Transferring the Ownership

Agricultural Investment Project – AIM Greenhouse

According to the Land Protection Law in Turkey, below steps must be followed by non-Turkish investors to be able to transfer the ownership of agricultural project under their individual name;

Brief summary of the law article;

  • Foreign investors cannot purchase plain farmlands under their individual name. They can purchase only productive farmland projects and greenhouses with minimum required sizes by law.
  • Minimum required size of the greenhouse is 3.000 sqm. (this area is stating the built-up area, not the farmland area)

Individual Purchase

Transferring the full ownership of the banana greenhouse project directly under your name


Requirements for the law

  • Minimum 3.000 sqm greenhouse construction
  • Agricultural land title deed status must be upgraded to «greenhouse and field (sera ve tarla)

Company Purchase

Transferring the full ownership of the banana greenhouse project under investor’s Turkish Ltd. company name


Requirements for the law

  • No special requirement for company purchasesfor farmlands, investors may have any size of the agricultural project as they wish

Steps

  1. Purchasing the farmland
    • AIM Greenhouse purchases the selected agricultural land under its name
  2. Preparing the land
    • Agricultural land must be prepared to the greenhouse construction and plantation
  3. Banana greenhouse construction
    • Constructing the greenhouse with requested size and specifications
  4. Title deed status upgrade of the farmland
    • Upgrading the status from plain land “tarla” to greenhouse and field “sera ve tarla”
  5. Trasferring the ownership
    • Title deed transfer can be done only after completion of above steps

Legal team of AIM Greenhouse makes all required applications and upgrades title deed status of project farmland. After obtaining upgraded title deed status, ownership can be transferred to foreign individuals within four weeks.

Steps

  1. Establishing Turkish Ltd. Company
    • After receiving neccessary documents and Power of Attorney (POA) from the investors, AIM Greenhouse may establish the company.
  2. Trasferring the ownership
    • Title deed transfer of the farmland can be done directly with the down payment and company establishment.

Below improvements can be done after transfering ownership under investor’s company name.

  1. Preparing the land
    • Agricultural land must be prepared to the greenhouse construction and plantation
  2. Greenhouse construction
    • Constructing the greenhouse with requested size and spesifications
  3. Title deed status upgrade
    • Upgrading the status from plain land “tarla” to greenhouse and field “sera ve tarla”

Legal team of AIM Greenhouse makes all required applications. After obtaining establishing company, ownership of the farmland can be transferred to foreign individuals within two days.

Pros and Cons of each option;


1- Company Purchase;

Pros;

  • Investors may transfer the ownership of the Banana Greenhouse Project land immediately after down payment.
  • 18% VAT will not be added on top of the purchase price of the Banana Greenhouse Project.
  • Posibility to benefit from government incentives on the large greenhouse projects.
  • Citizenship application is allowed with 500.000 USD investment.
  • Invest with multiple partners to decrease the initial and annual costs and increase the profit of the project.

Cons;

Establishing company in Turkey, brings establishment, monthly mandatory accountant and monthly office address costs.

Also selling product will bring Profit Tax and VAT.

  • Profit Tax is based on annual profitability of the company, therefore all costs of the company such as labor, utility costs, traveling costs etc. will decrease the total profit, and tax will be calculated from the net profit.

Agricultural Investment- Banana Greenhouse

2- Individual Purchase;

Pros;

  • Ownership of the banana greenhouse project is under investors’ individual name.
  • Citizenship application is allowed with 250.000 USD investment.

Cons;

  • Individual purchase, brings 18% VAT cost on top of the purchase price.
  • Ownership transfer of the banana greenhouse project can be held only after completion of improvement steps and the full payment.
  • Legally not possible to purchase the project with partnership of other investors.

16.45% Annual Return on Investment

Investment returns in 6 years!

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