Foreign Individual's Acquisition of Real Estate in Turkey

Considerations and Legal Problems
Yayınevi: Adalet Yayınları
Yazar: Akın BATMAZ
ISBN: 9786257467100
207,00 TL 230,00 TL

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Kitap Künyesi
Yazar Akın BATMAZ
Baskı Tarihi 2021/08
Baskı Sayısı 1
Boyut 16x24 cm (Standart Kitap Boyu)
Cilt Karton kapak
Sayfa Sayısı 188

The primary objective of the book is to help investors to understand the path to ownership of a property, to address the current laws governing the acquisition of real estates in Turkey by foreign individuals through inter vivos transactions such as buying a property or by inheritance, and to describe the procedure for the acquisition of Turkish citizenship through investment.

TABLE OF CONTENTS


TABLE OF CONTENTS................................................................................................ 9

FOREWORD ............................................................................................................ 15

ABBREVIATIONS ..................................................................................................... 17

INTRODUCTION ...................................................................................................... 19


FIRST PART


THE HISTORY OF THE ACQUISITION OF

IMMOVABLE PROPERTIES BY FOREIGN INDIVIDUALS


§ 1. CAPITULATIONS.......................................................................................23

I. Concept................................................................................................... 23

II. Capitulations in the Ottoman State ........................................................ 25

III. Interim Assessment................................................................................. 28

IV. May the Granting by the Ottoman State to Foreign Individuals of

the Right to Acquire Immovable Properties be Considered and

Treated as a Form of Capitulation?......................................................... 30

A. Crimean War (5 October 1853 - 30 March 1856).............................. 30

B. From the Edict of Reform to Safer Law ............................................. 31

C. Interim Assessment........................................................................... 33

§ 2. SAFER LAW..............................................................................................36

I. Are Natives and Foreigners Equal in the System Brought?..................... 36

II. Period of Enforcement of Safer Law ....................................................... 37

A. Unilateral Abolishment of Capitulations ........................................... 38

B. Interim Assessment........................................................................... 39

§ 3. TREATY OF LAUSANNE AND THE VILLAGE LAW PERIOD ............................40

I. Introduction ............................................................................................ 40

II. Reciprocity (Reciprocal Transaction) Concept ........................................ 40

III. Types of Reciprocal Transaction ............................................................. 41

IV. Was the New System a Reciprocal Transaction? .................................... 42


10 Table of Contents

A. Milestones Towards the New Legal System...................................... 42

B. According to the Population Exchange Agreement of 30

January 1923, Immovable Properties Left in Turkey and the

Nationality of Migrants from Turkey................................................. 43

C. Acquisition of Immovable Properties by Foreigners According

to the Treaty of Lausanne of 24.07.1923 and the Convention

on Residence and Jurisdiction........................................................... 44

D. Village Law no. 442 dated 18 March 1924........................................ 45

E. Constitutional Law of 20 April 1924 (1924 Constitution).................. 47

F. Law on Military Forbidden Zones no. 1110 dated 12.06.1927 ......... 48

G. Turkish Citizenship Law no. 1312 dated 4 June 1928........................ 48

H. Law on Temporary Agreements to be Entered into with States

Which have not yet Signed a Residence Agreement, no. 1860,

dated 22.07.1931 .............................................................................. 49

İ. Land Registry Act no. 2664 dated 22 December 1934...................... 49

V. Interim Assessment ................................................................................ 51

§ 4. A TEST: YEARS 1984-1987.........................................................................53

§ 5. RETURNING TO THE OLD PRACTICE: 1987-2003 ........................................55

§ 6. A NEW PERIOD: 2003 AND AFTERMATH ...................................................55

I. Regulation Brought by the Law no. 4916 dated 3.7.2003 ...................... 55

A. Repeal of article 87 of the Village Law and article 36 of the

Land Registry Act............................................................................... 57

B. Rule of Reciprocity ............................................................................ 59

C. Immovable properties Acquired by Statutory inheritance ............... 59

D. Acquisition of Limited Rights in Rem by Foreigners.......................... 60

E. Geographical Power Vested with the Council of Ministers............... 60

II. Constitutional Court Decision of Nullity ................................................. 61

III. Regulation Brought by the Law no. 5444 dated 29.12.2005 .................. 61

A. Acquisition of Immovable Properties and Limited Rights in

Rem by Foreign individuals ............................................................... 63

B. Acquisition of Immovable Properties and Limited Rights in

Rem by Inheritance ........................................................................... 64

C. Restraining Power Vested with the Council of Ministers.................. 64

D. Consequences of Using an Immovable Property Illegitimately ........ 65


Table of Contents 11

IV. Nullification of Provisions of the Law no. 5444 by the

Constitutional Court................................................................................ 65

V. Regulation Brought by the Law no. 5782 dated 3.7.2008 ...................... 66

A. Revised Article 35, Added Article 36 and Temporary Article 3

Contents ............................................................................................ 66

B. Decision Taken by the Constitutional Court in Suit of Nullity

Brought Forward for Nullification of Article 35 of Land Registry

Act Amended and Article 36 and Temporary Article 3 Added

by the Law no. 5782 to Land Registry Act ......................................... 66


SECOND PART


SYSTEM ESTABLISHED BY THE RECENT REGULATIONS


§ 1. ACQUISITION OF IMMOVABLE PROPERTIES .............................................69

I. Framework Brought by the European Convention on Human

Rights and the Turkish Constitution of 1982........................................... 69

II. Practise Brought by Last Version of Land Registry Act ........................... 71

A. Acquisition of Immovable Properties by Foreign Individuals in

Turkey................................................................................................ 72

B. Establishment of Limited Rights in Rem in Favour of Foreign

Individuals ......................................................................................... 77

C. Legal Limitations on Acquisition of Immovable Properties by

Foreign Nationals .............................................................................. 77

1. Military Forbidden Zones and Security Zones Law ................... 78

2. Law on Retaliation in Kind Actions to be Taken Against

Properties Owned in Turkey by Citizens of Foreign States

Taking Actions on Properties of Turkish Nationals Within

the Borders of Their Countries, no. 1062 dated 28.5.1927 ...... 79

3. Limitations Brought by the Land Registry Act........................... 80

III. Some Special Legislative Instruments Other Than Articles 35 and

36 of Land Registry Act ........................................................................... 81

A. Foreign Direct Investments Law........................................................ 81

B. Tourism Incentives Law no. 2634 dated 12.03.1982......................... 82

C. Turkish Petroleum Law...................................................................... 85

D. Petroleum Market Law...................................................................... 86

E. Private Education Institutions Law.................................................... 87


12 Table of Contents

F. Special Status of Individuals Renouncing Citizenship with

Permission......................................................................................... 89

§ 2. INVESTOR CITIZENSHIP ............................................................................90

I. Regulation on Implementation of Turkish Citizenship Law .................... 91

A. Article 20 of Regulation on Implementation of Turkish

Citizenship Law.................................................................................. 91

B. Citizenship “Through Acquisitionof Immovable Properties”

Pursuant to Article 20/2-b of Regulation on Implementation of

Turkish Citizenship Law..................................................................... 95

C. Circular of 10.12.2018 of the General Directorate of Land

Registry and Cadastre ....................................................................... 98


§ 3. ACQUISITION OF IMMOVABLE PROPERTIES BY FOREIGN

INDIVIDUALS BY INHERITANCE AND SUCCESSION...................................101

I. Framework Outlined by Constitution and European Convention

on Human Rights (ECHR) ...................................................................... 101

II. Law Applicable to Inheritance .............................................................. 106

III. Public Order Intervention ..................................................................... 114

IV. Succession According to the Last Version of the Land Registry Act ..... 117

V. Acquisition of Immovable Properties by Inheritance in Villages..... 121

VI. Military Forbidden Zones and Security Zones in Terms of

Inheritance............................................................................................ 122

VII. Retaliation in Kind and Inheritance ...................................................... 122

VIII. Rights of Inheritance of Denaturalised Individuals............................... 123

IX. Rights of Inheritance of Individuals Who Become a Turkish Citizen

by Birth and Cease to be a Turkish Citizen with Permission................. 123


THIRD PART

CURRENT PROBLEMS


§ 1. FOREIGN INDIVIDUALS NOT BEING PERCEIVED AS CONSUMERS .............125

§ 2. SOME DEFICIENCIES IN CONSUMER LAW................................................126

I. Concepts ............................................................................................... 128

II. Proposals .............................................................................................. 129

III. Interim Assessment .............................................................................. 132


Table of Contents 13

§ 3. DIFFICULTY OF ENTERING INTO A VALID CONTRACT............................... 132

§ 4. SOME ISSUES RELATING TO PRIVATE PURCHASE CONTRACTS................. 134

§ 5. PROBABILITY OF DEVELOPER TO LEAVE THE PROJECT UNFINISHED......... 137

§ 6. SOME PROBLEMS RELATED TO THE JUDICIAL SYSTEM ............................ 142

§ 7. INADEQUACY OF THE PROTECTION PROVIDED UNDER THE

EUROPEAN CONVENTION ON HUMAN RIGHTS....................................... 144

§ 8. THE EFFECTS OF NULLIFICATION DECISIONS MADE BY THE

CONSTITUTIONAL COURT....................................................................... 146

§ 9. INDIVIDUAL APPLICATIONS TO CONSTITUTIONAL COURT....................... 148

§ 10. PASTURE AND FOREST ARGUMENTS ...................................................... 150

§ 11. ABOUT PARCELS OF LAND WITHOUT STRUCTURE................................... 151

§ 12. MILITARY PERMISSION .......................................................................... 154

§ 13. THE ACQUISITION OF IMMOVABLE PROPERTIES BY FOREIGNERS IN

AGRICULTURAL FIELDS........................................................................... 155


FOURTH PART


THE REASONS UNDERLYING THE CURRENT PROBLEMS


§ 1. SLOWDOWN IN EU MEMBERSHIP PROCESS............................................ 157

I. In General.............................................................................................. 157

II. Turning Point: Decision to Initiate Negotiations on Full

Membership.......................................................................................... 157

III. 2002 to 2007 Regular Progress Reports .................................................. 160

A. From 2002 Progress Report............................................................. 160

B. From 2003 Progress Report............................................................. 161

C. From 2004 Progress Report............................................................. 161

D. From 2005 Progress Report............................................................. 162

E. From 2006 Progress Report............................................................. 162

F. From 2007 Progress Report............................................................. 163

IV. Interim Assessment............................................................................... 164

§ 2. ATTITUDE OF THE CONSTITUTIONAL COURT (AYM) ................................ 165

I. About Decisions of Constitutional Court............................................... 166


A. About the Constitutional Court Decision of 13.06.1985 nul-

lifying the Law no. 3029 dated 21.06.1984 ..................................... 166


14 Table of Contents


B. About the Constitutional Court Decision of 09.10.1986 nul-

lifying the Law no. 3278 dated 22.04.1986..................................... 169


C. About the Constitutional Court Decision of 14.03.2005 nul-

lifying Some Articles of the Law no. 4916 dated 03.07.2003 The


Constitutional Court decision nullifying some articles of Law no.

4916 dated 03.07.2003 may be summarized as follows:................... 170


D. About the Constitutional Court Decision of 11.04.2007 nul-

lifying the Law no. 5444 dated 29.12.2005..................................... 172


E. About the Constitutional Court Decision of 12.05.2011 par-

tially nullifying the Law no. 5782 dated 03.07.2008 ....................... 173


F. About the Constitutional Court Decision of 10.07.2013 related

to the Law no. 6302 dated 03.05.2012 ........................................... 174

II. About Reciprocity and Legal Certainty ................................................. 176

III. Interim Assessment .............................................................................. 176

§ 3. CONCERNS ABOUT CAPITULATION AND CONCESSION ............................177

I. In General ............................................................................................. 177

II. Interim Assessment .............................................................................. 179

CONCLUSION........................................................................................................ 183


BIBLIOGRAPHY AND REFERENCES........................................................................ 185

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