+90 532 637 1 404
+7 937 534 02 36
Recently, due to the growth of foreign investors moving to Turkey and opening a business here in the field of agriculture, animal husbandry, poultry farming, growing cereals, fruits, vegetables, banana plantations, there has been an increased demand for land rental.
In light of the current situation related to the coronavirus pandemic, an increasing number of people, remembering their origins, are returning to villages in order to successfully develop the agricultural sector. In this article, we want to highlight the issue related to the lease of state land in Turkey.
Lease of municipal (state) land in Turkey
Content:
- Conditions under which a signed contract with the state may be terminated in the Regulation
- How is the payment of treasury lands made?
- Land that under no circumstances is leased by the state to tenants
- Features of working with municipal land in Turkey
Fig.1 Lease of municipal (state) land in Turkey
Recently, due to the growth of foreign investors moving to Turkey and opening a business here in the field of agriculture, animal husbandry, poultry farming, growing cereals, fruits, vegetables, banana plantations, there has been an increased demand for land rental.
In light of the current situation related to the coronavirus pandemic, an increasing number of people, remembering their origins, are returning to villages in order to successfully develop the agricultural sector. In this article, we want to highlight the issue related to the lease of state land in Turkey.
First of all, it is worth noting that in practice there are 3 ways to lease the municipal territories of the Republic:
- Closed bidding procedure.
- Open Proposal Process.
- Negotiable procedure.
All important information about the lease of treasury lands in the municipal ownership of Turkey , including open leasing offers, current tenders are presented on the official website of the General Directorate of National Real Estate (Branch of the Ministry of Finance).
The state bodies of the Republic of Turkey, in accordance with the current legislative framework, control and maintain full records of the leased territories. By renting municipal land in Turkey, only a permitted type of activity can be carried out on these plots. At the end of the lease period, the land is transferred back to full use by the owner (the state).
The conditions under which a signed contract with the state may be terminated in the Regulation:
- the terms of the contract are not respected and the obligations of the parties are not fulfilled;
- if the leased territory is used for other purposes, the Administration of the Republic of Turkey has the right to terminate the contract unilaterally.
What are the requirements from the applicant to be met in order to lease state land from the Turkish Government:
- Turkish citizenship;
- if the purpose of the leased land is agriculture, animal husbandry, poultry farming, then the applicant must have a supporting document stating that he is a farmer and has at least 3 years of experience in this area;
- complete absence of debt obligations for non-payment of tax fees to the state.
At the end of the lease term, the tenant has the right to extend the contract for a period not exceeding 20 years.
How is the payment of treasury lands made?
Payment for the lease of treasury lands is carried out in two ways:
- At a time in cash.
- Payments will be made in installments in certain, fixed installments during the first year, in which case 1/4 of the total amount is paid before the contract is signed, and the remaining payments are made evenly every month or at once.
It is important to note that leased land from the state cannot be subleased. The exception is the death of the tenant, then all obligations under the contract fall on the shoulders of the official heirs.
Lands that are under no circumstances leased by the state to tenants:
- Military restricted areas.
- Areas for use in public events.
- Areas defined by local legislation and at the disposal of municipalities.
- Location of groundwater and spring water.
- Lands that are within the framework of coastal law and are prohibited for use for certain purposes.
- Areas allocated to the Ministry of Agriculture and Forestry.
The Ministry of the Republic of Turkey distributes the land to be leased.
Features of working with municipal land in Turkey
Previously, the lease term was up to 10 years. Since 2018, changes have come into force, from which it follows that the lease agreement for state land plots in Turkey can be concluded for up to 20 years. The lease term depends on the type of commercial direction.
You can document the lease of treasury lands yourself, but still, it is recommended to first get competent advice from experienced specialists. The company “ExpertProperty” has extensive experience in transactions of this kind.
We help our clients to fully open a business, register a company, and also lease land for public purposes with the further conclusion of a contract. Our experts will help you carry out the entire procedure legally, legally competently and transparently.
Our company will offer you a large selection of optimal offers for the lease of agricultural land in Turkey. We will help you make an informed decision depending on the tasks and goals of using municipal lands. To contact us, please use any convenient method of communication.