A Complete Guide to Real Estate Purchase for Foreigners in Turkey

A Complete Guide to Real Estate Purchase for Foreigners in Turkey

A Complete Guide to Real Estate Purchase for Foreigners in Turkey

(Published at 18/10/2024)

As a foreign investor, acquiring property in Turkey presents numerous opportunities. However, the process involves specific legal procedures and regulations that must be followed. Payas&Payas is an experienced law office specializing in Real Estate Law, we can guide you through every step of the property purchase process, ensuring a smooth and secure transaction. Below, we will outline the detailed steps you will need to follow, and how we can assist you at each stage.

1. Eligibility for Foreigners to Purchase Real Estate in Turkey

Before moving forward, it's crucial to ensure that you are eligible to purchase property in Turkey:

  • Nationality: Turkey permits property purchases by citizens of many countries. However, there are restrictions for citizens from certain countries (such as Syria, Armenia, and North Korea).
  • Types of Properties: Foreigners can purchase residential, commercial, land, and farmland properties. However, buying land or farmland may require submitting a development plan within a specified period.
  • Ownership Limits: Foreign individuals can own up to 30 hectares of property across Turkey, but strategic areas (military zones, security zones) are restricted for foreign ownership.

2. Determining Investment Purpose and Property Selection

The first step is deciding the purpose of your investment, whether for residential, commercial, or investment purposes. Once the purpose is clear, the following steps include:

  • Property Research: We can assist in selecting the right property and ensuring that the market value is appropriate.
  • Title Deed and Property Check: Before committing to a purchase, we will ensure that the property is free from legal issues such as liens or mortgages through detailed title deed investigations.

3. Signing a Sales Agreement

Once you have chosen the property, a sales agreement between the buyer and seller must be signed. We will ensure that this contract is legally sound and protects your rights. Key elements include:

  • Down Payment: A portion of the total amount is typically paid upfront.
  • Property Condition: The contract will detail the property’s condition, the timeline for transferring ownership, and any additional terms agreed upon.
  • Legal Aspect of Real Estate Sales Contracts: It should be remembered that a real estate sales contract signed between parties is merely a preliminary sales agreement. Ownership rights do not transfer to the buyer until the sales transaction is completed at the land registry office, meaning until the sales contract is signed at the land registry office. Except for sales agreements executed by a notary and annotated in the land registry, it is not legally possible to compel the seller to transfer ownership of the property based solely on a real estate sales contract signed between the parties. In practice, we observe that foreigners frequently encounter problems due to these reasons.

4. Legal and Administrative Checks

Several legal steps must be taken to confirm the legitimacy of the property and ensure a secure transaction:

  • Zoning Status: The property's zoning information must be verified through the local municipality.
  • Earthquake Compliance: We will check whether the building adheres to Turkish Earthquake Regulations to ensure the safety of your investment.

5. Obtaining Military Clearance (if applicable)

In certain areas, military clearance is required before foreigners can purchase property. This clearance ensures that the property is not located in a restricted or military zone. The process usually takes a few weeks and we will handle all formalities on your behalf.

6. Title Deed Application and Purchase Process

When all legal checks are completed, we can proceed with the formal application to transfer the title deed. This stage includes:

  • Application at the Land Registry Office: We will handle the application and ensure all required documents are submitted.
  • Title Deed Fees: Both the buyer and the seller are responsible for paying a title deed fee, which amounts to 4% of the property’s value.
  • Tax Number: Foreign buyers must obtain a tax number, which is a straightforward process, and we will assist you with this.
  • Proof of Payment: Payments must be made through bank transfers and proper documentation is required to prove the transaction has taken place.

7. Title Deed Transfer and Ownership

Once the necessary payments are made and the documents are verified, the final step is the transfer of the title deed at the Land Registry Office. This is where the ownership of the property is officially transferred to you. We will accompany you throughout the entire process, ensuring a seamless and hassle-free experience.

8. Residence Permit Application (Optional)

If the value of your property is at least USD 200,000 in major cities like Izmir, Ankara, or Istanbul, you can apply for a residence permit. However, it is also possible to obtain a residence permit with a property valued under this threshold. In such cases, we assist you in filing a legal case against the Foreigners Department, and upon winning the case, you can obtain the residence permit.

If the value of your property exceeds USD 400,000, you may be eligible to apply for Turkish citizenship through investment. Alternatively, purchasing any property allows you to apply for a one-year residence permit, which can be renewed.

9. Taxes and Ongoing Responsibilities

After the purchase, several tax obligations and duties must be fulfilled:

  • Property Tax: A yearly property tax must be paid to the local municipality where the property is located.
  • VAT Exemption: Foreigners making their first real estate purchase in Turkey may benefit from VAT exemption under certain conditions.

10. Final Steps and Legal Protection

After the transaction is completed, we will assist you in completing the following final tasks:

  • Compulsory Earthquake Insurance: This insurance, known as DASK, is required for all properties in Turkey.
  • Municipality Registration: The property must be registered with the local municipality for tax and utility purposes.

Why Choose Our Legal Services?

As legal experts specializing in Real Estate and Property Law in Turkey, Payas&Payas provides comprehensive legal support to foreign buyers throughout the entire real estate purchase process. Here are a few reasons why you should work with us:

  • Expertise in Turkish Real Estate Law: We have an in-depth understanding of all legal regulations that apply to foreign investors.
  • Personalized Assistance: Every client is unique, and we tailor our services to ensure that your specific needs and goals are met.
  • Full Legal Protection: From legal checks to contract drafting, we ensure that your rights as a buyer are fully protected at every stage.
  • Citizenship and Residence Permit Guidance: If you wish to obtain Turkish citizenship or a residence permit through property investment, we will guide you through the entire process.

With our legal expertise, you can make your real estate investment in Turkey confidently and securely, knowing that all legal formalities are handled efficiently. For more information or to get started, feel free to contact us.