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Here's the password to reciprocity

02.08.2012

Sabah Newspaper gave us last details of the reciprocity law is expected to bring foreign capital to Turkey in the amount of $ 300 billion over the next 10 years. That's a reference on what states and under what circumstances may sell real estate.

The reciprocity law was approved by Turkish Parliament in May was waiting for the list that will be approved by the Council of Ministers for the past two months. In accordance with the updated list, special restrictions and conditional permission apply were brought. In Turkey the number of countries which have the right of acquiring immovable property unconditionally increased from 53 to 129. Syria, Armenia, North Korea, Cuba, Nigeria and Yemen were not included in the list of 181 countries. Citizens of these countries can not acquire immovable property located in the Republic of Turkey. In respect of the provision by which the sector is expected to explode in property sales to foreigners have been limited in the acquisition of housing for countries such as China, Denmark, East Timor, Fiji, as well as Israel, whose relations with Turkey is currently estimated to be strained. Jordan, in turn, cannot buy more than two residential premises and one business real estate.

There are special circumstances

While the countries apply the special circumstances in acquisition of housing, the most notable aspect of the taken provision is that the interest of Russia and Ukraine of the "Black Sea" was taken into account. Citizens of these countries will be able to acquire any immovable property, except property located on the Black Sea shore. It will also be given the right to Greece to purchase real estate in the Republic of Turkey, with the exception of real estate located in "Coastal and border provinces." Additional terms of purchasing property in respect of Greece showed that applied and the hidden reciprocity between the two countries is actual to this day.

Obstacles are eliminated?

Barriers for the acquisition of real property for countries such as Saudi Arabia, United Arab Emirates, Kuwait and Lebanon are eliminated, those countries are expected to put a significant inflow of capital, including Arabic and Turkic countries located in The Central Asia. The citizens of Azerbaijan, Kazakhstan, Turkmenistan, Tajikistan, Uzbekistan and Kyrgyzstan are free to acquire real property located in the Republic of Turkey. It is known that before the final approval of this resolution having much interest the construction sector, the Arabs began to make a deposit for their favorite real estate in cities such as Istanbul and Antalya.

Restrictions for the 31st country

The decree has restrictions for the 31st country in the acquisition of only housing, work premises or land. In accordance with these criteria, the citizens of Morocco, Egypt, Latvia, and some small African countries, including Afghanistan, will not be able to purchase agricultural land, gardens and plantations. Citizens of Albania, in turn, have no right to purchase land in Turkey, with the exception of housing and real estate of operating purposes

For 16 countries the need for permission from the Ministry of Internal Affairs is provided

In accordance with the agreement, which will be completed with act of the Council of Ministers signature, the citizens of 16 republics, including nationals of Iran, China, Palestine, India, to acquire immovable property in Turkey will have to obtain permission from the Ministry of Internal Affairs. The Iraq will have to apply to the Ministry of Foreign Affairs firstly.

There is a limit of 10%

To implement the law reciprocity the Council of Ministers Decree is expected. The law, in addition to the restrictions and the list of countries set by the Council is also associated with certain conditions of the sale of real estate to foreigners. Thus, the total area of immovable property acquired by foreigners and limited proprietary interest shall not exceed 10% in the total area of particular provinces and 30 hectares per person in the country. Foreign persons and trading companies, in the case of acquisition of property without the location real estate on it, within 2 years are required to submit designed the project for approval by the relevant ministries.



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