The Republic of Turkey is a state with a rapidly developing economy, powerful recreational potential, and a favorable environmental situation. Buying property in Turkey is one of the ways to make a profitable investment. Prices for it are available for immigrants from the CIS countries. In addition, the procedure for acquiring real estate has been simplified in recent years.
What kind of real estate can be bought on the territory of the Republic of Turkey
Many foreigners who have visited Turkish resorts are thinking about opening a business in this country. A large flow of tourists throughout the year, unique climatic conditions, legislation loyal to foreigners - all this contributes to the successful running of your own business.
Depending on the direction of the business, you will need to purchase certain commercial real estate. This category includes land and the following types of premises:
- office;
- hotel;
- restaurant;
- trading;
- warehouse;
- garage;
- industrial.
Commercial real estate purchased by a foreigner in the territory of the Republic of Turkey can be owned by him as an individual - it is not necessary to register your company.
For those who wish to move to the country for permanent residence or have a place for an annual family vacation, the best solution would be to purchase non-commercial real estate. It:
- private dwelling houses;
- villas on the seaside;
- cottages at the foot of the mountains;
- apartments (standard and luxury real estate in Turkey).
It is noteworthy that in 2021, a law appeared in the country, according to which only legal entities with a license for this type of activity have the right to lease objects for short-term rent (for example, daily). Wherein:
- this legal entity must manage part or all of the building in which all rooms are rented;
- the object can be designed for at least 30 rooms;
- the building must have the status of an apart-hotel with all the necessary infrastructure elements;
- a legal entity needs to be registered with the police, have access to the registration system of residents.
According to local authorities, the adoption of this law was necessary as part of the program to combat terrorism. Private houses and apartments for rent were often rented by criminals.
Foreign individuals have the right to rent out houses and apartments:
- for a long term (for this, a contract with the tenant must be signed and notarized for at least 12 months, and he himself must be officially registered at this address);
- through a management company (your own real estate must be transferred under the management of a Turkish company that has a license to rent housing to guests).
You can buy real estate in Turkey from a developer or on the secondary market. It is generally accepted that buying real estate in the primary market is more profitable than in the secondary one. After all, the client has the opportunity to choose exactly the layout that suits him completely, to make repairs on his own. Also, modern Turkish new buildings are distinguished by higher quality materials than buildings built earlier, which means they are more reliable.
Current situation in the Turkish real estate market
The real estate market in Turkey has been characterized by an increase in the percentage of real estate sales to foreigners since 2021. Not least of all, this was facilitated by the abolition of the so-called principle of reciprocity.
If earlier, housing or commercial real estate in the territory of the Republic of Turkey had the right to acquire only citizens of those countries in which the Turks were allowed to buy real estate, then from 2021 this restriction at the legislative level was removed.
According to the new law, the ban on the acquisition of real estate in Turkey applies only to Ukrainians and Russians and the region of the Black Sea coast of Turkey: the cities of Sinop, Samsun, Trabzon, Tokat, Zonguldak, Giresun, Karabuk, Gumyuchkhane, Kastamonu, Rize, Ordu, Artvin, Amasya, Bolu, Bartin, Duzce, Chorum, Bayburt.
From January to November 2021, the number of houses and apartments sold to foreigners in Turkey exceeded 35,000, according to information provided by the Turkish National Statistical Agency TurkStat. During November 2021 alone, citizens of other countries purchased 4,672 objects here.
The most popular property was in Istanbul. In November 2021, 1,922 objects were sold to foreign buyers here. For comparison: in Antalya - 797 objects, in Bursa - 301 objects. The largest number of deals were with Iraqis, Iranians and Russians.
On the other hand, in November 2021, there was a downward trend in the percentage of mortgage sales of real estate in Turkey (foreigners obtained the right to buy real estate in this country on a mortgage back in 2007). The number of sales in this period fell by 85.7% and in general amounted to 5.9% of the total number of properties sold.
The beginning of 2021 was marked by the departure of developers to other markets due to the depreciation of the lira and the contraction of the domestic market, as well as the rise in property prices.
To stimulate customers' desire to buy a house in Turkey (or an apartment), local state banks (Ziraat Bank, VakıfBank, Halkbank) announced a reduction in mortgage rates in 2021.
Thus, a buyer purchasing real estate worth up to 500 thousand lira (equivalent to 93.7 thousand dollars) will be offered a monthly interest rate of 0.98%, as well as a maturity period of 120 months.
Property tax in Turkey
In the Republic of Turkey, it is necessary to pay a one-time tax when buying and selling an object, as well as annually in the process of owning it. When completing the transaction, the seller and the buyer must in general pay 3.3% of the value of the property, that is, 1.65% each.
Then the owner of the property must annually contribute to the state treasury from 0.1 to 0.6% of its value. The exact rate depends on the type of property and the area in which it is located:
| Property type | in provincial settlements,% | Tax rate in large and resort settlements,% |
|---|---|---|
| Residential object | 0.1 | 0.2 |
| Commercial object | 0.2 | 0.4 |
| Plot of land without a permit for construction work | 0.1 | 0.2 |
| Plot of land with permission to carry out construction work | 0.3 | 0.6 |
Thus, a foreigner planning to buy a villa in Alanya, Antalya, Istanbul and other cities where the demand for real estate is especially high should be prepared for the fact that the tax rate for him will be doubled. Real estate tax is paid twice a year - the amount is divided into equal parts.
Where to look for real estate ads
You can buy real estate in Turkey on your own or ask for help from the employees of specialized agencies that offer intermediary services in the sale and purchase of housing and commercial properties.
Those who have decided to buy real estate without intermediaries have several ways to find a suitable option:
- through friends living in the territory of the Republic of Turkey;
- in print media (newspapers, thematic brochures);
- on the Internet on message boards and advertising platforms (for example, yana-property.com, ee24.ru and the like);
- on specialized sites. The popular Turkish real estate website is www.vestaestate.com/about.
For those who want to save personal time, the best option is cooperation with a specialized intermediary agency. Among the most famous and reputable companies are Arbat Homes, Sinan Group, Ataberk Estate.
To save on realtor's commission, you can directly contact a Turkish developer. Among the most reliable: Ağaoğlu, Sınpaş Gyo, Dap Yapı, Tepe Inşaat, Torunlar Gyo, Folkart, Sur Yapı, NEF, Emlak Konut Gyo, Teknık Yapı.
Purchase procedure
A foreigner who plans to become the owner of real estate in the territory of the Republic of Turkey in 2021 should familiarize himself with the procedure for its registration. The procedure for buying an apartment in Turkey (or other object) includes the following steps:
- Signing a bilateral agreement between the buyer and the seller. The document is drawn up in two languages: Turkish and the state language of the buyer's country. To sign the contract, a foreigner will only need his foreign passport. The seller is obliged to attach to the document a certificate confirming his ownership of the object (TAPU). Before concluding a transaction regarding secondary real estate, it is worth asking the cadastral department if it has a debt history. If a newly built property is purchased, it is important to be sure that the developer is licensed to carry out their activities. The buyer must immediately pay a deposit, which is 5 to 10% of the total value of the property. In case of cancellation of the transaction, the refund of the deposit is not provided.
- Obtaining an individual tax number (TIN) in Turkey. Registration of real estate is impossible without it. To obtain a TIN, a foreign buyer with a foreign passport must contact the local tax office, draw up an application and wait a few minutes for him to be assigned a number.
- Opening an account in a Turkish bank. To do this, a foreigner needs to present a passport, an internal passport with a residence permit and a TIN obtained in Turkey. It is not necessary to put money on this account right away. It will be convenient to pay the transaction with it, and then regularly pay utility bills.
- Payment for the transaction. It can be done by bank money transfers or in cash, immediately in full amount or in parts (depending on what is specified in the contract). If the transfer is sent from a banking institution in Russia, a sales contract may be required.
- Obtaining a certificate of ownership of the object (TAPU). After full payment of the transaction and taxes, the parties must arrive at the Cadastral Department, where the transfer of ownership from the seller to the buyer takes place.
After receiving the TAPU certificate, the new owner of the facility can enter into contracts with companies that are suppliers of utilities.
How much does it cost to live in Turkey
The question of how much an apartment in Turkey (or other type of housing) costs is of interest to many potential foreign buyers. Average prices for 2021 are shown in the table below.
| Property type | Price in dollars | Price in rubles |
|---|---|---|
| Apartment in a new building | 1,050 (per 1 m2) | 70 372 (for 1 m2) |
| Resale apartment | 800 (for 1 m2) | 54,163 (for 1 m2) |
| Private house (cottage) | 300 000 | 19 556 338 |
| Penthouse (villa) | 600 000 | 39 801 501 |
Since the beginning of 2021, housing prices in the Republic of Turkey have undergone changes. So, apartments on average rose by 4.22% (by 3.82% - secondary, by 4.63% - in new buildings). On the contrary, the value of private houses decreased by 0.61%.
Popular regions and property prices
In terms of demand for real estate from foreigners, as before, Istanbul is in the lead. The average cost of 1 m2 in this city is about 2.8 thousand dollars, and in one of its most popular districts Besiktas - from 4.2 thousand dollars.
Many Russian citizens prefer purchasing real estate in such resort cities as Antalya, Bursa, Marmaris, Fethiye, Mersin, Kemer, Alania:
- For example, in Alanya and Antalya, 1 m2 is inexpensive - an average of 700-800 dollars.
- Secondary housing in Antalya can be purchased for $ 500-600 per 1 m2.
- The most economical option is the Mahmutlar district in Alanya. Here prices for apartments on the secondary market start from 400-500 dollars per 1 m2.
- In Bursa, Mersin, Kemer, for 1 m2 you will have to pay from 1.1 thousand dollars, in Marmaris, Fethiye - from 1.2 thousand dollars.
Those wishing to purchase a hotel in Turkey will find the cheapest mini-hotel in the Marmaris area of Alanya. The average price of such an establishment is about $ 1.1 million. A three-star hotel in Kemer costs about the same.
You can buy a hotel in the center of Alanya for 11-19 million dollars (depending on the area and the number of stars).
Is it possible to obtain a residence permit or Turkish citizenship by purchasing real estate
Foreigners who own real estate in the territory of the Republic of Turkey can apply for a short-term residence permit (residence permit). The cost of the object does not matter.
Both those who have luxury apartments or apartments on the seashore and those who have purchased inexpensive urban secondary housing can apply for a residence permit. In this case, a residence permit is granted for a period of 12 months. After their expiration, the status needs to be renewed.
If several people apply for a residence permit (for example, husband, wife, children), all of them must be entered in the certificate of ownership of the property.
If the property is registered only for the wife, the rest of the family will need to apply for a family residence permit.
After living in Turkey for 5 years, you can apply for citizenship. A foreigner can get a Turkish passport even faster - for this you need to buy real estate worth over 250 thousand dollars and own it for 3 years.
Buyers who have invested more than $ 1 million in Turkish real estate are eligible to apply for the citizenship of this country immediately.
Does it make sense to buy property in Turkey
Whether it is worth buying an apartment in Turkey is a question that worries many Ukrainians, Russians, citizens of Kazakhstan and other CIS countries who want to make a profitable investment abroad. According to experts, the volume of real estate sales to foreigners in the Republic of Turkey will increase throughout 2021.
It is worth buying a house or a commercial facility on the territory of a given state, since there is observed:
- Constant economic progress. Even despite the collapse of the lira last year, Turkey has managed to remain among the European leaders in terms of economic growth. The government has forbidden to raise prices for a number of goods, banks have announced a reduction in interest on loans and mortgages, the state is doing its utmost to promote the development of private business - and this is not a complete list of advantages.
- The rapid development of medicine: 2021 was marked by the opening of 40 new medical centers in the country. The quality of treatment here is comparable to that in Europe, but the prices for medical services are lower than in Europe.
- High quality education. Diplomas issued by Turkish universities are quoted in other countries. Many educational institutions are among the best not only in the region, but also in the world.
- Stable development of the tourism sector. The number of travelers coming to Turkey on vacation is increasing every year. Therefore, here you can rent out real estate and count on employment in the tourism sector.
If a foreigner who owns real estate in the territory of the Republic of Turkey discovers any disadvantages from this, he will be able to sell his property at any time and even get up to 20% profit.
Outcomes
Turkey is a country that encourages investment from abroad. The government supports foreigners wishing to invest in local real estate by offering them reduced mortgage interest rates, favorable tax rates, the opportunity to obtain a residence permit under a simplified scheme, and citizenship.
A rapidly developing economy, medicine, favorable educational and social spheres, a healthy environmental situation are not a complete list of reasons why you should make a choice in favor of buying Turkish real estate.
