Who can obtain property from Turkey?
Before May 2012 Turkey had a strict Property law restricting many nationalities from buying real estate in Turkey.
In May 2012 the Turkish government drastically changed the law on exchanges by lifting the restrictions and opening the Turkish real estate market to all nationalities except Syria, Armenia, Cuba, South of Cyprus and North Korea.
How can investors from non-convenient nationalities get properties in Turkey?
All individuals from all nationalities are allowed to establish a company in Turkey. PGT can support investors to establish a Turkish company and transfer the title-deed to this Turkish Company.
Maybe more than one person can own the same property?
More than one person can own the same property.
May a foreign investor own more than one property?
With some limitations, a foreign investor can own more than one property. Please contact us for details.
What are the documents needed to complete the purchase of a property in Turkey?
In order to complete the purchase of a property, the buyer has to have an original passport, Turkish Tax I.D. and 2 photos. A bank account in a Turkish bank is optional.
Why to have a Tax I.D.?
The buyer must get a tax number before the land registry. He can acquire a tax number by applying to the nearest tax office with a copy of his/her passport (translated and certified by a notary public).
Does the buyer have the right to get a residence permit ?
When the client completes the purchasing procedures he can apply to get a residence permit. Immigration authority will decide if the buyer’s application accepted or declined.
How to find a property? Why to contact Property Guide Turkey?
Hiring a real estate agent is the best option for the client, it saves him a lot of time and provide him with the best projects and options.
What is the general buying process in Turkey?
PGT will finalize the buying process and carry out the title deed checks the contract will be written between the client and the construction company, it will tell the details of selling process like (completion date, payment Schedule and the rest of the terms and conditions.
After confirming the agreed down payment or deposit is paid, the contract will be signed by all parties, then PGT will apply for Title-Deed and Land Registry Office for the security clearance to allow the forgein investor to own a Property in Turkey. When the clearance is granted Pgt will apply at Title-Deed and Land Registry Office for an appointment to transfer the title deed, the client may hire an attorney to finalize all the paperwork if he/she wishes.
Is the purchase by Turkish lira only or it could be by Dollar?
It’s possible to pay in Turkish lira or in USD, it depends on the agreement with the construction company during the sales process.
However, fee mentioned on the title deed on which all taxation will be based is to be in Turkish Lira.
What are the main types of property purchase agreements?
In order to complete buying process (Direct Acquisition) and transfer the Property to the buyer’s name, by the Turkish law it must be done in the presence of both seller and buyer, in front of the relevant land registry.
The seller and purchaser can enter in a promise to sell agreement before selling/buying the Property, but it must be written and signed by notary public.
What are official fees and taxes for property purchase?
After buying a Property, to get the title deeds you have to pay 4% tax of sales value of the Property and some additional fees which is identified by the municipalities and government.
But this 4% rate is being implemented as 3% until the end of 2019, and to be divided between the buyer and the seller.
Is there a necessary property insurance?
By the law of natural disaster insurance, “compulsory earthquake insurance” (DASK) is mandatory to be made for the Property.
The title deed registries and the institutions providing utility services will not make any transactions for the Property if this mandatory insurance did not made by the buyer.
The Property owner could at his/her own responsibility to insure his/her Property against risks, including, but not limited to, theft, fire, storm, etc.
Can a foreign investor rent its Turkish property?
All property owners from all nationalities can rent properties to third parties and collect income. Only the currency of the rent amount may vary upon the nationality of the tenant or the owner.
What is income Tax?
The owner can rent his/her Property to third parties but he/she have to pay income tax and it calculated as this in Turkey :
Under 13,000 TL – 15%
13,001 to 30,000 TL – 20%
30,001 to 70,000 TL – 27%
70,001 TL and over – 35%
For the properties that owned by company or corporate tax will be applied on the income of the company. This is applied at a flat rate of 22%. Tax is applied on the profit generated, not the gross income.
Can a foreign investor sell its Turkish property?
Yes, foreign property owners are perfectly allowed to sell their properties to locals and foreigners. In case of citizenship application through this property for sale however, Turkish Government obliges the applicant to keep the property at least 3 years after the purchase.
Whats is Capital gain tax?
When selling a Property the buyer have to pay a tax on the profit generated. CGT is applied on the difference between the inflation adjusted buying price.
The current CGT tax rate is applied at the rate of non-employment income tax rate (as per the above figures). İf the Property is owned by a company then the corporate rate applies on the profit which is 20% currently.
Individual ownership of a property for more than five years means your profit is tax free.
What is Rubbish Tax?
It is the tax paid to the municipality calculated on the water consumed by the residents of the property (If property is rented to third parties, tenant is in charge of this tax). For residential properties, tax amount is reflected on the water bill. If the property is commercial, company in rent is in charge to follow this tax payment.
Inheritance of Turkish properties
In the case of death, spouses and blood relatives will automatically entitle any assets of the deceased unless he has a valid prepared will to divide his/her assets. The foreign will must comply with the Turkish law otherwise it’s invalid.
Is it possible to come to Turkey in my own car and register it in Turkey?
You can bring your own car into Turkey through either land border crossings or seaports.
The car entry can be tax less in case the car left Turkey within six months. But if you planing to keep it you have to pay the tax.