Residents in Turkey are facing a challenging autumn with updates in regulations and laws. However, it's common for legislation to be regularly updated in most countries. Being well-informed in advance can help minimise both time and financial costs.
Content:
- Residence permit by property ownership (TAPU): rumours and reality
- Mobile phone usage
- Car usage
- Road safety and traffic rules
- Housing and inheritance
- Inheritance and debts
Residence permit by property ownership (TAPU): rumours and reality
A key update this month is that only those who have purchased property in Turkey worth $200,000 or more can now obtain a residence permit by property ownership (TAPU). Previously, this privilege was available for buyers at $75,000 in major cities and $50,000 in smaller towns. This new financial threshold does not apply to those who completed their transactions earlier.
Mobile phone usage
Mobile phones brought into Turkey from abroad work for a limited time before needing registration in the local system, a process that remains unchanged. However, authorities have announced a new rule effective from January 1, 2024: phones not used (no calls made or texts sent) for a year will be blocked to prevent fraud related to IMEI cloning. If a phone is blocked, it can be unlocked by submitting a written request to the mobile service provider. To avoid this inconvenience, especially when abroad, it's advisable to send at least one text message a year, even to yourself.
Car usage
Unlike some European countries, Turkey allows free movement for cars with foreign plates. Tourists can enter for a visa-free period, and those with a two-year residence permit can also use their vehicles. Pensioners with a residence permit can use their cars indefinitely in Turkey, as per current information. However, it's crucial to keep an eye on the validity of your residence permit and car documents. Turkey has intensified its monitoring of illegal residents, including checking car plates. In Alanya, for example, cars with expired foreign plates are being towed without warning and taken to customs.
Road safety and traffic rules
Turkey has also tightened enforcement of traffic rules, affecting both locals and foreigners. Accumulating fines as a foreign resident isn't advisable, as these are recorded in a database. Despite Turkey's reputation for lax road safety, locals often disregard traffic rules, so both drivers and pedestrians must be cautious. Recently, Alanya imposed fines totaling TL 35,550 for minor offences like not wearing seat belts or using smartphones instead of hands-free devices while driving. These violations are recorded on video, and police drones are now assisting in monitoring.
Housing and inheritance
Recently, property owners are increasingly concerned not only about remotely managing their properties but also about what happens to them in unforeseen circumstances. A common worry is whether the state will claim ownership of their purchased apartments in Turkey.
Firstly, it's advisable to appoint a trusted individual to represent your interests in Turkey, including property management. This can be arranged at your country's consulate or through a Turkish notary.
Secondly, inheritance of property in Turkey is a confirmed right. According to local laws, foreigners have the same rights as locals to inherit property from deceased relatives. The right to inherit is effective from the moment of the owner's death, and it's important to claim this right within 10 years, although it's better not to delay. Of course, for inheritance rights to apply, there must be a valid will. For instance, proving that a foreign citizen is the sole nearest relative and rightful heir to another foreign citizen's property in Turkey, especially if they are distant relatives like third cousins, can be challenging.
It's also important to note that if the deceased has relatives in Turkey, such as children or a spouse, the order of inheritance must be defined, including their right to a share of the property, even if not mentioned in the will. The order of inheritance is as follows:
- Legal spouse and children.
- Parents.
- Grandparents.
- Siblings.
- Grandchildren.
Typically, the distribution of inheritance shares in Turkey is:
- Children – 75%, spouse – 25% (if there are children).
- Spouse – 50%, parents – 50% (if the deceased has no children).
- Spouse – 75%, grandparents – 25% (if the deceased has no children or parents).
- Spouse – 100% (if the deceased has no children, parents, or grandparents).
To claim inheritance rights, a special tax, Veraset ve İntikal Vergisi, must be paid, and the property transfer formalised. The tax amount depends on both the property's cadastral value and the closeness of the relative: the closer the heir, the lower the tax. As of autumn 2023, the rates are:
- up to 1,100,000 TL – 1% of the cadastral value;
- over 2,600,000 TL – 3%;
- over 5,500,000 TL – 5%;
- over 10,900,000 TL – 7%;
- over 20,100,000 TL – 10%.
Inheritance and debts
As the saying goes, “new rights bring new responsibilities”. Therefore, it's important to remember that inheriting property might also involve dealing with the previous owner's debts. This means ensuring all outstanding debts are settled.
However, if the inherited property is of low value and the debts are substantial, the effort may not be justified. In such cases, it's possible to renounce the inheritance, including the debts, by making an official declaration at a notary and submitting it to the relevant authorities. By doing this, you won't be responsible for paying off any loans or debts the deceased relative may have had with banks, but you also won't receive the property. Instead, it will either pass to other heirs willing to settle the debts or to banks/crediting institutions as compensation for the outstanding debts.