by Bastem Emlak 
Turkey offers significant opportunities for foreign investors and foreign-capital companies seeking to acquire real estate for commercial, industrial, and operational purposes. However, property acquisitions by foreign-capital companies are subject to specific legal regulations designed to ensure compliance with national security and investment laws.
What Is a Foreign Capital Company in Turkey?
A company established in Turkey is generally considered a foreign-capital company when foreign investors directly or indirectly hold 50% or more of the company's shares or have the authority to appoint and dismiss the majority of individuals responsible for company management.
Real Estate Ownership Rights
Foreign-capital companies established under Turkish law may acquire ownership of real estate and establish limited real rights, provided that the acquisition supports the activities specified in the company’s articles of association. Property ownership must be directly related to the company's operational objectives and business activities.
Application Process
Before acquiring real estate, foreign-capital companies are generally required to apply to the governorship of the province where the property is located. The governorship reviews the application and determines whether additional approvals are necessary.
Military Restricted Areas and Security Zones
If the property is located within a military restricted area or military security zone, the acquisition may require approval from the relevant military authorities. For properties located within designated private security zones, approval from the relevant governorship may also be required before the transaction can proceed.
Approval and Land Registry Registration
Once the application receives the necessary approvals, the governorship issues a written authorization to the company. This document allows the company to complete the registration process at the relevant Land Registry Office and finalize the property acquisition.
Properties Acquired Contrary to Regulations
In situations where a property is acquired in violation of applicable regulations, authorities may require the property to be transferred within a period determined by the Ministry of Finance. If the transfer is not completed within the prescribed timeframe, the property may be liquidated and converted into cash, with the proceeds transferred to the rightful owner.
Transactions Exempt from Governorship Approval
Certain real estate transactions can be completed directly through the Land Registry Office without obtaining prior governorship approval. These include:
• Establishment of mortgages.
• Property acquisitions resulting from the conversion of mortgage-related receivables into ownership.
• Transfers arising from company mergers, acquisitions, or corporate divisions.
• Property acquisitions within Organized Industrial Zones (OIZs), industrial zones, technology development zones, and free zones.
• Acquisitions conducted within the framework of banking and credit legislation, including transactions related to debt collection and loan security.
Investment Advantages for Foreign Capital Companies
Turkey's strategic location, developing economy, industrial infrastructure, and investment incentives continue to attract foreign-capital companies seeking to establish or expand operations. Real estate ownership can play a key role in supporting manufacturing, logistics, technology, trade, and service-sector investments.
Conclusion
Foreign-capital companies established in Turkey can acquire real estate for business purposes, subject to certain legal requirements and approval procedures. Understanding these regulations and working with experienced legal and real estate professionals helps ensure a smooth and compliant acquisition process while maximizing investment opportunities in the Turkish market.