Real estate investment in Turkey

Foreigners in Turkey can buy and sell housing and commercial real estate and rent it out with few restrictions. For example, Russian citizens are prohibited from buying property on the Black Sea coast.

Statistics confirm the liquidity of investments: residential property prices grow on average by 6.7% each quarter. Five years ago, an apartment of 100 m² cost approximately €20,000. Today it’s sold for €70,000.

€699 Average price per 1 m²
of housing in Turkey

€400,000 Minimum investment amount
to get citizenship

5—8% Buyers’ related expenses,
of the transaction amount

How the residential property price index is growing in Turkey

Cost of a 3-bedroom apartment in Turkey

€3 million

Penthouse in Istanbul,
with a view of the Bosphorus

€1.2 million

Apartment within a 10-minute drive from Hagia Sophia Mosque

€500,000

Apartment by the sea in Alanya

What do investors buy?

The most expensive real estate is in the largest city in the country, Istanbul.

Apartments

penthouses
duplexes
apartments

Houses

villas
townhouses
bungalows

Turkey residence permit or citizenship by real estate investment

Owners of properties worth at least $50,000 can get residence permits. In large cities, such as Istanbul, Antalya or Ankara, the minimum property value for a residence permit is higher — $75,000. The minimum property value requirement was introduced in May 2022.

A residence permit is issued for a year with the possibility of renewal every two years. To renew a residence permit, you must live in Turkey for at least 183 days a year. After 5 years of living with a residence permit, you can get Turkey citizenship by naturalisation.

The buyer of one or more properties for a total amount of $400,000 or more can obtain Turkey citizenship without a language test and the obligation to live in the country.

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Taxes and associated costs

Purchase

Ownership

Sale

Property buyers pay property purchase tax and a registration fee.

The property price includes VAT from 1% to 18%, depending on the area. When buying a new property from a developer, a non-resident of Turkey who has lived in the country for less than 183 days a year can return the amount of VAT.

Associated costs range from 5% to 8% of the purchase agreement value. When buying a new apartment for €500,000, the investor will spend €525,000, including additional costs.

5—8% Of the contract value are related costs when buying a home in Turkey

Purchase expenses

Real estate purchase tax

4%

Registration fee

1%

Agency fee

For transactions involving a real estate agency

3%

Taxes

Property owners pay an annual municipal property tax ranging from 0.1% to 0.6% of the cadastral value. The rate depends on the region and the type of property: residential or commercial, building, land, or plot with a building.

In addition, owners pay a wealth tax if the market property value is more than 5.25 million Turkish liras — approximately €500,000. The tax rate is progressive from 0.3% to 1%.

Real estate rental income in Turkey is included in the income tax base. The income tax rate is progressive — 15% to 40%.

€612 Approximate annual expenses on maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection

€34—96

per month

Internet, TV, and telephone

€9—19

per month

If the seller has owned a property for less than five years, they pay capital gains tax. The income tax base includes the difference between the sale and purchase prices. The progressive income tax rate ranges from 15% to 40%.

0—40% Capital gains tax on
the sale of real estate

Frequently asked questions

Can foreigners buy property in Turkey?

Yes, if the buyer belongs to a country that Turkey has cleared for property acquisition.

There are additional limitations, depending on the buyer’s nationality. For example, Russian and Ukrainian citizens can’t buy property on the Black Sea coast of Turkey. Citizens of Armenia, Syria. North Korea. Nigeria, Cuba, or Yemen can not buy property in Turkey at all.

Foreign buyers can own no more than 25,000 square meters of property in Turkey. The Council of Ministers can increase the area up to 30. Properties in Security Zones and Military Forbidden Zones can’t be purchased.

Turkey’s requirements for foreigners’ property ownership are detailed in Article 35 of the Land Registry Law No 2644.

Is Turkey good for real estate?

Yes. Turkish real estate objects are growing in price by 10—25% annually. At the same time, the average cost of housing in Turkey is lower than in other European Union countries — €699 per 1 m².

Foreigners can get a residence permit or citizenship for investing in Turkish real estate. For a residence permit, they need to buy property worth:

from $50,000 — in small cities or towns;
from $75,000 — in megacities, such as Istanbul or Antalya.

Turkey citizenship is issued by investment in one or more real estate objects totalling $400,000 or more. One limitation: investors choose an object that other investors did not buy to participate in the citizenship program.

How much does an average house cost in Turkey?

The average cost of residential real estate in Turkey is €699 per 1 m². Housing prices depend on the region.

In large cities and on the Aegean coast, housing is 2—3 times more expensive. The cost of 1 m² varies from $300 to $2,500 depending on the property type and location. The cities with the highest real estate prices are Istanbul, Bodrum and Alanya.

Are property prices in Turkey falling?

No. Demand for residential properties in Turkey is growing every year, and so does pricing.

Real estate in Turkey showed a 641,35% increase in value since 2010 and a 110% increase in value since 2021. This is the strongest dynamic in the Eurostat House Price Index.

According to the Central Bank of the Republic of Turkey, real estate increased in price by 41,1% in 2022 compared to 2021. New housing was up by 24,2% in price, and secondary housing was up by 34,6%.

Is now the time to buy property in Turkey?

Investors looking to make a profitable real estate purchase should consider the current Turkish market. Real estate demand is on the rise: in the first six months of 2022, there were 726,398 sales contracts.

This is 31,4% more than in the same period in 2021. Property prices are rising annually: since 2010, real estate in Turkey increased in value by 641%. Thus, Turkey ranks first in the Eurostat House Price Index in terms of price dynamics.

The Turkish government also offers mortgage rates of up to 1%. Thanks to them, buying real estate will be cheaper.

Buying real estate in Turkey for at least $400 000 is a chance to obtain Turkey citizenship. Investors can buy residential or commercial properties, plots of land, or real estate project shares. After three years of ownership, it is allowed to sell the property.

Elena Ruda

Prepared a guide on investing in real estate in Turkey