What are the general characteristics of the Turkish economy?
Turkey has a growing and dynamic economy that links east and west in a unique way. Turkey has one of the world’s largest economies supporting foreign investments through a business-friendly understanding and access to a large domestic market and neighboring international markets via FTAs (free trade agreements).
Is buying property in Turkey a good idea?
Not only property value but also living costs are noticeably cheaper in Turkey compared to European countries. By purchasing a house in Turkey, you not only make a valuable investment, but you also have the opportunity to experience modern Mediterranean living standards together.
Other benefits are:
A diverse portfolio of properties, offering real estate for all budgets.
A simple and easy buying process
The amazing cuisine, diverse cultural life, perfect climate, historical and cultural sites, and beautiful nature
High return on investment (property and rental prices are rising annually, rendering property investment highly profitable) and low property taxes
Can a foreign natural acquire property in Turkey and what are the limitations thereof?
In Turkey, as per Article 35 of Law No. 2644 on the Land Registry, the acquisition of a real estate by foreign natural and legal persons are subject to some restrictions. Countries whose nationals are eligible to acquire real estate in Turkey are determined by the President of the Turkish Republic.
If granted permission, foreign natural persons may acquire any real estate in areas where private property is allowed (residential, agricultural, commercial, etc.).
A foreign natural person may acquire real estate and/or limited rights in rem anywhere in Turkey with an upper limit of 30 hectares. The president may grant larger areas (up to double the upper limit).
A foreign natural person may not acquire or lease any real estate within military security zones or prohibited military zones, although they may lease and acquire real estate within special security zones upon the permission of the governor’s office.
A foreign natural person may not acquire more than ten percent of the total district area where private property is allowed. The ten percent limit is definite and therefore foreigners’ requests for acquisition shall not be permitted when the ten percent limit is exceeded.
Do foreign natural persons face problems with the inheritance of properties in Turkey?
In Turkey, foreigners’ right to inheritance is protected. In the event of a foreigner’s death, the real estate owned by them shall pass to their inheritors. If the inheritor is allowed to acquire the real estate (if they are allowed in terms of nationality and if the total limitation conditions per person and throughout the country allow), the inheritor may then keep the inherited property. Otherwise, the inheritor is to transfer the real estate immediately. Otherwise, the Ministry of Treasury and Finance shall sell the real estate and reimburse the price to the inheritor.
Which countries’ investors are prominent in the Turkish housing market?
Close to 40% of the houses sold to foreign persons in Turkey in 2021 were sold to Iraqi, Iranian, and Russian investors.
Will I have to pay taxes for the property I bought in Turkey as a foreigner?
Firstly, a property buyer shall pay a title deed fee (purchasing tax) of 4% of the value of the property to get the title deed. The buyer generally pays half of this amount, and the remaining half is paid by the seller. The buyer shall also pay a stamp duty of about 1 percent of the value of the property while making the sale agreement.
Secondly, VAT(value-added tax) shall be applied to the sale. However, if the property seller is not involved in any commercial activity or the seller is not in the real estate trading business and has held the property for more than 2 years, the sale shall be exempt from VAT. The VAT is 18 percent of the sales price for commercial properties and for residential properties that are larger than 150 m2. For residential properties smaller than 150 m2, the VAT is between 1 and 8 percent.
Finally, according to the real estate law of Turkey, any building, terrain and land within Turkish borders is subject to property tax, as such foreign property owners shall be required to pay the property tax. Land and residential premises are taxed at one per thousand of their value and land, in general, is also taxed at one per thousand of its value. The annual property tax amounts are as follows:
Metropolis (Big Cities)
Can I acquire Turkish citizenship by investing in property in Turkey?
Foreign investors shall acquire Turkish citizenship by purchasing property in Turkey that is worth at least 250.000 USD. The buyer’s spouse and children who are less than 18 years old shall also be granted Turkish citizenship. The citizenship shall be lifelong and all children with Turkish citizen parents shall be born as Turkish citizens. There is no rule banning the holding of multiple citizenships along with the Turkish one so investors may keep their preexisting citizenships along with the Turkish one.
The holder of the Turkish passport, which is ranked 18th in Europe and 38th in the world, can travel to 72 countries without a visa and to 46 countries with a visa on arrival which makes Turkish citizenship desirable for foreign property investors. Turkish citizenship can also be used as an intermediary for other UK, US, or EU citizenships.
Is there any restriction on the sale of the property if I apply to acquire Turkish Citizenship?
One of the essential conditions to apply to Turkish Citizenship is to annotate the property not to then sell it at least for three years. Therefore, if the investor applies for Turkish Citizenship, he/she shall not be able to sell the property for 3 years.
How can I apply for Turkish Citizenship for my children who are aged above 18?
Turkish Law allows two people to jointly own immovable property. In this context, you can apply for Turkish citizenship for your child by purchasing a property worth at least USD 500,000 jointly with your child.
Do I have to perform military service after acquiring Turkish citizenship?
Foreigners who acquire Turkish Citizenship after the age of 22 are exempt from military service.