Türkiye
Real Estate

Real estate investment in Turkey

There are limited restrictions on the buying, selling, and renting out of a residential and commercial real estate in Turkey placed on foreign nationals. To give just one example, it is illegal for Russian residents to purchase property on the coast of the Black Sea.

According to the statistics, the value of residential property increases by an average of 6.7% per quarter. This growth confirms the liquidity of investments. Approximately $20,000 was the price of apartment 100 square meters in size five years ago. As of right now, the asking price is $70,000.

Residency or citizenship through real estate investment

Residence permits are available to owners of properties with a value of at least $50,000. The required minimum property value to qualify for a residence permit has been increased to $75,000 in metropolitan cities, including Istanbul, Antalya, and Ankara. May 2022 saw the implementation of the requirement for a minimum property value.

A residence permit is typically valid for two years, with the option to extend it once every two years. If you wish to maintain your residence permit in Turkey, you must renew it sixty days before its expiration.

Since 2018, 183 consecutive days per year are no longer required to maintain residency, contrary to a common misconception. You can become a naturalized citizen of Turkey after visiting the country with a valid residence permit for five years.

If you buy at least $400,000 worth of real estate in Turkey, you can apply for Turkish citizenship without taking a language test or meeting the requirement that you live in Turkey.

The cost of a 3-bedroom apartment in Turkey

  • $3 million

    • The Penthouse overlooking the Bosphorus

  • $1.2 million

    • Property for rent within a 10-minute drive of the Hagia Sophia Mosque

  • $500,000

    • Alanya Seaside Apartment is

What do investors buy?

Istanbul, the largest city in the country, is home to some of the most expensive real estate in the country.

Apartments

  • penthouses
  • duplexes
  • apartments

Houses

  • villas
  • townhouses
  • bungalows

Taxes and associated costs

Real estate buyers are responsible for paying both a property acquisition tax and a registration fee.

The property's purchase price incorporates a VAT rate ranging from 1% to 18%, depending on the location. A non-resident of Turkey who has been in the country for less than 183 days in a given year is eligible to have the amount of VAT they paid returned to them when they purchase a new property from a developer.

The associated expenditures make up between 5 and 8 percentage points of the total value of the purchase agreement. When an investor purchases a brand-new apartment with a price tag of $500,000, the total amount spent on the transaction will be $525,000.

The annual municipal property tax homeowners are responsible for paying ranges from 0.1% to 0.6% of the cadastral value of their properties. The fee differs depending on the region and the type of property, which might be residential or commercial, a building, land, or a plot of land with a building on it.

Additionally, owners are required to pay a wealth tax if the market value of their property is more significant than 5.25 million Turkish lire, which is equivalent to around USD 500,000. The tax rate ranges from 0.3 percent up to 1 percent.

In Turkey, the income from renting out real estate is factored into the calculation of taxable income. The tax rate on income is progressive, ranging from 15% to 40%.

A seller is subject to capital gains tax if they have been the property owner for fewer than five years. The difference between the sale and purchase prices is factored into calculating the basis for the income tax.

The progressive tax rate on income runs from 15% to 40%.   REAL ESTATE ENQUIRY