The suspension on the issuing of the title deeds to the foreign nationals was only intended to be temporary so that the legislation can be redrafted as we mentioned in our newsletter dated 20th March 2008.
The draft legislation, which lifts the suspension, was passed by The Justice Commission of Turkish Parliament. This is expected to come into effect after the details of the rulingis published in the official gazette.
The biggest difference in the new law is in article 35 (7th paragraph) of the Code of Land Registry, it changes the limits for the foreigners buying in Turkey. Individual non nationals can purchase up to 10% of the total area covered in the local planning zone for a town. Before the suspension the limit for individual non national buyers was 0.5% of the province’s entire area. The law gives the local authotories 3 months to inform the Government of their lands subject to planning permission as well as its restricted areas.
We are very pleased with the announcement of the new legislation. However, in our opinion the wording may cause more confusion. The Government will receive the list of the planned/subject to planning permission lands within 3 months from each town and province and will apply %10 on that amount. However, the local governments have the authority to issue planning permissions within their borders. This means unless the local governments report to the government everytime they issue new planning permissions, the 10% will stay the same, despite the increase of the planned lands.
Never the less, this does not affect any non national buyers as this is an internal matter the Government will need to adress in due course.
