Buying property abroad is considered a difficult process by foreigners due to lack of information and communication problems. Although intimidating, the process of buying property in Turkey is quite easy and safe. All steps of the process are aimed at securing the investment. We have put together for you the details to be observed in the steps to be followed in the sales process.

Purchase process for buyers

• Deed transactions are protected by the Turkish government's land registry system.

The General Directorate Land Registry and Cadastre is the institution responsible for the transfer of title deeds. All recorded transactions secure the rights of the seller and the buyer in the land registry system.

• Foreign buyers are exempt from VAT under certain conditions.

The mandatory Value Added Tax (VAT) for Turkish citizens has been set at 18% by the Turkish government. Sometimes 1% and 8% are also required.

Foreign buyers are exempt from VAT in the following cases.

- If the buyer does not live in Turkey,

- If no financing is obtained from Turkey in the purchase process,

- If the buyer does not sell the house for at least 1 year,

- Refunds only apply to purchases from builders. If the property is bought from an independent seller, payment of VAT is mandatory.

• The property transfer tax is mandatory.

The title deed fee has been set at 4% of the total sale price. By law, 2% of the selling fee is collected from the buyer and 2% from the seller. In the ongoing selling tradition in Turkey, 4% of the price is expected to be paid by the buyer. For this reason, this problem should be coordinated with the seller before the conclusion of the purchase contract.

• Valuation Report is a must.

The appraisal is prepared at the end of the tests carried out to determine the real value of the property. With this report, prepared by experts, the buyer is protected against fraudulent actions, e.g

• DASK insurance is mandatory.

With TCIP insurance, it is mandatory to protect the property itself and its value from damage that may occur from earthquakes, one of the greatest natural disasters. TCIP insurance, which is an important step in the purchase process; It can be combined with insurance for other damage events such as theft or fire. DASK insurance; It is also mandatory for subscriptions such as electricity, water, natural gas.

• It is possible to purchase real estate with home loans from Turkish banks.

It is possible to buy real estate by getting a mortgage loan from Turkey. Many local banks in Turkey allow foreigners to apply for home loans.

• All payments must be made first

Thanks to the secure land registry system, your investments are protected by public institutions under the guarantee of the state. In order to protect the interests of the seller, all payments are made prior to the transfer of ownership.

Sales process

• The sales process is standard for citizens from all over the world.

The procedure is a standard system for the citizens of each country. Anyone can buy property regardless of religion, language or race.

• Real estate transfer tax is also obligatory for sellers.

The statutory real estate transfer tax is 4% of the sales price. 2% of the selling price is required from the buyer and 2% from the seller. According to the traditional sales concept in Turkey, the entire 4% of the price is expected to be borne by the buyer. To avoid confusion on this issue, the buyer and seller should agree who will make the payment before signing the contract of sale.

• Sellers are expected to pay income tax under certain conditions.

Income tax is charged to sellers who have owned properties for less than 5 years. If the seller owns the property for more than 5 years, no income tax is charged.

Ownership

• Foreign property owners can apply for a residence permit.

Property is one of the gateways to live in Turkey and get Turkish citizenship. If you own a property within the Turkish borders, you can apply for a residence permit with your title deed.

• Property can be inherited by other members of the same family.

The rightful owner of the property in question retains all rights to the property. According to this regulation, which also applies to foreign buyers, other family members can become the legal heirs of the property in question through inheritance.

 

 

• Foreign buyers cannot purchase properties from military areas.

Foreigners are prohibited from acquiring real estate from military areas as part of national security measures.

• Real estate can be valued as a source of income using the leasing method.

The properties purchased can be rented for short or long term if necessary procedures are carried out. Regardless of the type of property, rental is possible. Many owners enjoy a source of income from the properties they purchase. 

• There is a size restriction on real estate to be purchased within the country.

Foreign buyers cannot purchase real estate larger than 30 hectares and no more than 10% of the urban settlements of the region in question anywhere in the country. Further acquisitions of land or property require the approval of the President or a similarly competent governmental agency.

• Foreign property owners have the right to apply for Turkish citizenship.

Applying for Turkish citizenship is possible for foreigners who own a property in Turkey and meet the specified requirements. There are some conditions for the application. e.g.

- The real estate investment must be worth at least $250,000.

- The property is blocked for sale for 3 years.

- Foreigners who own a property in Turkey and have been continuously residing in Turkey for 5 years can also apply for citizenship. The $250,000 minimum purchase requirement does not apply to these applications.

• Foreign owners are not subject to income tax unless the property serves as a source of income.

Foreign owners are exempt from paying income tax if they do not earn any income from the purchased property.