Introduction

Foreign nationals looking to buy property in Turkey must navigate a detailed legal process, which is governed by Law No. 2644, the Turkish Land Registry Law and various regulations under Law No. 6458 on Foreigners and International Protection. This guide provides a step-by-step explanation of the legal requirements and processes involved in buying property in Turkey in 2024.

Nationalities Allowed to Buy Property:

• Citizens from most countries are allowed to buy property in Turkey. However, nationals of certain countries may face restrictions or additional requirements. For instance, foreign nationals from countries like Syria and Armenia face specific limitations.

• Foreign nationals cannot purchase properties in military zones or strategically restricted areas. Additionally, foreign buyers cannot own more than 30 hectares of land across Turkey.

Find a Property:

• The first step is finding a suitable property. It is highly recommended to work with a trusted real estate agent who is familiar with the local market and legal requirements for foreigners.

• Although not mandatory, hiring a lawyer with expertise in Turkish property law can ensure the process runs smoothly and that all legal obligations are met. A lawyer will verify the property’s title deed (Tapu), ensure there are no encumbrances, and handle contract details.

• Foreign buyers need a Turkish tax number, which can be obtained from any local tax office. This number is essential for legal transactions, including opening a bank account.

• Buyers are required to open a Turkish bank account to complete the property transaction. Funds for the property purchase, including taxes and fees, will be transferred through this account.

• After the buyer and seller agree on the terms, they will sign a sales agreement (Satış Sözleşmesi). The buyer usually pays a deposit, which is typically 10% of the property’s value.

• For foreign buyers, military clearance is required to ensure the property is not in a restricted zone. This process can take several weeks but is necessary to complete the purchase.

• Once all checks are complete and the balance is paid, the title deed (Tapu) is transferred to the buyer. This transfer occurs at the Land Registry Office and requires both the buyer and seller to be present or represented by power of attorney.

Property Purchase Tax:

• Buyers are subject to a 4% property transfer tax on the declared value of the property. This tax is usually paid during the title deed transfer process.

• Lawyer fees generally range between 1% and 3% of the property value, depending on the complexity of the transaction.

• Once the property is purchased, the owner is responsible for an annual property tax, which is typically 0.1% to 0.6% of the property’s assessed value, depending on the location.

Eligibility for Residence Permits:

• Foreigners who purchase property in Turkey are eligible for a short-term residence permit. As of 2024, the minimum property value required to apply for a residence permit is $200,000 USD. This permit is renewable as long as the ownership and eligibility criteria are maintained.

• The residence permit application is submitted online through the Directorate General of Migration Management (DGMM). Required documents include proof of property ownership (title deed), health insurance, and proof of financial means.

Increased Minimum Investment:

• As of 2024, the minimum property value required for foreigners to apply for a residence permit has been raised to $200,000 USD, reflecting the government’s focus on attracting higher-value foreign investments.

• The property purchase and residence permit application processes have been digitized, allowing foreign buyers to track their applications online and submit necessary documents electronically.

Buying property in Turkey as a foreign national involves a series of legal steps, from obtaining a tax number to transferring the title deed. With the increased minimum investment requirement for residence permits and other recent updates, understanding the legal process is essential for a smooth property purchase in 2024. Hiring a lawyer and staying informed about legal changes can help ensure a successful transaction.