Foreign nationals interested in purchasing property in Turkey can easily own a home by following the necessary steps and understanding the process. However, specific restrictions may apply depending on the buyer’s nationality.

Important Considerations for Foreigners Buying Property in Turkey

Although foreigners are allowed to purchase property in Turkey, some countries’ citizens face restrictions. Therefore, it’s important to consult the Turkish Embassy or Consulate in your country for up-to-date information. You can also reach out to Turkey’s title deed offices (Tapu Müdürlükleri) for further guidance.

Additionally, a document from military authorities confirming the property is not in a restricted zone is required. Foreigners are also limited to owning a maximum of 30 hectares of property in Turkey and cannot exceed 10% of the total area in any district.

The Process of Acquiring Property in Turkey

  1. Identifying the Property
    Foreign buyers must inspect the title deed records to ensure the property is free of liens, mortgages, or other restrictions. Consulting an experienced legal professional is highly recommended.
  2. Application to the Title Deed Office
    The property purchasing process officially begins at the Title Deed Office (Tapu Sicil Müdürlüğü). Both buyer and seller must provide identity documents, property details, and a sale agreement.
  3. Property Valuation Report
    Since 2019, foreign property purchases require a valuation report to confirm the property’s market value. This report must be issued by an authorized agency and is a key document in the transaction.
  4. Obtaining a Foreigner Identification Number
    Foreign buyers must obtain a Turkish Foreigner Identification Number from the Directorate of Population and Citizenship Affairs, as this is mandatory for title deed transactions.
  5. Currency Exchange Requirement
    Payments for property purchases must be made in Turkish Lira (TRY). Foreigners need to exchange currency and document the transaction before completing the payment. This policy ensures transparency and control over foreign currency inflows.
  6. Sales Contract and Title Deed Transfer
    The sale agreement is finalized at the Title Deed Office, where taxes and fees are paid, and the official title deed (Tapu) is issued to the buyer.

buying home from turkey

Required Documents for Property Purchase

  • Approval from military authorities (if applicable).
  • Residence permit document (if required).
  • Property title deed.
  • Buyer and seller identification documents.
  • “Property Value Statement” from the municipality.
  • Property Valuation Report.
  • Compulsory Earthquake Insurance (DASK).
  • Recent passport-size photographs (1 for the seller, 2 for the buyer).
  • Original or notarized translation of a power of attorney if a representative completes the transaction on behalf of the buyer.

Tax Responsibilities for Foreign Property Owners

Foreign nationals owning property in Turkey are subject to certain taxes during the purchase and throughout ownership:

  1. Title Deed Fee (Tapu Harcı):
    A 4% fee is levied on the total property value—2% from the buyer and 2% from the seller.
  2. Value-Added Tax (VAT):
    • For properties purchased from real estate developers, VAT may apply.
    • Properties under 150 m²: VAT is 10%.
    • Properties exceeding 150 m²: VAT is 10% for the first 150 m² and 20% for the remaining area.
  3. Annual Property Tax:
    All property owners in Turkey must pay annual property taxes, calculated based on the property’s appraised value and local tax rates.
  4. Stamp Duty:
    This tax applies to legal agreements during property purchases, ranging from 0.1% to 0.6% of the contract value.
  5. Other Fees:
    Various administrative fees may apply during the title deed transfer process.

Income Tax for Foreigners Renting or Selling Property

Foreigners who earn income from renting or selling property in Turkey are required to pay Income Tax, ranging from 15% to 40%.

Tax Advantages for Real Estate Investment Funds

Foreigners investing in real estate through Real Estate Investment Funds may benefit from lower tax rates. For instance, profits from fund shares are taxed at a 10% withholding tax rate, making it a more attractive option than direct property ownership.

Tips for a Smooth Buying Experience

To avoid potential issues, it’s recommended that foreign buyers work with reliable real estate agencies and seek professional legal assistance during the property purchase process in Turkey.