Inherited agricultural land may not be divided among the number of heirs like an ordinary building plot. Law No. 5403 contains special provisions on transfer by inheritance, division and land of sufficient income in order to protect the economic integrity of the land. Living abroad does not remove these rules; for a foreign heir, the conditions for acquiring real property are examined separately. [1, 2]
The legal and factual character of the land
The land registry classification, the size of the parcel, the actual use, the zoning status and the assessment of the agricultural authority are checked together. The fact that the registry says “field” should not be taken to mean that all the special conditions have been understood. The decedent may also have other land in the same region and a relationship of economic integrity between the parcels.
The date of death is important. Estates opened before the amendments that entered into force on May 15, 2014, and the transitional provisions, are assessed separately. The present transfer system cannot be applied to all earlier estates without any examination. [1]
The one-year period and the Ministry process
Article 8/B of Law No. 5403 takes the transfer of ownership as its basis for agricultural land subject to inheritance; where the heirs agree, it provides that the transactions be completed within one year from the opening of the inheritance. If there is no transfer or related lawsuit within the period, the Ministry’s notification and lawsuit mechanism under Article 8/Ç comes into play. The three-month period granted in this context is tracked separately. [1]
The passing of one year does not mean that all the heirs’ rights automatically pass to the Treasury. Yet it cannot be said that the period is unimportant either. If a notification has been received, its date and the transaction requested should be recorded; being abroad should not be treated as a reason that stops the period of its own accord.
On which options can the heirs agree?
| Option | Basic condition |
|---|---|
| Transfer to one heir | Arrangement of the other shares and the price |
| Transfer to more than one heir | Statutory size and integrity conditions |
| Family property partnership | Appropriate legal formation |
| Limited company of the heirs | Partnership structure provided by law |
| Transfer to a third party | Conditions of acquisition and transaction |
For agricultural land, subdivision, division into shares, transfer of shares, conversion into co-ownership by shares and the other transactions listed in the law are tied to the Ministry’s permission. The heirs cannot create legally independent parcels by drawing a line among themselves. A de facto use agreement on a map does not replace a division in the land registry. [1]
Foreign heirs and a power of attorney from abroad
While Turkish inheritance law applies to real property in Türkiye, the conditions on acquisition by foreigners are also checked. A certificate of inheritance, a passport, foreign records and a file of certification and translation are prepared. If there is a Blue Card (Mavi Kart) status, it is documented separately. [3, 4]
The power of attorney should be suitable not only for the transfer of title in the land registry but, where necessary, for partition, transfer, collection of the price and judicial proceedings. Applications to the agricultural authority and the land registry are conducted in coordination. The accounts of crops, rent and costs with the tenant or heir who works the land are kept separate.
Subsequent increase in value and tax
Article 8/C of the Law contains a special provision on the price owed to the other heirs where, within twenty years, an increase in value arises because of non-agricultural use of transferred agricultural land of sufficient income. This does not mean that every increase in the market price is automatically shared; the grounds and calculation conditions in the Law are required. [1]
The exemption from fees and stamp duty for an agreed transfer within the statutory period is assessed separately. This exemption does not mean that all taxes disappear. Inheritance tax, income tax and the consequences of a later sale are examined under their own provisions. [5]
Why may a parcel-by-parcel review not be enough?
Even if the decedent’s land is on different land registry pages, it may be assessed within an agricultural economic unit. Irrigation, access, crop pattern, the de facto operating relationship and the statutory size criteria must be examined together. The fact that each parcel has a separate title deed does not mean that the whole may be given to separate heirs as desired. Listing all the agricultural real property before the application is therefore important. [1]
Besides the land registry record, the necessary assessment specific to the transaction is obtained from the provincial or district directorate of agriculture and forestry. A difference between the boundary on the cadastral map and the actual use, passage over a neighboring parcel or water use may affect the valuation. The fact that one of the heirs has worked the land for years does not show that the whole of the ownership has passed to him or her; but it can be concrete evidence in the assessment of the qualified heir and in the income and expense account.
How is a claim to be the qualified heir documented?
The agricultural activity history of the person who asks for the land to be transferred to him or her, how he or she earns a living, his or her knowledge and experience, and the statutory priorities are investigated. For an heir living abroad, no conclusion is drawn merely from the residence address. A plan for operating the land, the current activities and workable financing should be set out. Against the opponent’s defense that “he never took an interest in farming”, concrete records are more useful than a general family narrative. [1]
Being a qualified heir does not mean taking the land free of charge without satisfying the economic rights of the other heirs. The statutory valuation and payment mechanism applies separately. A person who cannot finance the price may not obtain a conclusion in the file by relying only on a claim of priority. The transfer request and the schedule for paying the price should therefore be prepared together.
The crop and operating account is kept separate from partition
The crop on the field at the date of death, sowing after death, support received and rental income should not be entered in the same period’s account. Who paid for seed, fertilizer, irrigation and harvest costs is documented. When the labor and expenses of the heir using the land are assessed, the property rights of the others are also protected. It is not correct to accept every expenditure automatically or to treat every crop as gross income without costs. [6]
If there is an existing agricultural lease or sharecropping relationship, the contract is examined. A transfer decision does not of its own accord disregard the continuing contractual rights of a third party. Making a temporary management agreement for delivery of the crop and the next sowing season may reduce economic loss while a lawsuit is pending. It should be stated expressly that this agreement is not a partition of ownership.
Final documents in the working file
The certificates of inheritance, the parcel list, the agricultural authority’s assessment, the partition or court decision, payment documents and current land registry records are filed together. If there is a foreign heir, the acquisition regime is completed separately. The existence of a fee exemption does not show that inheritance tax or later income tax has also fallen away. [5]
While the one-year period and the Ministry process that follows are tracked, the date of every notification received is recorded. At the end of the transaction, not only the land registry but also the crop, rent and cost account should be closed. In this way, no uncertain account concerning the past operating period is left between the person taking over the land and the other heirs.
Why are the date of death and the character of the land the starting point of the file?
The May 15, 2014 distinction: The new method does not automatically apply to an old inheritance
In the decision of the 14th Civil Chamber of the Court of Cassation (Yargıtay) dated 21.01.2021, E.2017/1289, K.2021/226, the decedent died on May 2, 2014. The court of first instance ordered the transfer of the agricultural land on the basis of the system of Article 8/C of Law No. 5403, which entered into force later. The Court of Cassation reversed the decision, stating that the new provision could not be applied to this inheritance because the death occurred before May 15, 2014. It was explained that the request based on the new provision should be dismissed. This result does not mean that all the heirs’ rights under the old regime have disappeared.
Accordingly, at the first meeting not only the land registry record but also the death certificate should be examined. Where there are successive deaths in the same family, the date of each transfer of inheritance is separately important. That a property is still registered in the decedent’s name today does not mean that the inheritance is opened today. Filing a lawsuit solely on the basis of the current article of the law, without assessing the transitional provision, may lead to a wrong legal result.
Land that has become a building plot in the registry or in fact
In the decision of the 7th Civil Chamber of the Court of Cassation (Yargıtay) dated 23.10.2023, E.2023/4387, K.2023/4974, the transfer of agricultural land to a qualified heir was requested. In the process of reversal and retrial that followed the first decision of acceptance, the change of the properties through a zoning implementation and their present character were investigated. After the expert assessment, the places in dispute were found to be building plots and outside the scope of Law No. 5403; the lawsuit was dismissed, and the dismissal was upheld.
Although the file also contained arguments that the plaintiff lived in Germany and was not engaged in farming, the final ground for dismissal was the character of the property, which falls outside the scope of the Law. This decision cannot be presented as “an heir living abroad cannot receive agricultural land”. An old parcel number, a closed land registry record or past agricultural use is not enough on its own. The current cadastre, zoning, agricultural classification and the factual situation should be investigated together. The links to both decisions may require an account to access.
How is the income value determined; can the old calculation formula be used?
The distinction between agricultural income value and market value
In allocating agricultural land to the qualified heir, the agricultural income value can directly affect what the other heirs are owed. Not every calculation example seen on the internet is current. In particular, older accounts in which annual net income is multiplied by a fixed coefficient should not be used without checking the date.
In the text of the December 8, 2021 regulation amendment as published by the Ministry’s provincial directorate, the agricultural income value is tied to an assessment of the average annual net income by the capitalization rate. Crop prices, production costs, crop rotation, the economic life of perennial plants and the provincial or district capitalization rate set by the Ministry matter for the calculation. It is therefore not enough to use only the sale price of the neighboring field or a fixed “twenty times” formula. The report should show the source of the data and the date of the calculation.
Kemal Erdoğan’s 2016 study “Transfer of Agricultural Land by Inheritance” (Tarım Arazilerinin Miras Yoluyla İntikali) discusses the importance of the difference between income value and market value for the economic interests of the other heirs. This historical assessment is useful; however, the calculation technique of the period in which the study was published cannot be used in place of the current regulation after the 2021 amendment.
On what concrete data can an objection to the expert report rely?
The irrigated or dry-farming character of the land, the crop pattern, production cost, yield, economic integrity and the rate used should be examined. That a property has been left empty for years does not necessarily mean that its income capacity is zero; the assessment criteria in the regulation are the basis. On the other hand, wrong assumptions about access, irrigation and objective production conditions can affect the result of the report. The objection should explain which data is wrong and why, rather than merely saying “the price is low”.
How does the heir who wants the land transferred to him or her pay the other shares?
Article 8/D of Law No. 5403 provides that the price be deposited with the court cashier to satisfy the shares of the other heirs. The judge may grant a period of up to six months; on request, an additional period of up to six months may be granted. These periods are not an unconditional twelve-month waiting right of their own accord. If payment is not made in time and no other heir asks for the transfer, a sale comes into play.
An heir living abroad should not calculate only on the value of the land. Currency transfer, the bank’s request for documents on the source of funds, the attorney’s authority to pay and timely transfer to the court account should be planned together. A change in the exchange rate does not of its own accord extend the period set by the court. The possibility of credit interest support under the Law depends on the budget and on application conditions; it cannot be said that everyone will automatically be given credit or a grant.
Agricultural machinery, animals and operating debts
The transfer of the land does not mean that all the equipment will belong without payment to the same heir. Article 8/E of the Law separately provides for the transfer, at their real values, of the vehicles, tools and animals necessary for the farm. Article 8/H is also considered for an ancillary industrial enterprise closely connected with the farm. In whose name the tractor is registered, the financing debt, any pledge and its attachment to the farm should be determined. Another person’s equipment cannot be included in the estate.
A workable file plan for an heir living abroad
First stage: Entitlement and legal regime
The date of death, the certificate of inheritance, citizenship or Blue Card (Mavi Kart) status and the current land registry record are obtained together. For a foreign heir, the acquisition conditions under Article 35 of the Land Registry Law are checked separately. That one of the agricultural transfer regime and the regime on acquisition of real property by foreigners has been examined does not mean that the other has been completed.
Second stage: Review of the land and the farm
For each parcel, the area, land class, economic integrity, zoning status, crop pattern, lease or sharecropping relationship and encumbrances are listed. It is not enough to rely only on past entries in the title deed. Current documents are prepared on the heir’s agricultural activity, knowledge, experience and relationship to earning a living. The qualified heir assessment is made by the criteria in the legislation; having an address abroad does not by itself conclude the whole assessment.
Third stage: Agreement, payment and registration
Among the options the Law allows are transfer to one or more heirs, a family property partnership, a limited company in which the heirs are partners in proportion to their shares, and transfer to a third party; each option has its own conditions. If no agreement is reached, the court’s ranking for the transfer applies. The one-year period and the three-month additional process granted by the Ministry do not result in the land passing to the State of its own accord; the commencement of a judicial process may come into play.
The rights of the other heirs where an increase in value arises within twenty years after the transfer because of non-agricultural use should also be reflected in the contract and in the file plan. Not every increase in market price falls within this provision. Permission for non-agricultural use is an administrative matter separate from the transfer of ownership by inheritance. A transfer of inheritance or a court decision does not automatically permit the desired construction on the land.
Conclusion
In an agricultural land inheritance, the applicable period and the integrity of the land must be determined first. The heirs’ agreement is carried out together with the Ministry’s permission, valuation, payment of the price and the land registry record. After the transaction, the rights to crop income and to statutory increase in value should also be followed.
Related articles: A Foreign Heir’s Transfer of Title in the Land Registry in Türkiye: Application, Documents, Restrictions and Registration; How Can an Heir Living Abroad Sell an Inherited Home in Türkiye? Power of Attorney, Tax and Collecting the Price; How Is Rental Income from an Inherited House Received? Management and Accounting Rights of an Heir Abroad
Frequently Asked Questions
Can a field be divided according to the number of heirs?
It cannot be divided unless the statutory minimum size, sufficient income and permission conditions are met.
Is ownership lost when a year has passed?
It cannot be described as an automatic loss of rights; the notification and lawsuit process in the Law comes into play.
Can someone living abroad not take the land?
There is no such absolute rule; the criteria for the qualified heir and, for a foreigner, the conditions for acquisition are examined.
Is every later increase in value shared?
The special provision is limited to an increase due to non-agricultural use and to the statutory conditions.
Sources
[1] Soil Protection and Land Use Law No. 5403
[2] Land Registry Law No. 2644
[3] Law No. 5718 on Private International Law and Procedure
[4] Turkish Citizenship Law No. 5901
[5] Inheritance and Transfer Tax Law No. 7338