Those who are considering buying a property in Turkey can contact the Turkish Embassy or the Turkish Consulate in their country to receive information about the local property law. In this article about Turkish property law for foreigners, we will be concentrating on the things you need to pay attention to in order to avoid any problems that may occur in the real estate buying process.
Legal Restrictions on Owning a Property in Turkey for Foreigners
Turkish property law for foreigners has some limitations. Foreign investors can buy an immovable property to utilize as a workplace or a residential address. These properties can be listed as houses, commercial units, agricultural land, vacant land, etc. However, even in the cases of several properties purchased in different cities, the total size of the properties acquired cannot exceed 30 hectares, unless the presidential decision permits to increase this figure.
If the property acquired does not have a building priorly constructed, the foreign owner has two years to develop a project. Foreigners also need to receive permission from the military authorities before buying real estate. If the property in question is located in a security zone, it cannot be sold to foreigners. Buying or renting a property in such zones is only possible with special permission granted from the governorship.
Citizenship Acquirement Through Real Estate Investment
One of the main things to know about Turkish property law for foreigners is that foreign nationals who do not work in Turkey and will make an investment within certain scopes and in certain amounts and their spouse and children under 18 can acquire Turkish citizenship in exceptional ways.
With the recent regulations, those who buy real estate worth a minimum of $250,000 and their spouse and children under 18 are eligible to apply for Turkish citizenship.
In order to acquire Turkish citizenship through real estate investment, the first step is to register a property worth a minimum of 250,000 USD dollars or another currency in an equal value with the title deed registry, provided that the property will not be sold within the first three years following the purchase.
Things to Consider for Foreigners Who Wish to Acquire an Immovable Property in Turkey
One should consult the Directorate of Land Registry to check for issues such as whether there is a restriction (ie, hypothec or attachment) on the property, or whether there is any condition restricting the sale of it.
If the application for acquiring an immovable property is rejected, foreigners can fill a petition of objection in the relevant Regional Directorate.
It is recommended that investors do not work with companies or individuals who are not known for being reliable.
A resident permit is not a prerequisite for foreigners to obtain immovable property in Turkey.
In case there is a dispute between parties regarding the acquirement of the property, the case should be brought to the legal courts in Turkey.
Which Countries’ Citizens Can Own a Property in Turkey?
The citizens of the countries determined by the Council of Minister can acquire immovable properties and limited real rights.
Can Foreigners Buy Agricultural Land?
Provided that they follow the legal restrictions, foreign nationals can own any kind of property (house, workplace, vacant land, agricultural land) in our country.
Can Foreigners Buy a House in Turkey?
Foreign nationals can buy a house in Turkey as long as they comply with the legal restrictions. They do not have to own a residence permit in order to buy real estate.
Can Foreigners Receive Housing Loans in Turkey?
Yes, foreign nationals can take out a loan in Turkey. In order to receive personal finance credit, vehicle loan, or housing loan, a foreigner can apply for a consumer loan in the banks in Turkey.
Can Syrians Obtain a Title Deed?
Syria is among the countries whose nationals can own property in Turkey without the reciprocity stipulation. According to the circular issued by the Directorate General of Land Registry and Cadastre, Syrians can own immovable property with special permission.
In Which Banks Can Foreign Nationals Open a Bank Account?
You can open an account in any of the banks available in Turkey. One of the most preferred banks among foreign nationals is a state bank called Ziraat Bank.
How Can Foreigners Start a Company in Turkey?
Foreign real persons cannot establish a sole proprietorship without a work permit. The residence permit alone is not sufficient to start a company, and foreigners can start a sole proprietorship in the cases when they have resided in the country with a 5-year residence permit and applied for a work permit.
Do Foreigners Pay the Property Tax?
Turkish property law for foreigners requires foreign nationals to pay property tax for the properties they own in Turkey. The amount to be paid is determined by calculating the property tax ratio over the value of the immovable.
Does the Foreign Spouse Receive a Share of the Inheritance?
Turkish property law for foreigners does not limit the property ownership to the buyer themselves. According to Turkish law, being a foreign national does not prevent being an inheritor. If the legator is a Turkish citizen, and if there are foreigners among the inheritors, they can obtain immovable property in Turkey by inheritance.
How Can I Learn my Tax Debt?
Those who wish to learn their tax debts can do so by consulting the municipalities, visiting e-Devlet, or visiting the Interactive Tax Office provided by the Revenue Administration. To learn your tax debt, visit the following website: https://www.turkiye.gov.tr/gib-vergi-borcu-sorgu (the link is in Turkish).
How Much is the Property Tax in 2021?
It was decided that in 2021, there is an increase of 4.55% (this figure is half of 9.11% that is the reassessment ratio) on the property tax. A property owner who used to pay, for instance, ₺100 in 2020 will now pay ₺104.55 as a property tax.
Who Are Exempt from Property Tax in 2021?
People who document that they do not have any income, people whose income is limited to the monthly payment they receive from social security institutions, veterans, the widows and orphans of the martyrs, and people with a disability are exempt from the property tax.
How To Pay Property Tax Online
Taxpaying in Turkish property law for foreigners is quite easy. You can visit the website of the relevant municipality and pay the property tax online. Additionally, you can access this page from the e-belediye page on the municipality websites.
As explained above, foreigners can acquire real estate in Turkey, but with certain limitations. There are also matters to consider in Turkish property law for foreigners in order to avoid any problems that may arise due to now knowing the local legislation. The most important of them is the official form condition and registration. In addition to this, foreigners are advised to receive information about the property’s title deed and check whether there is an obstacle to buying the property in question.
With its professional sales team, Realista Turkey is ready to answer any question you may have in mind regarding the Turkish property law for foreigners. You can contact us by filling the communication form or by sending an email to [email protected]. Additionally, you can learn all details about Turkish Real Estate Market.