Important information about real estate in Turkey
The Turkish government was keen to provide many facilities for investment procedures in the country, in particular real estate investment in Turkey, and as a natural result of the above, Turkey, especially Istanbul, witnessed a strong demand for real estate purchases, in addition to the country's recovery due to the construction of many vital projects such as Istanbul Airport and Istanbul Canal Water and many other projects, and in this article you will learn all the information that interests you, whether you are an investor or want to buy a property in Turkey.
Real estate Laws in Turkey:
The title deed is the most important document that proves the ownership of any property and it must be certified by the Real Estate Registry Directorate. In one case, a type of contract called a “commitment contract” is encountered, which is a contract outside the real estate registry and certified by a notary, this document that can be extracted in Cases of buying under construction properties or in installments, in which both the buyer and the seller are obligated to complete and abide by the contract. This type of contract does not give the buyer the legal right to own a property in Turkey and does not replace the title deed.
The laws and legal procedures that apply to foreign investors are the same as those that apply to Turkish citizens, as the Turkish state does not deal with a reciprocity policy.
The military and security areas are prohibited to buy properties in Turkey for foreigners.
A foreign investor cannot acquire more than 30 hectares in total according to Turkish law.
The largest area of real estate that foreigners can collectively own does not exceed 10% of the total area of any city or neighborhood, as the directorates of the real estate registry do not grant real estate ownership licenses to foreigners in any town when this percentage is exceeded.
The foreign investor can buy land in Turkey, provided that he submits the project he wants to build on the plot of land to be purchased within a period not exceeding two years from the date of purchasing the land, and if this period ends without submitting the project to the competent ministry, the contract will be canceled.
In the event that you purchased a property illegally or the project you are going to build in Turkey has been changed, the sale will be invalidated by the relevant ministries.
A foreign investor is granted Turkish citizenship, provided that he purchases a property from an owner who holds Turkish citizenship exclusively, and the value of the property is not less than 400,000 US dollars.
Costs of buying a property in Turkey?
A fee of 2% is charged to both the buyer and seller and represents the costs of buying and owning a property in Turkey.
The value of buying a property in Turkey is calculated and then the corresponding real estate tax is calculated, and its value varies from one city to another, ranging from 2 per thousand in major cities, and 1 per thousand for medium cities, as for shops, it ranges between 4 per thousand for the big city and 2 per thousand for normal cities.
If the owner is an individual, he must pay an income tax estimated from 15% to 35%.
A tax of 20% levied on corporations as a result of profits accruing to them from real estate transactions and rental proceeds, including capital gains.
The value-added tax on real estate in Turkey KDV is due to the type of service provided by the property, and its value ranges between 1% for properties whose area does not exceed 150 square meters and is imposed at a rate ranging between 8 and 18% on the rest of the properties.
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