1. Buying a Property in Turkey

In recent years the property markets for holiday homes in the more traditional countries such as Spain, France, Italy and Cyprus as well as the better known US destinations such as Florida have seen sharp rises in prices, and experienced over saturation. Buying a property in these countries now represents a much larger investement, with a much higher level of risk as prices have crashed in certain areas. Turkey still offers very good value, and with the recent introduction of Mortgages for foreign buyers it has become a very attractive alternative for those looking to purchase a holiday home for personal use, or to rent out for part or all of the year.

Turkey is a parliamentary representative democracy. Since its formation Since its foundation as a republic in 1923, Turkey has developed a strong tradition of secularism.Turkey's constitution governs the legal framework of the country. It sets out the main principles of government and establishes Turkey as a unitary centralized state. Being a secular state Turkey has no offical state religion, and religion is prevented from interfering with state affairs, and prevented froom controlling goverment or exercising political power.

Turkey spans two continents: Europe and Asia, benefiting from the influences of both to provide a rich cultural mixture. Turkey is somewhat bigger in size than Chile or the U.S. state of Texas, having 755,688 square kilometres (291,773 sq mi) in south-west Asia and 23,764 square kilometres (9,174 sq mi) in Europe. Turkey is encircled by seas on three sides: the Aegean Sea to the west, the Black Sea to the north and the Mediterranean Sea to the south. Turkey also contains the Sea of Marmara in the northwest. The climate is a Mediterranean temperate climate, with hot, dry summers and mild, wet and cold winters. Mountains close to the coast prevent Mediterranean influences from extending inland, giving the interior of Turkey a continental climate with distinct seasons.

Tourism in Turkey has experienced rapid growth over the last twenty years, and constitutes an important part of the economy. In 2005 there were 24,124,501 visitors to the country, who contributed at estimated 18.2 billion USD to Turkey's revenues and in 2007 the number of visitors is predicted to top 25 million. Other factors like to holding of international sporting events such as Formula 1 races, and the move towards full European Union membership all contribute to a bouyant property market with good prospects for the future.

Some other factors that point to property prices rising rapidly in the next few years are:

• The new mortgage and other related laws regarding the supervision of the property market will be enacted in 2007
• The average age of housing stock in Turkey indicates that there is a strong need for new development
• Housing supply in Turkey currently lags behind demand
• New buildings erected after 1999 when earthquake-proof buildings standards were launched are far more desirable than older properties
• Significant numbers of buildings lack the required licenses

1.0 Disclaimer

The following information is intended as a guide to buying property in Turkey only and all information should be checked with the relevant department in Turkey before going ahead with any property purchase.

1.1 Who can buy a real estate in Turkey?

1.1.1 Foreign nationals (Real Persons)

According to the law on ‘property purchase by foreigners in Turkey’ enacted on January 7, 2006 Foreigners may purchase freehold land and property in Turkey in their own names provided that:

• Their countries have a recprical agreement with Turkey regardind property purchase. (All countries within the EU have this agreement)
• The purchaser does not have a criminal record and has not worked in intelligence
• The property/land lies outside the designated military zones

1.1.2 Foreign companies

According to the law on ‘property purchase by foreigners in Turkey’ enacted on January 7, 2006, foreign commercial companies having a legal standing established in foreign countries according to the laws of those countries are able to acquire real estate in Turkey as long as a reciprocal agreement exists between that country and Turkey, and compliance with any legal restrictions. However, those companies which are legal entities can buy property provided that they operate pursuant to the special laws such as the Tourism Encouragement Law, the Oil/Petroleum Law, the Industrial Zones Law etc. In addition, foreign legal entities other than the above mentioned commercial companies, such as foreign charities, foreign foundations and foreign societies, etc. cannot buy property in Turkey.

1.1.3 Companies established/participated by foreign nationals (FDI Companies)

Companies can freely acquire real estate or limited rights in them through a legal entity established or participated in Turkey by foreign investors provided that such acquisitions are permitted for Turkish citizens.

1.2

1.2.1 What is the legal framework for property ownership

The Constitution, the relevant provisions of the Civil Code, the Title Deeds Act, the Foreign Direct Investment Law (Please look at investment pages for the full text of the law.) and the relevant legislation form the legal framework which enables foreign people or corporate entities to buy real estate in Turkey.

1.3

1.3.1 Are Turkish citizens and foreigners treated differently?

According to the legal framework mentioned above, both Turkish citizens and foreign owners have equal property-ownership rights.