Buying Property Through a Company in Turkey

Foreign investors sometimes buy Turkish real estate through a Limited Şirket (Ltd. Şti.) or joint stock company (A.Ş.) instead of registering tapu in a personal name. A Turkish company may own property, but the route involves corporate tax, possible Article 36 governor approval, and rules that differ sharply from personal ownership — including citizenship by investment, which requires a personal title deed, not company-held real estate.

This guide covers 2026 acquisition and holding rules for property through a Turkish company. It does not replace formation steps (open a company in Turkey), full corporate tax analysis (corporate tax), personal rental tax (rental income tax), or personal foreign-income rules (foreign income tax). Confirm structure, PDPC timing, and tax modelling with your accountant and lawyer before signing.

Overview

Buying through a company means the tapu is issued in the company name. Transfer taxes and notary steps resemble a personal purchase — see property purchase costs — but ongoing obligations are corporate: annual accounts, CIT on profit, possible VAT on commercial letting, and dividend withholding when profits are distributed to shareholders.

Foreign shareholders typically form a Turkish entity first, open a corporate bank account, and — if the company is classified as foreign-capital under Tapu Law Article 36 — obtain Provincial Directorate of Planning and Coordination (PDPC) approval at the governor’s office before the land registry transfer. Rules are summarised on Invest in Türkiye.

Can Companies Own Property in Turkey?

Yes. Both Ltd. Şti. and A.Ş. entities registered in Turkey may hold freehold or limited real rights on immovable property, provided the acquisition fits the business purpose in the articles of association. A pure property-holding purpose must appear in the company’s scope; a trading company cannot casually buy a holiday flat without aligning its articles.

Companies are legal persons separate from shareholders. The tapu shows the company name; shareholders own shares, not the bricks directly. That distinction drives tax, citizenship, inheritance, and exit planning.

Foreign-Owned Turkish Companies

Foreign investors do not usually buy Turkish real estate in the name of an offshore parent company. The standard path is a Turkish-incorporated Ltd. or A.Ş. with foreign shareholders — permitted under the Foreign Direct Investment Law (4875) in most ordinary sectors. Formation is covered on our company formation guide.

Under Article 36 of Land Registry Law No. 2644, a Turkish company is treated as foreign-capital when:

• foreign investors hold 50% or more of the shares, or
• foreign investors can appoint or dismiss a majority of managers (even below 50% shareholding).

Such companies must apply first to the PDPC (governor’s office) where the property sits, submit a purpose commitment, company authorization documents, and land-registry information, and obtain written approval before tapu registration — except where law lists a direct-registry exemption (see mortgages below). Approval is typically valid for six months; if registration is not completed in time, renewal may be required. Companies outside Article 36 (majority Turkish-owned and controlled) follow ordinary domestic land-registry rules.

Foreign-capital companies are not subject to the personal 30-hectare and 10% district limits that apply to foreign natural persons, but military and security-zone restrictions still apply.

Why Investors Use Companies

Common reasons include:

• Liability ring-fencing — property and tenant risk sit in the company, not personal assets (subject to piercing and guarantee rules).
• Business expense deductions — maintenance, management, interest, and professional fees may reduce taxable corporate profit where documented.
• Multiple investors — shareholding records ownership without fragmenting tapu.
• Continuity — property can remain in the company when shareholders change.
• Nationality workarounds — some buyers from restricted nationalities use a Turkish company because direct personal purchase is blocked; this is not a citizenship shortcut and still triggers Article 36 if foreign-controlled.

None of these automatically makes a company cheaper than personal ownership — model CIT, dividend WHT, and compliance with an accountant.

Personal Ownership vs Company Ownership

Acquisition tapu harcı and notary costs are broadly similar. The divergence is tax, compliance, and eligibility after purchase.

Advantages and disadvantages

Rental Income Through a Company

Rental income through a company is taxed under corporate tax, not under the personal rental-income rules on 57520. Gross rent is booked as company revenue; allowable expenses reduce taxable profit; the company pays 25% CIT (subject to the 10% minimum tax regime from 2025 — details on 57530).

If the tenant is a Turkish company, the tenant must generally withhold 20% of gross rent under Income Tax Law Article 94; the landlord company credits this against annual CIT. Individual residential tenants often do not withhold, but the company still declares all rent in its corporate return.

VAT: long-term residential letting by individuals is often outside VAT; commercial letting or mixed-use premises may require VAT registration and 20% VAT on taxable supplies. Your accountant confirms registration timing.

Corporate Tax and Dividends

Property-holding Ltd. companies are generally taxed at the standard 25% CIT rate, not at disputed “9%” or “14%” exporter rates that apply only in narrow manufacturing/export contexts — see our corporate tax guide.

When the company distributes profit to shareholders, 15% withholding tax applies on dividends (Presidential Decree 9286, December 2024). Non-resident shareholders may claim a lower rate under a double tax treaty with valid residence certificates. Dividends paid to another Turkish-resident company are generally not subject to this WHT.

Article 20/D of the Income Tax Law (Law 7582) exempts qualifying foreign-source personal income for individuals — it does not apply to companies. Shareholders cannot route company rental profit through 20/D.

On disposal, personal 5-year capital-gains exemption rules for residential property do not apply to companies. A corporate sale of the asset triggers taxation on the company’s gain under corporate rules; extracting remaining cash may add dividend WHT.

Share Sale vs Asset Sale

Two exit paths are often confused:

• Asset sale — the company sells the property to a buyer. Tapu transfers from company to buyer; the company pays CIT on any gain; shareholders still hold the company (possibly with cash inside).
• Share sale — the buyer acquires shares in the company that already owns the property. Tapu may stay in the company name; the buyer inherits the company’s history, debts, and tax filings. Stamp and due-diligence treatment differ from a direct asset sale.

Neither path is automatically more tax-efficient. Turkish and home-country tax, plus buyer preference, drive the choice. Use lawyer and tax advisers before binding term sheets.

Mortgages and Financing

Turkish banks may lend to Turkish companies for property acquisition, subject to credit policy and collateral. Under Invest in Türkiye guidance, certain procedures — including creation of a mortgage — are among transactions that may proceed at the land registry without prior PDPC permission in defined cases; the underlying purchase by a foreign-capital company may still need PDPC approval unless another exemption applies.

Mortgage interest may be deductible for the company where linked to the property business. Personal citizenship rules exclude mortgage-financed amounts from the USD 400,000 threshold — that restriction applies to the personal citizenship route, not to ordinary corporate finance.

Citizenship Implications

Company ownership does not qualify for the Turkish citizenship real-estate investment route. The program requires property registered in the applicant’s personal name, with SPK appraisal, documented bank transfer, and a three-year no-resale annotation on the tapu — see our citizenship by investment guide and Invest in Türkiye. Property held in a company name — even if you own 100% of the shares — does not satisfy the personal real-estate citizenship criteria.

You may buy from a Turkish-incorporated seller, but the qualifying tapu for citizenship must ultimately be in the natural person applicant’s name. If citizenship is the goal, personal ownership (or a later transfer from company to individual, with fresh tax and eligibility analysis) must be planned before purchase.

Citizenship, inheritance, rental, and tax at a glance

Common Mistakes

• Assuming company-held property qualifies for citizenship — it does not.
• Believing Article 20/D shelters company rent or foreign dividends inside an Ltd.
• Buying without PDPC approval when Article 36 applies.
• Articles of association that do not authorise real-estate holding.
• Comparing personal rental istisna to corporate tax without modelling dividend WHT.
• Expecting the personal 5-year CGT exemption on a company sale.
• Using personal DAB concepts for a corporate purchase without corporate banking advice.
• Ignoring annual accounts, VAT, and minimum tax compliance after purchase.

Frequently Asked Questions

Can a Turkish company own property?
Yes. A Turkish-registered Ltd. Şti. or A.Ş. may hold tapu on residential or commercial real estate if the acquisition matches its articles of association purpose.

Can foreigners own property through an LTD?
Yes, through a Turkish Ltd. or A.Ş. with foreign shareholders — not by putting offshore company names on tapu. Foreign-capital companies under Article 36 need PDPC approval before registration in most cases.

Does company ownership qualify for citizenship?
No. Turkish citizenship by investment through real estate requires the property in the applicant’s personal name. Company-owned property does not qualify for that route.

Does Article 20/D apply to companies?
No. GVK Article 20/D (Law 7582) applies to qualifying individuals only. Corporate profits are taxed under the Corporation Tax Law.

Can a company earn rental income?
Yes. Rent is company revenue. Rental income through a company is taxed under corporate tax at 25% on net profit (subject to minimum tax rules), not under personal rental istisna.

Are dividends taxed?
Yes. Dividends paid to shareholders are generally subject to 15% withholding tax (December 2024 rules). Treaty relief may reduce the rate for non-residents with proper documentation.

Can a company obtain a mortgage?
Yes, Turkish banks may finance property held by Turkish companies, subject to approval. Mortgage creation is among procedures with specific land-registry treatment under Article 36 guidance.

What are the disadvantages?
Higher compliance cost, PDPC timing for foreign-capital companies, no citizenship qualification, no 20/D, dividend WHT on extraction, and no personal 5-year CGT exemption on corporate disposal.

Is personal ownership better?
Not always. Personal ownership suits citizenship, simpler compliance, and personal CGT rules. Companies suit liability ring-fencing, multiple investors, and deductible expenses — but require modelling of CIT plus dividend WHT.

Can a company buy residential property?
Yes, if permitted by the company’s purpose and land-registry rules. Tax treatment remains corporate; residential status does not convert rent to personal GVK rules.

Is PDPC approval always required for foreign shareholders?
Only for foreign-capital companies under Article 36 (≥50% foreign ownership or foreign board control). Majority Turkish-owned companies without foreign control generally register directly.

Is a DAB required when a company buys property?
Personal buyers use a Döviz Alım Belgesi (DAB) for citizenship and many personal FX transfers — see bank account, tax number and DAB. Corporate purchases use the company bank account and corporate FX documentation; the personal DAB route is a different boundary.