How to Buy Property in Turkey
Buying property in Turkey can be a straightforward process if approached with proper guidance and planning. The first step is to research the region and property type you’re interested in—whether it’s an apartment in Istanbul, a villa on the coast, or land in rural areas. Once you’ve identified a property, working with a reputable real estate agent and legal advisor is crucial. The purchase process involves confirming the property’s legal status, ensuring there are no debts on it, and verifying its title deed, known as a Tapu.
Buyers must also obtain a Turkish tax identification number, which can be done at a local tax office, and open a Turkish bank account for transactions. After negotiating the purchase price, you’ll sign a contract and typically pay a deposit. The final step is registering the property at the Land Registry Office, where the title deed is transferred, and any remaining payments, including taxes and fees, are settled. With thorough research and professional assistance, foreign buyers can confidently invest in Turkish real estate.
Apartments for sale in Turkey range from small and affordable options to luxury apartments and penthouses. Apartment prices in Turkey vary depending on many different factors such as location, size, number of rooms, amenities and age of the building.
Investing in property in Turkey is often seen as a profitable option. The country’s growing tourism sector and increasing demand for housing cause property values to rise continuously. These dynamics are among the important factors that make the Turkish property market attractive for investors.
Türkiye’de gayrimenkul satın almak, 2017’den itibaren yabancı alıcılar için daha erişilebilir hale gelmiştir. Bu düzenlemeler, uyruğu ne olursa olsun herhangi bir yabancının belirli şartlar altında bir veya birden fazla konut alarak Türk ikameti ve vatandaşlığının avantajlarından yararlanabilmesine olanak tanımaktadır. Ancak, yabancıların Türkiye’de mülk edinmesi, bazı önemli yasal düzenlemelere uyulmasını gerektirir. Yabancılar, yalnızca şehir merkezlerinde ve belediye sınırları içinde yer alan mülkleri satın alabilirler. Ayrıca, mülklerin köylerde, kırsal alanlarda veya askeri bölgelerde bulunmaması gerektiği de unutulmamalıdır. Bu şartlarla, yabancılar Türkiye’de gayrimenkul alarak çeşitli haklardan yararlanabilirler.
Financial Transfer in Property Purchase by Foreigners
Foreigners wishing to purchase real estate in Turkey must first obtain a tax number in order to open a bank account and transfer money. According to the new regulations announced by the Central Bank of the Republic of Turkey on 24 January 2022, it has become mandatory for foreign real estate buyers to obtain a foreign currency purchase certificate.
This document officially shows that foreign currency has been transferred from a bank in Turkey to the Central Bank of the Republic of Turkey. This is done before the Land Registry Office finalises the sale and purchase transaction. When the money transfer is completed, the Land Registry Office is applied with the foreign currency purchase certificate and the money transfer process between the buyer and the seller is finalised. This procedure is a necessary step for the legal completion of the property purchase process.
Additional Points to Consider:
- There are no minimum investment requirements for general property purchases by foreigners. However, if you are interested in obtaining Turkish citizenship through property investment, there is a minimum investment requirement of $250,000.
- Foreign buyers may not own more than 25,000 square metres of property in Turkey. The Council of Ministers can increase this to 30 square metres.
- Properties in security zones and military restricted areas cannot be purchased.
- When buying property in Turkey, it is advisable to seek legal advice from an expert in the field.
Laws and Benefits of Buying Property for Foreigners in Turkey
Property Purchase
Buying property in Turkey offers many advantages to foreign investors, as well as opportunities to obtain citizenship and residence permit. Buying a property in Turkey is an attractive option for both those who want to make a new start in terms of quality of life and those who want to make use of their property investments. Legal regulations in Turkey provide residence permit and citizenship opportunities to foreign investors who purchase real estate under certain conditions.
If you buy a property in Turkey worth less than $400,000, you can obtain the right to stay in Turkey by applying for a residence permit. Investors who plan to live in Turkey for a long time by obtaining a residence permit can ensure continuity by renewing this permit whenever they wish. However, this property value is not considered sufficient for direct citizenship.
When the value of your property is between $250,000 and $400,000, you are entitled to a longer-term residence permit. In this case, the investor is granted a 5-year residence permit. This permit is very advantageous for those who intend to live permanently in Turkey because at the end of this 5-year period, the residence permit can be converted into a Turkish passport and thus the right to apply for Turkish citizenship.
For those who want to make a lower investment, there is the possibility of obtaining a 2-year residence permit for properties worth between $75,000 and $250,000. This 2-year residence permit allows investors and their families to stay in Turkey and can be renewed when necessary. In this process, foreigners who renew the permit and reside in Turkey for a total of 8 years can apply for Turkish citizenship.
On the other hand, for those who want to obtain Turkish citizenship and passport quickly, buying a property with a value higher than $400,000 provides a great advantage. When you purchase a property of this value, you are entitled to apply for Turkish citizenship directly after the property purchase. Once the application for Turkish citizenship is completed, the investor and his/her family can obtain a Turkish passport within approximately two months. In this way, you can obtain citizenship directly without wasting time with the residence permit process in Turkey.
Turkey’s real estate laws that support foreign investors facilitate the process of obtaining a residence permit and citizenship with options that appeal to different budgets. Thanks to these legal regulations that offer both an attractive life and investment potential, buying property in Turkey attracts more and more foreign investors every day.
Property Sales
Once you have purchased a property in Turkey, one of the ways to both invest and generate income is to rent out your property. You do not need to be physically present in Turkey for this process, so even if you do not live in Turkey when renting out your property, you can make contracts with your tenant and earn regular income from your property. Turkey is a country that allows foreign investors the right to rent real estate, and with this, you can create an important source of income by using your property.
However, after buying a property, you do not have the right to sell your property immediately according to the legal regulations in Turkey. You must hold the property you have purchased for at least 3 years. During these 3 years, you are forbidden to sell the property and if you try to sell your property before completing this period, your Turkish residence permit will be cancelled. This rule is implemented specifically to encourage investors in Turkey to think long term.
At the end of 3 years, you will not face any legal obstacles when you want to sell your property, but there are some important rules regarding the sale process. When selling your property, the buyer must be a Turkish citizen. That is, you are prohibited from selling the property to a foreigner. This is a measure of the Turkish government to protect the domestic market. It is also prohibited to sell the property to the first buyer (i.e. the person from whom you bought the property). So, when you decide to sell your property, the buyer must be a Turkish citizen and you cannot sell back to the first buyer.
These legal regulations are an important factor for foreigners considering investing in property in Turkey. Sales restrictions allow investors to think longer term in the Turkish property market, so that Turkey’s property market remains stable and balanced. After 3 years, when you decide to sell your property, the sale can be done with a local buyer and you will have the opportunity to ensure a return on your investment.
In summary, the important points are the following:
- You cannot sell the property for less than 3 years
- You cannot sell the property to a foreigner
- You cannot sell the property to the previous owner
Restrictions on Property Purchase by Foreigners
Under Turkish law, foreign nationals face certain restrictions when purchasing real estate in Turkey. The first of these is that foreigners are prohibited from purchasing more than 30 hectares of land, agricultural land or farmland throughout Turkey or in certain regions. This regulation contributes to the protection of the country’s land structure by aiming to prevent the acquisition of large lands by foreigners.
Moreover, the types of land that foreigners can purchase are also limited. For example, certain agricultural land or land near military bases cannot be sold to foreigners for security and strategic reasons.
Another restriction relates to the age of buyers, stating that foreigners wishing to purchase property in Turkey must be at least 18 years old. This is a regulation put in place to ensure that buyers have legal competence.
However, foreign buyers cannot purchase land exceeding 10 per cent of the total land area of a city or region. This restriction is introduced to help protect the local population and economy and is intended to prevent foreigners from owning large tracts of land. Such regulations also safeguard the interests of the local population by increasing control over the real estate market in Turkey.
Buying property from an individual or a company:
There are tax implications to consider when buying property in Turkey, depending on whether you are buying from an individual or a company.
Individual sellers: When a property is sold by an individual, capital gains tax is calculated on the difference between the final sale price and the previous purchase price and is collected as income from the seller. This tax is generally deferred until the property is sold and the seller is exempt from paying it for up to five years after the purchase.
Company sellers: If a property is owned by a company, the company will generally qualify for a capital gains tax exemption if the property is sold after two years of ownership. This is because the tax rates for companies and individuals are very different and the holding period for tax exemptions is also different. This is very important when deciding whether to buy from an individual or a company.
Property Purchase by Foreigners in Instalments:
Foreign investors can benefit from the instalment payment option when purchasing real estate in Turkey. However, the most appropriate method in this process is to purchase from a construction company that has pre-arranged financing options. As banks and financial institutions in Turkey often impose restrictions on lending to foreign individuals, construction companies offering mortgage financing offer a more convenient option for foreign buyers wishing to pay in instalments.
In this type of purchase, buyers typically have to pay a down payment of more than 50 per cent of the property price. The remaining balance is paid on a set schedule depending on the progress of the construction project. This payment schedule is made in parallel with the completion of the project, so that buyers can comfortably meet the payment burden by spreading it over time. This arrangement makes it easier for foreigners to acquire real estate in Turkey, while at the same time ensuring the continuity of construction projects.
Real Estate Law in Turkey:
The Land Registry Law in Turkey sets out the rules for buying, selling and owning foreign property within its jurisdiction. Turkish property law requires the buyer to transfer ownership from the seller. This can be done at any local land registry office, where you will be required to present the following documents when purchasing your property:
- Deed
- Identity documents
- Property value declaration document
- Earthquake insurance policy
- Identity photos of the seller and buyer
- Proof of payment of title deed fee and other taxes
Note that these documents must be translated into Turkish before they are submitted. Most immigrants use a power of attorney for this purpose if they cannot be present in person.
How Long does it Take to buy a Property in Turkey?
The process of buying property in Turkey typically takes between 4 to 8 weeks, depending on various factors such as the complexity of the transaction and the efficiency of the involved parties. After selecting a property, the first step is signing a preliminary agreement and making a deposit. Following this, the buyer must obtain a tax number and open a Turkish bank account, which can take a few days.
The next step involves obtaining a Foreign Exchange Certificate from the Central Bank of Turkey, required for foreign buyers. After this, the property’s title deed (Tapu) transfer process is initiated, which usually takes about 1-2 weeks. If the buyer requires financing, the process may take longer. Once the paperwork is complete and payments are made, the final transfer of ownership takes place at the Tapu office, finalizing the purchase. Overall, the timeline can vary based on the circumstances, but 4 to 8 weeks is a typical estimate for completing a property transaction in Turkey.
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