Real estate inheritance law in Turkey | Most importantly!

The real estate inheritance law in Turkey is one of the most important laws that concern investors. Ultimately, it is related to the fate of their properties after death.

Moreover, the inheritance procedures differ according to the law in force within the country itself. Nevertheless, in Turkey, the inheritance law and the inheritance tax clauses and details are quite clear.

What is the law of real estate inheritance in Turkey?

The term property inheritance in Turkey refers to the process by which the property’s ownership is transferred, after death, to the legal heirs. This is governed by ad hoc laws that allow this procedure, according to conditions and restrictions that will be explained later.

Similarly, the Turkish government allows the ownership and inheritance of real estate after death for most foreigners. However, limited nationalities are exempted, according to applicable restrictions related to owning real estate in Turkey.

How is the property inherited in Turkey?

It is well known that foreigners’ properties are subject to the Turkish law, as well as to the inheritance and transfer tax.  Consequently, its value depends mainly on the geographical location of the property.

However, the inheritance tax in Turkey is relatively low. It varies according to the value of the investor’s property, as the tax is calculated at a lower percentage when the property price decreases.

The Heirs within the Real Estate Inheritance Law in Turkey?

The family of the deceased property owner shall inherit his immovable property, in the absence of an official attested will.  Consequently, the heirs are determined as follows:

1. The family of the deceased, i.e. the children, the husband or wife are the first to receive a share of the property.
2. If the deceased did not have children, the heirs are his parents, i.e. the father and the mother.
3. In the absence of children and parents, the husband/wife shares the property with the grandfather of the deceased and his siblings.
4. The last ones to receive a share of the property are the grandchildren and their children, according to Turkish law.
5. If there are no relatives of the deceased, then all of his property shall be transferred to the husband or wife.
6. In the absence of any heirs, the property belongs to the Turkish government.

The heirs are given their shares, after the property of the deceased is reckoned, and the liabilities, if any, are cleared. In other words, after debts to banks are paid, installments are paid, or any mortgage, and so on.

In this context, Turkish law stipulates that half of the deceased’s property be granted to the wife, and half to the children. Whereas, males and females receive equal shares.

On the other hand, the inheritance law in force in the foreigner’s country of origin can be applied, subject to the consent of all the heirs.

Requirements to transfer ownership of the property to the heirs

To transfer ownership of the property to the heirs, it is necessary to present some documents for the heirs, as follows:

1. A family statement (Inheritance Inventory), clarifying who the heirs are and their relationship to the deceased, translated into Turkish and notarized.
2. Register in the Tax Registration Department in Turkey and obtain a tax number.
3. Valid passport.
4. Personal photos

Inheritance tax in Turkey

In the event of death and inheritance or property transfer, foreigners must pay the inheritance and transfer tax, as long as the property is located within Turkish territory.

The heir pays this tax after receiving the money by transfer or inheritance. The inheritance tax is estimated at 1% to 10%, depending on the geographical location of the property.

Types of inheritance tax and transfer as per real estate inheritance law in Turkey

The inheritance/transfer tax is imposed on two types of property. In other words, each has a percentage that differs from the other, as follows:

1. Ownership transferred to its owner without compensation, such as prizes, gifts, donations, etc.
2. Property acquired through inheritance.

The time frame to pay inheritance tax in Turkey

According to Turkish law, the inheritance tax is payable within 3 years maximum. It is paid in May and November of each year.

When is the property registered in the name of the heir?

The person who inherits the property must register the property that he acquired by heredity at the General Directorate of Land Registry.

In this case, foreigners need first to submit the inheritance notification document and the family certificate. Secondly, pay the inheritance tax. Consequently, the property is registered in the name of the heirs within several days.

Can foreigners write a will in Turkey?

Foreigners who own property and wish to transfer it after their death, are eligible to write a will. However, to be officially accepted, it must be prepared according to the Turkish law.

Conditions for writing a will as per the real estate inheritance law in Turkey:

1. The will must be written in the handwriting of its owner, reflecting important details. For instance, the day, month, year, and his own personal signature.
2. Ensure the order of the procedures go properly. Firstly, the owner of the will submits it to the government or the notary. Secondly, sign it in front of two witnesses.
3. Thirdly, the Magistrate’s Court takes over the inheritance cases, as it requires some time.

Types of Wills in Turkey

1- Official Will

Written by an official employee at the notary department in Turkey.

2- Handwritten Will

Hand written by the owner himself, with his personal signature and the date specified.

3- Verbal Will

This type of will is used in emergency circumstances, such as war or disease.

Can inheritance be deprived in Turkey?

Certainly, the owner can deprive one of the heirs from obtaining his share of the inheritance. Nevertheless, the deprivation reasons should be clarified before the Turkish court.

Moreover, the deprived heir is not eligible to sue the owner of the inheritance as per the Turkish law.

In conclusion, we have outlined what you need to know about the law of real estate inheritance in Turkey and its procedures. Furthermore, and most importantly the inheritance tax. We hope that this article has provided you with some important highlights. Please do not hesitate to contact us for further enquiry about inheritance in Turkey, or any other Turkish real estate matter.

Edited by: Properties Gate^©

Source: Turk Press