Buying Property Through a Registered Turkish Firm: Everything You Need to Know
For many investors, buying property through a registered Turkish firm offers a unique strategy to sidestep challenges. Additionally, numerous seasoned investors view this method as a gateway to land and property investments, facilitating business operations after the purchase.
Understanding Property Acquisition via a Registered Turkish Firm
When you decide to buy property in Turkey via this route, it’s essential to establish a foreign capital company. Aligned with the Turkish Trade Law, these firms require enrollment in the Turkish Trade Registry. Despite foreign nationals owning the capital, they operate under the stringent framework of Turkish legislation.
Benefits and Legislative Evolution
Historically, the International Direct Investment Law of 2003 leveled the playing field, granting foreign investors the same rights as their local counterparts in Turkey. This was a transformative step, abolishing several hindrances foreign investors previously faced.
Setting Up a Company for Property Purchase
- Company Type & Structure: Opting for a limited liability company is both straightforward and economical. Intricately, a primary foreign individual retains 99.9% of the company’s stakes, while another party, often a lawyer, holds a mere 0.1%.
- Documentation Essentials: Kickstarting the company setup demands a power of attorney, passport copies, and two passport-sized photographs.
- Navigating the Application Process: With the required documents, the next step is presenting an authorization application to relevant authorities. This phase also involves submitting the company’s articles to the tax office and preparing the accounting records.
- Verifying Business Address: Before the company becomes operational, the tax authorities must validate its legal address. Usually, a lawyer undertakes this on behalf of the foreign investor.
- Final Steps in Property Acquisition: Upon registering the company, an additional power of attorney is crafted. This allows a Turkish attorney to oversee the property purchase, encompassing military clearances and obtaining Land Registry approvals.
Financial Considerations
Anticipate an initial cost of around 2,000 USD for setting up a limited liability company in Turkey. Annually, this venture can incur costs approximating 1,500 USD, encompassing registration and accounting aspects.
Final Thoughts
Buying property through a registered Turkish firm can be both advantageous and intricate. While the procedure has been made more accessible over the years, it necessitates rigorous adherence to Turkish norms. If this avenue appeals to you, our seasoned team stands ready to guide you. Contact us for tailored advice on property investments in Turkey.
