The combination of an apartment in Istanbul and economic citizenship of Turkey has become a true bestseller in 2021. Foreign investors are actively buying real property in the country thus obtaining Turkish citizenship. However, some of them are not worried about the quality of the property that they are buying. We suggest that you should invest in something luxurious in Turkey such as the JB Panorama residential estate, for example.
The President of Turkey issued decree № 408 on December 7, 2018 that allows foreign nationals to apply for citizenship of Turkey by investment in real estate. The candidate for citizenship has to sign a purchase agreement to qualify for the immigration program. Investments in any real property are permitted including buildings under construction.
The principal requirement to the foreign investor is buying one or several pieces of real estate whose total cost exceeds US$ 250,000. Here we would like to describe a nice investment option, namely, JB Panorama residential complex located in the city of Istanbul.
Why should you apply for citizenship of Turkey by investment?
Bearing in mind the fact that real property prices are growing in Turkey, it would be reasonable not to postpone applying for Turkish citizenship by investment for too long. Why should you acquire a second passport? Because uncertainty has become an inalienable characteristic of the modern world. A plan B is required today like never before and acquiring foreign citizenship should be an integral part of any plan B.
If you have a second passport, you can perform the following important actions with ease:
- Emigrate from your home country in an instant without spending time on acquiring any visas or entrance permits.
- Move across borders visa-free.
- Purchase real estate in foreign countries.
- Expand your business to the international level.
- Open accounts in foreign banks.
- Send your children to a prestigious school or university.
- Access the desired destinations with ease.
- Provide for physical security and personal data protection for yourself and members of your family.
- Use various tax benefits available in foreign countries.
- Gain access to an efficient healthcare system.
Of course, purchasing an apartment in Istanbul thus qualifying for citizenship Turkey by investment will bring many other advantages as well. The process takes about three months. One personal visit to Turkey is required (to submit your biometric data).
JB Panorama residential estate in detail
JB Panorama residential complex is located in the prestigious Kâğıthane district of Istanbul and it belongs to JB Investment Company. The construction is expected to be completed in 2022. It is going to be a 15-story L-shaped building with apartments of various sizes.
In particular, you can purchase a one-bedroom or a two-bedroom apartment in the building. The total number of apartments is 195. This is an opportunity to invest in elegant and sturdy residential accommodations giving a panoramic view of the megalopolis.
The infrastructure of the residential complex includes an open-air swimming pool, a sauna, a fitness club, a bar at the terrace, and a children’s playground with numerous green areas. Thus, you will have everything for bodily relaxation and peace of mind there.
The building is also going to be technically well equipped. There will be backup diesel generators, air conditioning, passenger and freight elevators, and fiber-optic internet cables. Round-the-clock surveillance of the territory is also in place.
The residential complex is located ten minutes away from the center of Istanbul and several beaches. It takes thirty minutes to get to JB Panorama from the airport. Below please find some other distances:
- 1.9 km to ТЕМ highway;
- 2 km to E5 highway;
- 5.3 km to Taksim Square;
- 2.3 to Cevahir trade center;
- 2.5 km to Zorlu trade center;
- 2.3 km to Vadi Istanbul trade center;
- 1.6 km to Özdilek trade center;
- 1.5 km to 4. Levent subway station.
|Number of bedrooms||Min. area||Min. price||Max. price||Number of bathrooms|
The developer – JB Investment – is based in Istanbul. The company was founded in 1999 and in it engaged in medium-size and large construction projects. It applies the latest developments and innovations in the construction industry and contributes to the overall growth of real estate quality in Turkey.
Recommendations to the buyers of apartments in Istanbul
The prices for real estate are low in Turkey, the weather is comfortable (it is warm all the year round), and the choice of large cities and resort areas is great: there are many reasons why you may want to make Turkey your second home. However, if you would like to acquire citizenship of Turkey by investment into the JB Panorama residential complex, you have to take into consideration some important aspects. Investing in real estate in a foreign country is not something you should do in a rush. So we suggest that you should make the lead with your eyes wide open.
Regulations on purchasing apartments in Istanbul and other real property in Turkey
Many countries impose certain restrictions on foreigners wishing to buy real property on their territories. Some national states simply forbid doing that. Luckily, Turkey has very few restrictions.
Until recently, the “principle of mutuality” was applied in Turkey. This principle implied that a foreign national was unable to buy property in Istanbul or some other Turkish city if his/ her country disallowed Turks to buy property on its territory. Some time ago, this principle was abandoned.
A couple of restrictions still exist, however. In particular, foreign nationals are not allowed to:
- Purchase extremely large land lots for development purposes;
- Purchase property in the areas located close to the military bases and national borders.
Average price for real property in Turkey including apartments in Istanbul
The international demand for real property in Turkey has grown considerably over the recent years. According to the official statistical data, 1.5 million pieces of Turkish property changed hands in 2020. A large portion of these pieces were apartments in Istanbul. The sales grew by 11% in comparison to the previous year.
Foreign buyers comprise a large percentage of total property buyers in Turkey. Official figures show that 44% of the foreign investors purchase cottages and apartments in Istanbul, as it is the largest and best-known city in Turkey. Besides, part of the city lies on the European continent. Then comes Antalya with 21% of investors.
There are several key reasons why Turkish real estate is so popular with foreign investors:
- The prices are low. Spending a certain amount of money in Turkey, the investor obtains a piece of property of much higher quality/ size that he or she could obtain in the neighboring EU countries.
- The choice of real property in Turkey is extremely diverse. You can buy estate in different climatic zones, in different price ranges, of different types (cottages, villas, semidetached houses, etc.). Besides, you can find property that you can easily let on a long-term or short-term lease.
- Turkey hopes to join the EU and the Schengen Agreement one day.
- Economic citizenship of Turkey is granted in exchange for investments in real property in the country.
- The Turkish lira (TRY) is depreciating so the prices for property become even more attractive for those investors who have euros, dollars, or British pounds.
Below please find information about the average cost of a piece of residential property around 100 square meters in size in several major Turkish cities. The information dates back to the beginning of 2021.
|Turkish city||Average price of a 100 m2 piece of property, in TRY|
If you are planning to apply for citizenship of Turkey by investment in real estate, experts recommend that you should consider large cities and resort areas in the country, first of all. JB Panorama residential estate falls in the first category. The average rent pay for a 100 m2 apartment in Istanbul is 2,717 Turkish liras per month. The rent brings a 5% profit.
Administrative fees, state duties, and other payments that the buyer has to make
When purchasing an apartment in Istanbul or some other property in Turkey, you will have to incur certain costs in addition to the cost of the property itself. For example, the following fees need to be taken into account:
- Mortgage fee and interest;
- Property maintenance costs;
- Fluctuations in the currency exchange rates.
The table below lists the main additional expenditures associated with purchasing residential accommodations in Turkey and in Istanbul in particular:
|Item of expenditure||Description||Approximate cost|
|Deposit||Is payable at the moment of signing the provisional purchase agreement. It is counted towards the total price of the property when the deal is finalized.||From 10% to 25% of the total price|
|Real estate agent’s fee||Most foreign investors use the assistance if Turkish real estate agents when making the purchase deals. This is a wise thing to do indeed.||Approximately between 3.5% and 6% of the total price|
|Legal services||Lawyers will provide legal support to the foreign investor purchasing property in Turkey. Their fees can be different. The total cost of legal services will depend on whether or not you are going to issue a Power of Attorney. This document will allow minimizing the number of personal visits to Turkey when striking the deal.||Minimum US$ 500; average US$ 1400|
|Stamp duty||Usually divided between the seller and the buyer.||4% of the total price|
|Translation services||A reliable translator is often required. Passports, contracts, and other documents have to be translated into the Turkish language.||Usually around US$ 220|
|Municipal duty||Different municipalities in Turkey will have different rates.||Around US$ 410|
|DASK insurance||DASK insurance is obligatory and it covers 20% of the loss occurring due to an earthquake. It would be reasonable to buy other property insurance policies as well.||The size of the premium will depend upon the level of earthquake risks in the particular region and the costs of possible repairs.|
|VAT||A VAT is payable if the property is newly built and its size exceeds 150 square meters.||18%|
|Property rights registration||The buyer has to register the property rights with the Turkish authorities. Obtaining a Turkish tax number is required for that.||Around US$ 140|
|Registration fee||Is payable when registering the property rights.||Around US$ 190|
|Military approval duty||The military authorities of Turkey need to approve the purchase deal (also see below).||Around US$ 140|
|Communal services||When you purchase an apartment in Istanbul or some other residential accommodations in Turkey, you will have to cover the cost of the communal services such as garbage collection, water supply, electricity supply, etc.||Water supply costs around US$ 40 and electricity supply around US$ 160|
Taxes associated with purchasing real property in Turkey
Whether you buy an apartment in a new building or someone has lived there before, you will have to pay a property tax in Turkey. The tax is payable in two installments (once every half a year) and it is 0.2% of the value of the property in the cities and 0.1% in the rural areas.
A step-by-step instruction on purchasing apartments in Istanbul
If you have made the decision to purchase real property in Istanbul thus acquiring economic citizenship of Turkey, you have to follow the steps described below to achieve the set goal.
Negotiate the price
When you have chosen the apartment to buy, you have to negotiate the price and other purchase conditions. Many foreign investors hire local real estate agents who will inspect all the documents associated with the piece of property and determine if it is going to be legal to make the purchase deal. The documents include the following ones:
- The ownership certificate (TAPU).
- The technical documentation (Ferdi Iskan).
- The documents certifying the appropriateness of selling the property to a foreign investor.
Theoretically, you can perform the task by yourself without hiring an agent.
Deposit the reservation fee
When you sign a provisional purchase agreement, you have to make a security deposit that will make the property reserved in your name (the seller will not offer it to any other buyer). Developers can ask for security deposits of different amounts but normally they will be asking for 1.5 to 3 thousand dollars (in Turkish liras). You will also have to come to an agreement with the seller about the date of the full payment.
Sign a purchase agreement
We suggest that you should hire a lawyer who will draw up a purchase agreement for you. This would be an especially good idea if you are outside Turkey while the deal is made.
The purchase agreement will contain the following information, among other things:
- The price of the property;
- The amount of the security deposit;
- The date when the final payment is to be made.
Obtain approval from the military
Foreign investors buying real property in Turkey have to obtain an approval from the military authorities of the country. As we have noted above, property in strategic locations cannot be sold to foreign nationals. When the purchase agreement reaches the Land Cadaster, its officers will request an approval from the military. Obtaining the approval can take quite a considerable amount of time (up to two months).
Obtain documents confirming transfer of property rights
When you have the approval from the military, the deal can be finalized. Now you can pay the rest of the sum and have the property registered in your name with the Land Cadaster. All you have to do now is pick the keys.
Professional assistance to those wishing to buy an apartment in Istanbul
Can you purchase an apartment in the JB Panorama residential complex and qualify for economic citizenship of Turkey without spending too much time and losing too many nervous cells? Yes, you can! InternationalWealth experts and our partners in Turkey including realtors, lawyers, and economic citizenship consultants will be happy to assist you in striking the best deal!
We offer complex services and we will help you choose the apartment, make the purchase deal, acquire the Turkish passport, and maintain your property. We will check all the documents for completeness and correctness and warn you about any possible pitfalls.
Please contact the InternationalWealth team by email, a messenger, or our live chat! We always reply promptly!
In what region of Turkey should I buy property to qualify for citizenship of the country?
Turkey offers a vast choice of property to buy. You can consider purchasing a piece of property in a resort location such as Antalya or Alanya, for example. However, Istanbul is the Turkish city most popular with foreign investors. It is the fifth largest city in the world and the largest city in Turkey. It lies in Asia and in Europe simultaneously and it is extremely beautiful.
Can I let my property in Turkey on a lease and keep my Turkish passport?
Yes, you can rent your Turkish property out from the very moment when you come in possession of it. There will be no consequence as to your citizenship status in this case.
Can I sell my property in Turkey and keep my Turkish passport?
You have to keep the property in your possession for three years before you can sell it. When this period expires, you can resell the property while keeping the Turkish passport.