13 February 2024
Buying property in Turkey
Real estate in Turkey — a reliable and practically not subject to crises and inflation asset, the ownership of which guarantees foreign investors the preservation of their own capital.
What are the terms of the transaction for the purchase and sale of apartments in Turkey? What is a foreign owner guaranteed to receive after purchasing Turkish housing? What is the purchasing procedure like and how much does it cost? Read the answers to these and other questions in our new article.
What rights does the acquisition of real estate in the territory of the Republic of Turkey provide? one of the most pressing questions for potential investors.
In addition to the opportunity to enjoy all social benefits, the purchase of real estate gives foreigners the right to legalize their residence in Turkey. That is, if you have an apartment, you can legally live in Turkey for a long time without worrying about a visa. For example, obtain a residence permit on the basis of TAPU have the right owner along with immediate family members. A residence permit is issued for one or two years, after which the permit is simply extended.
Important point! On October 16, 2023, the threshold cadastral value of housing, the purchase of which guarantees the issuance of a residence permit, was increased to $200,000. If TAPU is received before this dates, then the old rules apply to issuing an ikamet card.
After 5 years of permanent residence in the republic on the basis of a residence permit under TAPU, the investor is allowed to apply for a second passport.
Financial investments in the Turkish real estate market — this is also an opportunity for non-residents obtain citizenship through an accelerated procedure . All that is required — purchase residential or commercial real estate, land in the amount of $400,000, subject to several mandatory conditions. In addition to the investor, husband/wife, minor children, as well as his immediate relatives can apply for Turkish citizenship.
Not so long ago, information was circulated on the Internet that issuance of a residence permit and There is some kind of unofficial ban on the purchase of real estate by Russians. However, these turned out to be just unconfirmed rumors. The sale of real estate to foreigners is regulated and carried out exclusively based on the laws of Turkey. Let's look at the basic conditions and rules:
- Until 2012, the “principle of reciprocity” was in effect in the republic, that is, only foreigners could purchase property in Turkey, in whose territory Turks were guaranteed the same rights. After the restrictions were lifted, residents of 129 countries received the opportunity to buy Turkish apartments. In particular, citizens of Russia, Ukraine, Kazakhstan, Azerbaijan, Belarus and other countries are allowed to buy real estate in Turkey. Non-residents are guaranteed the right to purchase without any special requirements, including without a residence permit and without citizenship.
- Only citizens of 5 countries cannot purchase apartments in Turkey: North Korea, Armenia, Cuba, Syria, Southern Cyprus.
- Certain restrictions apply to foreign buyers in relation to the area of land: a foreigner can own no more than 30 hectares of land.
- Foreigners are not allowed to purchase objects in strategically important security zones of the state.
- Ukrainians and Russians are prohibited from participating in the purchase and sale of any real estate in the Black Sea region, since this territory is borderline.
After the purchase, foreign owners are also given a number of responsibilities.
In particular, all owners, without exception, pay an annual real estate tax. If the price tag for an object exceeds 9,900,000 TL (approximately $357,000), then the foreigner is required to pay tax on luxury apartments.
Also, owners should not forget about timely and mandatory payment of utilities and aidata.
Suppose you have already made a decision to purchase and have chosen an apartment in Turkey. Where to start concluding a purchase and sale transaction?
Let's look at the step-by-step execution of standard real estate transactions:
The first stage of the transaction is the preparation and signing of a bilateral contract. The document indicates: details of the seller and buyer, address of the object, its characteristics and the amount of sale, obligations, rights of the parties, penalties for violation of the terms of the contract and other important nuances.
The buyer only needs to take with him an international passport and a deposit (about 10% of the total cost), the payment of which confirms the intention to purchase a home. Please note that the buyer's fee is not refunded if he refuses to purchase. If the transaction did not take place due to the fault of the seller, the deposit will be returned in double size.
The agreement is drawn up in two languages: Turkish and the investor’s native language. The document itself does not give ownership. Full ownership is confirmed only by TAPU.
In order to purchase housing in Turkey, a foreigner will need to collect a package of documents:
- Notarized power of attorney for a realtor or other authorized person — is issued only if the investor does not have the opportunity to be present at the transaction and he wants to delegate his responsibilities as a buyer to his attorney.
- TIN or individual tax number — another document, without which not a single transaction in Turkey can be completed. The TIN is required for re-registration of TAPU in the Cadastral Chamber, opening a bank account and for obtaining subscribers in resource-providing companies. The service is provided at the regional Tax Office (vergi dairesi) or on the inspection website.
- To purchase an apartment in Turkey, an investor needs to order a report on an expert assessment of the property. Only a number of companies with the appropriate license from the Banking Regulation Agency (BDDK) have the right to carry out the procedure for determining the estimated value. Validity period of the certificate — 3 months from the date of registration.
- Purchase permission from the military department — is issued once, that is, it is required only if the property is being sold for the first time, and no one has previously submitted the same request for this site. The certificate confirms that the object is not located in a protected area. The process is formal and lasts several days.
- Opening a bank account — an optional, but popular procedure among foreigners. The thing is that through a current account in a Turkish bank you can not only transfer money to the seller, but also use Internet banking to conduct other transactions, pay for purchases, utility bills, etc.
You can pay when purchasing Turkish real estate in dollars, euros, pounds sterling or other currencies. Funds are transferred through a bank, international currency systems, crypto wallets or using other acceptable methods. The amount is paid in full before the re-registration of TAPU.
In addition to payment, at this stage the buyer receives Döviz Alım Belgesi or a certificate from a Turkish bank about converting currency into Turkish lira in the amount of estimated value of apartments. This is a prerequisite for any legal transaction.
To transfer ownership, the parties to the transaction or their authorized representatives, together with a realtor and a licensed translator, meet at the Cadastral Department. This is where the re-registration of TAPU is carried out, as the only document confirming the absolute right of ownership of real estate in Turkey. The TAPU is issued a few days after the application is submitted to the department.
At the final stage of purchasing an apartment in Turkey, contracts with utility services are reissued.
For a real estate purchase and sale transaction in Turkey, a foreign investor must have the following documents:
- notarized power of attorney — optional;
- copy of the international passport, translated into Turkish and certified by a notary;
- Turkish Taxpayer Identification Number a>;
- permission from the military department — if necessary;
- expert assessment of real estate;
- certificate of currency exchange;
- biometric photos (4 pcs.).
In addition to the cost of the property, foreign investors should remember the associated costs of the transaction, which on average amount to no more than 5–7% of the total price of the apartment.
The list of associated expenses includes:
- Tax on obtaining property rights — 4% of the cadastral price of real estate.
- Cadastral fee for obtaining TAPU — about 50-100 $, the amount depends on the location of the housing.
- Licensed translator services — approximately $100 in 2023.
- Power of attorney registered by a notary — for investors who have chosen to purchase real estate remotely by delegating the rights to their authorized representative. Cost — approximately $100.
- Expert report — approximately 60–90 $.
- DASK insurance — compulsory state earthquake insurance, the cost of which is about $20–$150 and depends on the characteristics of the housing and coverage.
- Certificate confirming currency exchange (Döviz Alım Belgesi) — about 150 $.
- Utility agreements — $200–300.
Important! The contribution is required to be paid and, by law, is divided in half between the seller and the buyer. However, in practice, this cost item always falls on the shoulders of the investor. The property tax must be paid in full before the re-registration of TAPU.
Read more about this in our article about costs when purchasing real estate in Turkey
2022 was marked by a real rush for the purchase of real estate in Turkey by citizens from abroad, which was associated with the difficult geopolitical situation and, as a result, several large migration waves.
In 2023, the number of sales decreased by an average of 14%, and this did not affect the cost of housing. On the contrary, prices for liquid properties continue to rise, thereby confirming the status of Turkish real estate as a reliable asset for preserving your savings.
If you were planning to buy an apartment in Turkey, we recommend that you do not put off making a decision until tomorrow, but start looking for liquid options now, before there is a big rush and rise in prices, as well as a shortage between supply and demand.
Your apartment in Turkey — This is not only the right to relocation to a prosperous country if necessary, but also the opportunity to earn money by renting or resale at a favorable price. Nordic Property Construction specialists will be happy to help you in choosing and purchasing real estate.
All information posted is provided for informational purposes only and does not serve a commercial purpose.
Nordic Property Construction — a construction company that specializes in the construction of modern residential complexes on the Mediterranean coast. By collaborating with us, you receive a full range of services: from the selection of apartments and meeting at the airport to the transaction and property management.