Turkey is an amazing country with a lot to offer its residents and visitors. From its stunning natural scenery and vibrant culture to its rich history and delicious food, there are plenty of reasons to fall in love with Turkey.
Are you an international investor looking to make a big return? You may want to consider investing in Turkey's booming real estate market. With estimations to reach 1 billion dollars in real estate investment by 2023, Turkey is looking more and more attractive to investors from across the globe.
If you're an expat looking to get in on the action, you're in luck! Ikamet is here to guide you through the requirements and possibilities of investing in Turkey's real estate market, including the Citizenship by Investment programs. You'll be able to make the most of your investment and create the return of your dreams.
So, what are you waiting for? Investing in Turkey's real estate market could be the perfect way to maximize your profits and ensure a lucrative future. With Ikamet by your side to help simplify what it takes to invest in this booming landscape, you'll have the confidence to take charge of your financial future.
Breaking Down the Basics of Citizenship by Investment Program in Turkey
Citizenship by Investment Program (CBI) in Turkey is an excellent opportunity for foreign investors and entrepreneurs to obtain Turkish citizenship. This program is designed to attract foreign direct investments into the country by providing foreign investors and entrepreneurs with a quicker and simpler route to Turkish citizenship. The CBI in Turkey is open to all individuals who meet the requirements and have the necessary financial resources to invest in the country.
The CBI in Turkey requires foreign investors to make a minimum investment of $400,000 in real estate to be eligible for Turkish citizenship. The investment must be made in a single property or multiple properties. The total amount invested must be held in the form of either a mortgage, loan or ownership of the property.
Additionally, a 2 per cent transaction fee is charged for primary objects, and a 4 per cent fee is charged for secondary objects. On top of the investment, there are also associated taxes that must be paid. These include a property tax, which is 0.2-0.6 per cent of the property's value, and a luxury tax for properties worth more than 5 million Turkish liras (approximately $305,000).
The Turkish Citizenship by Investment Program offers investors a range of options, including purchasing real estate and investing in government bonds. Real estate is by far the most popular option, as it is a profitable and secure investment. Prices in the Turkish real estate market have been growing by 15–25 per cent yearly, and the annual rental yield is 2–8 per cent.
What Makes Turkey Favourable for Real Estate Investors?
Turkey is becoming an increasingly popular destination for real estate investors, with the country offering a range of attractive features that make it an enticing option. From a favourable tax system and a booming property market, to a booming economy and a wealth of cultural attractions, Turkey has a lot to offer real estate investors. Here’s a look at some of the reasons why Turkey is a great place to invest in real estate.
High Return on Investment
Turkey is an attractive option for real estate investors due to its high return on investment. Property prices in Turkey have been steadily increasing over the past few years, and the country is one of the most affordable places in Europe to buy real estate.
The average rental yield in Turkey is between 2-8 per cent, which is higher than most other countries in the region. This makes Turkey an attractive option for those looking to invest in real estate and make a good return on their investment.
Incentives from the Government
In addition to the Citizenship by Investment Program, the Turkish government offers numerous incentives to encourage foreign investors to invest in the country's real estate sector. These incentives include VAT exemption and other tax reductions such as the duty stamp. These incentives have made it easier for foreign investors to purchase properties in Turkey, allowing them to benefit from the country's favourable tax and investment climate.
Who is Eligible to Buy a Property in Turkey?
If you’re looking to purchase property in Turkey, there are a few important things to know before you begin. First, all foreigners are allowed to buy real estate, with the exception of citizens of Syria, Armenia, Cyprus, Cuba, Taiwan, North Korea and Eritrea. You can purchase residential or commercial real estate, a new building or secondary real estate, a share in real estate under construction, or a plot of land.
When it comes to restrictions, foreigners are prohibited from buying real estate near military facilities and land plots that exceed 30 hectares, or 300,000 m². Additionally, citizens of some countries may have additional restrictions. For example, Russians cannot own real estate on the Black Sea coast.
Exploring the Property Prices by Region of Turkey
In the past decade, Turkish property prices have increased significantly, with the country ranking first in the Eurostat price index. The average cost per 1 m² of real estate varies from $300 to $2,500, depending on the type of property and its location. The cities with the highest average real estate prices per 1 m² are Istanbul ($1,800), Bodrum ($1,750), Alanya ($900), Izmir ($800), Antalya ($800) and Bursa ($700).
Ikamet is Your Go-to Source for Relocating, Investing, and Travelling in Turkey
Buying property in Turkey can be a rewarding experience. With its stunning scenery, vibrant culture, and excellent investment opportunities, Turkey is an ideal destination for those looking to purchase real estate abroad.
Before you buy, however, make sure to understand the eligibility requirements and the process for purchasing real estate in Turkey. With the right guidance, you can ensure a smooth and successful real estate transaction.
Whether you're relocating, investing, or travelling, Ikamet is your one-stop shop for everything about expat life in Turkey. We can't wait to help you discover all that this amazing country has to offer! Contact us today to start your journey!
Who can buy a property
Who can buy a property in Turkey
All foreigners are allowed to buy real estate, except for citizens of Syria, Armenia, Cyprus, Cuba, Taiwan, North Korea and Eritrea. Foreigners can purchase residential or commercial real estate, a new building or secondary real estate, a share in real estate under construction, or a plot of land.
In Turkey, there are restrictions: foreigners are prohibited from buying real estate near military facilities and land plots that exceed 30 hectares, or 300,000 m². There are also restrictions for citizens of some countries, for example, Russians are not allowed to own real estate on the Black Sea coast.
Property prices by region
Property prices by region of Turkey
Turkish properties grew by 41,1% in May 2022, according to the country’s Central Bank. The dynamics of real estate prices in Turkey outperform the European Union dynamics: the country ranks first in the Eurostat price index — the cost of Turkish housing has increased by 641% since 2010.
The cost per 1 m² of real estate varies from $300 to $2,500, depending on the real estate type and location. The cities with the highest average real estate prices per 1 m² are Istanbul ($1,800), Bodrum ($1,750), Alanya ($900), Izmir ($800), Antalya ($800) and Bursa ($700).
Property purchase procedure
Property purchase procedure in Turkey
Buying Turkish real estate takes an average of two weeks. First, the investor chooses a property. If they participate in the citizenship program, they need to buy real estate that has not yet been used for a Turkish passport obtainment.
The parties enter into a preliminary agreement. The buyer makes an advance payment of $1,000—$5,000. Then they get a tax number in order to register the property. The parties conclude the main purchase and sale agreement: the remaining value of the property is paid.
The real estate is registered in the land registry and cadastre of the country where the buyer receives a TAPU, which is a certificate of ownership.
Property purchase taxes
Property purchase taxes in Turkey
Buyers of real estate in Turkey pay:
- transfer tax — 4% of the transaction amount;
- VAT at the 1—20% stamp duty in the 0,1 to 0,6% amount;
- state fee for issuing a TAPU: $45 is paid by citizens and residents of the country, and $130 is paid by non-residents.
When purchasing real estate under construction, buyers pay 1% for contract notarization. If a realtor is involved in the transaction, the buyer also pays its commission — 3% of the real estate’s value.
Residence permit and citizenship by the purchase of a real estate
Residence permit and citizenship in Turkey by the purchase of a real estate
Turkey issues a residence permit to foreigners in exchange for purchasing real estate worth:
- at least $50,000 — in small cities of the country;
- at least $75,000 — in megacities, such as Istanbul or Antalya.
Foreigners receive Turkish citizenship by investing in one or more properties for a total amount of $400,000 or more.
Property Types in Turkey
Real Estate investment in Turkey
When you make an investment in real estate in Turkey through Ikamet, you can join the Turkish Citizenship by Investment program. The minimum property purchase required is $400,000.
Ikamet offers investment properties in Turkey that can be residential or commercial, purchased on the primary or secondary market. However, properties previously used for citizenship by investment are not eligible purchases through Ikamet.
Ikamet provides a great selection of eligible real estate for the citizenship program. Investors can purchase houses, villas, apartments, townhouses, hotels, tourist accommodations, resorts, residential complexes with parks, and land plots.
Real estate expenses through Ikamet for the Turkish Citizenship by Investment program include: at least $400,000 for the property purchase plus a transaction fee of 2% for primary properties or 4% for secondary properties. Ongoing taxes are 0.2-0.6% annual property tax and 0.3-1% luxury tax on properties over 5 million Turkish lira (~$305,000).
The real estate option is the most popular through Ikamet due to its profitability. Investment properties can generate income and be resold after 3 years. Turkish real estate values increase 15-25% annually with 2-8% rental yields.
You can choose an investment property remotely through Ikamet's real estate team. They offer prime real estate in Turkey suitable for the Citizenship by Investment program.