Turkey is a country that is quite open to the sale of immovable properties to foreigners and offers many opportunities that attract international investors. Foreigners can buy property in Turkey, and this process is generally fast and easy. The regulations regarding the purchase of real estate in Turkey have been significantly liberalized with the new laws that came into effect in 2012.
When a foreign individual or foreign company wants to purchase property in Turkey, they need to follow certain procedures. As the first step, the foreign buyer researches the title deed record of the property they want to buy and checks the sales conditions by applying to a land registry directorate in Turkey. If the property falls into a category that foreigners can purchase, the buyer can apply for a title deed transaction.
Which Articles Are Included in the Law Regarding the Sale of Houses to Foreigners?
The sale of property to foreigners is regulated by the Turkish Tapu Law No. 2644. Article 35 of this law specifies the rights and restrictions of non-Turkish citizens when purchasing property. In 2022, amendments were made to this article. The new regulation introduced certain facilitations for individuals who wish to buy property in Turkey and sell property to foreigners. It is important for both parties involved in the sale transaction to be aware of the legal regulations. Foreigners who want to buy property in Turkey can seek information about the necessary laws by contacting the embassy or consulate in their respective country.
What are the Legal Limitations that Foreigners May Encounter While Buying a House?
There are certain legal restrictions that foreigners may encounter when buying property. These restrictions include:
- The total area of the purchased property cannot exceed 30 hectares. This limitation also applies to properties registered under different cities for the same individual.
- Property sales to foreigners are prohibited in military security zones and strategic locations.
- The total area of the properties cannot exceed a maximum of 10% of the district’s private ownership area.
- Sales in special security zones are subject to the approval of the governorship.
- The restrictions imposed by the law on the sale of residential property to foreigners may vary at certain times. In addition to the above points, the laws and regulations regarding property transfers apply to the sale of property to foreigners as well.
What are the Documents Required for Selling a House to Foreigners?
To sell a property to a foreigner, it is necessary to provide the required documents accurately. Having these documents completed is important for a smooth transaction process. The following is a list of documents that need to be declared during the sales process:
- Title deed or village/neighborhood, plot, building, independent section information
- Identification document or passport
- Real estate appraisal value document obtained from the municipality of the district where the property is located
- Real estate valuation report
- Compulsory earthquake insurance policy
- Photographs of the seller and buyer taken within the last 6 months (1 for the seller, 2 for the buyer)
- Power of attorney if the transaction will be carried out through a representative (must be issued by the Consulate or Embassy of the Republic of Turkey)
There are some important points to consider regarding the documents. If identification cards or passports are issued in languages that do not use the Latin alphabet, a notarized translation should be provided.
What to Know Before Selling a House to Foreigners?
There are several important points to be aware of before selling a property to a foreigner:
- There are various fees that need to be paid in the process of selling a property to a foreigner. The transfer process begins with the payment of these fees.
- Selling a property to foreign individuals may involve certain procedures, which can make the process lengthy. It is advisable to seek legal advice before proceeding with such a transaction.
- The sale of property to foreigners is subject to income tax. Sellers are required to pay a certain percentage of tax. According to 2021 figures, there is no income tax obligation for properties with a difference of less than 19,000 TL between the purchase and sale price. However, for sales with a difference above this threshold, there is taxation based on the increase in value. Selling property to foreigners involves sensitivity regarding tax obligations.
- The sale of property to foreigners is exempt from value-added tax (VAT). Amendments made in the Law on the Evaluation of Immovable Properties Owned by the Treasury (Law No. 7394) exclude the sale of residential properties to foreigners from the scope of VAT.
- The indebtedness of the property owner can also impact the sale transaction.
What is the Title Deed Fee in Turkey?
There is a title deed fee that needs to be paid by the seller and the buyer in the process of selling a property to a foreigner. This fee is determined based on the appraised value of the property. Two percent (2%) of this value is paid as the title deed fee. For example, if a property is sold for 300,000 TL and its appraised value is 6,000 TL, the title deed fee would be calculated based on this value. It is important to consider this fee when calculating the costs of purchasing a property, especially when making loan calculations.
How Many Days Does it Take to Sell a House to Foreigners?
The transfer process of selling a property to a foreigner involves registering the property in the title deed records. During this process, the relevant authorities conduct inspections, and if the application meets all the necessary procedures, it is approved. The sales process typically starts after the payment of the title deed fee and generally takes around 2-3 days. The duration of selling a property to a foreigner can vary depending on factors such as determining the appraised value and assessing the suitability of the property.
Which Country Citizens Can Buy a House in Turkey?
Turkey allows citizens of various countries, including the United States, United Kingdom, Canada, Dominican Republic, Senegal, Bangladesh, Pakistan, China, Saudi Arabia, Nigeria, Germany, France, Spain, and Portugal to purchase properties in the country. Non-Turkish citizens can inquire about their eligibility to buy property in Turkey by contacting the Land Registry Directorate or consulates. Additionally, foreigners have the right to apply for housing loans when buying property in Turkey. However, the buyer must meet the necessary conditions, and the property being sold must meet the loan criteria. The sales figures for property sold to foreigners in 2021 indicate a significant increase in this area. According to these figures, sales have increased by 31% compared to the previous year. Data obtained in March of the same year shows that properties sold to foreigners accounted for 4.1% of the housing market in Turkey.
For assistance in finding your dream home in Antalya, Turkey, and to obtain more information about the procedures involved, feel free to contact us. Get in touch with us now to make your dreams a reality!