2005/PDGY/77969
The Ministry of Foreign Affairs presents its compliments to the Diplomatic Missions and Representations of International Organizations in Turkey and has the honor to restate policies and procedures regarding the real property of foreign missions in Turkey. The Ministry requests the kind cooperation of all missions in meeting the requirements enclosed in this circular note.
The Ministry of Foreign Affairs of the Republic of Turkey avails itself of this opportunity to renew to the Diplomatic Missions and Representations of International Organizations the assurances of its highest consideration.
Ankara, April 6, 2005
Encl.
DIPLOMATIC MISSIONS ACCREDITED TO TURKEY
REPRESENTATIONS OF INTERNATIONAL ORGANIZATIONS
Ministry of Foreign Affairs April 6, 2005
Directorate-General of Protocol
THE REAL ESTATE PROCEDURES TO BE FOLLOWED
BY THE FOREIGN MISSIONS IN TURKEY
1. NOTIFICATION REQUIREMENT
All foreign missions shall notify the Ministry prior to a proposed lease, purchase, sale, or other acquisition or disposition of real property in Turkey by or on behalf of a foreign mission. All such transactions are subject to approval by the Ministry.
The notification requirement applies to properties acquired for chancery or residential use by the foreign government for its diplomatic mission in Ankara and career consular posts in Turkey.
In addition to the lease or purchase of new property, proposals for the alteration, addition, or change in use, of existing properties are also considered acquisitions and must be submitted to the Ministry for its perusal.
Missions are encouraged to notify the Ministry's Protocol Department (PDGY) of proposed acquisitions as early in the process as possible. Missions which obtain the benefit of the Ministry's experience and advice in the early stages of an acquisition may avoid unnecessary financial or legal complications.
2. PROCEDURE
2.1 The review process is initiated by the delivery of a diplomatic note to the Protocol Department of the Ministry. At a minimum the note shall include:
- The exact address of the property, including apartment or suite number,
- The proposed use of the property, i.e., chancery, chancery annex, consulate, residence,
- The method of acquisition, i.e., purchase, lease (including lease term), alteration,
expansion,
- A copy of the title deed.
2.2 After receipt of the diplomatic note, Ministry will have up to sixty (60) days to review the request. In most instances, the Protocol Department will be able to provide a response well before the expiration of the sixty-day period, normally in two to three weeks. In some cases, however, the full review period may be required and missions, are therefore, encouraged to submit notifications as far in advance as possible. Prior to receiving a response from the Department to the notification, or the expiration of the sixty-day period, a mission may not enter into a contract or lease agreement unless the agreement expressly states that the execution of the agreement is subject to the approval by the Ministry of Foreign Affairs. The foreign missions are kindly reminded that significant financial and legal complications could arise, if this requirement is overlooked.
2.3 Properties acquired by foreign missions for diplomatic or consular purposes are to be used in their entirety for the prescribed purposes. Property approved for diplomatic or consular use should not be used by other government offices, or leased or otherwise put to commercial use, even in part, without the express consent of the Protocol Department.
3. PROPERTY FOR CHANCERY USE
3.1 For chanceries or chancery annexes located in Ankara, the Protocol Department is responsible for determining whether a proposed site is acceptable, or whether the expansion or alteration of an existing chancery complies with local building codes and regulations. The approval process is concerned solely with the location, expansion, or alteration of chanceries in Ankara.
3.2 The following information is provided to assist missions that intend to acquire new chancery space or expand existing chanceries in Ankara.
3.2.1 Requirement for an Occupancy Permit: All foreign missions are required to obtain an occupancy permit from the Municipality before a building or office may be occupied as a chancery or chancery annex. Therefore, in addition to a contingency for Protocol Department approval as discussed above, the execution of a purchase contract or lease agreement for a chancery should also be subject to the issuance of a Certificate of Occupancy from the Municipality.
3.2.2 Zoning Approval Process: Depending on the location of the property, the occupancy permit may be issued as a matter of right or only after the chancery use has been reviewed and approved by the Municipality.
3.2.3 Expansion or alteration of existing properties: Depending on the scope of the project, the expansion or alteration of an existing chancery property may also be subject to review and approval by the Municipality. Missions are required to obtain all appropriate building permits and to substantially comply with all local building codes and regulations.
3.3 Permits will not be issued by the Municipality without the written concurrence of the Protocol Department. Private contractors should be informed that applications for building and construction permits in Ankara, together with one copy of supporting plans, must first be submitted to the Protocol Department for review and transmittal to the appropriate local authority.
3.4 The information provided above is not exhaustive, and missions are cautioned to fully explore the zoning and land-use implications of a particular property acquisition or renovation project in Ankara before concluding any contract or agreement.
3.5 For locations in other cities than Ankara, a mission must comply with the zoning and land-use laws and regulations and permit requirements applicable in the local jurisdiction. Once a mission has complied with the notification and review process and the location is not disapproved by the Protocol Department, the mission is encouraged to hire legal counsel to assist in its settlement to a new location.
4. PROPERTY FOR RESIDENTIAL USE
All apartment buildings or houses leased or purchased by foreign missions for residential use by members of the mission are subject to notification requirements.
The purchase and use of residential properties are subject to compliance with the applicable laws and regulations of the local jurisdiction and, as with properties for chancery use, the alteration or expansion of such properties is subject to the prior notification requirements of the Department and to compliance with local building codes and regulations.
5. PROPERTY FOR CONSULAR USE
The prior notification requirement also applies to the purchase, sale, lease, alteration, expansion, or change of use of consular properties, office or residential, acquired by foreign missions in Turkey.
Lack of compliance by missions and their career consular posts with the prior notification requirement is a concern. The Chiefs of Mission are kindly requested to transmit a copy of this note to all their career consular posts and advise them that acquisitions, whether by construction, lease, or purchase, of real property need prior notification of the Ministry.
The Protocol Department advises consular posts providing written notification of property transactions to the Ministry through their Embassies.
In addition to the notification requirements, consular properties are subject to the building and land-use laws and regulations of the local jurisdiction, including permit requirements. It is the responsibility of the missions and their consular posts to be informed of and comply with the regulations of the jurisdiction in which they are located. Inasmuch as failure to comply with local laws could result in legal or financial complications for a consular post, missions are encouraged to notify the Ministry, and consult with the Protocol Department, regarding a particular project at the earliest possible date.
6. PROPERTY TAX EXEMPTION
6.1 Diplomatic Properties
Based on the Vienna Convention on Diplomatic Relations, customary international law, and bilateral agreements, foreign governments are entitled to exemption from real estate taxes on properties owned by the government and used by its diplomatic mission. Such properties include chanceries and chancery annexes, and the residences of the Chiefs of Mission. Residences occupied by members of the diplomatic mission accredited to Turkey may also be granted exemption based on reciprocity. Exemption is limited to those real estate taxes for which the mission is otherwise legally obligated to pay.
The Chiefs of Mission are kindly reminded that any portion of property which is not used for diplomatic purposes of that sending State will not benefit from tax exemption or inviolability.
The procedure for obtaining exemption for properties in Ankara is as follows:
6.1.1 Recordation Taxes: Based on the purchase price of a property, the tax is normally paid by the purchaser at the time the new title is officially recorded by the local jurisdiction.
The mission must submit a written request to the Protocol Department requesting exemption from the recordation tax and informing that Department of the proposed property settlement date.
If the Protocol Department agrees that the property is entitled to exemption, a letter to the appropriate taxing authority will be prepared and returned to the mission for presentation at settlement. The request from the Protocol Department is normally sufficient to exempt the mission from paying the recordation tax.
6.1.2 Transfer Tax: Based on the sales price of a property, the tax is normally paid by the seller at the time a property is sold. If a foreign mission is the seller, the same procedure applicable to recordation taxes should be followed.
6.1.3 Property Taxes: Based on the value of a property, the tax is paid annually by the owner of a property.
Subsequent to the settlement of the contract between the foreign mission and the seller, and the recordation of the deed by the mission, a diplomatic note should be sent to the Protocol Department requesting exemption from property taxes. The note should include the address of the property, the date the deed was recorded, and reference any earlier Ministry notes regarding the purchase.
If exemption is appropriate, the Protocol Department will submit a request for property tax exemption directly to the taxing authority.
The taxing authority will grant property tax exemption as of the deed recordation date. Although the authority may require several weeks or longer to complete the processing of an exemption request, the effective date of the exemption will be retroactive to the date the deed was recorded.
The Chiefs of Mission are kindly reminded that exemption from taxation does not include exemption from fees separately stated on a property tax bill which relate to specific services to the property. Typical examples of such services include utilities, water, sewerage, and refuse collection.
6.2 Consular Properties
Based on the Vienna Convention on Consular Relations, foreign governments are entitled to exemption from real estate taxes on properties which are owned by the government and used as a consulate or as the residence of the career head of a consular post.
The procedure for obtaining exemption for such properties is the same as in Ankara.
7. PROCEDURE TO ACQUIRE DIPLOMATIC PARKING IN ANKARA
The review process is initiated by the delivery of a letter or diplomatic note to the Protocol Department requesting reserved on-street diplomatic parking in front of a chancery, chancery annex or residences.
The Protocol Department will transmit the request to Ankara Traffic Services Board for review. The process takes approximately two months.
If approved, diplomatic parking signs will be installed on the curb in front of or along side any chancery or chancery annex or residence for a predetermined distance, depending on the frontage of the occupied building. The signs will include the name of the Embassy.
If a chancery office consists of leased space in a commercial building, the Embassy must forward with its request, a written permission from the building's owner or management company giving approval for diplomatic parking to be designated in front of its building.