We will address common questions and concerns of people who are considering buying real estate in Turkey from abroad. Issues such as the process of purchasing property in Turkey, legal requirements and advantages of investment are frequently brought up by both our citizens living abroad and foreign nationals. As Asrın Group, we bring together these questions from both internet sources and our customers and offer detailed information for those who are considering buying real estate abroad. There is information on this subject that will be of interest not only to foreigners but also to people with dual citizenship. We will be pleased to provide detailed information on the subject to anyone who wants to buy a property in Turkey.
Among the most frequently asked questions are the restrictions that people who do not have Turkish citizenship may encounter when purchasing real estate in Turkey. Citizens of most countries can purchase real estate in Turkey under certain conditions. Buying property in Turkey usually takes place through title deed, which means that the purchasing process is official and reliable.
The right to buy property in Turkey is generally open to citizens of many countries around the world. However, with the exception of citizens of Armenia, North Korea and Syria, there may be restrictions on purchasing property in certain Turkish cities for citizens of some countries. For example, citizens of Russia and Greece may not have the right to own property in certain regions. These legal situations may change depending on international relations and political developments, so it is important to follow current legislation. In particular, positive developments in relations with Armenia may lead to changes in legislation.
Documents Required to Buy Real Estate in Turkey and Frequently Asked Questions About Real Estate Prices
1) How are Real Estate Prices Determined in Turkey?
The prices of properties purchased from new construction are determined by the construction company and contractor. The real estate agent's commission is included in the sales price and this does not change the total price paid by the client.
2) What Are The Documents Required For Those Who Want To Buy Property İn Turkey?
The documents required for those who want to buy property in Turkey are:
a. Passport and Translation: The original of the buyer's passport and its translation into Turkish, certified by a notary public.
b. Passport Photo: 4 personal passport photos of the recipient.
c. Tax Number: Tax number obtained from any tax office.
e. Turkish Bank Account: An account to be opened in a bank in Turkey on behalf of the buyer is required to track the payments made to the seller.
3) Is it possible to obtain citizenship by purchasing real estate in Turkey? What are the Terms?
The right to acquire citizenship by purchasing real estate in Turkey is regulated within the framework of the Turkish Citizenship Law No. 5901 and relevant regulations. The basic conditions and stages of this process are:
a) Financial Conditions: It is necessary to purchase a real estate worth at least 400,000 US Dollars or equivalent foreign currency. While this amount was previously $250,000, it was increased to $400,000 by the Presidential Decree dated May 13, 2022.
b) Commitments: A commitment must be made that the purchased real estate will not be sold for 3 years.
c) Required Documents:
In the application to the relevant ministry, the following documents must be submitted:
- Form petition stating the request.
- Passport or similar document showing which state the person is a citizen of.
- Marital status certificate and, if available, marriage, divorce or spouse's death certificate.
- d) Birth certificate or civil registry copy showing the person's identity information.
- If they have first or second degree relatives who are Turkish citizens, a copy of their civil registry records.
- Documents required to complete the person's date of birth.
- Receipt showing that the service fee has been paid.
In this process, the application must be made completely and accurately. The assistance of an attorney is often recommended for successful completion of the application. When these conditions are met, citizenship of the Republic of Türkiye can be applied for and acquired.
4) How Much Are Real Estate Agent Commissions in Turkey?
Registered and licensed real estate agents in Turkey can receive a 3% commission from both the buyer and the seller on the actual sales price of the property. In new projects, this rate is usually included in the sales price, and the price is the same whether the place is purchased from a contractor or real estate agent.
5) What are the advantages of buying through a real estate agent in Turkey?
a) Real estate agents offer a variety of services before and after the sale; These include services such as transportation, translation, real estate consultancy and real estate tours.
b) Real estate agents offer a variety of real estate projects to suit the buyer's needs, so buyers can consider a wider range of options.
c) Real estate agents' market experience and integrated team work provide a great advantage in the purchasing process.
6) Information About Real Estate Costs and Taxes in Turkey
Costs and taxes after purchasing real estate in Turkey are among the issues frequently asked by citizens of other countries. These costs and taxes can be summarized as follows:
7) What are Building and Facility Management Fees (Dues)?
- In Turkey, dues are management fees paid for services such as cleaning, maintenance, lighting, elevators, security, sports and health facilities of buildings and facilities.
- Dues amounts may vary depending on the neighborhood where the property is located and the condition of the building, but they are generally between 0.5 and 1.5 dollars per square meter.
- For example, the monthly fee for a 100 square meter flat in a neighborhood with high square meter sales prices may be around 100 dollars.
8) What are the Property Tax Rates in Turkey?
Property tax rates in Turkey for 2023 are determined as follows:
For residences, a property tax of 1 per thousand (2 per thousand in metropolitan cities) is calculated based on the real estate market value of the real estate. For workplaces, property tax is collected at the rate of 2 per thousand of the property tax value (4 per thousand in metropolitan cities).
The property tax value for 2022 is calculated by applying the revaluation rate for 2023. For example, a property tax value of 950 thousand lira in 2022 has been recalculated as 1 million 533 thousand lira for 2023.
The first installment of property tax can be paid from March to the end of May, and the second installment can be paid until the end of November. A late fee of 2.5 percent per month is applied for taxes not paid on time.
Property owners who have a single residence that does not exceed 200 square meters in gross area can benefit from advantages in property tax. Certain groups, such as retirees, housewives, unemployed people, disabled people, veterans and relatives of martyrs, are exempt from the obligation to pay taxes by benefiting from the zero-rate property tax advantage.
9) What is Insurance Against Earthquake (DASK)? How is it implemented?
In Turkey, insurance against earthquakes is mandatory and the cost of this insurance is calculated based on the current value of the real estate. Real estate owners may sometimes underestimate the value of their property in order to pay lower premiums, but it is a better approach to insure at real values, taking into account the earthquake risk of the country.
10) What are the Costs and Taxes of Buying Real Estate in Turkey?
Real Estate Purchase Tax: Real estate purchase tax is 4% of the sales price and is usually shared between the buyer and seller or paid separately depending on the agreement.
11) What are the Value Added Tax (VAT) Rates Applied to Real Estate Buying and Selling in Turkey?
Value Added Tax (VAT) rates applied to housing deliveries in Turkey have been determined in line with the significant changes made as of April 1, 2022. These changes depend on various factors when determining the VAT rate on home deliveries. Here are some details of these rates:
In the purchase and sale of houses up to 150 square meters;
Except for metropolitan cities, the VAT rate is 1% for residential deliveries up to 150 square meters.
In metropolitan cities, residential deliveries up to 150 square meters are also subject to 1% VAT. This also applies to residences within the scope of Law No. 6306 on the Transformation of Areas Under Disaster Risk.
For residential purchases and sales of more than 150 square meters;
For housing deliveries exceeding 150 square meters, 10% VAT is applied for the part up to 150 square meters and 20% VAT is applied for the part above 150 square meters (gradually).
General VAT Rate is;
With the Presidential Decree No. 7346, the general VAT rate has been increased from 18% to 20%, to be implemented as of July 10, 2023. However, no changes have been made for List No. I.
12) Electricity, Water etc. in Turkey. Approximately How Much Are the Initial Connection Fees for Subscription?
Initial subscription connections for services such as electricity, water, communications, and natural gas may cost approximately $500.
13) What are the Capital Gain Income Tax Rates in Turkey?
In Turkey, taxes are collected at a rate ranging from 15% to 35% on capital gains from the sale of real estate. This tax is applied if the property is sold within 5 years from the date of purchase in Turkey.
14) Is Real Estate Rental Available Every Period in Turkey?
Any real estate purchased in Turkey can be rented. Property owners can rent out their properties whenever they want.
In Turkey, the demand for property rental increases, especially during tourist seasons, and rental prices are determined at the discretion of the property owner.
15) Are There Restrictions on Real Estate Sales in Turkey?
A property in Turkey can be sold at any time without any restrictions.
16) How to Sell the Property Purchased from the Construction Project?
A property under construction can also be sold in Turkey. However, depending on the sales contract, there may be a commission payable to the developer. This commission usually varies between 2% and 3%.
17) Is it possible to purchase real estate in installments in Turkey?
Most new real estate projects in Turkey, whether off-plan or under construction, have installment payment plans. The down payment value can often be 35% or higher.
Information about Real Estate Financing and Title Deed Transactions in Turkey
18) How to Get a Loan for Property in Turkey?
Real estate financing in Turkey is mostly provided by Turkish banks. This requires the applicant to have a regular income in Turkey. Some large real estate projects or state-guaranteed projects may offer special financing opportunities. In such cases, project developers or relevant banks can assist upon request.
19) How To Finance Real Estate Through Islamic Banking?
It is possible to purchase real estate in Turkey with financing provided through banks abroad. In this case, the entire financing or monthly installments can be transferred to the buyer's bank account in Turkey.
20) What İs Title Deed İn Turkey? Where To Buy Title Deed?
The official document documenting real estate ownership in Turkey is called "Deed". The title deed states the ownership and location of the property. Real estate purchases by foreigners in Turkey are carried out through the Land Registry Directorate branch of the region where the property is located.
21) How Does The Process Of Purchasing Property And Obtaining Title Deed Work?
Once a suitable property is selected in Turkey, the purchase and title deed process can be completed within a few days. This process may vary depending on the preparation of relevant documents and the speed of official transactions.
22) Buying Real Estate Remotely in Turkey and Related Questions
23) How to Buy Property Remotely in Turkey?
It is possible to buy property without coming to Turkey. This can be accomplished with a legal power of attorney given to a person or institution in Turkey that will act on behalf of the buyer. Powers of attorney can be issued through Turkish Embassies where the recipient resides.
24) How can more than one person own property in Turkey?
In Turkey, a property can be registered as joint ownership of more than one person. The title deed of the property can be registered in the name of all buyers, with the shares specified for each partner.
25) Is a Residence Permit Required Before Buying Real Estate in Turkey?
It is generally not necessary to obtain a residence permit before purchasing real estate in Turkey. However, Palestinians with travel documents and persons deemed “stateless” are excluded from this rule.
In summary, what are the basic steps of purchasing real estate in Turkey?
Finding a Reliable Real Estate Broker: The first step in buying a property in Turkey is to find a reliable real estate broker. The real estate professional will provide detailed information about the legal procedures and the purchasing process and will handle the transactions on your behalf.
Security Permit Application: To purchase property in Turkey, it is necessary to apply for a security permit to the relevant authorized institutions. This process is usually done by your real estate agency or construction company.
Down Payment: A down payment must be made for the real estate you want. This means the property is reserved for you.
Checking Title Status: The real estate agency or intermediary checks whether the title deed of the selected property is valid and whether there are any liens or legal obstacles.
Signing a Sales Contract: A sales contract must be signed between the seller and the buyer, including the delivery date, payment schedule and other terms. This contract must be approved before a notary public in Turkey.
Ownership Transfer and Remaining Payment: After receiving the security approval, the ownership of the real estate is transferred to the new buyer and a new title deed is issued at the Land Registry Office. The remainder of the value of the real estate is paid by bank transfer or cash during the transfer of ownership at the Land Registry Office.