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Buying Agricultural Land in Turkey
Turkish investors like to put their money into agricultural land in Turkey since it is one of the most stable and reliable real estate investment products. Despite the fact that the urban population in Turkey far outnumbers the rural population, agriculture retains its position as the most important aspect of Turkish national identity. Since the beginning of the twenty-first century, agricultural lands have been more sought after by foreign individuals and corporations.
Foreigners are permitted to purchase land in Turkey; nevertheless, unlike other real estate instruments such as; commercial and residential properties, farmland and agricultural fields are only available to foreigners under certain conditions, including the following restrictions:
● Agricultural lands are available for purchase and ownership by foreign individuals up to a maximum size of 300.000 M² (30 Hectares) per person; the overall area of lands sold to foreigners cannot exceed 10% of the sellable area of a district or municipal zone.
By Presidential order, these two figures may be increased by a factor of two.
● The land subject to purchase by a foreign investor must acquire military permission for transfer before it can be transferred.
● Within two years of purchasing the land, if it does not yet have agricultural status, the buyer must submit a comprehensive proposal to the appropriate Ministry, including a business plan.
If you have decided to purchase agricultural property in Turkey, you should know a few things. To avoid wasting time and effort, investors should verify these criteria before proceeding to the next stage. After that, they should speak with knowledgeable and reputable advisors about other financial and legal difficulties.
Related Article: Importing and Exporting Agricultural Products in Turkey.
Important Information For Foreigners Who Consider Purchasing Land in Turkey
What exactly are architectural lands, and how do they vary from agricultural lands in the title deed? Architectural land is any property on which a particular amount of development is authorized, whether villas, commercial, residential, tourist, healthcare, or educational structures. On the other hand, agricultural land is any ground on which building is prohibited or authorized only in very restricted areas and under particular conditions.
In Turkey, these two kinds of lands are named differently in the title deed:
- “Arsa” is the name of the architectural land,
- In the title document, agricultural land is referred to as “Bahce” or “Tarla.”
What are the requirements for a foreigner who is buying land in Turkey?
Foreigners may acquire land and real estate in general, according to the 2012 property legislation, but only under certain circumstances, such as:
- The land being acquired is not near any critical military installations.
- Not owning agricultural land for more than two years without an agricultural project during these two years.
- In addition, a foreigner is not permitted to acquire more than 300,000 square meters of agricultural property.
- The amount of land held by foreigners in any one location should not exceed 10% of the region’s total area.
What is the best way for a foreigner to purchase property in his/her name or a companies name? And which is better?
A foreigner may buy property in his or her own person or in the name of a corporation, with the latter being preferred owing to the kind of land and the purpose of ownership.
Suppose you want to put a project on the ground, whether agricultural, commercial, or construction. In that case, the easiest way is to form a business and then register the property under its constraints.
So, suppose the purpose of purchasing agricultural land in Turkey is to wait for it to appreciate in value. In that case, there’s also the option of registering by forming a business since a project must be built on this land within two years.
Invest in Agricultural Land in Turkey
Aside from the real estate investment possibilities in Turkey, including flats for sale, residences for sale, hotels for sale, and building property, foreign investors may also invest in agricultural areas.
Turkey has recently provided an opportunity for business people to invest in the agricultural field to achieve local and regional stability, especially since agricultural lands account for 40% of Turkey’s territory.
The Turkish government has implemented a system of incentives to stimulate investment in agricultural land to utilize enormous swaths of productive agricultural land and beneath water and numerous services.
This adds to the variety of crops produced by different Turkish towns to attract investors from all over the globe, such as; vegetables and fruits and cattle, poultry, and fish.
Related Article: Opportunities For Food Exports in Turkey.
References
- How Can a Foreign Investor Buy Agricultural Lands in Turkey? (2020, December 11). Property Guide Turkey. Retrieved November 25, 2021, from: <https://propertyguideturkey.com/how-can-a-foreign-investor-buy-agricultural-lands-in-turkey/>
- Estate, I. R. (2021, May 10). Important advice about foreigners buying land in Turkey. Imtilak Real Estate. Retrieved November 25, 2021, from: <https://www.imtilak.net/en/articles/advice-for-foreigners-buying-land-in-turkey>
- Invest in agricultural land in Turkey. (2019, July 8). Tamalok. Retrieved November 25, 2021, from: <https://tamalok.com/invest-in-agricultural-land-in-turkey/>
This article was published on 25.11.2021 and last edited on 25.11.2021.
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