The first half of 2024 has come to an end. Let's discuss some significant adjustments in rules, regulations and decrees for residential property in Turkey.
Content:
- Citizenship for investment
- Submission of documents for residence permit
- Security of transactions
- Renting
- Housing taxes
- Life in Turkey: Some aspects
Citizenship for investment
There have been no changes so far: buyers were concerned that from 1 January, the minimum threshold for obtaining a Turkish passport under the accelerated procedure would be raised to USD 600,000 or even up to USD 1 million. However, the cost remains the same at USD 400,000. For this amount, you need to buy property in a single transaction, whether it's one flat/house or several, to obtain Turkish citizenship, bypassing the requirement for several years of residence permit on TAPU, the right to own property. This way, the passport is guaranteed.
Unlike the regular, unaccelerated option to buy a home, under this programme, from October 2023, the minimum amount to apply for a residence permit under TAPU has been raised from USD 50,000/USD 75,000 (depending on the settlement size) to UISD 200,000, regardless of the area and population of the city. The apartment/house must be purchased in areas eligible for residence permits. In this case, you can apply for a residence permit under TAPU and live in Turkey for a significant part of the year. After five years of residence in the country with occasional short absences and after renewing your residence permit for five years, you can apply for Turkish citizenship. However, with this standard process, passport refusals are possible; though rare, they do occur.
Rumour still has it that the golden visa may replace the Turkish passport for investments, but there have yet to be any real resolutions. This point appeared last year, in 2023.
Submission of documents for residence permit
Fortunately, there are some innovations in the procedure, not the documents. Turkey has launched a special system for recording and controlling meetings with migration officials regarding residence permits. Applicants can now make appointments online via E-devlet (Electronic Government) or Göç Randevu Sistemi (GRS).
It’s convenient because the main body of documents, once uploaded to the system, is stored there, including passport data, insurance, etc. This means that certificates and forms will not be missed or lost from folders and will not need to be re-submitted. You’ll only need to update the necessary documents, such as a new insurance policy when renewing the residence permit.
Applicants can now track their case processing stage, a feature that was previously available only when obtaining citizenship. Additionally, all applications will be recorded in the system, which will enhance transparency and minimise bureaucratic errors. On the other hand, it’ll also be more difficult to forge documents, which is a good thing.
Security of transactions
The electronic transaction processing system is steadily improving.
Additionally, home buyers will be more protected due to risk insurance. The expert evaluation institution is also gaining momentum, with specialists now checking how closely the value specified in the contract matches the actual one. Previously, this amount was often kept artificially low to reduce sale taxes or conversely, high to ensure the contract total reached the minimum price required for citizenship by investment.
The authorities are working on providing an electronic signature (e-imza), which is particularly useful for sale and purchase transactions. The electronic stamping of documents (e-mühür) is at an earlier implementation stage but is also being actively pursued.
Renting
The rental sector continues to face turmoil, with prices struggling to keep up with inflation or vice versa.
As of 1 July 2024, the moratorium on rent increases of more than 25% per year for long-term (1-year) agreement renewal will cease to apply. Newly concluded agreements were not affected by this mortarium. Property owners are rejoicing, while tenants are concerned, fearing that rental rates may spike by 50–60% or more instantly. Over the past two years of rent freezes in some areas of Turkey, the real rental rates have increased to 265%.
As for short-term tourist rentals, the new and very strict requirements introduced on 1 January 2024 are formally in force, but owners seem somewhat relieved. It’s extremely challenging to bring all short-term rented residences into compliance with these new rules quickly and to ensure ongoing compliance.
There’s also good news for those who already own land in Turkey or are planning to buy it: uncultivated plots are now allowed to be leased out.
Housing taxes
New property taxes are currently being discussed. The authorities are particularly concerned about residential premises that are not occupied by owners, not being rented out and not up for sale. One of the most likely changes is an increased tax on empty apartments in Turkey. However, as of 1 July 2024, neither such a law nor a corresponding decree has been formally formulated.
At the end of June, there was a discussion about imposing a 20% tax on landlords' rental income in advance. This advance payment would be automatically deducted. Previously, an annual declaration was submitted based on the previous year’s results. Soon, tenants will be completely prohibited from paying rent in cash. Since tenants will transfer payments only through financial structures, such as banks, this 20% will be automatically deducted immediately. The landlord will receive a monthly payment minus tax. This measure will allow the state to replenish the treasury and protect these tax revenues from inflation. However, judging by information in the media, this rule will come into force only from 2025.
Security of residence developers' requirements will be revised to strengthen them and improve overall housing quality. Many regulations have not been updated for a long time. Additionally, contractors who often lack formal construction education or practical experience, such as construction university graduates, take on small development projects in Turkey. This can directly impact the building quality and will be monitored more closely.
Starting in November 2024, a decree will come into force allowing the owners of a residential building deemed to be in a state of emergency to demand its immediate demolition. Of course, the building must be classified as an emergency based on evidence that it is clearly at risk, not just on paper. Owners will then have the right to request resettlement into new flats. For this purpose, 50% of the owners' votes plus one vote is sufficient. Data on risky buildings is also submitted electronically to a special portal and a list of such buildings is always available on the official website of the Ministry of Environment, Urbanisation and Climate Management.
By the way, homeowners can appeal against the decision to demolish houses in Turkey that are recognised as emergency buildings. However, they need to act quickly, as the application to file a protest must be submitted within just 15 days.
Life in Turkey: Some aspects
Maternity leave in the Republic is planned to be extended to a year, with efforts to assist in placing children in kindergartens. By the way, kindergartens are being built very actively in resort towns, especially in Alanya, in response to population growth.
For those who have already moved and obtained or are planning to acquire citizenship, please note that military service is compulsory for all men in Turkey. This means that sons with citizenship (not just a residence permit) are not completely exempt, except in cases of serious medical conditions. All others will required to serve. The term of service depends on the conscript's education: one year for those with a secondary education and six months for those with a higher education. (By the way, if the young man is studying, he is granted a deferment from military service for the duration of his studies). Another point is that the service period can be reduced by making an official payment known as Bedelli askerlik. By paying this amount, a young man will still have to serve in the army, but for only five weeks instead of a full year. As of 1 July 2024, this payment has increased: the previous amount was TL 182,609 (USD 5,560) and it is now TL 219,000 (USD 6,670).
Since many people live in Istanbul, there have been frequent unpleasant incidents involving taxis or taxi drivers. To address this, it has been decided that panic buttons will be installed in taxis. Both the driver and the passenger will have access to these buttons in case of an emergency.
As for work, until recently, many people who moved to Turkey worked illegally. Many were unaware that a residence permit does not grant the right to work; citizenship or a special work permit is required. In recent months, inspections have become noticeably tougher and sanctions have been strengthened: firms will now face much heavier fines for employing illegal workers. Those who plan to obtain citizenship after five years of holding a residence permit should be aware that being detected working without a permit and entering the system may increase the risk of having their citizenship application refused.