Can foreign investors buy real estate in Turkey through a company? Learn the 2026 rules for Turkish companies with foreign shareholders, foreign companies, land registry procedures, restrictions, due diligence and citizenship risks.

Yes. Foreigners can buy property in Turkey through a company, but the legal rules depend fundamentally on where the company was incorporated and how much control foreign investors have over it. A company incorporated in Turkey with foreign shareholders is treated differently from a company incorporated abroad.

This distinction is one of the most important issues for foreign investors purchasing commercial buildings, offices, factories, warehouses, hotels, development land or other real estate in Turkey. Under Land Registry Law No. 2644, Article 35 governs acquisitions involving foreign natural and legal persons, while Article 36 establishes a separate framework for companies incorporated in Turkey with foreign capital.

For investors considering acquisitions in Ankara, Istanbul, Izmir, Mersin, Bursa and throughout Turkey, the company structure should therefore be reviewed before signing the purchase agreement or transferring the purchase price.

Can a Turkish Company Owned by Foreigners Buy Property?

Yes.

A company incorporated under Turkish law remains a Turkish legal entity even when some or all of its shareholders are foreigners. Official Land Registry guidance describes such entities as companies with foreign capital and confirms that they may acquire real estate in Turkey under the applicable rules.

This means that a foreign investor can establish or acquire shares in a Turkish limited liability or joint-stock company and the company can potentially purchase property in its own name.

The property will belong to the company, however, not personally to the foreign shareholder.

That distinction has significant consequences for ownership, taxation, financing, company debts, shareholder disputes, sale of the property and citizenship planning.

Does 100% Foreign Ownership Prevent the Company From Buying Property?

No.

A Turkish-incorporated company does not become legally incapable of owning real estate merely because all of its shareholders are foreign.

However, the percentage of foreign ownership and the foreign investors’ management rights can determine which acquisition procedure applies.

Article 36 specifically regulates Turkish-incorporated companies where foreign individuals, foreign legal entities or international organizations directly or indirectly hold at least 50% of the shares, or have authority to appoint or dismiss the majority of persons with management rights.

These companies can acquire and use real estate for activities specified in their articles of association, subject to the applicable Article 36 procedure and security restrictions.

Why Is the 50% Foreign Ownership Threshold Important?

The 50% threshold can determine whether the company falls within the special Article 36 regime.

A Turkish company in which qualifying foreign investors hold 50% or more of the shares can acquire property to conduct the business activities stated in its articles of association. The same framework can apply where foreign investors possess the relevant majority-management appointment or removal powers even if share ownership requires separate analysis.

The rules also address indirect ownership structures. Therefore, placing another Turkish company between the foreign investor and the property-owning company does not necessarily avoid Article 36 if the statutory ultimate foreign ownership threshold is reached.

Corporate structure must therefore be examined through the entire ownership chain.

Can a Company With Less Than 50% Foreign Ownership Buy Property?

Potentially, yes.

Article 36 provides that foreign-capital companies falling outside the special scope of its principal foreign-control provisions may acquire and use property under the rules applicable to domestically capitalized companies.

However, investors should not rely solely on a headline percentage.

Management rights, indirect ownership and subsequent share transfers can affect the classification. A company that falls outside the special regime when the property is purchased may later enter it following a restructuring or share acquisition.

Must the Property Be Related to the Company’s Business?

For companies within the Article 36 foreign-control framework, this is an important requirement.

The law permits qualifying Turkish-incorporated foreign-capital companies to acquire and use property for conducting the activities stated in their articles of association.

For example, a foreign-owned manufacturing company purchasing land for a factory has a clear operational connection. A logistics company purchasing a warehouse may have a similarly understandable business purpose.

A company purchasing property completely unrelated to its stated activities can require much closer legal examination.

The company’s articles of association should therefore be reviewed before the real-estate acquisition.

Does the Company Need Permission Before Buying?

Certain Turkish companies with foreign capital are subject to a special procedure.

Current official investment guidance states that qualifying Turkish companies with foreign capital should first apply to the competent authority at the governor’s office where the property is located. Following a positive determination, the company proceeds to the relevant Land Registry Directorate.

The Land Registry administration also maintains specific guidance for determining, based on the company’s capital structure, whether governor-level approval applies or whether the transaction can proceed directly.

Therefore, investors should determine the company’s classification before arranging completion.

Are There Exceptions to the Permission Procedure?

Yes.

Article 36 contains important exceptions. The special permission framework does not apply in the same manner to certain transactions, including the creation of mortgages, property acquisitions arising from enforcement of mortgages, transfers resulting from company mergers and divisions, and acquisitions within designated investment areas such as organized industrial zones, industrial zones, technology development zones and free zones. Certain banking-related acquisitions are also excluded.

The existence of an exception should nevertheless be confirmed for the specific transaction rather than assumed.

Can a Company Incorporated Abroad Directly Buy Property in Turkey?

The rules are much more restrictive.

A company incorporated in another country is a foreign legal entity, not a Turkish company with foreign capital.

Article 35 provides that commercial companies with legal personality incorporated under foreign law may acquire real estate and limited property rights only within the framework of special legislation.

Current official investment guidance identifies examples involving petroleum activities, tourism incentives and industrial zones.

Accordingly, a foreign company incorporated in London, Dubai, New York or another jurisdiction cannot simply be treated like a Turkish limited liability company when purchasing ordinary Turkish real estate.

Is Establishing a Turkish Subsidiary Easier?

For many commercial investments, a Turkish subsidiary can provide a clearer legal structure for property ownership.

For example, an overseas group planning to operate a factory, hotel, logistics facility or office business in Turkey may establish a Turkish company and have that company acquire the operational property.

But establishing a Turkish subsidiary should not be treated as a shortcut that eliminates foreign-investment rules.

If foreign ownership reaches the statutory threshold, Article 36 may apply. The company’s business purpose, ownership chain and location of the property should therefore be examined before acquisition.

Can a Foreign-Owned Company Buy Residential Property?

Potentially, but the transaction must make sense within the applicable corporate and real-estate framework.

For companies subject to Article 36, the statutory link between the acquisition and the activities stated in the company’s articles of association is important.

A company acquiring accommodation genuinely connected with its business may present different considerations from a company created merely to hold a shareholder’s private home.

Foreign investors seeking an apartment for personal use should therefore compare direct personal ownership with corporate ownership before deciding which structure to use.

Can the Company Buy Commercial Property?

Yes, subject to the applicable rules.

Corporate ownership is commonly relevant to offices, factories, warehouses, industrial facilities, hotels, retail premises, development projects and other operational assets.

Before purchase, the investor should verify the company’s authority to acquire and use the property, the property’s legal status and whether any location-specific restriction applies.

Are Military and Security Zones Relevant?

Yes.

Property acquisitions involving qualifying foreign-capital companies can be subject to restrictions concerning military prohibited zones, military security zones and private security zones.

Article 36 preserves the operation of the legislation governing these areas and provides for the relevant security assessment and permissions where required.

A property should therefore be checked for location restrictions before the buyer becomes contractually committed.

What Due Diligence Should Be Completed Before Purchase?

A corporate buyer should conduct both property due diligence and company due diligence.

Official investment guidance recommends checking mortgages, liens and similar restrictions before beginning the transfer process. Property ownership itself passes through registration with the Land Registry Directorate; a preliminary sale agreement does not by itself transfer title.

Legal due diligence should also examine the registered owner, mortgages, attachments, easements, annotations, zoning status, building authorization, occupancy status, actual use, corporate authority, signatory powers and any restrictions affecting the proposed acquisition.

For development land, planning and construction risks require additional examination.

Who Owns the Property After the Company Purchases It?

The company does.

This is crucial.

If a foreign shareholder owns 100% of a Turkish company and that company purchases a building for USD 1 million, the shareholder does not personally own the building. The company owns it.

The shareholder owns shares in the company.

Consequently, company creditors, shareholder disputes, corporate governance decisions, insolvency proceedings and share transfers can affect the investor’s economic relationship with the property.

Can Company Creditors Seize the Property?

Potentially, yes.

Because the property is an asset of the company, it can be exposed to liabilities of the company.

This is one reason why investors sometimes establish a dedicated property-holding company rather than placing valuable real estate inside an operating company exposed to substantial commercial liabilities.

The appropriate structure depends on the transaction, financing, tax position and business objectives.

What Happens If the Foreign Shareholder Sells the Company?

Selling company shares and selling the property are legally different transactions.

If the shareholder transfers shares, the company can remain the registered owner of the property.

However, Article 36 specifically addresses changes in foreign ownership, including situations where foreign investors acquire 50% or more of a property-owning domestically capitalized company or where a share transfer causes foreign participation in an existing foreign-capital property-owning company to reach the statutory threshold.

Real-estate consequences should therefore be reviewed during corporate acquisitions involving property-owning Turkish companies.

Can Foreigners Avoid Personal Property Restrictions by Using a Company?

Investors should not establish a company merely to circumvent restrictions that would otherwise apply to a foreign purchaser.

Turkish law separately regulates foreign natural persons, foreign legal entities and Turkish companies with foreign capital.

Corporate ownership creates its own regulatory regime.

The structure should therefore have a legitimate commercial and legal rationale rather than being treated as an automatic workaround.

Can Property Purchased by a Company Be Used for Turkish Citizenship by Investment?

This is a critical distinction.

Foreign investors should not assume that buying property through their company is equivalent to personally making the qualifying real-estate investment for Turkish citizenship.

Corporate property ownership means that title is registered in the company’s name. Citizenship by qualifying real-estate investment is a separate legal framework with specific requirements concerning the applicant, qualifying acquisition, value, registration and mandatory holding restriction.

If citizenship is the investor’s objective, the ownership structure should be reviewed before the purchase. A commercially suitable corporate acquisition and a citizenship-qualifying personal property acquisition are not necessarily interchangeable.

Can the Shareholder Transfer Company Property to Themselves Later?

Potentially, but that would constitute a separate transaction requiring its own legal, corporate, tax and land-registration analysis.

The shareholder cannot simply treat company property as personal property because they control the company.

Corporate personality must be respected.

Any later transfer should be properly authorized, documented and registered, with applicable financial and tax consequences reviewed in advance.

What Happens If Property Is Acquired in Violation of Article 36?

The consequences can be serious.

Article 36 provides that property acquired or used contrary to its requirements can become subject to liquidation if the violation is not remedied within the period granted by the competent authority. The property may then be converted into money and the proceeds paid to the rights holder.

Compliance therefore matters not only on the acquisition date but also during subsequent use of the property.

The law also provides for monitoring of property use by the relevant authorities.

Practical Example: Foreign-Owned Factory Company

A German investor establishes a Turkish manufacturing company in Bursa and owns 100% of its shares. The company wants to purchase industrial property for its manufacturing operation.

The Turkish company can potentially acquire the property, but its foreign ownership, business purpose, location and Article 36 procedure should be reviewed before registration.

Practical Example: Foreign Company Buying an Office Directly

A company incorporated abroad wants to purchase an ordinary office in Istanbul directly in the foreign company’s name.

The investor should not assume that the transaction is permitted simply because a foreign individual could potentially buy the same office. Foreign companies incorporated abroad are subject to the more restrictive Article 35 framework and generally require a basis under applicable special legislation.

Practical Example: Foreign Investor Establishes a Turkish Subsidiary

An international logistics group establishes a Turkish subsidiary to operate in Mersin. The subsidiary wants to acquire a warehouse for its logistics operations.

Corporate ownership may be possible, but the foreign ownership structure, articles of association, location and applicable approval procedure should be checked before purchase.

Practical Example: Property-Holding Company

A foreign investor in Ankara considers placing a valuable commercial building inside the same company that conducts a high-risk operating business.

Although acquisition may be legally possible, the investor should consider whether separating the property from operating liabilities through an appropriately structured company would better protect the investment.

Practical Example: Company Purchase Intended for Citizenship

A foreign investor in Izmir intends to acquire property and later apply for Turkish citizenship based on the investment.

Before purchasing through a company, the investor should determine whether corporate ownership is compatible with the intended citizenship route. The investor should not complete the corporate purchase first and assume that the same transaction can later be converted automatically into a qualifying personal citizenship investment.

Frequently Asked Questions

1. Can foreigners buy property through a Turkish company?

Yes. Turkish-incorporated companies with foreign shareholders can acquire property subject to the applicable Land Registry Law rules.

2. Can a company be 100% foreign-owned and still buy property?

Potentially, yes. However, a company with at least 50% qualifying foreign ownership generally falls within the special Article 36 framework.

3. Does a foreign-owned Turkish company need approval?

Certain companies within Article 36 must follow the applicable governor-level procedure before proceeding with land registration.

4. Can a company incorporated abroad directly buy Turkish property?

Only in much more limited circumstances. Foreign commercial companies incorporated abroad may acquire property where permitted under applicable special legislation or international arrangements.

5. Can a foreign-owned company buy a factory or warehouse?

Yes, potentially, particularly where the acquisition is connected with the company’s stated business activities and all regulatory conditions are satisfied.

6. Who legally owns property bought through the company?

The company owns the property. The foreign investor owns shares in the company, not the real estate personally.

7. Can company creditors reach the property?

Potentially, because the property forms part of the company’s assets.

8. Can foreign investors use a company to avoid foreign-property restrictions?

A corporate structure should not be assumed to eliminate foreign-investment restrictions. Turkish law separately regulates foreign individuals, foreign companies and Turkish companies with foreign capital.

9. Does property purchased by my company automatically qualify me for citizenship?

No. Corporate ownership should not be confused with the separate requirements for citizenship based on qualifying real-estate investment.

10. What should be checked before a company purchases property?

The investor should examine the company’s ownership and management structure, corporate purpose, required permissions, property title, mortgages and attachments, zoning and construction status, security-zone restrictions, financing, taxes and the intended use of the property.

Legal Assistance for Foreigners Buying Property Through a Company in Turkey

Buying Turkish real estate through a company can be an effective structure for foreign investors, particularly for factories, warehouses, hotels, offices, logistics facilities and other business assets. However, the transaction should be structured before the purchase agreement is signed.

The first question is whether the purchaser is a foreign company incorporated abroad or a Turkish-incorporated company with foreign shareholders. The two structures are governed differently. Article 35 regulates foreign legal entities, while Article 36 contains the principal rules for Turkish companies with foreign capital.

For Turkish companies, foreign ownership of at least 50%, relevant management control, indirect foreign ownership and the company’s stated activities can materially affect the acquisition procedure. For foreign companies incorporated abroad, direct acquisition is substantially more restricted and generally depends on special legislation.

Investors should also remember that corporate ownership changes the legal nature of the investment. The company becomes the registered owner, which means company liabilities, shareholder disputes, financing arrangements and future share transfers can affect the property. If Turkish citizenship is also an objective, the citizenship structure should be reviewed separately before title is acquired.

Firat Fesih Kaya Law Office provides legal assistance to foreign investors, entrepreneurs, international companies and foreign shareholders in Ankara, Istanbul, Izmir, Mersin, Bursa and throughout Turkey concerning corporate real-estate acquisitions.

Legal assistance may include establishing the appropriate Turkish company structure, reviewing foreign ownership and control, conducting title and corporate due diligence, examining Article 36 requirements, reviewing company acquisitions involving real estate, checking mortgages and restrictions, structuring property-holding companies, reviewing development projects and evaluating the interaction between property investment and Turkish citizenship procedures.

Phone: +90 312 434 22 22
Mobile / WhatsApp: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Office: Mevlana Boulevard No:221, Yildirim Tower, Balgat, Cankaya, Ankara, Turkey

The key 2026 principle is clear: foreigners can purchase property through a Turkish-incorporated company, including a company with substantial or complete foreign ownership, but the transaction is governed by specific foreign-capital rules. A foreign company incorporated outside Turkey faces a considerably more restrictive regime. The ownership structure, company purpose, property location and future citizenship or investment objectives should therefore be reviewed before the acquisition is completed.