The Ultimate Guide For Foreigners
Topics covered in this article:
– Can foreigners buy property in the Turkey?
– Getting an (Tax Identification Number)
– Can non-Turkish citizens get property loans in Turkey?
– Can foreigners get residence permits when buying property?
– Best cities to buy property in Turkey as a foreigner
– Property taxes for non-resident foreigners in the Turkey
– Setting up a company (LLC) when buying property in the Turkey
– Finding a real estate agent as a foreigner in the Turkey
Can foreigners buy property in the Turkey?
Yes, foreigners have no particular issues to buy property in Turkey. In fact, the buying process is straightforward and transparent, the same as in most other Western countries.
Turkish Government secured foreign investors with mandatory Valuation Reports before buying any Real Estate in Turkey. Also there is a new regulation buyers or sellers need to Show bank receipts before transaction. This bank receipt must be sold to Turkish Central Bank.
However, buying a home in Turkey needs not be stressful or complicated. As long as you do your research, get your documents right, and know what you are looking for.
I’m not saying that you shouldn’t invest in countries like Kenya, you always have to weigh your risk to your profit potentials. But, investing in Turkey is easier compared to emerging markets.
Getting an (Tax Identification Number)
A Tax Identification Number is a nine-digit number assigned to individuals for financial issues. Foreigners should have a tax number to be able to open a bank account which they will need for buying a property in Turkey.
Turkish Tax ID Number is required for:
• Opening a Turkish bank account
•Giving Power of Attorney from notery.
•Or any official work before you get a foreigner ID Number.
All Turkish citizens automatically have (Tax ID Number), since there is a legal obligation. However, foreigners staying in Turkey for more than 90 days or for visa duration are required to obtain a foreign ID number.
Getting a Tax ID number is not as complicated as you might think. You should go to any local tax office and apply for it. The only thing you need for this transaction is your ‘passport’ & ‘copy of your passport.’ Your data is registered into the database and your Turkish Tax ID Number is given to you.
This transaction usually takes around ten to fifteen minutes. After you have received your tax number, you can open your bank account and carry out your official transactions. Or you can easily get it from Online Tax Office website. Having a tax number doesn’t necessarily mean that you pay taxes in Turkey. Having one is essential for getting certain things done, such as opening a bank account to deposit money.
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Can non-Turkish citizens get property loans in Turkey?
No, non-Turkish citizens cannot get property loans in Turkey.
Can foreigners get residence permits when buying property?
Yes foreigners can get a residence permit in Turkey. Foreigners who own real estate in Turkey or intend to establish a business or business connections in Turkey must submit the documents to the relevant Provincial Directorate of Immigration Administration (Göç İdaresi) once an application is submitted through the e-residence system. Short-term residence permits are issued for a maximum of two years as a principle. A residence permit is invalidated if it is not used within six months.
A residence permit, known as “ikamet izni”, “ikametgah” or “ikamet tezkeresi” in Turkish, is a mandatory document for foreigners who have decided to settle or stay in Turkey for an amount of time longer than 90 days or allowed by their visa for various reasons. A residence permit can be issued for short- or long-term stays, exchange students, families, and humanitarian reasons. Applications are made online to the Turkish Directorate General of Migration Management.
Best cities to buy property in Turkey as a foreigner?
The bigger cities have seen property prices skyrocketing, a similar trend like in London in the UK. Here, people have started to target smaller cities like Sheffield, Birmingham, and York, instead of the capital.
When you look for a city to invest in a property, pay attention to the following three items:
Recent and predicted growth of the population
Recent and predicted growth of jobs
Recent and coming growth of property prices
Even though the capital of Turkey is Ankara, its main economic, financial, educational and touristic hub is Istanbul. Being the largest city in the country, it has not one but two passenger airports.
Most property buyers here are either locals or working expats. But foreigners who are planning to use their Istanbul house or apartment as a holiday or retirement destination will enjoy living here as well.
The city can boast of a developed infrastructure that involves endless shopping opportunities, gorgeous museums and concert halls, top-notch fitness centres and beauty salons, daytime and nighttime entertainment facilities and so on.
Istanbul is quickly evolving and many of its neighbourhoods are undergoing renovation right now. Experienced investors use this opportunity to buy premises that will soon grow in price.
This seaside resort is located on the Mediterranean coast and has an airport. After Istanbul, it is the second most popular tourist destination in the country.
The demand for property here is always strong, yet the prices are surprisingly affordable. In the city centre, you will discover all the typical urban infrastructure. In the smaller coastal resorts, there are numerous expat communities from diverse Western countries.
Alanya is extremely popular among investors who buy apartments and houses for seasonal rent. If you like golf, consider purchasing a house in Belek as this is the best place in Turkey to practice this sport.
If you prefer historical sightseeing, opt for Side. The Konyaalti neighbourhood as well as Lara beach also enjoy increasing popularity among foreigners.
Technically, this resort belongs to the Antalya region, yet it has its unique character. Foreign property buyers are interested first and foremost in Mahmutlar beach district. Each year, Alanya becomes a bit more modern and sophisticated.
This high-end resort is located in the Aegean region and has an airport. Here, you will meet a lot of westernised Turks, as well as foreigners from all regions of the planet. Bodrum houses for sale attract well-heeled and discerning buyers. The Turgutreis and Yalikavak resorts have become thriving expat heavens.
Best Regions for Luxury Property
There are many places to invest in luxury houses, including Istanbul and Antalya featuring large mansions with the latest in architecture and design. However, buyers should consider the smaller Mediterranean resort of Kalkan. Known in Turkey’s housing industry for its large, luxury properties with fantastic sea views, secluded and upmarket neighborhoods to buy a property in include Komurluk and Kisla. Kalkan is popular with rental property thanks to the high yearly yield it generates.
Property taxes for non-resident foreigners in the Turkey
Since March 2017, foreigners are exempt from paying value-added tax (VAT) for their first commercial or residential property in Turkey. This is attached to the condition that they spend in a foreign currency and do not sell the house within 12 months after receiving the title deed.
Setting up a company (LLC) when buying property in the Turkey
The limited liability company (abbreviated LTD) is one of the most common business forms in Turkey. Investors who set up LTDs in Turkey typically run small or medium sized businesses and choose this corporate legal form for its simple registration procedure and easiness to operate. Before setting up a limited liability company in Turkey, the foreign entrepreneurs should know a few details about the registration procedure, the costs, and documents necessary to be submitted to the Turkish authorities.
Foreign investors who want to open a limited liability company in Turkey can choose between the private and the public limited liability company. There are several differences between them, however, the most important one resides in the size of the business: the private company is suitable for small and medium-sized businesses, while the public company, also known as a joint stock company, can be used for large-scale operations. The other differences between them reside in the share capital requirements. If for a private LTD the share capital to be deposited is 10,000 TL, in the case of a joint stock company, one must deposit at least 50,000 TL. Also, the issued capital of a Turkish joint stock company must be 100,000 TL.
The most employed type of limited liability company in Turkey is the private one, as it addresses to foreign investors interested in doing business here. Our Turkish company formation specialists can help foreign investors set up an LTD here.
Finding a real estate agent as a foreigner in the Turkey
One point that you should be careful of is that real estate agents post many of the properties listed on these sites. You could use this opportunity to connect with the real estate market and look into the agents you’ll be in contact with.
Before you commit to an agent, you should make sure that they are reputable, certified, and have the license to operate this business. The easiest way to check this is to look them up online, find their website and office address and read reviews.
Once you are sure that they are legitimate, you should be clear in communicating what you are looking for, what budget you are working with, and what features you would want the most in a home. The agent could even show you your dream home, which was not even listed.
Keep in mind: The real estate agent will earn a commission from his sales. This rate, which is, on average, 4%, is paid out by both the buyer and the seller. Make sure to establish this upfront and prepare to negotiate.