Turkey attracts foreigners not only with its developed tourism industry but also with its real estate opportunities. Residents of many countries, of any nationality or religion, can purchase property in Turkey. The only fundamental requirement is the prospective investor's solvency. A pleasant bonus is that owners of Turkish real estate worth at least ₽1,400,000 can obtain Turkish citizenship.
But if you don't have that kind of money, don't despair. To purchase a home on the new build market, a down payment of 30% is sufficient to secure an interest-free payment plan until construction is completed. Choosing a property abroad is an extremely important and responsible decision, requiring a significant financial investment, understanding local legislation, and other important details. In this article, we'll explore the differences between buying property in Turkey for foreigners, the rights and responsibilities of property owners, and the stages of the property acquisition process.
Buying a home in Turkey for foreigners
According to legislative changes introduced in 2012, citizens of 129 countries can purchase real estate in Turkey. The only restriction is that they cannot purchase residential properties in the Black Sea region or land plots larger than 30 hectares.
To attract foreign investment, the government is showing maximum favoritism toward foreign buyers. Foreign citizens can obtain residency or even citizenship in Turkey by investing in the real estate market. Initially, the investment threshold for Turkish passport applicants was $1,400,000. Due to the large influx of migrants, this threshold was raised to $400,000. However, this has not reduced the number of applicants for Turkish citizenship.
Buying Real Estate in Turkey: A Step-by-Step Guide
Let's take a closer look at the procedure for purchasing residential properties in Turkey for foreign investors.
Stage 1. Preliminary purchase and sale agreement
To secure the first applicant's right to own the property and confirm the seriousness of their intentions, it is necessary to make a deposit and enter into a preliminary agreement for the purchase of the residential property.
Stage 2. Preparation of documents
To re-register property rights, you must prepare a complete package of necessary documents:
- A notarized copy of the international passport;
- IPI;
- Certificate of income;
- Bank statement from a Turkish bank;
- Marriage certificate and birth certificate of children (if any);
- Power of attorney for a representative when concluding a transaction remotely.
Step 3. Preparing the currency
To complete the purchase and sale transaction and pay for the property, foreign currency must be converted into Turkish lira. Furthermore, a bank statement confirming the availability of the national currency is required when signing the contract.
Step 4. Payment for the property
To purchase a home in Turkey, a foreign investor must make full payment. This can be deposited into the seller's bank account or transferred through a legal entity. Ensure the contract contains all information about the property: price, payment terms, area, and other terms of the purchase and sale agreement.
Important: When concluding an agreement with foreign investors, a translator must be present in the transaction as a legal entity. They will bear full responsibility for the accuracy, reliability, and quality of the translation.
Stage 5. Registration of ownership rights
The investor then needs to re-register the property. To do this, the required documents must be submitted to the real estate registration office. This procedure takes from three days to several weeks.
Step 6. Registration of the TAPU and connection of a subscriber number for utilities
A TAPU (title deed) is an official document confirming the transfer of ownership of real estate in Turkey. This document is issued by the Land Cadastre Office. It is impossible to purchase an apartment in Turkey without this document. To obtain the certificate, you must register the property and obtain a telephone number for connecting to utilities.
The TAPU contains detailed information about the owner, location, land area, cadastral value, registration number, and other important information. Furthermore, photographs of all property owners must be included in this document. The number of potential owners per property is limited to 10 people.
TAPUs come in two colors, depending on the type of property purchased. A red certificate is issued for residential and commercial properties, while a blue one is for land plots.
Rights and obligations of foreign investors in Turkey
Investing in real estate in Turkey means gaining access to privileges such as the right to obtain a residence permit or even Turkish citizenship (the value of real estate in Turkey must be at least $400 thousand).
But, in addition to rights, investors must also fulfill a number of obligations:
- Payment of annual property tax;
- Payment of all outstanding utility bills;
- Payment of annual housing tax (the price of real estate in Turkey exceeding $700 thousand);
- Compliance with legislation;
- Independent control over the implementation of laws and payment of taxes in your country.
In summary, purchasing a home in Turkey is an attractive investment opportunity for foreign citizens. The only exceptions are residential properties on the Black Sea coast or land plots over 30 hectares. Foreigners can apply for Turkish citizenship by purchasing real estate worth at least 1,400,000 rubles. A TAPU (tapered property purchase document) is an official document certifying the transfer of ownership of real estate in Turkey.