Staying informed about the newest developments in legislative initiatives is crucial for individuals purchasing real estate in Turkey – particularly those intending to reside in the country for a while or rent out their property. They receive updates occasionally. We are discussing recent innovations that have already been implemented or changes that will soon be significant. Ultimately, the lack of knowledge about the law does not excuse one from liability. Additionally, they pertain to numerous aspects of everyday life in Turkey.
Content:
- Rental housing
- Sale of housing
- Car sales
- Housing taxes
- Making it easier to get a work permit
- Digital Nomad Visa
- Fines for behaviour on the streets
- Mobile phone registration fee
Rental housing
Many people buy apartments in Turkey to sell later: upgrade to a better property, profit from the value difference (off-plan properties for sale in Turkey are consistently increasing in price) or relocate to a more desirable area. Concurrently, the owners do not reside in their apartments but lease them instead. Many fear renting to tenants, transforming a potential strong asset (in terms of revenue) into a liability (maintaining an unoccupied apartment requires certain monthly expenses and taxes), as there are possible problems with tenants.
However, challenges can be overcome by leasing accommodation through a reliable agency that ensures the property and its surroundings are safe, performs minor repairs and manages payments. Additionally, there is a shift to a more transparent payment system via the bank that protects the injured party's interests in legal proceedings. It will soon be simpler to prevent the other issue of tenants declining to show the property to prospective buyers if they are unwilling to relocate. This type of rejection will be regarded as a violation of the law. According to the revised rules, the landlord and tenant must choose two days per week and set the times when residents must allow access to show the apartment or house. Non-compliance may lead to a prison term of three to six months, and if there is resistance against court officials, this could be increased to two to four years.
However, starting with threats of imprisonment is not recommended. Initially, talks occur between the landlord and tenant. If an agreement is not reached, then through a mediator (the mediation service for resolving rental and various housing conflicts has been operating in Turkey for more than a year and addresses many cases), and if the mediator fails, the issue is escalated to court. Nonetheless, as experience shows, intermediaries successfully handle almost 90% of these conflicts.
Sale of housing
Agents representing property owners used to cause significant issues in home purchases by creating artificial hype around properties, saying that there is a lot of interest, inflating prices, or establishing an unreasonably high value for their benefit.
A new era in housing sales began on 15 September 2024. Now, the owners or their proxies can post ads like a licensed intermediary who obtained an official credential to handle sales matters. The trustworthiness of housing documents is also verified, reducing fraudulent activities. The advertisement verification programme on the Internet is functioning in pilot mode, but it will operate fully on 1 January 2025.
Additionally, the country has begun using an electronic signature in ownership documents more frequently since June. Furthermore, extra details regarding the state of buildings have been incorporated into online catalogues, with the ability to view houses and their distinctive features in 3D within official land registry documents. Thus, the method of selling apartments in development projects in Turkey is consistently being enhanced.
Car sales
Cars are an integral part of life in Turkey. Since purchasing a car here is expensive, there is a strong demand for high-quality used vehicles. This has also opened great opportunities for scammers. Since the end of September 2024, a transaction verification initiative and a secure sales system for vehicle purchases have been piloted, similar to those for housing.
Housing taxes
The tax system is being updated as well. To begin with, we recommend tracking developments in this field for individuals who keep their properties vacant, meaning neither they neither rent it out, do not live in it themselves, nor have put it up for sale. This type of real estate is classified under the category for which they aim to implement a higher tax - as the Turkish authorities assert that these regions need to be occupied. The country lacks sufficient available apartments and houses at reasonable prices, prompting rental business operators to inflate costs. The more housing lots there are on the market, the better the condition of the rental price is.
Making it easier to get a work permit
Since 1 October 2024, the situation has also been simplified for foreign entrepreneurs who want to open their businesses in Turkey. If the company's authorised capital exceeds USD 100,000, a foreign businessman is exempt from the mandatory requirement to hire at least five Turkish employees to work.
Digital Nomad Visa
Turkey has finally followed the example of other countries and launched a Digital Nomad Visa in September 2024. It is available to those who have a stable income outside the country, can confirm this and plan to live on the territory of the republic working remotely. A visa is available to citizens of some countries. The requirements are minor: you must be between 21 and 55 years old, have a diploma of higher education, have a contract with an employer from abroad and have proof of income of at least USD 3,000 per month (USD 36,000 per year). Of course, you will have to get medical insurance.
Fines for behaviour on the streets
The control over street cleanliness and citizen health is becoming more stringent. In particular, the resort town of Alanya is among the first to impose penalties for cigarette butts on the street.
In several provinces, abandoning dogs and cats on the streets is prohibited. Offenders are monitored through video surveillance cameras, even if the owners relocate their pets to other areas and abandon them there. The penalties are significant, and this programme has been in place for quite a while. Residents are kindly asked to refrain from having pets for a limited time if they do not intend to live in Turkey permanently.
Mobile phone registration fee
Customs clearance, which refers to the expense of registering a mobile phone brought in from abroad, could increase to TL 46,000 on 1 January 2025. Based on the currency exchange rate at the time of writing this article, this amounts to over USD 1,300. So, importing mobile phones makes no sense – buying a new one in Turkey is cheaper, which the authorities are trying to achieve. This is focused on boosting gadget sales within the country.
However, this does not impact short-term tourists who can still use their phones on roaming. Purchased local SIM cards will work for several months, enough for travelling or longer stays. Roaming phones function freely without limitations.