Can Foreigners Buy a Yacht in Turkey? Foreign Flag, Port Registry, and Customs Procedures

It is generally possible for foreign real persons or legal entities to purchase a yacht, boat, or other marine vessel for private use in Turkey. However, acquisition of yacht ownership, right to fly the Turkish Flag, Registration in the National Ship Registry or the vessel registry, Registration in the Turkish International Ship Registry and temporary presence of a foreign-flagged yacht in Turkey are subject to distinct legal regimes.

Therefore, the purchase of a yacht in Turkey by a foreign buyer does not inherently necessitate transferring the yacht to a foreign flag. Depending on the nature of the yacht, its intended use, the buyer's residency status in Turkey, and the applicable registry, registration under the Turkish Flag may also be possible.

Regarding the general legal status of foreign individuals in Turkey immigration law; if establishing a company or investing through a company in Turkey is being considered the structuring of foreign companies in Turkey can be reviewed separately.

Can Foreigners Buy a Yacht in Turkey?

Yes. Under Turkish law, there is no general regulation prohibiting a foreign individual or foreign company from purchasing a yacht located in Turkey solely on the grounds of their foreign nationality.

However, the registry in which the yacht will be recorded and the flag under which it will be operated following the purchase must be determined separately. In particular, the provisions of Law No. 6102 Turkish Commercial Code, the Turkish International Ship Registry Law No. 4490, the Regulation on the Implementation of the Vessel Registry, the Tourism Encouragement Law No. 2634, and customs legislation must be evaluated collectively.

For foreign investors wishing to acquire a yacht through a company in Turkey, the mere fact that the company is established in Turkey does not automatically satisfy all registry or flag requirements. Regarding the legal nature of foreign-capitalized companies in Turkey, the differences between foreign-capitalized Turkish companies and foreign companies can be examined comparatively through the explanations provided.

Acquisition of a Newly Built Yacht by a Foreign Buyer

Shipbuilding Contract

Foreign natural or legal persons may conclude a ship or yacht building contract with a shipyard in Turkey. The technical specifications of the yacht to be built, delivery date, payment schedule, class or certification requirements, delivery tests, provisions regarding defective performance, and the exact moment when ownership passes to the buyer must be clearly stipulated in the contract.

With respect to ships under construction, the Turkish Commercial Code contains special provisions concerning vessels under construction and ship mortgages. However, since not every yacht is automatically subject to the same registry regime, the length, characteristics, and commercial or private intended use of the yacht must be separately evaluated.

Whether to register the yacht in a foreign registry on behalf of the foreign owner after completion, or to utilize registration in the Turkish registry, the register of ships (bağlama kütüğü), or, if conditions are met, the Turkish International Ship Registry (TISR), is determined based on the specific yacht and owner.

Sale of a Second-Hand Yacht to a Foreigner

In the transfer of a second-hand yacht registered in Turkey to a foreign person, the existing registration type of the yacht must first be determined. Whether the yacht is registered in the National Ship Registry, the Turkish International Ship Registry, or the register of ships; and whether there are any mortgages, attachments, preliminary injunctions, or other encumbrances on it must be examined prior to the transfer.

If it is not possible for the yacht to remain in the current registry after the sale, a deregistration procedure is carried out, and the registration process in the new flag state is conducted. Conversely, if a special registration opportunity exists under Turkish law for a foreign owner, transferring the yacht directly to a foreign registry may not be mandatory.

Right to Fly the Turkish Flag and TCC Art. 940

General Rule under the Turkish Commercial Code

Pursuant to Article 940 of the Turkish Commercial Code No. 6102, a ship owned solely by a Turkish citizen is a Turkish ship. In cases where there are multiple owners, specific majority conditions regarding Turkish citizenship apply according to provisions of fractional or joint ownership.

With respect to ships owned by legal entities, the Turkish Commercial Code also sets forth conditions concerning the establishment, management, and voting control of the company.

However, The general rule under TTK Art. 940 does not mean that foreign natural persons cannot fly the Turkish Flag under any circumstances. There are special provisions in the legislation regarding the vessel registry (bağlama kütüğü) and the Turkish International Ship Registry.

Can a Foreign Individual Register a Vessel in the Port Registry?

Yes, it can be registered under certain conditions.

Current Regulation on the Implementation of the Vessel Registry pursuant to Art. 9/2-a, pleasure craft, sea and inland water vehicles intended for private use owned by foreign nationals holding a residence permit in Turkey, may be registered in the vessel registry upon request, without being subject to the flag-flying provisions of the TTK.

According to Article 12/3 of the same Regulation, pleasure craft, sea and inland water vehicles owned by foreigners and registered in the vessel registry, independently of the general flag provisions of the TTK, shall fly the Turkish Flag.

Therefore, a general statement such as "a foreign natural person cannot register a private boat in their own name in Turkey" or "a foreign owner cannot fly the Turkish Flag under any circumstances" is not correct under current regulations.

However, with respect to the foreign owner, residence permit requirement, the vehicle's being designated for private use and limitations arising from the Cabotage Law must also be taken into consideration.

Is the Turkish International Ship Registry an Alternative for Foreigners?

numbered 4490 Turkish International Ship Registry Law also contains special provisions regarding foreign owners.

Pursuant to Article 5 of the Law Turkish and foreign national real persons resident in Turkey as well as ships and yachts owned by companies established in Turkey in accordance with Turkish legislation and falling within the scope of the Law may be registered in the Turkish International Ship Registry.

However, TUGS is not a general private boat registry that can be automatically utilized for every vessel. Article 4 of the Law further regulates which ships and yachts may be registered in the registry. In particular, whether the yacht was built in Turkey, the type of vessel, and the scope conditions of the Law must be examined.

If establishing a company in Turkey is being considered, establishment of companies by foreigners in Turkey and work permits with residence permit for the purpose of establishing business connections or starting a business are distinct legal matters.

Staying of Foreign-Flagged Yachts in Turkey

Five-Year Stay Period

numbered 2634 Turizmi Teşvik Kanunu and pursuant to the current Regulation on Maritime Tourism, foreign-flagged maritime tourism vehicles may be left at maritime tourism facilities certified as tourism operations or partial tourism operations by the Ministry, without requiring any additional permit, for up to five years for the purpose of wintering, maintenance, and repair at sea or on land.

The stay period of foreign-flagged private yachts staying at a certified maritime tourism facility for five years may be, upon fulfillment of the conditions set forth in the legislation, by the Ministry of Culture and Tourism extended for an additional five years.

Pursuant to the current regulation From the text of the Maritime Tourism Regulation of the Ministry of Culture and Tourism accessible.

Does the Five-Year Period Resolve Every Situation at Customs?

No. The maximum stay duration for marinas or facilities under maritime tourism legislation and the conditions for temporary importation under customs law are not the same legal issue.

The status of the yacht in the Turkish Customs Territory, the place of residence of the owner and user, whether the yacht is used for commercial or private purposes, the mode of entry, and the conditions of the temporary importation permit must be examined separately.

Customs Legislation and Temporary Importation Regime

Regarding the entry of foreign-flagged yachts into Turkey, Law No. 4458 on the Customs Law and secondary legislation concerning the temporary importation regime are of significance.

The temporary importation regime allows certain goods not in free circulation to be used temporarily within the Turkish Customs Territory, subject to certain conditions, with total or partial exemption from import duties.

The presence of a yacht in Turkey under maritime tourism legislation does not automatically mean that all compliance conditions under customs legislation have been met.

Navigation Permission Document and Transit Log

For maritime tourism vehicles arriving from foreign ports, entry, exit, and navigation procedures are governed by the Transit Log (Seyir İzin Belgesi) is carried out within the scope of the system. The document commonly referred to as a “Transit Log” in former practice is also among the fundamental documents of the system used to jointly execute the port, customs, and other administrative procedures of the yacht and individuals.

The official yacht statistics statements of the Ministry of Culture and Tourism also state that the cruising permit / Transit Log data consist of administrative records obtained from harbor master offices and customs authorities.

The current document validity period and the procedure to be performed must be determined separately based on the yacht's initial entry into Turkey, wintering status, departure to a foreign port, and commercial or private status. Therefore, establishing a general rule such as “the Transit Log is renewed every year” uniformly for all foreign yachts is not appropriate.

Who Can Use a Foreign-Flagged Private Yacht?

Pursuant to Article 47 of the Maritime Tourism Regulation, foreign-flagged yachts that have entered the borders of Turkey, navigate in Turkish territorial waters and ports, or winter in Turkey; by their owners or persons authorized in writing by the yacht owner may be used with a cruising permit for cruising, sports, and recreational purposes, provided that they do not carry a commercial purpose.

It is also possible to take Turkish or foreign visitors on board the yacht without charging any fee.

Nevertheless, for a yacht benefiting from the temporary importation regime, the permit holder, residency, and usage conditions under customs legislation must also be checked. Therefore, it should not be concluded solely based on the Maritime Tourism Regulation that any person resident in Turkey can use a foreign-flagged yacht without limitation.

Can a Foreign-Flagged Yacht Be Chartered Commercially in Turkey?

Private yachts and commercial yachts must be distinguished from one another.

Foreign-flagged private yacht's embarking passengers in Turkey for a fee or being allocated to charter activities is inconsistent with its private use status and may also entail legal consequences under cabotage and customs legislation.

Under the Cabotage Law No. 815, certain rights are granted to Turkish vessels regarding maritime transport between Turkish ports and coasts.

Foreign-Flagged Commercial Yachts Exceeding 39 Meters in Length

Pursuant to Article 29 of the Tourism Promotion Law No. 2634 and Article 42/A of the Maritime Tourism Regulation, foreign-flagged commercial yachts with a length of over 39 meters may be permitted to operate and navigate in Turkish territorial waters for a period not exceeding the same calendar year, subject to the payment of a contribution fee determined by the Ministry towards social and technical infrastructure services.

This regulation does not imply that every foreign-flagged yacht can engage in chartering in Turkey. Private yachts, commercial yachts, and the special permit regime for those exceeding 39 meters must be evaluated separately.

Comparison of Turkish-Flagged and Foreign-Flagged Yachts

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Foreign-Flagged Yachts and Temporary Importation in Council of State Decisions

Council of State 7th Chamber, E.2018/1244, K.2022/292, 27.01.2022

This decision directly concerns a customs penalty arising from the use of a foreign-flagged yacht in Turkey under the temporary importation regime.

In the dispute, a monetary fine was imposed pursuant to Article 238 of the Customs Law on the grounds that the temporary importation regime was violated because a foreign-flagged yacht belonging to a foreign company was used by a Turkish citizen resident in Turkey.

The court of first instance evaluated that the essential conditions of the temporary importation regime with total relief must be further examined in the specific case, and that the administration cannot impose a penalty based solely on secondary regulations without sufficiently investigating the relevant documents and the actual situation.

The 7th Chamber of the Council of State found the regional administrative court's decision lawful, dismissed the appeal request, and upheld the decision.

Citation verified: Council of State 7th Chamber, E.2018/1244, K.2022/292, D.27.01.2022.

Council of State 7th Chamber, E.2023/1635, K.2024/479, 31.01.2024

While the citation of this decision is verified, the decision does not concern yacht disputes. The decision pertains to the customs sanction imposed due to exceeding the permitted period of stay in Turkey of a foreign-plated land vehicle under the outward processing regime.

In the decision, the Council of State evaluated that under the temporary importation regime, mere exceeding of the time limit cannot be subjected to the same legal consequences as more severe regime violations, such as using the goods outside their intended purpose, transferring, or selling them.

Therefore, although this decision holds comparative importance regarding the general sanction system of the temporary importation regime, it should not be characterized as a "precedent decision regarding the marina stay duration of foreign yachts".

What Checks Should a Foreign Person Conduct When Purchasing a Yacht in Turkey?

1. Registry and Encumbrance Review

The registry or port of registry where the yacht to be purchased is registered must be examined; mortgages, attachments, preliminary injunctions, pledges, or other encumbrances must be checked.

2. Ownership and Representation Authority of the Seller

It must be verified whether the seller is the actual owner and, if transactions are conducted on behalf of a company, the signature and representation authorities must be confirmed.

In the event that the buyer is a foreign company, the company's incorporation documents, resolutions of authorized bodies, apostille or legalization procedures, and the form of the power of attorney to be used in Turkey must also be examined. For the legal structuring of foreign companies in Turkey, foreign company branch and liaison office guide can be consulted.

3. Determination of Flag and Registry Regime Prior to Purchase

Rather than choosing a flag after the sale is completed, the target registry must be determined in advance, taking into account the buyer's residency status, intended use, and the technical specifications of the yacht.

For foreign individuals residing in Turkey, the vessel registration book (bağlama kütüğü) or, if conditions are met, the TUGS; in other cases, suitable foreign registry alternatives may be evaluated.

4. Verification of Customs Status

If the yacht has previously been temporarily imported into Turkey under a foreign flag, its current customs status, date of entry, permit holder, and whether there are any pending customs proceedings must be examined.

5. Examination of Taxes and Fees

The purchase, importation, commercial or private use, and registry change of the yacht may give rise to different tax and fee liabilities. Tax consequences cannot be determined solely on the basis of the buyer being a foreigner.

A similar approach regarding the variation of tax consequences of foreign investment transactions in Turkey according to the transaction type foreign investment transactions in Turkey can also be seen in the explanations concerning.

The Process for Foreigners Purchasing a Yacht in Turkey

1. Legal due diligence: Registry records, ownership, mortgages, attachments, preliminary injunctions, and other encumbrances are investigated.
2. Technical and contractual review: The yacht's documents, class status, certificates, and delivery terms are inspected.
3. Sales contract: The purchase price, earnest money, delivery, transfer of risk, defects, and withdrawal provisions are determined.
4. Flag and registry selection: Turkish registry, vessel registration, TUGS, or foreign registry alternatives are determined based on the buyer's status.
5. De-registration if necessary: The yacht is deleted from its current registry and the de-registration certificate is obtained.
6. New registration: Registration procedures are completed in the selected flag state or appropriate Turkish registration system.
7. Customs procedures: If the yacht is to remain in Turkey, its customs status and temporary importation conditions are fulfilled.
8. Marina and navigation procedures: If necessary, the mooring agreement with a certified marine tourism facility and navigation clearance procedures are completed.

Frequently Asked Questions

Can a foreign national purchase a yacht in Turkey?

Yes. Foreign natural or legal persons are generally permitted to purchase yachts in Turkey. However, the registry in which the yacht will be registered and the flag it will fly following the purchase must be determined separately.

Can a foreign national fly the Turkish Flag on a yacht they purchased?

In some cases, yes. While TTK Art. 940 sets forth general nationality-based rules regarding Turkish ships, pursuant to Articles 9 and 12 of the Regulation on the Application of the Ship Registry, a foreign natural person holding a residence permit in Turkey may register a pleasure craft in the ship registry and fly the Turkish Flag.

Furthermore, the option of the Turkish International Ship Registry (TISR) may be available for foreign natural persons resident in Turkey with respect to ships and yachts meeting the conditions stipulated under Law No. 4490.

How long can a foreign-flagged private yacht stay in Turkey?

Within the scope of Article 46 of the Maritime Tourism Regulation, foreign-flagged marine tourism vessels may be berthed at Ministry-certified marine tourism facilities for up to five years. For foreign-flagged pleasure yachts, this period may be extended by an additional five years by the Ministry, provided that the requisite conditions are met.

Can someone other than the owner use a foreign-flagged yacht?

Pursuant to Article 47 of the Maritime Tourism Regulation, individuals authorized in writing by the yacht owner may operate a foreign-flagged yacht, provided that there is no commercial purpose. However, if the yacht is under the temporary importation regime, the usage and residency conditions arising from customs legislation must also be examined.

Can a foreigner living in Turkey register a private boat in the registry of vessels in their own name?

A ship, marine, or inland watercraft intended for private use owned by a foreign natural person holding a residence permit may be registered in the ship registry upon request pursuant to Article 9/2-a of the Regulation on the Application of the Ship Registry.

Can a foreign-flagged private yacht be chartered in Turkey?

The allocation of a foreign-flagged yacht with private yacht status to commercial activities for a fee is incompatible with its private use status. Separate regulations apply to foreign-flagged commercial yachts. Specifically, a Ministry authorization and contribution fee system may apply to foreign-flagged commercial yachts exceeding 39 meters in length.

Can foreign-flagged commercial yachts larger than 39 meters operate in Turkey?

Yes, this is possible under the conditions set forth in the legislation. Pursuant to Article 42/A of the Maritime Tourism Regulation, foreign-flagged commercial yachts exceeding 39 meters in length may be granted temporary operating and navigation permits not exceeding the same calendar year, provided that the contribution fee determined by the Ministry is paid and the necessary operating permits are obtained.

Can Turkish citizenship be acquired by purchasing a yacht?

Purchasing a yacht alone is not one of the investment types stipulated in the legislation for acquiring Turkish citizenship through investment. The investment categories through which citizenship by investment is possible in the guide to Turkish citizenship by investment is explained separately.

Does purchasing a yacht grant a foreigner a residence permit in Turkey?

No. Yacht ownership alone does not automatically grant a foreigner the right of residence. The legal stay of a foreigner in Turkey is subject to separate conditions within the scope of the Law on Foreigners and International Protection No. 6458. For the general framework, immigration law the explanations can be reviewed.

Conclusion

It is legally possible for foreigners to purchase yachts in Turkey; however, the yacht purchase transaction must be separated from the yacht's flag, registry record, duration of stay in Turkey, and customs status.

Particularly due to the current Regulation on the Application of the Vessel Registration (Bağlama Kütüğü), the general approach that foreign natural persons can under no circumstances fly the Turkish Flag is incorrect. Foreign natural persons holding a residence permit in Turkey may have their vessels intended for private use registered in the vessel registration system, provided that the conditions are met. Similarly, under Law No. 4490, TUGS (Turkish International Ship Registry) registration by foreign nationals resident in Turkey may also be possible for certain vessels and yachts.

As for yachts to be left in Turkey under a foreign flag, the five-year stay and extension regime under the Maritime Tourism Regulation must be evaluated separately from the temporary importation conditions in customs law.

In the event that foreign investors act through a company or another commercial structure in Turkey, the structuring of foreign companies in Turkey, work permits for foreigners establishing companies and residence permits for commercial purposes must also be evaluated separately.