What are the rights and obligations of non-residents when purchasing real estate in Turkey?

In this article, we will discuss various aspects concerning the rights and obligations of non-residents who have decided to invest in real estate in the Republic of Turkey. Since 2012, when the country abandoned the principle of reciprocity, citizens from various countries, such as Azerbaijan, Turkmenistan, Kazakhstan, Kyrgyzstan, and Uzbekistan, have been granted the right to acquire land and construction properties. A similar situation has also arisen for citizens of Belarus, Ukraine, and Russia, allowing both individuals and legal entities registered in Turkey to freely manage their real estate on par with local residents. At the same time, there are several restrictions.

Restrictions on real estate purchases

Foreign investors are not allowed to acquire plots exceeding 30 hectares, and their purchase in border areas is significantly restricted. This applies, for example, to certain regions of the Black Sea coast, such as Samsun, Trabzon, and Zonguldak. However, the interest of non-residents is often focused on Istanbul, as well as the Aegean and Mediterranean coasts, where almost any type of real estate can be purchased, significantly reducing the number of restrictions.

Rights of non-residents after acquisition

After foreigners become property owners in Turkey, they have the opportunity to obtain a residence visa, regardless of the value of the property purchased. If the price of the property is more than 250,000 US dollars, the investor can apply for Turkish citizenship. However, owners of residential properties are required to pay an annual property tax, and for properties valued over 620,000 dollars, there is an additional luxury housing tax. This is also true if foreigners plan to rent out their property, as various nuances regarding short-term rentals need to be taken into account.

Tax obligations when owning real estate

Let's take a closer look at the tax obligations that arise at different stages of property ownership. When purchasing such property, non-residents must consider the applicable tax regulations at the time of the transaction. Additionally, owners are required to pay property taxes, which vary depending on the assessed value of the properties.

Factors influencing taxes

• Location of the property
• Type of housing
• Technical specifications of the objects

The amount of tax can be influenced by various factors, including location, type of housing, and its technical parameters. For example, in resort areas, taxes can differ significantly from those set for urban properties. This may create a need for additional consulting assistance to avoid unexpected tax consequences.

Taxes on rental property

When it comes to taxes on rental properties, non-residents should pay attention to the rules regarding income tax on rental income. The conditions may vary depending on the location of the property and its market value.

Taxes on the sale of real estate

Regarding the sale of real estate, there are also tax obligations related to capital gains. Taxes may vary for residents and non-residents depending on the location and type of the property being sold.

Inheritance and gift taxes

In addition, one of the important roles is played by inheritance and gift taxes, which can vary depending on the assessed value of the property, as well as the familial relationships between the donor and the recipient. The country's legislation also adds its nuances to this process.

Optimization of tax payments

There are ways to minimize tax liabilities that foreign owners can take advantage of. For example,

• Proper transaction documentation
• Using the services of local tax specialists
• Consultations with lawyers on tax issues

can help with tax planning.

Conclusion

Considering all of the above, non-residents should prepare in advance for potential financial consequences. Investments in Turkish real estate attract many people, and by understanding all the nuances, one can achieve significant benefits. We recommend paying attention to various regions of Turkey to choose the most convenient place for living and investing. For example, Istanbul and the Aegean coast are known for their high standard of living and attractive conditions for investors.

We are pleased to share with you wonderful opportunities for purchasing real estate in Turkey. In particular, we present a magnificent penthouse in Alanya, located in the Kestel area, priced at 152,500 euros. This cozy living space has a total area of 90 square meters and includes three bedrooms and two bathrooms. One of the main advantages of this purchase is the possibility of obtaining a residence permit (RP). You will be able to arrange an online property viewing and complete the purchase process remotely, as well as make the payment in rubles.

Description of the residential complex

This new residential complex, which includes a penthouse, is located just 750 meters from the sea, away from the hustle and bustle of popular resort hotels with their restaurants and shops. The complex is surrounded by picturesque nature and the Dim Chai River, creating an atmosphere of tranquility. Additionally, for families with children, there are two private schools nearby, including the international Russian-speaking "Classica-M," as well as supermarkets and a go-karting center.

Other suggestions

Another remarkable offer is an apartment in Alanya priced at 219,000 euros. It has an area of 49 square meters, which includes two bedrooms and a bathroom. This complex is designed in a resort style and is located in the picturesque area of Avsallar. It consists of 44 well-designed apartments and penthouses, all of which overlook a magnificent lagoon pool and well-maintained gardens with palm trees and exotic plants. The complex is being built from five blocks with a unique architectural concept.

In our portfolio, we can also offer an apartment in the Kestel area for 185,000 euros. The area of this property is 75 square meters and includes three bedrooms and two bathrooms. Layout options are available as 2+1, 3+1, and 4+1, with sizes ranging from 75 to 155 square meters. The complex, which is scheduled for completion in 2023, features a large fenced area and is just 400 meters from the beach. All necessary urban infrastructure is within walking distance.

Luxury real estate

If you are interested in more prestigious real estate, take a look at the villa in Alanya priced at 900,000 euros. This property will have an area of 260 square meters and is scheduled for completion at the end of 2023 — construction is set to begin in October 2022. The project includes villas with 3+1 and 4+1 layouts, each of which will feature high-quality finishes and modern materials.

Spacious options

For those looking for more spacious options, we have a two-level apartment in Alanya for 320,000 euros. The total area of this property is 160 square meters, and it also offers the possibility of obtaining a residence permit upon purchase. The apartment is located 450 meters from the beach on a small hill surrounded by banana plantations. This area, close to the famous Cleopatra Beach, is perfect for those dreaming of living in close proximity to one of the best beaches in the region.

Another interesting option is a new apartment with an area of 110 square meters in Alanya, priced at 242,000 euros. It features three bedrooms and two bathrooms. The apartment is located on the third floor of a four-story building that was completed in November 2022. This property is suitable for both permanent residence and vacation.

Conclusion

Each of these offers opens up unique opportunities for a comfortable life in sunny Turkey. These properties are excellent investment options and could become the perfect place for your new home. Don't miss the chance to enhance your quality of life by choosing a cozy spot on the coast and enjoying the pleasant climate and a variety of cultural offerings.

Apartment description

The apartment design includes a cozy living room connected to the kitchen, two separate bedrooms, two bathrooms, and two balconies.

Real estate in Turkey offers a variety of unique options for those looking for apartments and villas in attractive investment regions. Let's take a closer look at one interesting offer — an apartment in Mersin. Its price is 97,000 euros, and the area is 95 square meters. This property is located just 350 meters from the sea in the Teje area, which is very popular among foreign investors.

The infrastructure in this area is well-developed, and the availability of gas supply ensures a high level of comfort in life. Other important features include:

• Use of fire-resistant pumice;
• Improved elevator system;
• Fire safety measures;
• Generator for uninterrupted power supply.

All of this creates the perfect conditions for comfortable living.

Villas in Alanya

If you are interested in more luxurious options, you should consider the magnificent villa in Alanya, which is priced at 700,000 euros. This spacious residence covers 300 m2 and includes five bedrooms and an open-plan kitchen, providing a harmonious blend of style and comfort.

The villa also offers four bathrooms and toilets, creating all the conditions for a comfortable stay for a large family.The design of the living space is focused on creating a cozy atmosphere.that promotes relaxation and calmness.

Apartment in Antalya

Another attractive option is an apartment in Antalya, offered for 150,000 euros. This is a great opportunity to own a stylishly designed one-bedroom home in the picturesque Hurma area.

The complex offers amenities within a gated area, combining them with a relaxation zone. This location in a quiet area makes it ideal for comfortable living.

Apartments in Istanbul

For lovers of panoramic sea views, apartments in Istanbul are recommended, offered at a price of 1,105,000 euros. These 160 m2 apartments feature four bedrooms and are fully equipped, including three bathrooms.

They are located in the Beşiktaş area, which offers a magnificent view of the Bosphorus and easy access to the city center. Beşiktaş is also famous for its bridge that connects the European and Asian parts of Istanbul.

Spacious apartments in Antalya

If you are looking for spacious apartments in Antalya, you should consider the offers in the Altintas area. Here you can find a property for 174,000 euros with an area of 95 m2, including three bedrooms, making this choice ideal for a family.

Altyntash has been recognized as one of the most attractive places for real estate investment in recent years, and its convenient location just 300 meters from the main road provides quick access to all essential urban services.

Available options

Don't miss the opportunity to buy an apartment in Turkey for 67,000 euros with an area of 65 m2. This is a great alternative for those looking to make a profitable investment in affordable housing with high potential for price growth.

Finally, an interesting villa in Fethiye priced at 462,625 euros is located in the picturesque Armutalan area by the sea, offering a unique opportunity for those who dream of living in an attractive location like Marmaris.

Each of the presented offers is a unique opportunity to invest and create a comfortable home in sunny Turkey.Don't miss the chance to become a property owner in this amazing country!

Villa with a 4+1 layout

The 4+1 villa layout is a wonderful solution for those who want to accommodate guests or rent out the apartment. Inside, this type of housing includes four cozy bedrooms, providing each resident with a comfortable space for relaxation and personal privacy. Mortgage agencies offer various real estate options to choose from, providing over 17,000 similar properties.

Registration and taxes when purchasing real estate in Turkey

When purchasing real estate in Turkey, it is important to remember the property registration tax, which amounts to4%from the cadastral value of the property specified in the ownership documents, known astapIn most cases, this cadastral valuation turns out to be lower than the actual market price. This tax applies to all buyers, whether they are foreigners or locals, which makes the process of registering property rights clear and accessible.

Who pays the tax?

Although theoretically the tax can be shared between the seller and the buyer, in practice in Turkey it...90%In all cases, the entire amount is paid by the buyer, regardless of their citizenship. As for foreign investors, they need to consider one nuance: when obtaining the title deed, they will have to pay a fee known asrevolving fund, which amounts to1 125Turkish lira (about133 US dollarsFor Turkish citizens, this fee is much lower —392Turkish lira (approximately)46 dollars).

Annual property taxes

In addition, one cannot forget about the annual taxes associated with property ownership. For foreigners, these taxes are the same as those paid by Turkish citizens. The property tax, which is referred to in Turkey asproperty taxIt depends on the type of property and its location.

Tax rates by types of properties

• Residential properties (villas, apartments):0.1%in the provinces and0.2%in large cities.
• Commercial real estate (offices, restaurants, shops):0.2%in the provinces and0.4%in large cities.
• Land plots (without building permits):0.1%in the provinces and0.2%in large settlements.
• Land plots (with building permits):0.3%in the provinces and0.6%in large cities.

Tax calculation

It is important to note that the tax is based on the cadastral value listed in the property register, which is often significantly lower than the actual price agreed upon during the transaction. Therefore, the annual tax amount is usually minimal and rarely exceeds120-150 dollarsper year.

Payment of tax

Payment of the tax can be made in one of two ways: in one installment or in two - by the end of May and by the end of November. To do this, you will need to visit the local authorities.municipality) from the tap, where you will be informed of the tax amount and provided with the necessary payment details. There is also the option to pay the tax through the city’s online portal, which significantly simplifies the entire process.

Conclusion

Once all tax obligations are fulfilled, you will be able to focus on organizing comfortable living or successfully renting out your property.

Property taxes in Turkey for foreigners

Real estate in Turkey is subject to taxes that apply to both foreigners and local residents. In 2019, the country's government introduced a new tax regime for expensive properties, with prices starting from 5.25 million Turkish lira (approximately $620,270). The estimated value for the property appraisal is usually determined by the General Directorate of Land Registry and Cadastre.

Property tax rates

The property tax rates depending on its value are as follows:

• For residential units, the cost of which ranges from 5.25 to 7.87 million Turkish lira (equivalent to a range of 620,270 to 929,810 dollars) — the tax rate is0.3%.
• For properties priced between 7.87 and 10.5 million Turkish lira (from 929,810 to 1,240,533 dollars) — the rate is set at0.6%.
• For elite real estate, whose value exceeds 10.5 million Turkish lira (over 1,240,533 dollars), the tax is fixed.22,500 Turkish liraApproximately2,660 dollars) plus1%from the amount exceeding the specified limit.

The process of paying taxes

The process of paying taxes can be divided into two stages:

• The first payment must be made by the end of February of the year.
• The second one is by the end of August.

Features of taxation

There are several features to keep in mind. If a technical passport has not been obtained for the building, it will be considered a "site with a construction permit." Once this document is issued, the property will automatically be transferred to the residential group with a change in the tax rate, which may also lead to an increase in the cadastral value of the apartment.

Penalty for non-payment

In case the tax is not paid by the due date, a penalty will be charged: an additional fee is added for each month of delay.1.4%Regarding debt. For individuals who are retired, unemployed, as well as for women who hold citizenship or residency in Turkey, there is an opportunity to take advantage of tax benefits or even complete exemption from tax payments, depending on their financial situation.

Taxes on rental property

Additionally, it is important to pay attention to the tax obligations related to renting out property. According to Turkish legislation, foreigners can offer their real estate for long-term rental. However, it should be noted that the rental agreement must be notarized, and the tenant must be registered at their place of residence with the Civil Registration and Citizenship Office (nüfus müdürlüğü). If the tenant does not have Turkish citizenship, their registration will require a foreign identification number (yabancı kimlik numarası), which is issued to those who have been in the country for more than six months based on their residence permit.

Restrictions on short-term rentals

In addition, starting from January 22, 2017, a law was enacted in Turkey that imposes restrictions on short-term rentals. Now, only legal entities with special licenses are allowed to engage in such activities. Therefore, for ordinary investors who have purchased several apartments on the coast, it may be difficult to rent them out for short periods.

Alternative rental options

Due to these changes, they may need to consider other options, such as:

• Long-term rental.
• Acquisition of real estate from companies that have the appropriate permit for short-term rentals.

Conclusion

In conclusion, it can be said that investing in real estate in Turkey offers foreign residents a wide range of opportunities for both property use and obtaining citizenship. With the introduction of regulations allowing citizens from 129 countries to purchase real estate, Turkey is opening its doors to foreign buyers, which contributes to economic development and strengthens international ties.

However, before making a transaction, each investor should carefully examine all tax obligations and potential restrictions that may affect the future use and disposal of the property. For example, sellers should consider:

• resale tax;
• features of taxation for luxury real estate;
• nuances related to renting.

It is important to note that, despite the existing restrictions on the size of land plots and the location of properties, foreign buyers are mainly interested in purchasing apartments and villas in the most popular regions, such asIstanbuland the coastAegeanandMediterraneanseas. This makes investments more attractive, especially considering the possibility of obtaining permanent resident status and even citizenship upon meeting certain conditions.

Thus, the rights and obligations of non-residents in the real estate sector in Turkey represent a complex yet fascinating process. I hope the information provided will help you navigate this issue better and make an informed choice. If you are considering investing in Turkish real estate, I strongly recommend consulting with qualified professionals to avoid unnecessary risks and make the most of the opportunities available.