ZONING FORBEARANCE

The Law on Restructuring of Tax and Some Other Receivables and Amending Some Other Codes with no. 7143 (the “Law”), published in the Official Gazette dated 18 May 2018 and numbered 30425, introduced Provisional Article 16 into the Zoning Law with no. 3194.

Pursuant to this article, owners of buildings which fall within the scope of provisional article 16 will be entitled to apply to the official authority to be determined by the Ministry of Environment and Urban Planning for a Building Registration Certificate. One of the foremost consequences of obtaining a Building Registration Certificate is that all demolition decisions taken regarding the building in accordance with the Zoning Law, as well as all outstanding administrative fines assessed thereon on the same basis, will be cancelled. Secondly, these buildings will be temporarily permitted to connect to the electricity, water and gas networks.

Building Registration Certificate holders will be entitled to apply for type conversion or establishment of condominium ownership even in the absence of an occupancy permit, provided that certain conditions are fulfilled.

Building Registration Certificates will be valid only until the relevant building is demolished or is made subject to urban renewal. Following the demolition of such buildings, the zoning plan and legislation in force will apply to new buildings to be constructed in their place, rather than the buildings’ previous condition (in terms of the number of floors, use of construction coefficients, etc.).

The conditions for obtaining a Building Registration Certificate are: (i) to apply to the official authority to be determined by the Ministry
of Environment and Urban Planning no later than 31 October 2018, and (ii) to pay the registration fee no later than 31 December 2018. The registration fee will be calculated as 3% (residential use) or 5% (commercial use) of the sum of the property tax base of the relevant land and the approximate construction cost of the building as determined by the Ministry of Environment and Urban Planning.

After the Building Registration Certificate is obtained, conversion of type and establishment of condominium ownership will require the payment of fees equal to double the registration fee.

Buildings constructed on places prescribed under the Law such as; some particular locations at the Bosporus Coastline and Frontal View Area along with the Istanbul Historical Peninsula are excluded from the Law.

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