Real Estate in Turkey
Who can buy a property in Turkey
All foreigners are allowed to buy real estate, except for citizens of Syria, Armenia, Cyprus, Cuba, Taiwan, North Korea and Eritrea. Foreigners can purchase residential or commercial real estate, a new building or secondary real estate, a share in real estate under construction, or a plot of land.
In Turkey, there are restrictions: foreigners are prohibited from buying real estate near military facilities and land plots that exceed 30 hectares, or 300,000 m². There are also restrictions for citizens of some countries, for example, Russians are not allowed to own real estate on the Black Sea coast.
Property prices by region of Turkey
Turkish properties grew by 41,1% in May 2022, according to the country’s Central Bank. The dynamics of real estate prices in Turkey outperform the European Union dynamics: the country ranks first in the Eurostat price index — the cost of Turkish housing has increased by 641% since 2010.
The cost per 1 m² of real estate varies from $300 to $2,500, depending on the real estate type and location. The cities with the highest average real estate prices per 1 m² are Istanbul ($1,800), Bodrum ($1,750), Alanya ($900), Izmir ($800), Antalya ($800) and Bursa ($700).Read the article
Property purchase procedure in Turkey
Buying Turkish real estate takes an average of two weeks. First, the investor chooses a property. If they participate in the citizenship program, they need to buy real estate that has not yet been used for a Turkish passport obtainment.
The parties enter into a preliminary agreement. The buyer makes an advance payment of $1,000—$5,000. Then they get a tax number in order to register the property. The parties conclude the main purchase and sale agreement: the remaining value of the property is paid.
The real estate is registered in the land registry and cadastre of the country where the buyer receives a TAPU, which is a certificate of ownership.Read the article
Property purchase taxes in Turkey
Buyers of real estate in Turkey pay:
- transfer tax — 4% of the transaction amount;
- VAT at the 1—18% rate — usually included in the price of the property;
- stamp duty in the 0,1 to 0,6% amount;
- state fee for issuing a TAPU: $45 is paid by citizens and residents of the country, and $130 is paid by non-residents.
When purchasing real estate under construction, buyers pay 1% for contract notarization. If a realtor is involved in the transaction, the buyer also pays its commission — 3% of the real estate’s value.
Residence permit and citizenship in Turkey by the purchase of a real estate
Turkey issues a residence permit to foreigners in exchange for purchasing real estate worth:
- at least $50,000 — in small cities of the country;
- at least $75,000 — in megacities, such as Istanbul or Antalya.
Foreigners receive Turkish citizenship by investing in one or more properties for a total amount of $400,000 or more. There is only one condition: the real estate must have never been bought by other investors for the citizenship program participation.Read the article
Real estate investment in Turkey
When you make an investment in real estate in Turkey, you can join the Citizenship by Investment program. The minimum property expense will be $400,000.
Investment property in Turkey can be residential or commercial, and come from the primary or secondary market. Shares in real estate are also eligible. However, investors can’t purchase objects that were once used in the Citizenship by Investment program.
Eligible real estate property objects give great freedom of choice. Investors can purchase houses, villas, apartments, townhouses, hotels, tourist accommodations, resorts, residential complexes with parks, and separate plots of land.
Real estate expenses under the Turkish Citizenship by Investment program include: $400,000+ for a property and a transaction fee — of 2% for a primary object and 4% for a secondary object. There are annual taxes: the 0.2%—0.6% property tax, and the 0.3%—1% luxury tax for an object worth more than 5 million Turkish liras, or approximately $305,000.
Due to its profitability, the real estate option is the most popular one in the Turkish citizenship by investment program. Investment property can be used for generating income and resold in 3 years. Prices in the Turkish real estate market grow by 15%—25% every year. The annual rental yield is 2%—8%.
You can decide on your investment property remotely. The real estate team at Immigrant Invest offers prime property in Turkey suitable for the Citizenship by Investment program.
Immigrant Invest is a licensed agent for government programs in the Europe Union and the Caribbean.
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Schedule a meeting at one of the offices or online. A lawyer will analyze the situation, calculate the cost and help you find a solution based on your goals.
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