How to Own a Freehold Property
in Turkey: A Step-by-Step Guide
Owning property in
Turkey is an attractive option for many international buyers, thanks to its
stunning landscapes, vibrant culture, and growing real estate market. Here is a
detailed guide to help you understand the process:
1. Eligibility for
Foreign Buyers
Turkey allows foreign
nationals to purchase property, with some restrictions based on nationality and
location. While most countries’ citizens are eligible, some restrictions
apply in military and security zones. It’s essential to verify whether you qualify before proceeding.
2. Choosing the Right
Property
Start by exploring
various properties based on your needs—whether it’s for residential, commercial, or investment purposes. Work with
a trusted real estate agency to identify suitable properties and understand
local market trends.
It is really important
that if you decide to purchase a land, there is a requirement to have a project
designed for a building and begin the construction within 2 years.
3. Obtaining a Tax
Number
A tax number is required
for any real estate transaction in Turkey. You can obtain this from the local
tax office or online with your passport and necessary identification details.
4. Opening a Bank
Account
You’ll need a Turkish bank account to manage your property purchase.
This will be used for payments, taxes, and other related expenses. Most banks
only require a tax number, passport, and proof of address to open an account.
It is not possible to open an account at a Turkish bank
remotely from the abroad. You must be present at the bank to open the account.
5. Signing a Sales Contract
Once you’ve chosen a property, a sales contract will be drawn up. This
outlines the property’s details, agreed price, payment terms, and
other conditions. At this stage, a deposit is required to secure the property.
6.
DAP certificate
Foreign buyers must
transfer their funds—whether in GBP, EUR, or USD—into a Turkish bank account
and convert the amount to Turkish lira (TRY) through the Turkish central bank.
The bank issues a Certificate of Foreign Exchange (DAP
certificate) directly to the land registry. This certificate confirms the
sale price in TRY, includes the property deed references, and lists the buyer’s full names. This process and certificate are essential;
without them, a foreign buyer cannot finalize their purchase transaction.
7. Title Deed (TAPU)
Transfer
The final step is the transfer
of the title deed (TAPU) at the Land Registry Office. Both the buyer and seller
(or their legal representatives) must be present. The buyer must also provide
the agreed amount in full. Most of the expenses have to paid out on or in
advance of the deed transfer. Upon
registration, the property is officially yours!
8. Tax and Fees
When purchasing a
property in Turkey, you should be aware of the additional costs:
Tax approximately 4% of
the property’s declared value, this is shared as 2% buyer and
2% seller.
If buyer or seller (or
their legal representatives) do not speak Turkish, a translator will be needed,
and a translation fee will be paid.
Guide
to buy Property in rural areas in Turkey.
• Engage a Real Estate
Agent: Work with an agent who understands rural property laws and the
local market.
• Establishing a
Company.
To
establish a company you will need to be working with an accountant office; your
accountant will manage the process of establishing this company (Bank accounts
and tax numbers) and prepare all the papers that are mandatory. It is also
important to point that this company you own is not obligated to engage in
trade.
Then
you can buy the property you choose as the representative of your company and as
the full owner of this company you will also own the property.
Required Documents for Foreigners to Purchase Property in Turkey
-Title
Deed (Tapu) of the property or information about the village/neighborhood,
plot, parcel, building, and independent section.
-A
completed and signed identity declaration form for foreigners.
-Passport
(along with its translation).
-“Property Market Value
Certificate”
obtained from the relevant municipality.
-Property
Valuation Report (if required).
-A
tax identification number must be obtained.
-Mandatory
earthquake insurance policy for buildings (DASK).
-One
photo if the title deed with a photo is requested.
-A
sworn translator if any party does not speak Turkish.
For
further information and more details please contact us.