Real estate in Turkey is popular among foreign investors due to the opportunity to relax and live in comfortable conditions, attractive prices and high return on investment.
The main questions that concern all buyers: what are the rights, restrictions, features of purchasing real estate in Turkey for foreigners , how to ensure the legality of the transaction, what to pay attention to when choosing an object? You will find the latest information in our article.
Who can buy property in Turkey
As in any other country, in the Republic of Turkey there are certain legislative norms and rules that control the acquisition of real estate foreigners on the territory of the state.
Are there any restrictions on the purchase of real estate for foreigners?
According to the law on the acquisition of real estate by foreigners, citizens of more than 180 countries have the right to purchase Turkish property. This also applies to residents of Russia, Kazakhstan, Belarus, Georgia, Ukraine, Tajikistan, Azerbaijan and Moldova.
Foreigners are allowed to buy:
- Apartments, villas, houses and other types of residential property. We are talking about objects of any size and type, for cash, in installments or on credit. Investment goals do not matter, be it living, working, obtaining citizenship, resale or rental.
- Land plots. Foreigners (individuals and legal entities) are allowed to purchase all types of land in Turkey – for construction or agricultural activities with the further opportunity to invest money and make a profit.
- Commercial real estate. Retail space, premises for offices or logistics, hotels and other commercial facilities – a promising investment for wealthy investors
The law also provides for some restrictions:
- The maximum area of land owned by a foreigner should not exceed 30 hectares;
- The purchase of properties located on the Black Sea coast (Samsun, Trabzon, etc.) is prohibited for Russians and Ukrainians. In practice, Turkish Black Sea resorts are not very popular among foreigners. Investor interest is focused on the cities of the Mediterranean and Aegean seas.
- Real estate should not be located on the territory of military or strategically important regions of the country. The list of such zones is determined by the Ministry of Defense of the Republic of Turkey.
Are there any special features of the purchase procedure for foreigners
There are no significant differences in the procedure for purchasing real estate in the Republic of Turkey and, for example, in Russia or Ukraine. Rather, on the contrary, in Turkey you will be pleasantly surprised by the speed of registration, the absence of any bureaucratic delays, the security, simplicity and transparency of the transaction.
In the resort country there is a title system for the purchase and registration of ownership of real estate, according to which only one government agency – Cadastral Chamber – is authorized to register all purchase and sale transactions.
What documents are needed for a foreigner to purchase real estate in Turkey? At the initial stage, you only need to have with you an international passport and the amount of the down payment (about 30% of the cost of housing). Later you will need to obtain a Turkish tax number and open a bank account. No certificates confirming the source of income are required from foreigners.
Rights, obligations, restrictions for foreign citizens after purchasing real estate
After purchasing real estate, foreign owners have access to all the advantages of living in Turkey. In addition, citizens from abroad have the right to issue:
- Short-term residence permit. Regardless of the purchase amount, foreign buyers can apply for a tourist residence permit. For a residence permit under TAPU, the period of which is taken into account in a subsequent application for citizenship, the cadastral value of the property must be at least $200,000 in lire equivalent at the time of its registration (these changes came into force on October 16, 2023). Due to the large number of migrants, some regions of the country are now closed to foreigners.
- Turkish citizenship by investment. Investors who have invested more than $400,000 in the purchase of Turkish property are entitled to apply for a second passport under an accelerated and simplified scheme.
Responsibilities of foreign owners of Turkish real estate:
- Payment of annual property taxes. The tax is paid by all owners, without exception, the amount depends on the type of property and its location.
- Housing for rent. Individuals in Turkey cannot rent out their property for short-term rentals. Therefore, the best solution for everyone who wants to make money by renting out real estate – cooperation with a real estate company on guaranteed rental terms.
- Compulsory insurance. All owners of Turkish real estate are required to take out DASK insurance against earthquakes and natural disasters. The cost of the policy is small and depends on the seismic activity of the region, coverage and characteristics of the property. In addition, to live in the Republic of Turkey, foreigners will need to obtain a medical insurance policy.
- Aidat and utilities. Most residential complexes in Turkey have their own internal infrastructure (swimming pool, playground, barbecue area, gym, hammam, security, etc.). It is the responsibility of all apartment owners, regardless of residence, to timely pay the due date – amounts for maintenance of residential complex infrastructure, as well as bills for water and electricity.
What to buy?
The benefits of investing in foreign real estate and meeting all expectations directly depend on a competent approach to setting the purpose of purchase and choosing an object.
Purpose of purchasing real estate
Decide in advance for what purposes you are purchasing real estate in Turkey: accommodation, recreation, profitable investments, stable income, profit from resale. The choice of a suitable region, location, type of object depends on this.
When choosing housing for living, we recommend focusing on your preferences: area, architecture of the residential complex, area, layout, proximity to educational institutions, beach, green area etc.
If your goal – rental for a short or long term, take into account such characteristics as location, the presence of a good beach, urban infrastructure, transport interchanges, entertainment venues.
The easiest way to make money from resale is by purchasing an apartment at an early stage of construction . The difference between the cost per square meter at the excavation stage and in ready-to-move-in apartments is 20-30%.
Location of the object
Location – one of the main characteristics of liquidity when choosing real estate in Turkey. For permanent residence, choose prestigious and developing, promising areas , which already has everything you need for life.
When looking for an investment-interesting property (for rent, resale), approach the choice professionally and pay attention to the proximity of the sea, historical sights, urban, entertainment infrastructure, transport accessibility and other parameters.
Primary or secondary market
The housing market in Turkey is divided into two categories: primary and secondary real estate. Primary objects – This is housing from the developer, “resale” – houses and apartments that already have a legal owner.
Most experts agree that apartments on the primary market in Turkey are more liquid than the secondary market. And here's why:
- The lowest price in comparison with the finished object.
- Interest-free installment payment from the developer for the entire period of construction work.
- During construction, the cost of housing will increase by an average of 20-25%, which is very profitable from the point of view of resale.
The conditional disadvantages of apartments from the developer include: include the impossibility of immediate occupancy: construction lasts on average 1-1.5 years. You should also be extremely careful when choosing a reliable developer to avoid bankruptcy of the company or unfinished construction.
Resale real estate in Turkey attracts investors thanks to:
- Low prices. Urgent sale involves good discounts.
- The property is ready to move in. You will be able to check into the apartment immediately after re-registration of the TAPU.
- No need to buy furniture, household appliances, or air conditioners for your home. But do not forget that when buying an “elderly” living space will have to invest additional funds for cosmetic repairs and renovation of engineering.
- There are no risks of construction delays and unfinished construction.
Drawing up a checklist of requirements for the purchased property
We recommend in advance making a list of characteristics that will be decisive for you when choosing an apartment in Turkey.
The general checklist of requirements for Turkish real estate (resale or new construction) looks like this:
- District. Consider not only the cost of housing in different parts of the city, but also your lifestyle, habits and characteristics of suitable locations.
- Transport accessibility and infrastructure. How easy it is to get to the beach, entertainment, shops, clinic, educational institutions and other facilities.
- Environmentally friendly. Priority is given to residential complexes where there are parks, squares, sports grounds nearby and no industrial facilities.
- Security. Not only the crime situation and the presence of security in the house matter, but also nearby clinics and pharmacies.
- State of the residential complex. Pay attention to the quality of construction, engineering, seismic safety, energy efficiency.
- A cross-section of other market offers. Don’t get hung up on one option, compare different properties based on terms of sale, characteristics, availability of discounts, deadlines.
- Legal purity of documents. For these purposes, it is better to involve a realtor or lawyer. Specialists will be able to check the reliability of the developer, in case of purchase on the primary market, monitor title documents, the presence of debts, pledges, courts on the owner of the “resale”.
Independent search or help from a real estate agency
Some buyers believe that independent purchase of real estate in Turkey – a real way to save on realtor services. But in practice, everything often happens exactly the opposite. If you do not have experience buying a home abroad, knowledge of Turkish legislation and the language, you will most likely encounter difficulties in completing the documents accompanying the purchase and sale transaction, a waste of time and money. Cases of fraud on the part of unscrupulous agents cannot be excluded.
Experienced, reliable, licensed real estate agencies guarantee you:
- professional advice and assistance in choosing affordable housing;
- attachment security;
- legal verification of the seller and developer;
- effective negotiations on the best sales conditions;
- support at every stage of the transaction;
- after-sales service.
Most real estate companies in Turkey provide services to buyers free of charge. Payment is collected from sellers and developers.
Inspection of the purchased property
The best way to buy quality real estate in Turkey and not be deceived in your expectations – go on a study tour. An introductory trip from a real estate agency will allow you to personally see the properties you like, meet company representatives, ask all your questions regarding the pros and cons of housing, associated costs, profitability of properties, etc.
Also, many buyers... abroad today choose to travel to Turkey for the purpose of investment tourism. The Turkish real estate market is ready to offer investors many profitable investment projects for the purchase of land, construction of residential complexes, hotels, offices and other types of commercial and residential real estate.
Stages of concluding a contract
How Should a citizen of Russia, Belarus, Kazakhstan, Ukraine or other countries buy an apartment in Turkey? A real estate purchase and sale transaction takes place in several stages. The difference between purchasing on your own and through an agency is that in the first case you will have to fill out documents, negotiate with specialists, visit the relevant authorities in person, and in the second - A trusted person will do everything for you.
Stages of concluding a real estate purchase and sale agreement:
- reservation of the property, signing the contract and making a deposit;
- preparing documents;
- payment.
Reservation
At the first stage, the buyer reserves the property by concluding a purchase and sale agreement and making a deposit. In this way, he confirms the seriousness of his intentions.
The agreement specifies all the terms of the transaction, the characteristics of the housing, the rights and obligations of the parties, and the cost. The contract itself does not confirm the transfer of ownership; for this it is necessary to obtain a TAPU (Turkish title).
To sign the contract, the investor only needs a foreign passport and an amount of about 5-10% of the cost of the apartment. If the buyer refuses to purchase housing, the deposit will not be returned to him. In case of refusal by the seller or developer, the deposit to the investor is refunded in double amount.
Preparation of necessary documents
Final registration of real estate in Turkey and receipt of TAPU requires the preparation of a package of documents:
- Notarized power of attorney for a realtor. It is issued at the request of the buyer if he cannot personally attend the transaction.
- INN. Individual tax number – a mandatory requirement when foreigners purchase housing in Turkey. The TIN will be needed in the future to open a bank account, enter into contracts for utility services, Internet, etc. Issued by the tax office, the procedure takes a minimum of time.
- Bank account. The buyer opens a current account in one of the Turkish banks at will. In practice, a bank account in Turkey is most often used to transfer money. In the future, the card will be useful to you for making utility bills, paying for goods and services.
- Permission from government agencies (if necessary). Sometimes a transaction requires a certificate from the military department confirming that the object is not located in a protected area. The procedure in most cases is formal: now there is no need to receive such a document if there has already been a similar request on the same site over the past few years.
Signing of the contract and payment
After signing the contract and collecting documents, until the TAPU is reissued, the buyer is obliged to pay the seller. Payment is made in a way convenient for the investor.
Detailed information can be found in our article “Payment options for real estate in Turkey”.
Important to know!
According to the new provision of the Circular on Capital Movements from the Central Bank of Turkey, effective from January 24, 2022, foreign buyers of real estate in Turkey will be required to make an exchange in order to purchase real estate and re-register TAPU in the Cadastral Department currency (dollar, euro, ruble, pound sterling) into Turkish lira and obtain a certificate from Döviz Alım Belgesi. This amount is indicated in the certificate of ownership as the sale price and will be the basis for calculating the purchase fee and the annual real estate tax.
Obtaining TAPU
In the Cadastral Department, to transfer the TAPU, the seller and the buyer (or their representatives by proxy), a realtor and a sworn translator meet. The presence of a state translator during the execution of a transaction involving foreigners – a mandatory condition confirming the legitimacy of the contract.
Registration of TAPU in Turkey takes about 5 working days from the date of submission of the application to the Cadastral Chamber. After this, the investor becomes the full owner of the apartment.
Obtaining ISKAN
The final stage of purchasing Turkish real estate – design ISKAN.
Iskan – This is a technical passport for an object or a commissioning certificate, which indicates all the information about the location of housing, square footage, number of floors, utilities and other characteristics. The document confirms the readiness of the house for occupancy.
If previously there were two types of Iskan in Turkey – general for the entire residential complex and individual for individual apartments, then from 2020 only one technical passport is issued – Toplu Iskan. The developer receives the order once after completion of construction work.
Point Property, a licensed real estate agency in Turkey, offers all foreign clients professional assistance in finding liquid property and concluding a purchase and sale transaction.
