- Why Do Foreigners Choose to Buy Real Property in Turkey?
- What are The Rules for a Foreigner Wishing to Buy Property in Turkey in 2023?
- What is New In Legislation on a Foreigner’s Citizenship and Investments in Real Property in Turkey in 2023?
- How Can a Foreigner Buy Off-Plan Property in Turkey?
- What Property Can a Foreigner Buy to Obtain Citizenship in Turkey?
- What Property Cannot a Foreigner Buy to Obtain Citizenship in Turkey?
- What are the Rules for a Foreigner Looking to Buy Property In Shared Ownership in Turkey in 2023?
- Can a Foreigner Buy Property On Credit in Turkey?
- What are the Encumbrances on Foreigners Who Buy Property in Turkey for Citizenship?
- How Long Does It Take for a Foreigner to Obtain Citizenship by Property in Turkey?
- How Can a Foreigner Buy Property in Turkey and Obtain Citizenship?
- How Can a Foreigner Buy Property in Turkey and Obtain a Residence Permit?
Most foreigners who buy property in Turkey wish to obtain a second citizenship or a residency permit. Why in Turkey? This article examines the benefits and the process of purchasing real estate in Turkey with reference to the latest changes in the legislation, including the Turkish Citizenship by Investment (CBI) program.
Whether you’re looking for a long-term investment or a vacation home, a decision to buy real property abroad can be a smart financial move. It can yield a multitude of benefits, including the opportunity for a second citizenship and residence permits. Look up our posts, contact our experienced professionals, and discover great deals on a variety of properties, such as houses, apartments, and commercial buildings.
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Why Do Foreigners Choose to Buy Real Property in Turkey?
- Turkey welcomes foreigners, regardless of their country of origin, even during uncertain or difficult times.
- Property in Turkey can yield significant profits from rental income or subsequent resale.
- Citizenship or long-term residence visas can be obtained if you buy property in Turkey. The Citizenship by Investment Program (CBI) in Turkey is one of the most affordable on the market.
- Foreigners who buy real property in Turkey through the Citizenship by Investment program can be entitled to the same rights as local citizens.
- Turkey’s geography enables easy expansion of business and entry into the global market.
- The climate in Turkey is ideal for those who enjoy sunny weather and the seaside.
- Foreigners and their families (including dependent children and spouses) can acquire Turkish citizenship after they buy some local property that meets certain criteria.
- There are many expat communities and English-speaking educational institutions to facilitate adaptation.
- Applicants for Turkish citizenship are not required to reside in Turkey, and there is no minimum stay requirement.
- Under the investment program, after a foreigner buys and retains some property in Turkey for at least 3 years, he/she can obtain a Turkish passport. There is no mandatory language test. There is no requirement for permanent residence in the country.
- Foreigners who buy property in Turkey and obtain Turkish citizenship enjoy the right to visa-free travel to 125 countries.
- Turkish citizens who have resided in Turkey for at least 3 years can apply for US residency. This is due to the E-2 Visa treaty between Turkey and the USA
Please look up our website for experts’ posts about Turkey and its advantages for foreigners who want to buy a property and obtain citizenship in this fantastic country.
What are The Rules for a Foreigner Wishing to Buy Property in Turkey in 2023?
In 2022, the Regulation on the Implementation of the Turkish Citizenship Law was amended by the Department of Foreign Affairs. Besides, the General Directorate of Land Registry and Cadastr in Turkey introduced the new Code and Regulation on how foreigners can buy real property to obtain citizenship. It came into effect in 2023.
Here are the basic provisions of the current legislation on citizenship/residency and investment issues in Turkey:
Foreigners can buy real estate in Turkey for residency, rental, and recreation, except in military zones.
If the value of the property bought is below USD 400,000, foreigners can obtain only a residence permit (not citizenship in Turkey).
Real property owned jointly by more than 1 foreigner cannot be subject to citizenship in Turkey. This means that a foreigner can’t become a citizen just by buying a share of the property, no matter how much the property value is.
A foreigner needs to invest at least USD 400,000 into qualifying property in Turkey.
A foreigner’s application for citizenship in Turkey can be based on any number of immovable properties acquired through sales, provided that their collective value exceeds USD 400,000 and at least one property is worth USD 400,000. All the purchased units need to be part of one contract, i.e., to be part of the same project.
While a single pre-sell contract can include multiple properties, only 1 pre-sale contract can be attached to the application for citizenship by investment in Turkey.
Foreigners cannot buy real estate in Turkey if it exceeds 10% of the total assessed value of a single property or development project.
A foreigner cannot obtain citizenship by buying some property from another participant of the Citizenship by Investment Program (CBI) in Turkey. This means the property needs to have been owned by a Turkish citizen for at least 3 years. Any property participating in the CBI program can be part of this program only once.
The foreigner cannot resell the property back to its previous Turkish owner within 3 years of obtaining citizenship in Turkey.
The foreigners who buy some property to obtain citizenship in Turkey through investment will not be allowed to sell this property to other foreigners wishing to obtain Turkish citizenship.
Citizenship in Turkey cannot be granted to a foreigner who buys some property from a legal entity whose Board member this foreign citizen is or if this foreigner holds over 50% of its shares.
Citizenship applications in Turkey can be approved when the foreigner buys the mortgage, provided that the investor’s capital invested in the property is at least $400,000.
Citizenship or residence permits cannot be granted to foreigners who buy property in high-density areas (listed on the Turkey Presidency of Migration Management website)
Any foreigner going to buy some property in Turkey needs to get an expert surveyor’s report from a certified surveyor.
Apart from the above-listed norms, some other provisions apply. You can learn about them from our posts or during a session with our expert.
What is New In Legislation on a Foreigner’s Citizenship and Investments in Real Property in Turkey in 2023?
Foreigners can buy property in Turkey following the same procedure as before 2023. However, if they wish to obtain a residence permit or citizenship they need to choose the right property and be aware of the recent amendment to the Turkey citizenship legislation.
Please note that the valuation of real estate in Turkey for foreign investors is based on the appraised value and not on the sales contract or cadastral value.
How Can a Foreigner Buy Off-Plan Property in Turkey?
In Turkey, the real estate purchase agreement is typically done at the Office of the Cadastre and Tapu. However, if you buy an off-plan property (i.e., the property under construction), you’ll sign a notarized contract with the developer. Once you pay for the property and complete the required procedure, you can get a Turkish passport.
According to the new rules in force since 2023 regarding off-plan property acquisition, foreigners can only obtain citizenship through a single notarized contract of sale that may include multiple properties. They can’t get a residence permit or citizenship in Turkey by buying multiple properties from different companies.
If you’re buying some property in Turkey, you can have multiple units included in the sale, but they all have to be listed in the same contract. And you have to pay for everything in full on the day you sign the contract.
Lifehack: if you’re not going to obtain citizenship in Turkey, you don’t have to get the contract notarized.
NB! The hereby rules only apply if you wish to buy an off-plan property in Turkey through a notary public and sign a contract during the development stage. If the property is already registered at the Cadastre and Tapu Office, these rules don’t apply.
We invite you to explore our offers of affordable real property in Turkey hand-picked for foreign buyers. Take advantage of the professional help of our experts in real estate and citizenship matters – to get the most out of your investment.
What Property Can a Foreigner Buy to Obtain Citizenship in Turkey?
If you already have a property in Turkey in the right area and hold the right executed property deed (Tapu), while its value is not high enough for you to apply for permanent residency and a passport, you can buy another property to improve your chances for citizenship.
However, you hneed to be aware of certain nuances.
For example, if your property in Turkey is registered in the Office of the General Directorate of Land Registry and Cadastre, you will have no issues when applying for citizenship by investment, and its value will qualify.
On the other hand, your property will not qualify if you are planning to buy a unit in a house/area under construction in Turkey and draw up a contract before a public notary. It won’t be eligible for the Turkish citizenship program for foreigners. This is because the contracts for the first and subsequent properties will be different.
What Property Cannot a Foreigner Buy to Obtain Citizenship in Turkey?
In the past, both Turkish citizens and companies were allowed to sell real properties to foreigners who wanted to buy them to obtain citizenship in Turkey. As of today, the rules have changed and there are more restrictions as to who can sell real estate to a foreigner.
Starting from January 2023, there are new rules for selling real estate in Turkey to foreigners:
- The Turkish next of kin of a foreign buyer cannot act as the seller of the property.
- A foreigner cannot buy a property in Turkey that in the past used to be owned by this foreign buyer or his kin.
- A foreigner cannot buy a property in Turkey if it has been traded during the 3 previous years between the foreigner (seller) and the current owner (buyer).
- A foreigner cannot buy a property if it has already participated in the CBI program in Turkey.
- A foreigner cannot buy a property in Turkey if it is owned by a company in which this foreign buyer or his/her kin is a Board member, or he/she owns over 50% of its shares.
The above-listed stipulations are to prevent multiple deals with the same property between parties interested only in obtaining citizenship in Turkey.
What are the Rules for a Foreigner Looking to Buy Property In Shared Ownership in Turkey in 2023?
Foreign nationals can buy property in shared ownership in Turkey quite freely. But they cannot do it under the CBI program. In the past, two or more families could buy one expensive villa and apply for permanent residence in Turkey without obstacles, but in 2023, this will not work.
Only 1 foreign owner (family) can buy (acquire the title to) a single property in Turkey to qualify for Turkish citizenship
However, if participation in a citizenship investment program is not a priority for you, you can profitably buy a holiday home in Turkey on fractured ownership terms or with an equity stake.
Can a Foreigner Buy Property On Credit in Turkey?
Foreigners can buy property in Turkey to become citizens through an investment (CBI) program, even if they apply for a mortgage. However, it would not be easy to meet the requirements of the program, despite the laws that allow it in principle.
In 2023, a foreigner who is going to buy property on credit in Turkey needs to comply with the following terms:
- The loan amount must be subtracted from the total amount of the deal.
- The remaining balance must be at least USD 400,000 and this will be considered the value of the property under the CBI program in Turkey .
Banks in Turkey may impose a mortgage encumbrance on the property, which could considerably exceed the actual property value. As a result, the deductible amount may be higher than the loan amount.
Moreover, in Turkey, foreign buyers of real estate on credit must have a Döviz Alım Belgesi certificate to sell currency. This certificate is mandatory, but after deducting the loan amount, the remaining amount may not be enough to qualify for citizenship.
To simplify the process of buying property in Turkey and avoid confusion in banking transactions, we recommend that foreigners open a bank account in advance and seek the advice of our experts.
What are the Encumbrances on Foreigners Who Buy Property in Turkey for Citizenship?
This point remains important for foreigners who are new to buying property in Turkey in 2023. To be eligible for Citizenship by Investment (CBI) program, it’s necessary to submit documents in person to the Office of Cadastre and Tapu where the transaction was registered.
If you purchased multiple properties in Turkey, you should choose the office where the largest number of transactions took place.Please note that you cannot submit documents to the Cadastre if they have not been part of the transactions.
It’s important to remember that foreigners can sell their property in Turkey only after 3 years of ownership and only after the restriction is removed.
How Long Does It Take for a Foreigner to Obtain Citizenship by Property in Turkey?
Foreigners who buy residential or commercial property in Turkey hoping to get a permanent residence permit within 1-2 months may be disappointed. The minimum period for obtaining a Turkey passport under the investment program is 4-6 months, provided that the foreigner takes every detail and requirement seriously and makes no mistakes or wrong moves.
How Can a Foreigner Buy Property in Turkey and Obtain Citizenship?
A step-by-step guide to registering property ownership in Turkey on behalf of a foreigner in 2023:
- Choose a property and open a bank account in Turkey. Rely on professional help to avoid mistakes, waste of time, and wishful thinking.
- Get the property valuation and prepare the necessary documents for Tapu registration at the Cadastre Department.
- Prepare and get legalized copies of documents for Tapu registration with the Cadastre Department, which include:
- TIN – to be obtained from the Vergi Dayresi tax office
- the buyer’s passport and its copy translated and certified by a notary
- Döviz Alım Belgesi
- the property valuation (Appraisal) report
- 2 photographs
- the presence of a sworn translator is mandatory for the foreigner and other persons involved (check with your lawyer or agent for a complete list of requirements).
- Obtain the Ferdi Iskan (technical specifications) from Belediye (the municipality) for connection to utilities.
- Prepare the required documents and apply for a residence permit or citizenship (if needed).
You are welcome to explore other options for obtaining foreign citizenship this year. If you are interested in more information on moving to Turkey, including real estate prices, property taxes, rental income tax, jobs and employment, freelancing, and other meaningful aspects of life and work in Turkey, please browse our portal.
How Can a Foreigner Buy Property in Turkey and Obtain a Residence Permit?
Foreigners can obtain a residence permit in Turkey by buying property, with a minimum investment threshold of $50,000 for housing, land, or commercial facilities. For properties in larger areas and cities, the minimum value increases to $75,000.
The simplest way to move to Turkey for temporary or permanent residence is to buy qualifying property. With our experts’ help, you can take advantage of the best available options quickly and efficiently.
If your goal is to move to Turkey for temporary or permanent residence, the easiest way is to buy a property and apply for a permit. Please contact our experts and take advantage of all the available offers. Our contact details are given at the top of this page.
