The framework of the acquisition of real property and limited rights in rem by companies which is established in or associated with Turkey by foreign investors was settled by the Regulation concerning the Acquisition of Real Estate by Companies With Foreign Capital (Official Gazette Numbered 27052, dated 12.11.2008). However this legislation is abrogated by the regulation about acquisition of real property and limited rights in rem is the law numbered 27721 dated 06.10.2010.
Actually the controversial circumstances of the acquisition of real property and limited rights in rem by companies which is established in or associated with Turkey by foreign investors is regulated by Foreign Direct Invesment Act numbered 4875 (“FDI”), in sub-paragraph of Article 3. Nevertheless, Constitutional Court cancelled this article by its decision of 11.03.2008. As we mentioned, after this proceeding a new regulation has come into force upon being published in the Official Gazette dated 06.10.2010 and numbered 27721 by the Ministry of Public Works. This legislation has settled to regulate the procedures and principles concerning the acquisition of ownership right and limited right in rem of the legal entities established or participated in by foreign investors in Turkey.
According to regulation regarding the acquisition of real estate by foreign capital companies, (the “Regulation”) foreign capital Turkish companies are considered as foreign investors and the acquisition of real estate or for the establishment of rights in rem over such estate by foreign investors is needed a permission of relevant governorate. In this manner, the land has seperated in four classifications;
- Military forbidden zones
- Military security zones
- Strategically important zones
- Special security zones
As we stated before, these zones are subject to the the permission of the relevant governorate. Under the Regulation, the foreign investors must apply to the relevant governorate to determine whether or not the lands in question are located within such zones before each acquisition or establishment of a right in rem.
Nevertheless, the lawmaker missed the explicit provisions as to the scope of “foreign investor” over this legislation. Therefore, the whole foreign companies that established in Turkey are interpreted to be subject to this permitting requirement even if the rate of the foreign shareholding was insignificantly low.
Please our related articles;
Definition Of Foreign Direct Investment And Foreign Investor In Turkish Law
Principles Concerning Foreign Direct Investments In Turkey
The Valuation Of Non-Cash Capital In Turkish Law
Determination Of Policies And Data Collection In Foreign Direct Investment In Turkey
Hukuk Desteği (Legal Support)
iletisim: [email protected]