, under the ownership law issued in 2012 foreigners may own land and property, but subject to conditions, including:
• The property to be purchased must not lie near sensitive military installations.
• Agricultural land may not be held for more than two years without an agricultural project being established on it within those two years.
• A foreign national may also not own more than 300 thousand square metres of agricultural land.
• Land owned by foreigners in any one location must not exceed 10 per cent of the area of that district.
Second
Which cities do you advise investors to buy in?
For long-term investment we recommend buying agricultural land in the cities surrounding Istanbul, as these are expanding, such as: (Edirne) and (Tekirdağ).
We can also recommend buying in areas where industrial cities are planned, such as: İzmit, Sakarya, and the districts near the Asian side of Istanbul. There are of course other provinces where investment opportunities may be very attractive indeed
You can also buy in Istanbul itself, in the plots that occasionally come up for sale, after carrying out a feasibility study on the land and calculating the expected returns if you build on it or resell it.
Third
What projects can be set up on agricultural land, and what is your view of them?
• Livestock, cattle and poultry projects, producing meat, milk and eggs.
• Farming projects using advanced technology, such as growing tomatoes, strawberries and other produce.
Here we should point out that anyone wishing to invest in agricultural land must be hands-on in the business and have a specialist, experienced team behind them, so that the venture is never left without the investor's direct supervision.
You also need to know the difference between the types of land shown on title deeds
Types of land
1- Development land
2- Agricultural land
Agricultural land is any land on which building is not permitted, or on which building is permitted over a very small share of its area and under special conditions.
Development land is any land on which building is permitted up to a given ratio, whether for villas, commercial, residential or tourism buildings, or for health or educational institutions.
As for how these two types of land are named on a Turkish title deed:
• Agricultural land appears on the deed as Bahçe tarla.
• Development land is called Arsa.
If a foreigner buys land worth 250 thousand dollars, do they obtain Turkish citizenship?
Yes, of course, because buying property worth 250 thousand dollars meets the condition for applying for Turkish citizenship through property, regardless of whether that property is a home, an office, a shop or a plot of land.
We should note, however, that the price we pay for the property must be registered at that same value on the title deed.
And we should beware of what some landowners occasionally propose: registering lower figures in order to reduce title deed registration tax or capital gains tax.
In Conclusion
Land is a different matter from buying ordinary property such as flats and offices, as it involves a great many details and calls for specialists in agricultural and development land in Turkey who know the target area well, so that property fraud can be avoided.
For that reason, one or two articles may not be enough to cover every aspect of land and the details of buying it, because each plot has a legal description of its own regarding whether building is permitted, whether a zoning plan has been issued, and what stage that plan has reached.
We therefore always advise consulting land specialists rather than relying solely on the rosy promises of estate agents, which are not enough to reveal every real aspect of the investment.