International inheritance law and foreign investors’ assets in Türkiye: what you need to know

Foreign nationals are actively buying property, setting up companies, and deploying capital in Türkiye. Few of them, however, think about what happens to those assets when they die. International inheritance law is a field where multiple legal systems collide, and Türkiye has its own distinct rules within it.

Which law applies: the nationality principle and its exceptions

The starting point is Türkiye’s Private International Law Act No. 5718 (MÖHUK): inheritance is governed by the law of the deceased’s country of citizenship at the time of death. If a German national dies while holding assets in Türkiye, the estate as a whole is primarily governed by German law.

There is, however, a significant exception that every foreign investor needs to know: real estate is always subject to the law of the country where it is physically located. An apartment or plot of land in Türkiye will be inherited under Turkish rules, regardless of the owner’s nationality.

In practice, this creates a situation where two or more legal systems apply simultaneously to a single estate: the foreign law governs movable assets, bank accounts, and company shares, while Turkish law governs real property. Getting this distinction wrong is one of the most common and costly mistakes foreign investors make.

Turkish inheritance law: the essentials for foreign owners

Inheritance in Türkiye is governed by the Turkish Civil Code (Türk Medeni Kanunu). The provisions most relevant to foreign investors are the following.

Forced heirship

Turkish law includes mandatory inheritance shares (saklı pay) that protect close relatives from being entirely disinherited. Children are entitled to half of their statutory share, and a surviving spouse is entitled to a quarter. This limits testamentary freedom even for foreign nationals, specifically in relation to Turkish real estate.

Making a will in Türkiye

Foreign nationals can make a will in Türkiye. It may be drawn up before a notary (resmi vasiyetname), written entirely by hand (el yazılı vasiyetname), or executed before witnesses. A will made abroad may also be recognised in Türkiye, provided it complies with the requirements of either the country where it was made, the testator’s country of citizenship, or Turkish law.

A practical point: if a foreign investor holds assets in both Türkiye and other jurisdictions, lawyers generally recommend drawing up separate wills for each jurisdiction. This avoids conflicts between legal systems and significantly speeds up the administration of the estate.

Foreign heirs and property ownership

Until 2012, foreigners could only inherit Turkish real estate on the basis of reciprocity with their home country. Amendments to the Land Registry Law removed that restriction: citizens of most countries can now inherit Turkish property freely. Exceptions apply to land in military and strategic security zones, where special rules remain in force regardless of nationality.

Inheritance tax in Türkiye

Türkiye levies an inheritance and gift tax (Veraset ve İntikal Vergisi). Foreign heirs receiving assets located in Türkiye are subject to rates ranging from 1% to 30%, depending on the value of the estate and the degree of kinship with the deceased.

Standard rates for inheritance are as follows:

• up to TRY 1.1 million — 1%
• TRY 1.1–2.6 million — 3%
• TRY 2.6–5.5 million — 5%
• TRY 5.5–10.6 million — 7%
• above TRY 10.6 million — 10%

For assets inherited from more distant relatives or non-relatives, rates double. The tax is payable in equal instalments twice a year over three years. Foreign heirs who are not tax residents of Türkiye are only taxed on assets physically located in the country.

Importantly, Türkiye has not concluded bilateral double taxation treaties covering inheritance with most countries — unlike in the field of income tax. This creates a real risk of the same estate being taxed twice: once in Türkiye and once in the heir’s country of residence or citizenship. This is a point that is frequently overlooked at the planning stage.

Business assets: company shares and bank accounts

Shares in Turkish companies — whether a limited liability company (limited şirketi) or a joint-stock company (anonim şirket) — are treated as movable property. In principle, they fall under the law of the deceased’s country of citizenship. However, company articles of association frequently restrict the transfer of shares to heirs, particularly in limited liability companies. The articles may require the consent of the remaining shareholders or provide for a right of first refusal.

For a foreign investor holding a stake in a Turkish business, this means that succession scenarios should be addressed in advance at the level of corporate documents — through shareholder agreements or notarised option structures.

Bank accounts held in Türkiye are frozen upon the account holder’s death and remain frozen until the inheritance proceedings are concluded. To unfreeze the account, a foreign heir will need to obtain a Turkish court ruling recognising their right to the inheritance (veraset ilamı). This process typically takes between two and six months.

How the process works in practice: the key steps for foreign heirs

Obtaining a Turkish inheritance as a foreign national involves a sequence of steps. The heir must first obtain a certificate of inheritance under the law of the deceased’s home country, have it apostilled, and have it translated into Turkish by a sworn translator. They then apply to a Turkish court for a local ruling recognising their right to the inheritance. Once that ruling is in hand, the property can be re-registered at the Land Registry Office (Tapu Müdürlüğü) and bank accounts can be unfrozen.

The full process, including court proceedings, typically takes between four months and a year depending on the complexity of the assets and whether any disputes arise between heirs.

Estate planning: what to do before it becomes urgent

Proper estate planning in Türkiye significantly reduces risk for heirs and helps preserve asset value. The main tools worth considering are the following.

Separate wills by jurisdiction. A standalone document for Turkish assets, drafted in compliance with Turkish law, speeds up the administration process and reduces the likelihood of conflicts between legal systems.

Corporate structuring. Holding Turkish real estate through a legal entity — including a foreign holding company — makes it possible to transfer assets through a change of corporate control, bypassing the standard inheritance procedure. This requires careful tax planning but is widely used by high-net-worth foreign investors.

Power of attorney for incapacity. Turkish law allows for a notarised power of attorney (vekaletname) with broad authority. This is particularly important in the period between death and the conclusion of inheritance proceedings, when assets may need to be actively managed.

Beneficiary designations. Insurance policies and private pension savings (BES) in Türkiye pass directly to named beneficiaries, outside the inheritance process. This is an efficient mechanism for the rapid transfer of liquid assets and is often underused by foreign investors.

The bottom line

International inheritance law in the context of Türkiye is a field where delay is expensive. The dual-system framework — the nationality principle for movable assets, Turkish law for real estate — creates a genuinely complex picture that requires an individual approach.

A foreign investor with assets in Türkiye is well advised to work with a specialist familiar with both Turkish inheritance law and the law of their home country, or to ensure coordination between lawyers in both jurisdictions. The cost of proper structuring while assets are being acquired is a fraction of what disputes during inheritance proceedings can cost.

This article is for informational purposes only and does not constitute legal advice. For specific questions on estate planning, please consult a licensed legal professional.