We at İzmirABC believe that sharing knowledge is the first step to build trust. Therefore we hope, that the below essential information, including advice on legal advice, fraud, residence requirements, complaints and more will help people from other nationals who want to buy property in Turkey.
The procedures and legislation covering the purchase of property in Turkey differs from that in most of other countries and the safeguards that you may rely on in your country may not exist in Turkey. Foreigners require military permission before being able to purchase property. This can cause a delay in the whole process and you should allow a period of 3 weeks, though in individual cases the time can be shorter or longer. There is no way around this requirement and attempts to circumvent the process can lead to financial loss and you may still not get the property you wanted to purchase. You are strongly recommended to obtain the services of an competent real estate agent before committing yourself to purchasing property or paying a deposit or the property’s full costs.
There are a number of Turkish banks offering mortgages to foreign nationals wishing to buy property in Turkey. Loan proportions, interest rates and requirements may vary for individual banks. We recommend contacting several banks before making your decision.We can help you during the information gathering process if you would like.
Foreign nationals are taxed in Turkey on income obtained from renting property in Turkey and are liable to a number of other property related taxes outlined below. The tax year in Turkey is the calendar year. There are agreements (DTA) between some countries and The Republic of Turkey for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains.
Taxes payable when purchasing/selling a property in Turkey: Turkish Property Transfer taxes (Emlak Alim/Satim Vergisi) @ 2% (in 2016) are payable by both parties (the buyer and the seller) the sale of a property. These fees (i.e. 4% in total) are based on the declared value of the property. However, the declared value of the property cannot be lower than the ‘tax value’ determined by the local municipality, which is also used as the base of the local property tax.
Rental income taxes:
If you rent your property to an individual or a company you have to file a tax return for your rental income for the previous calendar year to the nearest Tax Office between 1 – 25 March. The taxes are payable in 2 equal instalments –the first in March, the second in July.
Local Property Tax (Emlak Vergisi)
Local Property Tax is payable in 2 equal instalments, the first in May and the second in November. You have to contact your local municipality (Belediye) for further information and payment options. Tax is calculated based on the value of the property and is subject to thresholds set by the Tax Authorities as follows: For real estate located outside of a metropolitan municipality area:
Other buildings 0.2%
Farming land 0%
Vacant land (but allocated for construction purposes) 0.3%
For real estate located inside of a metropolitan municipality area:
Other buildings 0.4%
Vacant land (but allocated for construction purposes) 0.6%
You should seek legal advice from a lawyer on reporting fraud or fraudulent action. In general such complaints are reported to the local Public Prosecutor.
Complaints against the legal system
You can lodge a complaint about a lawyer, public notary or real estate agent through following links:
You have to apply in writing with relevant proof to related Bar Association. Contact details of city Bar Associations can be found on www.barobirlik.org.tr website
You can apply to Ministry of Justice, Lawyer & Public Notary Complaint Office
Real Estate Agents & Individuals:
You can file a complaint with Federation of All Real Estate Associations of Turkey
Having a residence permit is not necessary for the foreigner who wishes to buy a property in Turkey. Likewise, buying a property does not grant the foreigner permission to obtain a residence or work permit in Turkey. However, anyone wishing to buy property in Turkey who does not hold a residence permit needs to obtain their Foreigner Identity number (Yabanci Kimlik No.) from the TNP Foreigners’ Department in the nearest city (not local town)in order to proceed with the property purchase. This service is free of charge.
Buying property in certain areas
a)Persons with foreign nationality can buy maximum 30 hectares of property in Turkey in total and can acquire limited in rem right.
b)Foreigners cannot acquire or rent property within military forbidden zones and security zones.
c)Persons with foreign nationality can acquire property or limited in rem right in a district/town up to 10 % of the total area of the said district/town.
d)Legal restrictions do not apply in setting mortgage for real persons and commercial companies having legal personality which are established in foreign countries.
e)The properties are subject to winding up provisions in following cases: (i) if the properties are acquired in violation of laws; ii) if the relevant Ministries and administrations identify that the properties are used in violation of purpose of purchase; iii) if the foreigner does not apply to the relevant Ministry within time in case the property is acquired with a project commitment; iv) if the projects are not materialized within time.
Renting out your property
Everyone has the right to rent their property with the understanding that a contract is signed between the landlord and tenant. If the property is used for accommodation the landlord has to pay income tax as explained above. If the property is used for business purposes the landlord should make sure that the tenant is paying the Stoppage Tax (Stopaj vergisi).
According to the Turkish laws and regulations in force, transfer of ownership of a property is only possible at the Land Registry Directorates (TAPU DAIRESI). There are two types of deeds in Turkey; one is the land deed and the other is the proper title deed which you can obtain once you have your habitation certificate. Obtaining the habitation certificate is very complicated and time consuming. Therefore, prospective buyers should consider possible challenges before buying a property without habitation certificate. Habitation certificates are issued by local municipalities.
Problems with timeshare property
Time share purchases are not very common at present however it is predicted that they will become very popular in the future. Prospective buyers should study the contract very carefully (if possible to get a legal advisors opinion) and make sure that the contract is registered with the Title and Deed Office and shares are shown on the property title and deed.
FCO property fraud guidance
Other sources of advice
General Directorate of Land Registry and Cadastre
Ministry of Foreign Affairs/Buying Property in Turkey
Federation of All Real Estate Associations of Turkey
This information is provided as a general guide and is based upon information provided to the embassy by the relevant local authorities and may be subject to change at any time with little or no notice. The FCO and the British Embassy will not be liable for any inaccuracies in this information. British nationals wishing to obtain any further information must contact the relevant local authority.