Foreign investors looking to acquire property in Turkey are increasingly turning to corporate structures as a strategic solution for asset ownership, legal protection, and tax optimization. Setting up a company in Turkey is a streamlined process that allows full foreign ownership, access to commercial real estate, and potential integration with residence or citizenship pathways. Whether you're a high-net-worth individual managing a private portfolio or a regional investor establishing a legal presence, company formation offers both flexibility and legal control in an increasingly competitive real estate market. As a leading Turkish Law Firm, we guide investors through the legal, regulatory, and operational aspects of establishing and operating a real estate holding entity in Turkey.
Our firm provides full-scope advisory and execution services to international clients—including name reservation, articles of association, trade registry filings, and bank account setup. Every legal step is managed by a senior Company Lawyer Turkey and supported by bilingual legal staff. We assist with tax office registration, social security compliance, and ongoing corporate governance filings, making the process seamless and fully compliant with Turkish Commercial Code provisions. For those abroad, we offer full formation and acquisition services via notarized Power of Attorney. With the help of an English speaking lawyer in Turkey, investors can remotely manage their Turkish company without any bureaucratic delays.
This guide explains the full legal roadmap for foreign investors who wish to form a company and acquire property in Turkey—from selecting the right legal entity type to purchasing high-value real estate through that company. Whether you're seeking long-term rental income, capital gains through resale, or enhanced legal protection for your assets, this article provides expert-level insight backed by the best lawyer firm in Turkey for international real estate clients. We go beyond the paperwork to deliver strategic outcomes that align with your financial goals and global structure.
Why Foreign Investors Use Turkish Companies to Acquire Real Estate
Acquiring property through a Turkish company provides significant legal and financial advantages to foreign investors. First, it allows broader access to commercial real estate categories, such as office buildings, retail units, warehouses, and land parcels zoned for development—many of which are restricted or tightly regulated for direct foreign ownership. Through corporate acquisition, investors gain not only title control but also the ability to operate the property as part of a business, lease it for commercial use, or hold it within a structured investment portfolio. This flexibility makes company ownership ideal for long-term investors, family offices, and institutional buyers seeking scalability and professional asset management.
Second, company ownership facilitates tax optimization and legal separation from personal liability. Properties owned by legal entities can take advantage of corporate deductions, accelerated depreciation, and structured profit distribution to shareholders. Rental income, maintenance expenses, and resale profits are handled in a more organized and often more favorable tax framework compared to personal ownership. Our Turkish Lawyers analyze each client's tax residency status and global holdings to determine whether Turkish corporate structuring aligns with their wider financial goals and existing legal infrastructure.
Finally, company-based acquisition provides enhanced confidentiality and operational continuity. Many high-net-worth individuals prefer not to appear directly on title records, especially in countries with high media visibility or political sensitivity. A Turkish company allows shareholders to retain beneficial ownership while the entity acts as the legal owner of record. This also allows for seamless inheritance transfer, share sales, or multi-party joint venture structures. With guidance from our real estate lawyer in Turkey, all company documents are filed in accordance with Turkish registry rules and remain fully compliant with anti-money laundering laws and bilateral treaty provisions. Related: Legal Representation for Foreign-Owned Companies, Corporate Tax Strategy in Turkey.
Legal Process of Company Formation for Foreigners in Turkey
Establishing a company in Turkey as a foreign national is a legally defined process that can be completed in a matter of days with proper legal coordination. The most common structure used by investors is the Limited Liability Company (LTD), which requires at least one shareholder and one director, both of whom may be foreign nationals with no residency requirement. The company can be incorporated under full foreign ownership, and there is no restriction on sectors except for a few regulated industries like defense and broadcasting. Our Turkish Law Firm handles the full setup, including trade registry filings, notarizations, and tax registrations, ensuring compliance with the Turkish Commercial Code and Ministry of Trade regulations.
The process begins with selecting a unique trade name, drafting the Articles of Association, and obtaining a potential tax ID for the company. These documents are notarized, translated (if necessary), and submitted to the local Trade Registry Office. Once approved, the company is issued a registration certificate, commercial books are certified, and a Turkish bank account can be opened. If capital injection is required before the purchase of real estate, our Company Lawyer Turkey structures the capital call and deposit process accordingly. All stages can be executed via Power of Attorney, which allows the investor to remain abroad while we complete all legal formalities locally.
Following registration, the company must obtain a vergi levhası (tax plate), register with the Social Security Institution (SGK) if employees are planned, and activate its electronic invoicing and notification systems. These steps are critical, especially if the company will engage in real estate leasing or development. We provide ongoing legal maintenance services including board resolutions, shareholder updates, and annual declaration filings. With assistance from an English speaking lawyer in Turkey, all corporate filings and compliance communications are delivered in bilingual format, giving international investors full visibility into the company’s legal standing. Related: Bank Account Setup for Foreign-Owned Companies, Granting POA for Company Formation.
How Turkish Companies Acquire Real Estate: Legal Steps and Compliance
Once a Turkish company is fully established and registered, it may legally acquire real estate for commercial or investment purposes, provided that sectoral restrictions and local regulations are observed. Corporate acquisition is often the preferred method for high-net-worth investors seeking flexibility in portfolio structuring, asset diversification, and risk management. Properties purchased through a company can include commercial units, development land, warehouses, or even residential villas used for rental income. Our real estate lawyer in Turkey reviews every proposed transaction in light of cadastral limits, foreign ownership zones, and whether the property is subject to Ministry approval under the Military Zone regulation (Article 35 of the Land Registry Law).
The legal process begins with verifying the property's title deed (tapu), current zoning designation, and registration status with the Land Registry and municipality. The company’s legal representative—either the shareholder, director, or attorney via POA—signs the purchase agreement, pays related fees, and oversees the title transfer. The title deed must clearly show the company’s commercial registration number, tax ID, and registered office address. Our Turkish Lawyers prepare the resolution authorizing the acquisition, ensure the purchase aligns with the company’s Articles of Association, and review the tapu for any mortgages, encumbrances, or usufruct rights. Related: How to Legally Verify a Turkish Title Deed, Real Estate Transactions by Companies.
In certain municipalities or for large land acquisitions, additional approvals may be required from the Ministry of Environment and Urbanization or the regional governorate. These include permits for foreign shareholding, land use approval, and in rare cases, development licensing if the purchase involves agricultural or industrial land. Our English speaking lawyer in Turkey ensures that all pre-acquisition checks are finalized and that the transaction is legally secure before any funds are transferred. We also structure escrow agreements and payment protection clauses to safeguard our clients during the registration process. These procedures ensure not just legal compliance, but transactional integrity for international investors entering the Turkish real estate market through corporate vehicles.
Taxation and Financial Compliance for Foreign-Owned Real Estate Companies in Turkey
Foreign-owned companies that acquire real estate in Turkey are subject to a set of fiscal obligations under the Turkish Tax Code, which includes corporate income tax, VAT (if applicable), property tax, and potential capital gains tax upon resale. Understanding and anticipating these liabilities is essential for any investor who aims to maximize long-term returns and ensure uninterrupted compliance. The standard corporate income tax rate in Turkey is currently 25%, and companies must file quarterly advance tax returns, annual declarations, and submit their balance sheets for audit in certain cases. Our Company Lawyer Turkey works with licensed accountants to ensure all filings are completed on time and aligned with the latest updates from the Revenue Administration.
For real estate companies generating rental income, tax planning becomes more strategic. Corporate owners may deduct maintenance expenses, property management costs, and depreciation from their gross rental income—lowering their effective tax burden. However, rental agreements must be officially registered and, in some municipalities, subject to licensing or special use approvals. Our Turkish Lawyers assist in preparing compliant lease contracts, issuing legal notices, and resolving disputes with tenants through formal channels. We also advise investors who choose to lease their assets to affiliated parties or SPVs under transfer pricing rules, ensuring they remain compliant with OECD and local regulations. Related: Investor Tax Planning in Turkey, Business Banking for Foreign Investors.
Beyond day-to-day compliance, foreign investors must be aware of reporting obligations under international frameworks like FATCA and CRS, especially when Turkish assets are held by offshore entities or trusts. Repatriating profits or sale proceeds from Turkey to another jurisdiction also requires documentation, including tax clearance certificates, bank confirmations, and sometimes notarized proof of investment. Our English speaking lawyer in Turkey manages this entire process, preparing exit strategies that ensure legal capital flow across borders without triggering penalties. We provide tax opinions and compliance roadmaps that integrate Turkish real estate operations with your global financial ecosystem.
Can a Company-Owned Property Qualify for Turkish Citizenship?
One of the most frequently asked questions among international investors is whether real estate purchased through a company can be used to obtain Turkish citizenship by investment. According to current legislation, the answer is no: in order to qualify for Turkish citizenship by investment, the property must be registered under the personal name of the applicant, not under a corporate entity. This rule ensures a direct link between the individual and the asset and is enforced through title deed annotations and SPK-approved valuation procedures. While company ownership has clear benefits for rental income and asset protection, it does not satisfy the Ministry of Interior’s criteria for naturalization through investment.
However, in many cases, foreign investors can restructure their ownership to meet the program requirements. For example, an individual may purchase a qualifying asset directly for citizenship purposes while holding other assets via a company for commercial or privacy reasons. In certain structures, it is also possible to transfer property from a company to the individual, provided that all legal and tax implications—such as transfer taxes and capital gains—are carefully calculated. Our real estate lawyer in Turkey handles these conversions by drafting sale agreements, updating the land registry records, and managing Ministry notifications in accordance with immigration protocols.
For investors holding multiple properties or planning large acquisitions, we often recommend a hybrid structure: use personal ownership for the citizenship-qualifying asset and a company for the remaining portfolio. This approach offers the best of both worlds—legal eligibility for Turkish nationality and the operational flexibility of a holding entity. With guidance from our English speaking lawyer in Turkey, you can build a compliant, tax-efficient, and strategically sound real estate portfolio that supports both personal immigration goals and long-term investment growth. Related: Full Guide to Citizenship by Property, Citizenship Protection in Immigration Law.
Frequently Asked Questions (FAQs)
- Can foreigners fully own a company in Turkey? Yes. Foreigners can own 100% of a Turkish company, including the right to appoint directors, open bank accounts, and acquire real estate.
- How long does it take to set up a company? Typically 3–5 business days. We complete all legal steps via POA for remote clients.
- Can my Turkish company buy real estate? Yes. Once registered, the company can purchase residential, commercial, or mixed-use properties subject to zoning laws.
- Is corporate real estate eligible for citizenship? No. Only personally held property qualifies for Turkish citizenship by investment. However, you can restructure before purchase.
- What taxes apply to company-owned properties? Corporate tax on rental income (25%), real estate tax, VAT (where applicable), and capital gains tax on sale if within 5 years.
- Can I lease the property through the company? Yes. The company may legally lease out its assets. We draft compliant contracts and register them for you.
- How do I repatriate profits? We provide bank compliance reports, tax clearance certificates, and help you transfer proceeds through official channels under bilateral agreements.
- Is share transfer easier than selling the property? Often yes. Share transfers avoid tapu tax and are preferred for larger portfolios or cross-border exits.
- Do I need to be in Turkey for company setup? No. We complete the entire process via a notarized and apostilled Power of Attorney (POA).
- Can the company hold more than one property? Absolutely. Many investors use one company to manage multiple assets, including rental portfolios and mixed-use developments.
- What’s the best exit strategy? Share transfer, cross-border sale, or corporate asset resale—all depend on your tax status and long-term goals. We advise accordingly.
- Who is the best lawyer firm in Turkey for company and real estate investment? Istanbul Law Firm—with elite Company Lawyer Turkey, tax consultants, and a dedicated English speaking lawyer in Turkey team for global investors.
Contact Our Turkish Law Firm
Ready to build a real estate portfolio in Turkey with maximum legal security, tax efficiency, and global integration? Our Turkish Law Firm provides full-scope advisory and legal execution—from company formation to asset acquisition, compliance, and exit. With our English speaking lawyer in Turkey, you gain a strategic partner who understands international investor needs. Choose the best lawyer firm in Turkey for foreign company structuring, property ownership, and long-term legal success.