REGULATORY

How a UAE company can buy property in Türkiye: the entity and permit questions to answer first

Free zone companies, mainland LLCs, and holding structures based in the UAE each face slightly different practical requirements when acquiring Turkish real estate. Getting the structure right before signing anything avoids costly rework.

Aug 2024·4 min read
SHARE
AEPermits41TitleRegistration61OccupancyCertificate90PlanAmendments93UAE Company BUY Property

A UAE-registered company, whether a mainland LLC, a free zone entity, or an offshore holding vehicle, can acquire real estate in Türkiye, foreign corporate ownership is permitted with limited exceptions in designated military and security zones. The practical question is not whether it is allowed, but which structure is most efficient for the specific transaction, and what needs to be in place before an offer is made rather than after.

Direct acquisition versus a Turkish entity

For a single asset purchase, particularly residential or a smaller commercial unit, a UAE company can in some cases acquire directly, though most transactions of meaningful size are structured through a Turkish legal entity, typically a limited liability company (limited şirket) established specifically to hold the asset. This is standard practice for development projects, larger commercial acquisitions, and any structure intended to bring in additional investors or lenders at the Turkish entity level. Establishing this entity is a two-to-four week process when planned in parallel with due diligence, and considerably slower if it is only initiated after a deal is agreed.

Free zone entities specifically

UAE free zone companies sometimes assume that their free zone status carries over favourable treatment internationally. It does not, from a Turkish regulatory perspective, a free zone company is treated the same as any other foreign corporate entity. What does matter is that the free zone company's constitutional documents, shareholder register, and authorised signatory arrangements are properly apostilled and translated for use in the Turkish entity formation and property registration process. This is a documentation and timeline item, not a legal obstacle, but it is frequently underestimated and causes avoidable delay when left until late in a transaction.

What Turkish authorities actually verify

Title registration for a foreign-owned entity in Türkiye requires verification of the ultimate beneficial ownership chain, standard documentation of the parent company's good standing, and, for larger or development-oriented acquisitions, confirmation that the acquiring entity meets any sector-specific requirements tied to the intended use. None of this is unusual by international standards, but the documentation flow from a UAE parent structure through to a Turkish subsidiary needs to be planned with enough lead time that it does not become the critical path item holding up closing.

Financing the acquisition

Most UAE corporate buyers fund Turkish acquisitions through equity contributed from the UAE parent or holding structure rather than Turkish bank debt, which for foreign-owned entities carries additional collateral and creditworthiness requirements. Structuring the capital contribution correctly from a tax and repatriation perspective, in both jurisdictions, is worth addressing with qualified counsel in each country before funds move, rather than as a post-closing cleanup exercise.

A practical sequence

The efficient order of operations is: confirm the target asset and transaction structure, initiate Turkish entity formation and UAE document apostille in parallel, complete due diligence on the asset itself, and only then finalise commercial terms. UAE companies that follow this sequence typically close within six to ten weeks of a term sheet being agreed. Those that leave entity formation until after commercial terms are settled routinely add a month or more to that timeline, and occasionally lose favourable terms to a buyer who was better prepared.

SHARE
← Back to all insights