The intersection between real estate investment and blockchain technology has created one of the most promising, yet legally uncertain, innovations in global property markets: tokenized real estate. Through the use of smart contracts and distributed ledger systems, it is now possible to fractionalize ownership of physical property and offer those shares as tokens on blockchain-based platforms. While this model has gained momentum in markets like the United States, Singapore, and Germany, its application in Turkey raises significant regulatory, contractual, and legal infrastructure questions. For foreign investors, developers, and proptech startups looking to enter the Turkish market, understanding the current limits and future potential of tokenized real estate in Turkey is essential.
At ER&GUN&ER Law Firm, our English speaking Turkish lawyers advise international investors and blockchain companies on real estate tokenization models under Turkish law. As a best lawyer firm in Turkey for real estate and technology regulation, we bridge the gap between innovation and enforceability. From due diligence on token-compatible property types to smart contract risk management and Capital Markets Board filings, we provide full legal clarity on how tokenized asset compliance in Turkey should be structured. If you are launching or participating in a real estate token project in Turkey, our team helps ensure it is not just innovative—but also legally sound and regulator-proof.
What Is Tokenized Real Estate?
Tokenized real estate refers to the digital representation of a physical asset—typically real property—on a blockchain network. Using smart contracts, property rights (or shares of those rights) are converted into digital tokens that can be traded, held, or transferred across platforms. These tokens may represent ownership shares, income rights, usage entitlements, or financial interests secured against property. The advantage of tokenization lies in liquidity, fractional access, and transparency. However, in most jurisdictions—including Turkey—the concept is not yet directly regulated. That means legal enforceability depends on how the token structure maps onto existing laws governing property, contracts, securities, and investment offerings.
Our Turkish Law Firm provides legal architecture for these models. We determine whether the token represents a legal right in rem (ownership interest), or merely a contractual entitlement. This classification affects whether the token is subject to property transfer laws, land registry procedures, taxation, and regulatory filings with the Capital Markets Board (SPK) or Banking Regulation and Supervision Agency (BDDK). Understanding these layers is key to launching a tokenized project in a legally defensible way.
Does Turkish Land Registry Accept Tokenized Ownership?
The short answer is: not yet. Under current Turkish law, the General Directorate of Land Registry and Cadastre (Tapu ve Kadastro Genel Müdürlüğü) only recognizes real estate ownership that is recorded in the central TAPU system. This registry operates on a civil law model that requires formal notarization and registration procedures for all ownership transfers. That means even if you tokenize a property and distribute shares on a blockchain, those transactions do not constitute valid ownership transfers unless mirrored in the TAPU system through traditional legal formalities. As such, blockchain property law in Turkey is not yet integrated into the national land registry system, although pilot studies are under discussion.
At ER&GUN&ER Law Firm, we help clients bridge this gap by designing tokenized real estate projects as financial instruments or contractual rights, rather than direct TAPU-based ownership transfers. We review how smart contracts can be synchronized with corporate shareholding structures, usage licenses, or revenue-sharing models that fit within existing Turkish contract law. We also provide enforceable contracts that support token issuance, even if the underlying TAPU remains centralized and analog. For companies aiming to tokenize residential or commercial properties in Turkey, we deliver realistic, regulator-ready frameworks that reduce friction while staying within the law.
Regulatory Oversight: Capital Markets and Banking Rules
Another major legal consideration is whether a tokenized real estate model in Turkey falls under capital markets regulation. According to Turkish Capital Markets Law No. 6362, public offerings of securities—including fractional investment models—may require licensing, prospectus approval, and SPK supervision. If the tokens are tradable, carry income rights, or are marketed to the public as investment products, they may be classified as capital market instruments. Similarly, if a platform stores customer funds or offers wallet-like services, it may fall under the jurisdiction of the BDDK or the Central Bank’s electronic money regulation.
Our English speaking Turkish lawyers conduct comprehensive legal risk assessments to determine whether your real estate token qualifies as a security or a commercial product. We prepare legal opinions, support SPK correspondence, and structure tokenized asset compliance in Turkey that avoids unauthorized issuance or advertisement violations. As a Turkish Law Firm familiar with both fintech and real estate regulation, we provide cross-sectoral guidance to keep your innovation inside legal boundaries.
Taxation and Foreign Investor Considerations
From a tax perspective, tokenized real estate projects must address three layers of compliance: property taxation, income taxation, and capital gains. Token holders may be subject to income tax on rental income or capital gains depending on the design of the project. If tokens are sold through an SPV (special purpose vehicle), corporate tax and VAT may also apply. Additionally, foreign investors must consider currency controls, foreign ownership restrictions in certain zones, and reporting requirements to the Central Bank of Turkey. We help design investment models that minimize tax liability, comply with reporting laws, and protect investor interests across borders.
As a best lawyer firm in Turkey for international real estate investment, we support institutional and retail foreign investors in token-based property ventures. From due diligence to investor onboarding documentation, our Turkish Law Firm delivers end-to-end legal coverage tailored to the unique challenges of blockchain-powered property markets.
Internal Legal Resources for Blockchain and Real Estate
- How to Check Title Deed (TAPU) Validity in Turkey
- Real Estate Due Diligence for Foreign Investors
- GDPR-KVKK Compliance in Token Projects
- Legal Advisory in Blockchain and SaaS Projects
- Joint Ventures and SPVs for Real Estate Tokens
Frequently Asked Questions (FAQs)
- Is tokenized real estate legal in Turkey? There is no law that bans it, but it is not yet formally integrated into the TAPU system. Tokens are treated as contractual or financial rights.
- Can tokens be used to transfer ownership? No. Official title transfers must still be done via the land registry and notarized documentation.
- Can foreign investors hold tokens? Yes, but the legal structure matters. SPVs, REITs, or contractual agreements must be aligned with foreign ownership laws.
- Are these tokens regulated by SPK? Possibly. If the project is investment-oriented, SPK authorization or exemption evaluation may be necessary.
- Is smart contract enforcement recognized by Turkish courts? Not directly. Legal effect depends on how the smart contract is mirrored in written agreements.
- What tax risks apply to token holders? Income tax, capital gains tax, and possible corporate taxation depending on structure and token rights.
- Is this structure GDPR and KVKK compliant? With proper policies, yes. We ensure personal and financial data processing complies with Turkish and EU data rules.
- Can real estate token projects operate cross-border? Yes, but they must address both Turkish and home jurisdiction law, especially for securities and anti-money laundering.
- Can I sell tokens to retail investors? Not without clear legal framework. Regulatory approval or legal classification is required before public marketing.
- How can a Turkish Law Firm help? We structure the entire legal side—from property due diligence to smart contract enforceability, SPK review, and token compliance strategy.
Build Tokenized Real Estate Projects on a Legally Sound Foundation
Tokenized real estate is not just a technological evolution—it represents a fundamental shift in how we think about ownership, liquidity, and investment access. But in Turkey, as in most countries, the legal infrastructure has not yet caught up with blockchain innovation. This means that while the opportunity is real, so is the risk. Companies and investors that pursue tokenized real estate without a comprehensive legal strategy face the danger of unenforceable rights, regulatory penalties, or investor litigation. That’s why innovation in this space must be paired with strategic legal foresight.
At ER&GUN&ER Law Firm, our English speaking Turkish lawyers specialize in helping clients turn blockchain-based real estate concepts into legally compliant, investor-ready, and regulator-accepted realities. Whether you are building a platform, structuring a REIT-token hybrid, or launching a fractional property investment model, our Turkish Law Firm provides the legal clarity and strategic support you need. Let us help you shape the future of property investment in Turkey—on chain and on firm legal ground.