Türkiye Invest answers to your questions.Let’s build our future together.
Yes, European investors can freely invest in Turkey. There are no legal restrictions for EU investors to invest in real estate in Turkey except in “sensitive areas” where Turkish law prohibits the acquisition of real estate by foreigners.
This is one of the many advantages that Turkey has over other countries in the world, especially over some of the Gulf countries. The ownership of a property is not limited in time in Turkey. The succession of your property is guaranteed to the rightful owners in case of death. Moreover, your share of the land on which your property is built is mentioned on the property deed (Tapu).
It is often better to invest with your own funds since it can be difficult to obtain a loan for a Turkish non-resident. Furthermore, foreign banks (especially French ones) are often reluctant to grant a loan for a property located outside their areas of operation.However, Turkish banks may occasionally grant home loans to foreigners.It is also possible to benefit from supplier credits in some cases. In this case, the private promoter will be able to grant a loan with payment schedules until the property is completed and delivered.
We focus our research on criteria specific to each investor. Nevertheless, three main criteria should be kept in mind: first of all, the quality of the location within an area of significant rental demand. Secondly, the price must be competitive with perspectives of appreciation. Finally, the rental return must be in line with our investors’ expectations. This is the basis for an efficient search to which many secondary criteria are added.
Payments are usually made by bank transfer. The purchase transaction with the seller is done in Turkish Lira (TL). However, it is possible to make the payment in cash since in Turkey the use of cash is very common.The prices we quote are usually in Euros to make the project more transparent for our investors. We make the conversions from the daily rate of the Turkish Central Bank.
Compared to France, the acquisition process is very fast in Turkey. Once you have chosen a property, the organization of the purchase takes only a few days (on average 10 days). The most time-consuming part of the process is finding the property. Then comes the realization of the renovation and interior decoration which can take from a few days to several months depending on the project.
You are liable for property tax generally between 0.1 and 0.3% of the nominal value (calculated by the local authorities) if you own the property on January 1st. This range may be higher in larger cities.Concerning the taxation of rental income, it follows a progressive tax base.In 2019, it is 15% of income up to TL 18,000, 20% up to TL 40,000, 27% up to TL 98,000 and 35% beyond. It is possible to deduct some expenses (management fees, insurance, maintenance, etc.) but financial costs are not deductible.It is necessary to hire a Turkish accountant to submit your declarations ( around 600€ for the first year and including the application for a rental license).Finally, the existence of a non-double taxation agreement between several European countries and Turkey allows you not to pay taxes in your country (if there is an agreement) on your Turkish real estate income.
In the recent years, Turkey has tightened the conditions for opening an account in a Turkish bank. It is often necessary to benefit from the involvement of a guarantor. We accompany our investors in this process. Thanks to our network and our partnerships, we make all these steps easier for you.
When you buy a property, you get a deed of ownership to apply for residency. You can obtain residency for all members of your family. We can help you with these procedures.
You can obtain Turkish nationality by investing the equivalent of $250,000 (about €250,000) in suitable real estate.It is also possible to apply for citizenship after 5 years of residence. We can help you with these procedures.
Monthly financial reporting is required. Tracking of tenants/travelers by reporting the names of guests through a government system is required. This is a restrictive system which is why the vast majority of international investors use rental management agencies to do this.
The procedure in Turkey is different from the one carried out in France. A notary’s involvement is not necessary for the supervision of a real estate purchase.There are two main fees when buying a property. The registration tax, which is carried out directly by the state “Tapu” and is of around 3% of the price of the property. It is often shared between the buyer and the seller, i.e. 1.5% of the purchase price each. There is also the stamp duty varying from 0.15 to 0.75%.This means a total of 1.65 to 2.25% of the purchase price for the buyer in “notary fees” equivalent.