Owning real estate in Turkey became very popular especially after removing the legal barrier that prevents citizens of 89 countries from buying real estate and apartments in Turkey in accordance with the reciprocity protocol; so now foreigners have the right to own any type of real estate within the borders of the Turkish Republic.
But before taking action it’s always good to know a little bit about the important 7 things to know before owning a real estate in Turkey in 2021.
Restrictions on owning real estate in Turkey
The transfer of real estate ownership takes place through an official deed called “Tapu” that is signed and duly registered in the directorates of the real estate registry, and thus the legal ownership is transferred to the new owner.
The 3 conditions of real estate ownership by foreigners are;
- Real estate in Turkey that foreigners own within the boundaries of the administrative region must not exceed an area of 10% of the total area of the administrative region.
- The area of real estate in Turkey that a foreigner owns should not exceed 30 hectares.
- Obtaining security and military approval from the competent military authorities in the area where the property is located.
Below are the 8 steps for transferring property ownership in Turkey; after submitting the application by booking an appointment by the real estate owner in Turkey at the Land Registry Directorate to complete the ownership transfer procedures.
Appointment can be booked either through the website of the Land Registry Directorate. https://randevu.tkgm.gov.tr
1-Documents required for the transfer of ownership process
- Passport translated.
- The title deed of the real estate in Turkey “Tapu”.
- Real estate appraisal report in Turkey,
- Average report of real estate values in the region. This report is issued by the municipality.
- Sworn translator if one of the parties does not know the Turkish language.
- A personal photo of the seller in addition to two pictures of the buyer.
- Earthquake insurance policy for the property in Turkey.
- In the event that the purchase procedure is made by an agency concluded outside Turkey, at the consulate or embassy, the buyer needs to have a certified translation from a sworn translator, attached to the original copy of the agency.
2-Agency concluded outside the Republic of Turkey
- The agency concluded at the consulates and embassies of the Turkish Republic.
- A power of attorney signed at a notary in the foreigner’s country and in the official language in that country and includes a personal photo of the agency owner.
It must be translated into the Turkish language and certified by the Turkish consulate or embassy in that country if this country did not sign The Hague Charter on October 5, 1961.
If it is a signatory of this charter, the agency does not need to be certified by Turkish consulates, provided that the explanation includes the phrase (Convention de La Haye du October 1961)
- Ownership transfer expenses
- It is stipulated that the value of the property in the Land Registry must not be less than the value specified in the report of the average real estate values in the region. – Tabu procedures fees, estimated at 2% of the property value registered in the title deed.
- Notes that foreigners should pay attention to when buying a property in Turkey.
*Before buying a property in Turkey, the buyer must review the real estate registry to ensure the legal safety of the property, and that it is free from any legal problems such as loans, seizures, or inheritance problems.
*In the event that it is not possible to obtain an appointment for the transfer of ownership, the Land Registry Directorate can be directly consulted. It is recommended to rely on unreliable real estate brokers, whether they are a company or individuals.
*The buyer is not required to obtain a residence permit in Turkey in order for the property transfer process to take place in Turkey.
*In the event of any dispute between the parties to the contract, the relevant Turkish judicial authorities must be referred.
- In the case that the buyer is a foreign company with foreign capital
You must review the Commercial Registry Directorate to obtain a document specifying the capital ratios, and then refer to the Planning Directorate in the governorate building in the concerned state to obtain permission from it.
3-Checking the specifications of the property in Turkey before buying it
In order not to be deceived by the price of the apartment, you have to compare the price requested for it and its conformity with the specifications on the ground, and the factors that determine its price are, for example, close to the coast, and if they are located near the public transport network, which this element is a factor that everyone is looking for, and as we mentioned previously That the apartment within the residential complex is more expensive than the normal apartment and this is a clear element to everyone, in addition to the view that the apartment enjoys plays an important role in giving it its real price, and moreover, the age of the building from its modernity works to determine the price of the real estate apartment in Turkey, the building is of age The modernity is more expensive than the old because it is less consumable, and finally there is an important factor that plays a role in determining the price of the apartment, which is a furnished apartment whose price is more than an empty apartment.
4-The cases under which contracts are canceled to own real estate for foreigners in Turkey
First of all, the contract to purchase a property in Turkey for a foreigner is canceled if the purpose or goal of the property is violated when buying it in the beginning of the matter, for example if the property was purchased in Turkey for the purpose of housing and stability and it was used for commercial business, the competent authorities will cancel the sale contract and consider it as if it was not, Also, real estate ownership contracts in Turkey are considered void in the event that it was bought in twisted ways far from the laws and regulations established in the country, in addition to that if the specified period for the start of the project expires and nothing has been implemented on the ground, the sale and purchase contracts for real estate in Turkey are absolutely non-existent. .
5-The problem of title deeds when owning real estate in Turkey for foreigners
There is a problem that the real estate buyer faces in Turkey and often he does not pay attention to it until it is late and the time has passed and passed, and it is the subject of the agricultural and residential title deed , or as they are called the red and blue tabu, the blue color is for the agricultural project and the red color for the real estate project, the blue title is given to whoever wants to buy And when the owner of the land wants to sell his land to an investor to build on it, for example, real estate in Turkey or residential complexes, this investor faces many problems caused by this bond, because whoever builds or buys residential real estate must have a red title deed, not a blue one, because the red is responsible About residential real estate, so the seller of the land had to turn the title deed from blue to red, so we must pay attention to such a matter because you will be asked how to build a property On land designated primarily for agriculture, the first owner of the land had to make a process of changing the title deed from agricultural to residential, thus avoiding the buyer falling into this problem that he has no part in.
6-Being aware when buying real estate in Turkey by foreigners
But there are things that you should pay attention to as a person who is proposing to buy real estate in Turkey, so caution is required, for example, when buying apartments in Turkey offered for sale, you should take caution about signing the purchase contract, so you must be within a legal department for this matter, as every contract signed outside it is considered null and void. He did not, and you must be careful not to buy a property on the plans without being personally present, because with this step you can easily cheat, and in the event that the contract is signed, you will not be able to withdraw absolutely.
7-Things that distinguishes real estate in Turkey from another real estate in other countries
- Many real estate experts talk about what Turkey’s real estate enjoys in general and Turkey’s apartments in particular from modernity and sophistication, in addition to applying seismic safety standards in their real estate. All this will not affect real estate prices in Turkey, as it is considered competition for many real estates in European countries.
- The real estate in Turkey is competing hard with many Arab and foreign countries, so we find that Turkey is full of real estate projects that attract real estate investors from outside Turkey, and it is worth noting that Turkey’s real estate and apartments are built by the most important engineers and specialists with the best building materials.
- The laws issued by the Turkish government in support of real estate investment were the reason why many investors have come to buy real estate in Turkey, and among these laws is the naturalization law in Turkey, which stipulates the granting of Turkish citizenship to everyone who invests in Turkey with one of the types of investment such as buying real estate in Turkey worth 250 thousand A minimum of US dollars, or a deposit of the equivalent of 500 thousand US dollars as a minimum in a Turkish bank, in addition to employing at least 50 Turkish employees.
- The Turkish government reduced taxes when investing real estate in Turkey, so the real estate taxes that any Turkish investor pays are equal to the real estate taxes that foreign investors pay when buying real estate in Turkey.
- Real estate investment options in Turkey, such as buying a property in a project under construction in a vital area, then selling the property after the end of the project at a higher price, and you can also buy an apartment in Turkey and rent it, ensuring a steady return for you, and among the options for real estate investment in Turkey is to buy an old property and make improvements to it and then sell it at a higher price
- Political and security stability, which in turn leads to political stability, and all this leads to the success of real estate investment.