Property purchase in Turkey is becoming an increasingly popular investment destination among overseas buyers. Some consider buying real estate in this vibrant country as a holiday or permanent home, while others seek to generate income. Let’s look at what the purchase procedure looks like for foreign citizens and what points you should pay attention to. Read on to find out how to buy a property in Turkey.
Content:
- Features when buying real estate in Turkey
- Peculiarities of the property market in Turkey: closing costs
- How to buy house in Turkey: be careful when buying a property off-plan
- How to buy apartment in Turkey: process of buying property in Turkey
- How to buy a property in Turkey: foreigners’ rights when buying a property
- Stages of the procedure of buying Turkish real estate
- Stage 1: sales and purchase agreement
- Stage 2: documents
- Stage 3: payment
- Stage 4: transfer of ownership and receipt of TAPU
- Stage 5: utility contracts
- Profitably buy real estate in Turkey on Turk.Estate
Features when buying real estate in Turkey
The Turkish real estate market is one of the most promising and dynamic in the world. It offers a wide range of options and investment opportunities. Houses and apartments in Turkey are in high demand among expats and tourists renting them short- and long-term. The country has low property taxes and various incentives for international buyers.
If you are wondering how to purchase property in Turkey as a foreigner, you should be aware that buyers from abroad are subject to special rules. Foreigners may privately own any real estate units, from apartments and houses to land plots and commercial premises. There are also no restrictions on the number of transactions. You can purchase one apartment or acquire the entire floor in a residential complex at once.
Foreigners are restricted from purchasing housing in several regions of strategic importance. For example, you cannot close a real estate deal on the frontier with Syria. This also applies to a number of border areas on the Black Sea coast. Another restriction affects the maximum permissible size of a land plot, which cannot exceed 30 hectares.
In 2022, the conditions for obtaining a residence permit when purchasing real estate have changed in the country. If previously it was enough to meet the minimum house or apartment price set by law, then from 2022, a number of provinces have banned issuing residence permits for the purchase of any housing. There is now a foreign quota that cannot be exceeded: overseas nationals can make up not more than 2% of the total number of residents in a certain locality. As a result, more than 1,100 areas are closed to those wishing to obtain residency. These include popular destinations such as Konyaaltı, Kestel, Mahmutlar, and Kargıcak. It is important to bear in mind that this does not mean you cannot purchase housing there at all. The owner simply will not be able to apply for residency in the country.
Peculiarities of the property market in Turkey: closing costs
When it comes to costs, you need to factor in an average of 7–8% of the transaction value. These include:
- Appraisal fee. You will be charged from USD 55 to 100.
- Translation fee. Hiring a translator when concluding a transaction and preparing documents will cost you about USD 100.
- 4% of the appraised value of the apartment is paid upon registration of the agreement to receive TAPU.
- The land registry fee when processing TAPU. The amount depends on the specific province and can reach USD 100.
- Estate agent fee. Typically, this is about 3% of the transaction amount.
- Insurance against natural disasters, which is mandatory before concluding utility contracts. Its amount depends on the terms of the contract and can reach USD 150.
- Annual property tax. Property tax in Turkey for foreigners is from 0.3% to 0.4% of the value indicated in TAPU.
Utility costs depend on the type of housing. Setting up utilities in a new building will cost more than changing ownership.
How to buy house in Turkey: be careful when buying a property off-plan
The process of buying property in Turkey should begin with thorough research. It will help you make an informed decision and protect your capital. Do not hesitate to turn to those who know how to buy a house in Turkey. It is necessary to decide on the following aspects:
- When it comes to investment, you should choose popular tourist locations. On the contrary, if you are planning to relocate, noisy crowds of holidaymakers are a drawback rather than an advantage. In this case, social infrastructure comes first: proximity to transport links, access to international schools, and the quality of medical care.
- Selecting a region. It may be useful to look into the opinions of those who have already gotten to know the country from the inside.
- Determining the cost budget and searching for a specific unit. At this stage, it is highly desirable to seek professional assistance from a broker. An estate agent has an expertise in how to buy property in Turkey. They will not only select the required option but also provide legal support for the transaction, which guarantees its safety.
How to buy apartment in Turkey: process of buying property in Turkey
It is not entirely different from the standard procedure for purchasing apartments or houses in European countries. The only exception is the documents involved in the process. After selecting a specific unit and familiarising yourself with it, the procedure to buy property in Turkey includes several steps that we will cover further down.
How to buy a property in Turkey: foreigners’ rights when buying a property
The terms of acquiring real estate are quite friendly towards foreign citizens. Owners of apartments and villas in Turkey enjoy the following rights:
- Obtaining a residence permit, subject to compliance with the applicable legislative restrictions.
- Obtaining citizenship when purchasing a home in Turkey worth over USD 600,000.
- The ability to dispose of real estate at your own discretion, i.e. you can rent, bequeath, or sell it.
The responsibilities of foreign owners are no different from those for locals. They must maintain housing, make all necessary payments in time, including taxes, and comply with the law.
For those seeking to purchase a rental home abroad, the republic is a profitable option. However, it is important to bear in mind that it will not be possible to rent out housing short-term without permission from the Ministry of Culture and Tourism. From October 2023, there are stringent restrictions for short-term rentals in place, which, among other things, require you to obtain consent of all other apartment owners within the complex.
Stages of the procedure of buying Turkish real estate
The main stages of the procedure for how to buy an apartment in Turkey include:
- Approval of the sales and purchase agreement;
- Preparation of necessary paperwork;
- Entering into a transaction and payment;
- Change of owner with receipt of a title deed (TAPU);
- Registration of new contracts with public utility organisations.
Stage 1: sales and purchase agreement
The procedure for property registration in Turkey involves a meeting between the seller and the buyer to discuss all the details of the transaction. They are reflected in a written document certified by a notary. The very fact of its signing does not constitute grounds to transfer the property. The sales and purchase agreement is concluded in 2 copies in 2 languages (Turkish and the buyer’s language) and is subject to mandatory registration.
Stage 2: documents
To register the transfer of ownership, the following documents are required:
- A valid international passport;
- A Turkish tax identification number;
- A notarised power of attorney if the transaction is conducted through an estate agent.
Also, the documents include those required to open a bank account. In addition to the international passport, this is a tax number obtained from the local tax office.
Equally important is a preliminary appraisal of the unit being purchased. It is made by accredited licensed companies.
Stage 3: payment
Payment is made by bank transfer and can be made in different types of currencies. The type of interest is determined during negotiations with the seller. When purchasing a house using mortgage funds, a record of any existing encumbrances is made in the title deed.
Stage 4: transfer of ownership and receipt of TAPU
After payment, further registration of real estate takes place at the Land Registry Office. At the request of the seller, the transaction is registered, and after a few days, the buyer can receive a new title deed (TAPU). It contains all the necessary information about the property, including extracts from the land register.
Stage 5: utility contracts
The procedure for how to buy real estate in Turkey involves the re-registration of existing contracts with utility services following a change of owner. In this case, Iskan, a technical passport for the housing, is required. It is issued for each new building and is transferred to each subsequent owner. The conclusion of contracts with public utility companies is the final stage of registration.
Profitably buy real estate in Turkey on Turk.Estate
The catalogue contains listings from developers and agencies. You can keep up to date with the latest information in real time. Using filters in the search system, you can set the type of housing you are interested in, the specific region, and the number of bedrooms, and calculate prices in dollars and euros. Experts will tell you in detail how to buy properties in Turkey, where to start, and what you need to know, and will also help you make the right choice. Explore current offers so you do not miss out on the best deal.