Turkey: Property Update: Allocation Of Public Immovables For Investment


On 3 September 2009, the Regulation on the Principles and Procedures for Allocation of Public Immovables for Investment1 ("Regulation") entered into force, establishing the rules for allocating public real property – "immovables" – to real and legal persons holding an investment incentive certificate for the cities designated and sectors promoted by the Ministry of Finance's Decree No. 15199 on Government Subsidy for Investment,2 issued on 14 July 2009.

Assessment of Land Parcels

Parcels of land belonging to the Treasury, specially budgeted administrations, and special provincial administrations or municipalities, as well as those directly operated by the state, will have to be assessed within the context of the Regulation. Whereas the Ministry of Finance will conduct the required transactions for the plots of land exclusively owned by the Treasury and those under state control, for land owned by specially budgeted administrations, special provincial administrations and municipalities, the relevant administration that owns the land will carry out the necessary transactions under the Regulation.

According to the Regulation, investors should have an investment incentive certificate to benefit from the incentives. The immovables (which are subject to an easement right or license to occupy) must have an investment value no less than the market value designated by the administration that owns them. Under the Regulation, the total investment value for crops and livestock cannot be less than one multiplied by the above mentioned market value; for tourism investments, twice the market value; and for all other types of investments, three times the market value. In any case, the total fixed investment value will not be less than TL 1,000,000 for the first and second regions, and TL 500,000 for the third and fourth regions. The investor should have net assets amounting to at least 20% of the investment undertaken. A feasibility report and a financing chart will be submitted for investments over TL 10,000,000.

Easement Rights

Under the Regulation, investors who are to benefit from the incentive will be granted independent and continuous easement rights over the immovables for up to 49 years in return for a sum at the rate of 3% of the real estate tax-based value of the immovables for the first year. In the event the easement right cannot be granted to the investors because the immovables are under state control and not registered with the relevant land registry, the investors will benefit from a license to occupy for up to 49 years in return for a sum at the rate of 3% of the real estate tax-based value of the immovables for the first year. Both the easement right and the license to occupy the immovable are transferrable to third parties.

The investors will be charged for neither the revenues gained from operating the building and facilities on the immovables nor the rentals obtained from third parties residing in these buildings and facilities. The value of immovables including all buildings and their annexes neither required nor owned by the public, and the value of those with unrealized investments, will be assessed at 3% of the real estate tax-based value of the immovables.

The fee for the second and following years regarding the license to occupy and the easement right will be increased in proportion to the increase of the Producer Price Index (PPI – rate for the period ending on the corresponding month of the previous year) announced by the Turkish Institute of Statistics.


The Regulation will not apply to land:

  1. with restrictive records or annotations with the relevant land registry, e.g., lien, mortgage, certificate of title granted by the state, annotations of trusts and foundations, etc.;
  2. which is subject to joint ownership or tenancy in common;
  3. designated for public services;
  4. to be transferred by the General Directorate of Highways because it remains within the borders of the city's highways;
  5. within the scope of the Forest Law;
  6. not approved by the General Staff in line with the Law on Military Forbidden Zones and Security Zones; and
  7. which should be transferred to the Ministry of Public Works and Settlement in accordance with the Housing Law.

The administrative organs that own the immovables will consult with the Organized Industrial Zone, Industrial Zone Administrations or other relevant organizations and institutions, depending on the type of investment, on the following issues:

  • places to be invested in, and the type of investments that may affect them; and
  • the minimum surface area of the immovables to be allocated under the Regulation.

In light of the above information, the relevant administrative organs will determine which immovables are appropriate for the investment.

Determination of Market Price

The authorized committees of the administrative bodies that own the immovables will determine the market price and rental fee for the license to occupy or the easement right regarding the immovables, or will have them determined. For the immovables privately owned by the Treasury and those under state control, officials of the Ministry of Finance and real estate appraisal companies subject to the Capital Market Law will determine the market price and the rental fee for the easement right or license to occupy,.

The relevant chambers of industry, commerce and agriculture will be notified of the immovables determined for allocation. The immovables which the administrative bodies deem appropriate will be announced periodically, and a period of at least two months will be granted for the applications.

A committee will be formed of the governor or deputy governor, as chairman, and representatives of the relevant administrations to handle the issue of the license to occupy or the easement right to be established on the immovable. This committee will evaluate the applications.

Termination and Revocation of Easement Right

If the investor fails to comply with the terms and conditions of the Regulation, the easement right (or the license to occupy) will be revoked without the need for any judicial proceeding. In such an event, the buildings constructed over the property will be left to the administration that owns the immovable.

One of the investor's most important obligations is to employ the number of employees declared in the investor's incentive certificate for a period of 5 years.

Cancellation of State Aid

Under the Regulation, the state aid, which is maintained by discounted easement right fees and omission of revenue sharing, will be cancelled if the investor (i) completes more than 50% of the construction but cannot complete the project within the stipulated time limit (except in case of force majeure events); or (ii) fails to employ more than 10% of the employees it has undertaken to employ. Upon cancellation of the state aid, the easement right fee will be collected based on the market price, which should be no less than 3% of the real estate tax value of the immovable.


1. Published in the Official Gazette dated 3 September 2009, numbered 27338.

2. Published in the Official Gazette dated 16 July 2009, numbered 27290.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.