Inheritance Rights of Foreigners in Turkey

Introduction

The inheritance rights of foreign nationals who either reside in Turkey or hold assets located within its territory are governed by both the fundamental principles of the Turkish Civil Code and the provisions of the Law on Private International Law and Civil Procedure (MÖHUK). The matter becomes particularly complex in relation to restrictions on the acquisition of immovable property by foreigners, the principle of reciprocity, the validity of wills, the issuance of certificates of inheritance, tax liabilities, and issues arising from dual citizenship. Below, the basic framework of inheritance rights of foreigners in Turkey is examined.

1. Opening of the Inheritance and Applicable Law

1.1 Opening of the Inheritance

The estate is deemed to be opened at the time and place of the decedent’s death. The date of death determines both the governing law and the scope of the estate. The country in which the death occurred, the location of the assets, as well as the nationality of the deceased and the heirs, are decisive in introducing a foreign element into the matter.

1.2 Applicable Law

According to Article 20 of MÖHUK:

Movable property and claims are subject to the national law of the deceased.
With respect to immovable property, Turkish law shall mandatorily apply to all immovables situated in Turkey.

This distinction plays a central role in determining the succession rights of foreigners regarding immovable property located in Turkey.

2. Capacity of Foreigners to Inherit in Turkey

Foreign natural persons may inherit in Turkey under the same principles as Turkish citizens. However, the effective exercise of such rights requires certain conditions to be met:

The heir must possess capacity to inherit, which is assessed under both the Turkish Civil Code and the national law of the deceased.
A certificate of inheritance (veraset ilamı) must be obtained before any transaction concerning the estate may be carried out in Turkey.
Where the heir’s country of nationality does not grant reciprocal rights to Turkish citizens, acquisition of immovable property may be restricted.

3. Dispositions Mortis Causa

Dispositions mortis causa, i.e., legal acts producing effect upon death, are of particular importance for heirs. The most common forms are wills and inheritance agreements.

3.1 Applicable Law

The validity of a will or inheritance agreement may be assessed either under the national law of the person making the disposition or under the law of the place where the act was executed.

3.2 Formal and Capacity Requirements

The formal validity of dispositions mortis causa may be established under two alternative regimes: they will be valid if executed in conformity either with the law of the place of execution or with the national law of the deceased. Compliance with either is sufficient.

As to the testator’s capacity to make dispositions mortis causa, this is governed exclusively by the national law of the deceased. Thus, it is sufficient that the testator had such capacity under his or her own national law.

4. Inheritance of Immovable Property by Foreigners

4.1 Restrictions on Inheritance of Immovables

Article 35 of the Land Registry Law (Law No. 2644) imposes specific restrictions on the acquisition of immovables by foreign nationals. Even when acquired by way of succession, foreigners may only inherit immovable property in Turkey if they are citizens of a country designated by the President of the Republic. Furthermore, the total area of the inherited immovables must remain within legally established limits.

If the heir does not satisfy these conditions or if the property exceeds the permissible area, the heir cannot acquire ownership. In such cases, the immovable is liquidated, and the heir becomes entitled to the proceeds from its sale.

4.2 Area-Based Limitations

Foreigners may acquire immovable property within the following limits:

Acquisition may not exceed 10% of the surface area of the district concerned.
A foreign individual may acquire immovables up to 30 hectares nationwide, a limit which the President may double.
Acquisition in strategic areas, coastal zones, or restricted military/security zones may be prohibited.

4.3 Registration of Title

Once a certificate of inheritance is obtained, the foreign heir may apply to the land registry for registration of the immovable property in his or her name. Where acquisition is not permissible, the property is liquidated and the proceeds distributed to the heirs.

5. Inheritance of Movable Property by Foreigners

Movables, negotiable instruments, bank accounts, vehicles, and receivables are subject to the national law of the deceased. Foreign heirs may directly inherit such assets. Nevertheless, in order to exercise their rights in Turkey, they must obtain a certificate of inheritance and complete the necessary procedures with the relevant institutions holding the assets.

6. Certificate of Inheritance (Veraset İlamı)

6.1 Importance of the Certificate

No legal transaction regarding the estate may be carried out in Turkey without a certificate of inheritance, which must also be obtained by foreign heirs.

6.2 Competent Authorities

The certificate of inheritance may be issued by the Civil Court of Peace or by notaries. In practice, court proceedings are generally preferred for foreign heirs.

6.3 Foreign Certificates

Certificates of inheritance issued abroad have no direct legal effect in Turkey. However, they may serve as evidence in proceedings before Turkish courts.

7. Tax Obligations

Inheritance in Turkey is subject to inheritance and transfer tax. Foreign heirs are equally liable for this tax:

The tax is calculated on the value of the assets located in Turkey.
Rates are progressive, depending on the value of the inherited share.
Failure to pay the tax prevents registration of ownership rights.

8. Jurisdiction of Turkish Courts

In inheritance disputes involving a foreign element, jurisdiction lies with the court of the deceased’s last place of residence in Turkey. If no residence existed in Turkey, jurisdiction belongs to the court where the estate is located.

9. Conclusion

While the inheritance rights of foreigners in Turkey are legally safeguarded, restrictions on immovable property, the validity of dispositions mortis causa, the requirement to obtain a certificate of inheritance, tax liabilities, and procedural hurdles create a complex legal landscape.

For heirs of foreign nationals holding immovable property in Turkey, statutory restrictions, title deed limitations, the protection of reserved portions, testamentary provisions, inheritance agreements, taxation, and recognition of foreign documents are of crucial importance.

Given that each case varies depending on the nationality of the deceased, the nature of the estate, the existence of a will, and the status of the heirs, it is vital for foreign heirs to seek professional legal assistance to ensure proper exercise of their inheritance rights in Turkey.