Buying Property In Turkey
With this article i will share some advices to foreigners who thinks to buying property in Turkey, including information on legal advice, residence requirements and more.
This is the few things you might want to know before pay and all process.
The procedures and legislation covering the purchase of property in Turkey differs from your country.
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.
Taxes payable when purchasing/selling a property in Turkish Property Transfer taxes (Emlak Alim/Satim Vergisi) at 2% 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 evaluation report of the property by an expert.
This tax is generally paid for by the buyer.
The evaluation report, which is valid only for three months, should be submitted to the title deed office. This value will then be 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.
If the property is a building then Natural Disaster Assurance (DASK) is obligatory.
Local Property Tax (Emlak Vergisi)
Local property tax is payable in two 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.
Rental Income Taxes
If you rent your property annually 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 two equal instalments - the first in March, the second in July.
On the other hand, if you rent for short periods then this income will be subject to commercial income tax. You must have a tax account, an accountant, and keep financial books. The income tax for the previous year is payable like annual rental income tax.
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.
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.
Also you can get a rental contract very easyly and with that contract you can Apply for Your residence permit as well.
Acquisition of Turkish Citizenship
If you buy a property at a minimum cost of 250.000 USD or the equivalent in other currencies including Turkish Lira, then the buyer, wife/husband and children under 18 years of age obtain the right to Turkish nationality.
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)
This service is free of charge.
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).
For this reason, I would like to emphasize that there is no sale of title deeds at the notary public.
If you are buying an apartment to live in, you should pay attention to whether it has a occupancy permit.
Obtaining a certificate of residence is very complex and time consuming. Therefore, prospective buyers should consider the potential difficulties before purchasing a non-occupational property.
Settlement certificates are issued by local municipalities.
And finally we are strongly recommended to obtain the services of an independent lawyer before committing yourself to purchasing property or paying a deposit or the property’s full costs.