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Business registration and support in Turkey CHECK ( Due Diligence ) REAL ESTATE IN TURKEY

Taras Miroshnychenko

Head of International Corporate Law and Fintech Practice

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miroshnychenko@prikhodko.com.ua

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Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.

CHECK ( Due Diligence ) REAL ESTATE IN TURKEY

CHECK ( Due Diligence ) REAL ESTATE IN TURKEY

In Turkey, as in other countries, there is a legal audit service or Due diligence of real estate objects. This service is due to the fact that when buying property, a person invests significant funds compared to the cost of such an inspection, and therefore, in most cases, such a person wants to understand the entire history of the occurrence of the property, as well as take into account all possible risks in the event of its further use or sale.

Checking a property in Turkey is a study of the history of its creation, change of ownership, and conflicts that arose with this property. That is why Due diligence will protect you from the negativity associated with the history of the object.

It is clear that 100 percent guarantees are difficult to achieve, but a full check of real estate in Turkey, including a high-quality and complete check of the history of a real estate object, will allow you to be ready to buy or sell such an object, and will also help you correctly assess investment risks.

What you need to check before buying land, house, apartment, or any other property:

The emergence of the object and the first right of ownership

Most often, violation of the law is allowed precisely at the stage of construction and registration of property rights. That is why it is important to check how the right to build arose, the origin of the land, who exactly built it and on what basis, and whether conflicts or disputes arose during construction.

Analysis of previous owners

It is very important to understand the procedure for changing ownership and who, in fact, they are, from the very first to the last. This can be done either by analyzing all purchase and sale transactions, donations, etc., as well as through the relevant registers.

What is the status of the property?

It is necessary to investigate the documents on the basis of which the last registration of property rights took place, and whether such property rights are currently burdened with arrests or prohibitions on registration actions. It is also important to check the absence or presence of litigation and decisions on the property.

Physical inspection of the property

Verification of compliance with the technical characteristics of permits. It often happens that the previous owners changed something and did not make the appropriate changes and changes to the technical documentation, which in the future can lead to at least additional costs for the legalization of such changes or even the unsuitability of the object for use and significant investment losses.

Based on the results of the inspection of the investment object in Turkey, you will receive a conclusion from our company, which will reflect all stages of the inspection with identified shortcomings and comments, as well as an investment conclusion about possible risks, if any.

As we see from the above recommendations, checking the purity of objects and transactions in Turkey is simply impossible without specialists for whom the Turkish language (both colloquial and legal ) is relative. At the same time, the given specialist must have both experience ( preferably from 10 years) and professional registration.

Exactly such specialists accompany our clients in Turkey.

Our specialists offer you the following services for checking real estate in Turkey :

analysis of the history of the real estate object;
verification of the developer, seller, and related persons;
examination object unfinished construction ;
checking the technical characteristics of real estate for their compliance with technical standards.

Can a Ukrainian open a company in Turkey without a local partner?

For many ordinary types of commercial activity, a company with wholly foreign capital is possible. A foreign founder may be an individual or a legal entity. A Turkish partner is not a universal requirement for every company, but before registration, restrictions applicable specifically to the selected sector should be checked.

Management is determined separately: who will represent the company, sign agreements and operate the account. The ability to own a business does not automatically mean the right to work personally in Turkey. Therefore, the ownership structure, authority and immigration matters are considered together, before the documents are prepared.

Is it mandatory to establish a Turkish company in order to open an account in Turkey?

This depends on who needs the account and for which transactions. An individual’s account, an account of a Turkish company and banking services for a foreign legal entity involve different banking procedures. This service primarily covers launching a Turkish company and preparing it for corporate banking.

If the legal entity is already registered in another country, it is first necessary to clarify whether the bank will consider servicing it and which documents and local connections it expects. Establishing an additional company solely for the account should be considered only after the business need has been reviewed. It is also important to take into account the accounting and corporate obligations that will arise for the new structure.

What practical advantage does an account in Turkey provide for trade?

An account helps organise payments in the country where the company purchases or sells goods: paying suppliers, receiving local proceeds and handling settlements for business transactions. Foreign currency accounts and international transfers can complement this model for working with overseas clients.

For more complex supplies, letters of credit, documentary collections or guarantees can be considered separately. For example, a letter of credit links payment to the presentation of the documents specified in it. At the same time, the bank checks the documents in accordance with the terms of the instrument and does not guarantee the quality of the goods. This is why the banking product and supply agreement should be aligned.

Can a company and an account be opened entirely online?

Representation under a power of attorney is permitted for some registration actions, but the possibility of completing the entire process without travelling depends on the specific composition of founders and signatories. Documents issued abroad must be prepared in a form acceptable to the Turkish registry. Incorrectly worded authority may result in the power of attorney having to be reissued.

The bank establishes its own identification procedure and may require the personal participation of a company representative. Online banking after the account has been opened does not confirm the possibility of making the initial application remotely. Therefore, the format of participation is agreed before booking travel, executing a power of attorney and planning the first payment.

How long does registration and the launch of settlements take?

Registration in the trade registry is only one stage. Before it, the structure must be determined and documents and translations prepared; afterwards, the necessary organisational procedures must be completed and the bank review passed. Therefore, the date on which the company appears in the registry and the date on which the account is ready for the required payments may differ.

The overall plan is affected by the founder’s documents, participation of a foreign legal entity, the need for a power of attorney, a regulated type of activity and additional bank requests. An indicative timeframe should be determined after analysing the source information. For the first contract, it is advisable to separately check whether the required currency, access and payment direction have already been activated.

Does company registration give the right to live and work in Turkey?

Company registration formalises the business but does not in itself give the founder an unrestricted right to reside or work. If the owner plans to work personally or perform management functions in Turkey, the relevant immigration and employment regime, including possible exceptions, must be assessed.

Separate financial and staffing criteria may apply to a work permit. They cannot be replaced by the minimum share capital established for company registration. This is why plans to relocate and work personally should be disclosed at the beginning of the consultation: they may affect the organisation of the business.

Is accounting required if the company is not yet earning income?

After registration, the company must comply with applicable accounting and reporting obligations even while preparing to start sales. At this stage, there may already be owner contributions, rent, equipment purchases and other transactions. They must be properly recorded and supported by documents.

The list of tax returns, notifications and electronic tools is determined by the local accountant according to the company’s status and activities. It is advisable to agree the calendar and document transfer procedure immediately. If the company will not be used for a long period, further actions regarding it should be assessed separately rather than simply discontinuing accounting and communication with the authorities.

Do CFC obligations arise in Ukraine?

Such obligations may arise if the owner is a Ukrainian tax resident and meets the statutory criteria for control of a foreign company. Ukrainian citizenship alone is insufficient for a conclusion: tax residence, ownership structure and actual control must be assessed.

Where the relevant ground exists, a CFC notification is submitted within 60 calendar days from the event. The annual report is a separate obligation. A possible exemption of CFC profit from taxation should not be equated with an exemption from reporting. To ensure the required information is available later, Turkish financial documents and corporate changes should be collected systematically from the moment the company is established.

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