Some people choose to purchase a property through a foreign company as it can have certain advantages, in other cases, it is the only way in which foreign nationals of certain nations can own a home in Turkey.
In 2003, the Foreign Direct Investment Law was passed, this gave foreign investors the same rights and treatment as a domestic investor would have in Turkey, this also lifted certain permissions and limitations that were placed on foreign investors before.
How to set up a company in Turkey and buy a propertyThe easiest and cheapest way for an individual to establish a trading company in Turkey is to set up a limited liability company in Turkey. In order to do this it requires a minimum of two people – these people can be foreign and one of them can be Turkish. The company is divided into a 99.9% share for the main person who is named as the director, and a 0.1% share for the second person. In simple terms, when a foreign national wishes to set up a company in Turkey to buy property, the person will own 99.9% of company shares while 0.1% will be owned by another person – usually this will be a lawyer.
Step one – to begin the process of setting up a company in Turkey, you need the following documents: the preparation of the power of attorney, passport copies, and two passport sized photos.
Step two – once the documents have been received, the application may then be processed. An application will be made to relevant authorities to grant permissions and articles of associations will be prepared and an application made to the tax authority. Company books preparation will also be started.
Step three – once the company has been established in Turkey, the legal address will be checked by tax officials to ensure it is correct. The final permission will then be granted – usually lawyers will complete this step on your behalf.
Step Four - Once the company has been registered, a second power of attorney will be prepared on behalf of the company to give POA to a solicitor in Turkey to complete the purchase process on the behalf. The lawyer will be able to apply to the governor to ask for permission to buy a home in Turkey before the Land Registry and seek military clearance.
Step five - Once the governor has granted permission, an application will be made to the Land Registry with the seller.
Costs of setting up a company in TurkeyTo set up a company in Turkey, it currently costs around £1,500 to set up a limited company.
Annual fees for the company amount to around £1,000 per year and this includes registry submissions and accounting fees.
If you are interested in buying a home in Turkey through a company and wish to obtain more information and advice, please contact us and our diligent and friendly team will be happy to assist you.