Market news

Now foreign companies can easy purchase real estate of Turkey

21.04.2009
home in turkeySome time ago has been started the process to make easier purchase of  Turkish realty by foreign companies.
    
     To purchase real estate of Turkey foreign companies was needed to take governor permission. This condition and global financial crisis have had badly influence for the Turkish realty demand. 

     To solve this problem the biggest power representatives have made a meeting. The meeting participators are Ministry of Finance, Ministry of Public Works and Housing, the Ministry of Internal Affairs, Ministry of Industry and Commerce, Council of State Treasury, Land Registry and Cadastre General Directorate, General Directorate of National Property, the Security General Directorate of Turkey Chambers and Stock Exchanges Union (TOBB), Foreign Investors Association (YASED) and some representatives from Turkey Exporters Assembly (TIM). At the meeting, the parties revealed problems relating to the application.
According to information, some of the difficulties are as follows:
- uncertainty of locations p which are permitted for purchase;
- purchase by indirect subsidiary or publicly traded companies is not clear;
- authority certificate (the document showed the authority and rights);
- the assignation of authority rights and stocks are  out of control;
- activities of the reviews are not connected to any criteria;
- bank credit for land acquisition process;
- the length of time to hinder the process;
- insufficient number of assembly of the Commission;
- how will the privatization process of land acquisition become certain.
The meeting participators are able to find solutions for these problems. In case of need they can come together again.

    Approximately in 2 moths 51 companies have purchased realty of Turkey 

    According to data from the General Directorate of Land Registry and Cadastre, after attachment of the regulations starting from the November 2008 until the New Year of 2009  have been registered 347 of companies belonged to foreigners. 51 of these companies have purchased 1668 units of Turkish realty.
 
    In spite of laws change according to the last period statistics there are no many betters. So, experts are still talking about low demand for the Turkish realty.

    How foreign companies buy Turkish realty?

According to the Law number 4875 of Direct Foreign Investments, a little time ago companies or branch companies belonged to foreigners could purchase Turkish realty only after getting citizenship.

    Constitutional Court of Turkey has canceled this condition because of crisis. So, it means that now to buy realty of Turkey there is just a need in governor permission.

    According to the regulations entered into force on 12 November 2008, companies which want to buy realty of Turkey have to apply to City Planning and Coordination Directorate of Governorate which are responsible for this realty. After you have done application for the purchase of Turkish realty you will need to bring followings: permission for to buy realty of Turkey and document which shows authority;  the general company document which shows its activities; the partners' names, or names, the subjects and the rate of partnership; the company's headquarters including laws limity and number of partners taken not more than month ago from the registration institiut; notarized copy of the published data of  partner as natural person; if partner is a legal ententity you need to bring notarized document showed activity of  this company which is working according to Agreement of Foreign Official Documents Abolition confirmed by the States of the Hague Conference on Private Law.

     You will need to wait for 7 days after application to the Governorate to get permission from the Industry and Trade Directorate. It will check what the purpose of purchase is and the sector the company is working in. 30 days will last getting of permission from the General Authority Command which will control closeness of purchased realty to the military objects. 20 days is needed to get permission from the General Directorate of Security which will check closeness of purchased realty to the special safety zones.

    Chairman of the governor or lieutenant governor in conjunction with the commission consisting of representatives of relevant institutions make a consensus decision.

News was edited by “VESTA Estate”
vestaestate.com


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