Even during the crisis period, real estate in Turkey is very popular among foreign investors: its prices are very attractive, which guarantees a high return on investment. Of course, for the buyer, it is important to legally conclude the transaction upon purchase. In the new millennium, the Turkish authorities have simplified procedures for foreigners, so you don’t have to worry about this. And, nevertheless, it is better to get acquainted with the peculiarities of the legislation in the field of purchase and sale.
The nuances of buying real estate in Turkey by foreigners
First of all, it is important to note that since 2006, buying real estate in Turkey has become available to foreign citizens. Since that time, investors from any country have the opportunity to buy housing in this attractive country from different points of view. However, there are some points in making deals.
The law stipulates that individuals can conclude sales contracts, but only in general in Turkey they can own no more than 2.5 hectares of real estate. When registering documents in the land register, a foreigner indicates that he does not exceed the declared threshold. Otherwise, he needs to get rid of the surplus by selling them, and the money will be transferred to his account.
In addition, foreigners are not allowed to buy absolutely all real estate. For example, they can easily buy apartments with sea views in Turkey. You can buy offices or hotels, factories and other options, designed as a “workplace ;. That is, when buying, you need a certificate of what the real estate can be used for. Foreign buyers are allowed to purchase residential or commercial properties.
There is another point in Turkish law that foreigners need to know about. There is the so-called “principle of reciprocity”. The point is that they are ready to provide citizens of other countries with the same rights that the Turks have in their homeland. For example, guests from some countries will be able to buy land plots. And all because those countries are ready to provide the same opportunities to the visiting Turks.Buying an apartment in Turkey – what the buyer needs to know
Of course, buying a home abroad, in European countries and in Turkey, has a number of distinctive features in comparison with a similar procedure at home. To begin with, the applicant must make sure that he has the right to purchase, select apartments that satisfy his needs and choose the best option for himself. In addition to searching, experts in this field recommend that you independently figure out what the registration process is like, how much maintenance will cost, the amount of utility bills, etc.
Buying Turkish property by foreigners and Turkish law
In 2012, the Turkish government made significant changes to the legislation and noted the “principle of reciprocity” that has been in force for many years. According to this law, only those foreigners could buy real estate in the state, in whose homeland Turkish citizens received similar rights. The amendments made allowed citizens of 129 countries of the world to buy square meters in Turkey. The list of countries includes, in particular, Azerbaijan, Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan. Russians, Ukrainians, Belarusians also have the right to become the legal owners of land plots, Turkish apartments and houses. The transaction can be executed for an individual and a legal entity (subject to its registration in the territory of the Republic).
Citizens of the Russian Federation and Ukraine have some restrictions before the acquisition of property, associated with the specifics of the territorial location of the countries. Thus, Russians and Ukrainians cannot buy real estate on the Black Sea coast. For all foreign buyers, there is a restriction on the acquisition of land plots – no more than 30 hectares.
The Turkish government has a very loyal policy regarding buyers from abroad, which is associated with the need for foreign capital injections into the country’s economy.
Every year, simplified schemes for concluding purchase agreements are developed, and the process of obtaining a residence permit and citizenship by investment is accelerated. For example, from 2018, every foreign owner who buys apartments in Turkey for an amount of USD 250,000 or more can become an applicant for a Turkish passport.However, the acquisition of real estate property is not only a holiday by the sea and a great prospect for the future, but also a number of responsibilities that are assigned to the owner.
The responsibilities of an overseas Turkish property owner include:
Payment of the annual tax on real estate ownership (the duty is valid for all residents of the country, regardless of citizenship).
Utility bills (for water meters, electricity, gas, maintenance of the common area – aydat).
It is important for foreign buyers to know that under Turkish law, individuals are not allowed to rent out their property for short-term rent.
The main stages of buying real estate in Turkey
The process of buying an apartment in Turkey involves several main stages:
Signing a purchase and sale contract
Collection and preparation of all necessary papers
Payment for real estate
Re-registration of ownership
Registration / re-registration of subscribers for the provision of utilities
Let’s get acquainted with each of the stages in more detail.
Information about the object of sale.
Payment terms and exact amount.
The rights and obligations of the parties, penalties.
To conclude such an agreement, the buyer only needs to have a passport with him. The contract itself is concluded in duplicate with translation into the native languages of the participants.
Another important point: at this stage of the procedure for buying an apartment in Turkey, the buyer gives the seller a security deposit in the amount of 5% or more of the cost of the apartment. This confirms the client’s firm intentions and ensures that the sale takes place on time.
To officially register property for a new owner, you will need to collect documents for buying real estate in Turkey. The list of papers that needs to be prepared in advance looks like this:
Power of attorney for a representative of a real estate agency, certified by a notary.
If you want to participate in the buying process on your own, you can simply skip this point, since it only applies to those buyers who do not want or do not have time to deal with all issues on their own.
The participation of a professional specialist can significantly simplify and speed up the entire procedure for the buyer. We recommend that you draw up a notarized power of attorney, according to the terms of which the agent will do all the preparatory matters for concluding the transaction, and the future owner will need to arrive at the appointed time and sign the papers.
Individual tax number.
The procedure for registering real estate in Turkey assumes that the buyer has an INN obtained from the Tax Office at the place of purchase of the apartment. A tax number is issued to foreigners regardless of the presence or absence of a residence permit. The procedure is simple, you need to have your passport and application with you. If there is no queue at the institution, it will take literally 10-15 minutes.
Registration of an account in a bank in Turkey.
The standard rules for buying an apartment in Turkey do not include the mandatory registration of a bank account. It all depends on the method of settlement with the seller. However, experience shows that most buyers open a current account. In the future, it will be useful for such purposes as paying utility bills, obtaining a Turkish residence permit, sending money, etc.
An account is drawn up promptly in one of the bank branches. The client must have a passport, TIN and passport of his home country with him.
Obtaining permission from government authorities in Turkey.
It will be required to obtain permission from Turkish government agencies only in some special cases. For example, in the military department, confirming that the object is not located in the territory under the protection of the army or in strategically important zones. If such a document has already been received for the object of sale earlier, then you do not need to do it again. For the most part, this procedure is purely formal, and obtaining a permit takes several days.
The package of papers can be supplemented, depending on the type of real estate and conditions of purchase.
Most of the amount is transferred through a bank account to the seller’s account, the rest – in cash. Re-registration of TAPU is allowed only after full payment for an apartment in Turkey. If the transaction is executed on a mortgage or in installments, the certificate will state the presence of an encumbrance that is valid until the full payment for the purchase object.
After completing the mutual settlements, both parties to the transaction agree to meet at the Cadastral Office. It may be attended by proxies of the participants. A sworn translator is considered a mandatory participant in the meeting, as a guarantor that the buyer will fully understand the subject and conditions of the transfer of ownership. At this stage, an application is submitted for re-registration of the TAPU and within 5 days the new owner receives it in his hands. From that moment on, he becomes the full owner of Turkish real estate.
In the process of buying a property abroad, the buyer not only pays for the cost of the property, but also bears some attendant for its registration.
These are costs such as:
Execution of a power of attorney certified by a notary. The amount depends on the terms of payment for services in the notary office and on the number of characters in the document being drawn up.
Payment for the services of a real estate company – whether there are such costs or not, you need to clarify before starting cooperation.
Property tax in Turkey for foreigners – 4% of the cadastral value of housing.
The tax to the state treasury when issuing TAPU is about 200 euros.
DASK earthquake insurance policy – about 10-30 euros.
The amount for registration or re-registration of subscribers for utilities is approximately 160 euros for housing from the developer, about 70 euros – for the re-registration of an object from the secondary market.
We have given only approximate amounts of additional costs, as they will vary in each case.
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