A Comparative Study of Iranian and Turkish Law on the Expropriation of Immovable Property Owned by Foreign Legal Entities

Articles in Press

Document Type : Research Paper

Authors

1 Ph.D student in private law, Kish International Campus, University of Tehran

2 Professor, Law Department, Faculty of Law and Political Science, University of Tehran

10.22034/law.2026.66957.3483

Abstract

Ownership of immovable property by foreign legal persons—particularly corporations—is regarded as one of the most controversial issues in private international law and in domestic legal systems. In the Iranian legal order, in view of the fundamental importance of safeguarding national security and protecting economic interests, the acquisition of immovable property by foreign legal entities is subject to strict limitations and conditions. Pursuant to Articles 1 and 5 of the Law on Immovable Property of Foreign Nationals adopted in 1931, foreign nationals are prohibited from owning agricultural land. Moreover, under Articles 1, 3, and 4 of the By-Law on the Acquisition of Property by Foreign Nationals in Iran adopted in 1949, ownership of residential and industrial properties is permitted only within a narrowly defined framework, subject to special conditions and the prior issuance of the necessary permits, and even then only to a limited extent.
Although these restrictions may be justified as measures to prevent foreign economic influence, in practice they can create obstacles to attracting foreign investment through international companies. This study, with particular emphasis on the nationality of legal persons and its role in the regime governing the ownership of immovable property, examines the legal, security, and economic dimensions of the issue. It further adopts a comparative perspective by analyzing Turkish law, which, through a more balanced approach, has provided a legal framework facilitating the participation of foreign companies in property ownership. On this basis, the article proposes solutions for reforming the Iranian legislative structure in a manner that simultaneously ensures national security and promotes economic growth.

Keywords

Main Subjects

Jurisprudence and Islamic Law

Articles in Press, Accepted Manuscript
Available Online from 08 February 2026

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