Inheritance Law in Turkey for Foreign Property Owners

When it comes to property investment in Turkey, inheritance may not be at the top of your priority list. However, for foreigners who own real estate or are inheriting property in Turkey, understanding the legal details and nuances of the system can help prepare for a better future and protect one's assets. In this article, we'll go over the essentials of property inheritance for foreigners in Turkey.

How Inheritance Law in Turkey Works for Foreign Property Owners

Turkish inheritance law is governed by the civil code, which sets out clear rules on who inherits, what shares they receive, and how estates are distributed with or without a will. This applies to both individuals and legal entities, though only an individual can make a will.

For real estate located in Turkey, this inheritance law always applies regardless of the owner's nationality. While foreigners can pass or inherit property, one of the most important considerations is the principle of reciprocity. For foreign nationals inheritance law of estate in Turkey requires that the heirs' home country grant similar rights to Turkish citizens. When this condition is not met, heirs cannot hold the property and need to liquidate the property within a specified period.

In Turkey, children and spouses are the first to inherit an estate, while parents and grandparents are also able to inherit the property when there are no heirs in the higher succession classes. If there is no valid will, the civil code applies, dividing the inherited property among family members according to default shares. Even when a will exists, Turkish law protects certain family members through reserved portions (saklı payı), or in other words, forced heirship. When there is no heir, the estate passes to the Turkish state.

What Can Disqualify an Heir?

While heirs themselves may voluntarily renounce their inheritance, one can also lose inheritance rights. Disinheritance through a will is one of the ways this can occur, but even then, statutory heirs like children and spouses keep their reserved portion rights unless legally disqualified under defined, specific grounds. In the civil code, this disqualification is set in narrow terms and applies only in cases of extreme harmful acts by an heir.

Making a Valid Will in Turkey for Foreigners

A common question when writing a last will and testament as a foreigner in Turkey is whether to set up a Turkish will or use one from your home country, which may already be in place. While a foreign will can be valid in Turkey and may seem more convenient, it still needs to meet certain formalities and will be evaluated under the same legal framework as Turkish wills. This means that forced heirship rights are still effective, and if your will doesn't account for reserved portions, conflicts can arise. If you’re thinking of using your home country will, be aware that the Turkish court’s approval is necessary to make it valid. The court reviews the will, determines the heirs and their shares, and then enforces it accordingly.

Preparing a Turkish will specifically for your property in the country will ensure smoother procedures and make things easier for your heirs, who may be unfamiliar with the legal system. Multiple wills can coexist, with your foreign will covering assets in your home country, while you set up a separate will for the estates in Turkey.

How to Claim Inherited Property in Turkey

Under Turkish law, the inheritance right automatically arises upon death, but to legally use or benefit from the property, heirs need to follow a formal procedure.

Foreign succession certificates are not valid on their own and need to be recognized by the court. So, filing a petition with the court, where a Turkish inheritance certificate (veraset ilamı) is issued, is an essential step. Heirs also need to pay inheritance tax and obtain a clearance certificate. With these necessary documents, they can apply to the Land Registry Office, where the heir is registered as the new owner and issued a new title deed for the Turkish property.

Required Documents When Claiming Inherited Property in Turkey

• Core inheritance and identity documents, such as a death certificate of the deceased, proof of kinship, valid ID, and Turkish tax number for heirs.
• Certificate of Inheritance issued by the court
• Tax Clearance Certificate
• Documents needed for title deed transfers

All foreign documents need to be apostilled according to the Hague Convention or legalized through consular certification, and translated into Turkish by a sworn translator.

Turkish Inheritance Tax for Foreign Heirs

According to the inheritance tax laws in Turkey, whether foreigner or not, heirs need to pay inheritance and transfer tax on the assets they inherit in the country. Each heir pays tax only on the portion they inherited that exceeds exemption limits. The tax is progressive, starting at 1% for amounts up to 2,400,000 TL. As the inherited value rises, so does the tax rate, reaching up to 10% for any amount over 44,100,000 TL.

Turkish inheritance tax exemptions are applied to each heir's share before tax, with different thresholds based on different circumstances, such as each child and spouse, if the spouse is the sole heir, and gifts. The values are adjusted annually. These inheritance tax rules are the same for both residents and non-residents.

When to Pay Inheritance Tax

After declaring, heirs need to pay the tax within the specified timeline. This deadline can range from 4 to 8 months based on where the death occurred and where the heirs live. Inheritance tax is also typically payable in installments over three years.

Protecting Your Investment for the Future: Why Legal Support Matters

International property investment and legal nuances can seem more complicated than they are. That’s why understanding how the system works is crucial. While the basics are essential, for more complex matters like inheritance and wills, getting professional support can make all the difference.

To help foreign property investors navigate these complexities with ease, TEKCE Visa, the sister company of TEKCE Real Estate, offers personalized legal consulting. Our multilingual consultants are experts in Turkish inheritance law, ensuring your property is protected for future generations.

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