Very Useful Tips for Foreigners
Buying Property in Turkey

Useful Tips for Buying property in Turkey

Useful Tips for Buying property Turkey, from whom to buy, exchange rate calculation, benefits of buying a property, some special rules which bring limitations for the foreign investment, and important points about installment sales payment.

1. Research the area where you want to buy the property and ensure it meets your needs and expectations.
2. Hire a reputable and licensed real estate agent or lawyer to assist you with the purchase process.
3. Obtain a tax number and open a bank account in Turkey before making any property purchases.
4. Carefully review and understand all legal documents related to the property, including the title deed and any other relevant legal documents.
5. Be aware of any additional costs associated with purchasing property in Turkey, such as notary fees, taxes, and stamp duty.
6. It's always advisable to have a translator or an agent who speaks your language to assist you in the process.
7. If you're not planning to live in Turkey, consider renting the property out as a holiday home.
8. Take your time and don't rush into any decisions. Make sure you fully understand the process and all of the terms and conditions before making a purchase.
9. Be prepared to negotiate the price of the property, as haggling is common practice in Turkey.

Can Foreigners Buy Property from a Foreign owner in Turkey?

According to the land register regulations, the real estate being purchased should not be owned by another foreign investor after January 11, 2017. This means that the seller should not be another foreign individual or entity. This rule is in place to ensure that foreign investment in Turkish real estate is done in a regulated manner.

Can the I Transfer the Purchase Amount in Multiple Transactions? How will be the Exchange Rate Calculation?

The purchase price of real estate can be transferred with multiple transactions. In line with the instruction published by the General Directorate of Land Registry and Cadastre on January 24, 2022, some new regulations were announced regarding the sale of real estate to foreigners in Turkey.

The Central Bank has been obliged to obtain a Foreign Exchange Purchase Certificate in the sale of real estate to foreign buyers. 

The Foreign Currency Purchase Certificate is a document showing that the foreign currency was sold to the Central Bank of the Turkish Republic via a bank operating in Turkey before the sale is made at the land registry office by the foreign buyer.

Are There any Benefits of a Property Purchased for Obtaining a Residence Permit?

If the real estate is less than $400,000 or the applicant has not applied for Turkish citizenship by investment, the real estate can be used for a residence permit. The purchased property to apply for a Turkish residence permit should amount to a minimum of $75,000. In such cases, the husband and wife and their children under the age of 18 can apply for a residence permit. In addition, if you get your residence permit through your property for 5 years and have a regular income (insurance/work permit), you can apply for Turkish citizenship.

Are There Any Restrictions for Foreigners on Real Estate Purchases?

The total area of the real estate purchase by the same individual foreign investor cannot exceed thirty hectares. There are also some other special rules that bring some limitations to foreign investment. For example, foreign investors cannot purchase any real estate on any military lands.

Is There any Difference between Purchasing Real Estate through a Person or a Company?

When a property is sold, income tax is applied to the difference between the final sale price and the previous purchase price. When a property is held by a company, the company is generally eligible for an exemption from income tax if the property is sold after 2 years of purchase. However, if the property is held by an individual (real person), the exemption from income tax is usually not available until 5 years after the purchase. This is because the tax laws treat companies and individuals differently and the holding period for tax exemptions also differs accordingly. This should be considered when buying a property in Turkey.

How is the Payment made on sales in installments? For the installment sales, how can the payment be? Are there any Important points?

For installment sales, payments can be made through various methods, such as loans, mortgages from banks, or other financial institutions. The buyer and seller can also agree on the currency to be used for the transaction. It is important for the buyer to ensure that they have the means to make the payments and to have a clear understanding of the terms and conditions of the installment plan, including the interest rate and payment schedule. Additionally, if the buyer is obtaining a loan or mortgage, it is important to review and understand the terms and conditions of the loan or mortgage agreement and to ensure that the buyer is able to meet the terms of the loan or mortgage.