How to Get a Loan for Your Property Purchase in Turkey?

How to Get a Loan for Your Property Purchase in Turkey?

How to Get a Loan for Your Property Purchase in Turkey?

How to Get a Loan for Your Property Purchase in Turkey?

For a long time, the Turkish real estate market has been a profitable market, where you can find the Property you aim for upon the amount that suits you. However, if you don’t have cash in your hands, let’s check the options you have for getting a loan from a Turkish bank for your Property.

Property loans are loans given to people to purchase things such as houses or land. Raising funds to buy property may be challenging to most people as the income flow may not be enough for them to buy the property they need (Erol & Patel 2005,277). Therefore, most people opt to take loans to buy the property. In this type of loan, the property of the borrower is secured by the lender. This means that if the borrower is unable or defaults on paying the loan, the lender can sell the property to get back their money. The mortgage or property loan ends when the two parties fulfill their obligations; the borrower gets the money from the lender, buys property, and then pays back the loan.

The main reason for getting a property loan is when a person cannot pay for the property they want in full. Most people usually want to buy properties such as land or homes but lack the financial capacity. This is where property loans come in handy. Borrowers take these loans and then pay them later agreed terms after they have purchased their properties. Another reason is investors wanting to free up their money into other investments (Karakas & Ozsan 2005,37). Some people and organizations are willing to give out funds as a form of investment. Therefore, they give out property loans and mortgages for profit as they generate interest after the agreed period. These loans are given under several terms and considerations that the borrower must meet to get the loan, like any other type of loan. The borrower must complete the lender’s terms and conditions to get the loan (Karakas & Ozsan 2005,37).

There has been a more significant increase in investment rates in Turkey due to the Turkish Lira collapsing. The collapse made the prices of most properties drop (Erol & Patel 2005,275). Therefore, one can get a quality property but at a low price. However, they have to abide by the lender’s terms according to how they see the borrower get a property loan. The lenders need to evaluate if you are eligible for the loan you requested (Erol & Patel 2005,275). Most lenders look at the employment type, age, income, credit history, and property type (Mugleston 2021,3).

The credit score matters as it ensures that the borrower is trustworthy and pays their loans. A higher credit score increases the chances of the borrower getting the property loan. Income and employment type show that the borrower has a source of income that would enable them to repay their loan. A stable income shows that the borrower can pay the agreed rates. They are analyzing the payment, which is also used to determine the amount of money given to them and what would be cut from their monthly income. Foreigners into Turkey also need to fulfill other conditions to apply for a property loan in the country. This is mainly abiding by the taxes and property laws of the country. Taxes in Turkey follow the calendar dates, and any foreigner will need to take by and pay taxes on time to improve their chances of getting the loan (Mugleston 2021,7). Property laws also stipulate that foreigners should not own land exceeding 30 hectares in the country. Lenders would have to put this into consideration.

While applying for a property loan in Turkey, first, the borrower must put their documents in order. The documents, in this case, include payslips from the last three months, an employer’s reference, and personal bank statements from the previous three months (Mugleston 2021,10). If the borrower is self-employed, they must provide audited accounts from the last two years, tax returns in the previous two years, and bank statements from the past three months. Different lenders have different terms for their loans. A borrower should get a broker who would help them calculate their eligibility for the loan. This is important in saving the application fees and time wasted in the application process. Then the lenders would calculate the total debts that the borrower has. Finally, the obligations must be calculated to ensure that the monthly payments are not overcharged.

According to Turkish laws, debts, including mortgages, should not exceed 35% of the net income of the borrower (Mugleston 2021,15). The minimum mortgage amount in Turkey differs among different lenders, but the standard amount is 75 000 Euros, while there is no limit for the maximum amount that can be given. After presenting the documents, the borrower then identifies the property they want to buy. When the property is specified, the lenders make their valuation of the property. The lender does this to determine the worth of the property (Mugleston 2021,20). However, many lenders might value the property at a lower price requiring the borrower to find other funding to purchase the property. After this, the borrower can go ahead and complete the mortgage agreement by signing it. The country also offers citizenship by investment. Turkey started this program in 2016, and it provides citizenship for those who invest in real estate or make bank deposits. The investors must purchase property from a minimum of $250 000 on real estate, after which the citizenship would be ready in three months. After that, banks might pay the sellers for the property, and then you must pay the bank in installments, making it a loan. Turkey presents a good country for investing in property. Their rates are affordable while the investors get quality for a home. Their term is also favorable as they are encouraging to anyone who wants to buy property.

What is a Mortgage?

A mortgage is an important type of Security. The basic nature of a mortgage is a transfer of interest to a specific immovable property. The mortgage is not a transfer of an absolute interest in the property mortgaged like a sale or gift.

In simple terms, it is defined as the transfer of an interest in a specific immovable property to secure the payment of money advanced or advanced by way of a loan, an existing or future debt, or the performance of a commitment that may give rise to financial obligation.

On the other hand, we have two types of interest for mortgage loans. The first type is a fixed interest rate which remains the same for the entire loan period, over 15,20 or 30 years. In case the period was short, the borrower will pay a high monthly mortgage payment. Yet, if the period was long, the smaller the monthly payment amount will be. The most significant advantage of this fixed-rate mortgage is that the borrower will still pay the same amount monthly even if the rates increase in the market.

The second type is an adjustable-rate mortgage which is also known as the variable rate mortgage loan. It may remain fixed for a certain period but will change over the life of the loan, in which if the interest rate increase in the market, the borrower’s monthly payment will increase automatically.

Once you plan to apply for a mortgage loan, consider the different features of a mortgage loan:

  • The interest rate on the mortgage loan is much lower than other interest rates of loans.
  • It’s one of the easiest ways to benefit from a property loan because you can be the sole owner after repaying it.
  • Based on the market value of the registered property, the borrower will provide you the loan.
  • A mortgage loan is available for an extended period.
  • If the person getting the loan is self-employed, then you have the privilege of getting customized loan options.
  • You can choose which interest to service your loan before taking the loan, such as fixed interest rate or interest rate mortgage.
  • Since the lender provides the loan amount by taking your property as collateral, a mortgage is regarded as a secured loan.

The benefits of having a mortgage loan:

  • A mortgage loan is a secured loan that is approved quickly in which lenders have no worry of stress lending it to borrowers. 
  • Being the only legal owner of your property will give you the right to use your funds from a loan to fulfill your needs. 
  • The borrower pays on a low interest rate rather than taking a personal loan and paying higher. 
  • Flexible repayment periods. 

What is the Difference Between Mortgage and Housing Credit?

Housing credit is made especially for people who need financial help in purchasing or constructing a residential property. Unlike, the mortgage loan has no limits for the usage of the loan value. The main difference between house credit and mortgage loans makes it clear that each has its own purpose in the market today.

Each person may need to take a loan for various reasons, like medical emergency, pay for higher education, or purchase a property. The first difference occurs in the purpose of each; a house credit is possessed to buy or organize a construction for a specific home that the loan applicant does not own. On the other hand, a mortgage loan is a secured loan in which the loan applicant owns the property purchased. Second, each loan has a specific value ratio where the housing credit can be served for up to 90% of the market’s value. Still, a mortgage loan is only availed up between 60% to 70 % of the property value in the market. Third, the interest rate of house credit is low compared to mortgage loans, in which mortgage loans range between 1 to 3 percent higher. Fourth, the payment terms occur up to 30 years for home credit higher than the mortgage loan, which serves up to 15 years only. Finally, the processing fee for the housing credit varies between 0.8 % to 1.2%, while a mortgage loan is only 1.5 % of the loan value.

Today, it’s known that a house credit is listed as an asset more than a liability because you’ll own the house after payments are over. Depending on the bank, they may offer the borrower an attractive offer for house credit better than the mortgage, vice versa for a specific interest rate by setting the terms and conditions they want. It’s hard to choose whether to take a house credit or mortgage loan because each term has conditions depending on the borrower.

Who is the Mortgagor?

A mortgagor is a transferor, in other words, “the borrower” who is seeking a loan to purchase a home. In other terms, the mortgagor is defined as the debtor and the property owner, whereas the creditor is the bank and mortgage.

Can foreigners get a mortgage in Turkey?

YES! Foreigners can get a mortgage in Turkey.

In the previous years, foreigners used to take a mortgage from a Turkish bank to purchase a property. Still, today it has become more complicated, whether it’s for foreigners who are residents in Turkey or outside turkey. 

According to Turkish law, there are no restrictions on any foreigner obtaining a mortgage on a property in Turkey nor restrictions on the type of property requested or the interest rate. Banks located in Turkey can acquire mortgages on real estate in Turkey, in which foreigners are limited to dealing with Turkish banks. On the other hand, different Turkish banks owned by foreigners have various agreements and conditions when lending a loan. In addition, the interest rate and the fees charged are far different from the Turkish bank owned by the government and non-government.

The easiest approach is to visit the Turkish Banks or check with a real estate company to be on the good side. Mortgages to foreigners who are residents in Turkey should consider that mortgages in Turkey became more expensive, especially for a bank that uses different techniques for their own safety, such as better valuation experts and undervaluation of the property. Each bank has a different interest rate in which fixed interest rate is the most famous one amount, Turkish citizens and foreigners. It is widely popular that the government is putting pressure on the banks to fund foreign buyers. 

Furthermore, In today’s market, real estate companies are considered the saviors of the Turkish economy during the financial crisis, and it’s the most popular industry to be supported in Turkey. However, there is nothing complete or profitable in this business world. One continuous problem practiced among foreigners resident in Turkey is that most of them apply for the mortgage when they have a low income. Knowing that this application won’t succeed, the banks insisted on providing a statement of account to prove that they can repay the mortgage.

Mortgage to foreigners who are not residents in Turkey can only practice limited mortgage finance available from limited banks. It will get better soon, but people should expect mortgages with high loan-to-value ratios. First, foreigners are required to present proof of means, including other existing mortgage commitments outside the turkey, rental payments, credit card payments, or family payments are taken into consideration, along with the new mortgage taken from Turkey. After that, calculations are made to check the affordability of the borrow that should not exceed 33% of your monthly gross income. 

One important factor that must be avoided is the foreign currency. Therefore, mortgages are lent to nonresident foreigners with USD, EUR, or GDP considering their nationality. 

How to Get Mortgage in Turkey?

The process is straightforward but involves a lot of paperwork to be done. First, the borrower should apply to the bank, coordinated by a lawyer or real estate agent. 

  • Determine your budget and funding requirements.  
  • Contact your mortgage broker to compare and discuss your choices and get pre-approval. 
  • Obtain your Turkish tax number. 
  • Review the Tapu with Land Registry 
  • Register with lang registry to finalize and sign the contract
  • Sign the agreement and dispatch the deposit
  • Here, you should provide a detailed application for your mortgage or apply from zero. 
  • The title deed is ready by now. 
  • Lastly, take your ownership papers when the Tapu is prepared upon paying the total amount and taxes.

What are the Interest Rates on a Turkish Mortgage?

Figure 1.1 Weighted Average Interest Rates For Banks Property Loans between 2015 and 2021

 

Date

Housing (TRY)(Flow Data, %)

Consumer Loan (TRY)(Personal+Vehicle+Housing)(Flow Data, %)

TP Consumer Loan (TRY)(Personal+Vehicle+Housing)(Including Real Person Overdraft Account)(Flow Data, %)

18.09.2021

17,88

22,06

23,73

1.07.2021

17,94

22,24

23,81

1.06.2021

18,00

22,39

23,71

28-05-2021

17,79

22,41

23,61

30-04-2021

18,06

22,79

23,74

26-03-2021

17,88

22,45

23,41

26-02-2021

17,85

21,81

22,87

29-01-2021

18,13

21,73

22,39

25-12-2020

18,69

22,14

21,22

27-11-2020

16,10

20,54

18,82

30-10-2020

15,18

18,70

17,64

25-09-2020

14,80

17,85

17,20

28-08-2020

13,31

16,57

16,40

31-07-2020

9,22

10,77

11,92

26-06-2020

9,01

11,00

11,64

29-05-2020

11,13

11,84

13,02

24-04-2020

11,49

8,45

9,75

27-03-2020

11,41

14,43

15,52

28-02-2020

11,32

13,61

14,51

31-01-2020

11,50

14,18

15,07

27-12-2019

12,64

14,69

15,86

29-11-2019

12,88

15,74

17,00

25-10-2019

13,10

17,12

18,07

27-09-2019

13,06

17,41

19,33

30-08-2019

12,88

19,28

21,43

26-07-2019

20,49

26,34

26,57

28-06-2019

22,23

27,86

28,35

31-05-2019

21,86

28,86

28,91

26-04-2019

19,35

26,12

27,50

29-03-2019

17,10

22,07

24,29

22-02-2019

21,47

25,18

27,53

25-01-2019

24,93

27,97

29,30

28-12-2018

27,39

31,74

31,18

30-11-2018

28,38

33,78

31,81

26-10-2018

29,28

36,96

32,90

28-09-2018

28,00

37,03

30,73

31-08-2018

23,15

29,82

27,95

27-07-2018

19,43

24,49

24,43

29-06-2018

13,14

19,61

21,05

25-05-2018

13,01

18,02

19,90

27-04-2018

14,84

18,81

20,66

30-03-2018

14,96

18,56

20,22

23-02-2018

14,70

18,88

20,70

26-01-2018

14,08

18,69

20,55

29-12-2017

13,78

17,85

19,71

24-11-2017

13,14

17,19

19,27

27-10-2017

13,01

17,03

19,04

29-09-2017

12,88

16,53

18,49

25-08-2017

12,69

16,62

18,47

28-07-2017

12,12

16,07

18,11

30-06-2017

11,78

15,82

19,02

26-05-2017

11,71

15,85

18,15

28-04-2017

11,45

15,33

17,43

31-03-2017

10,95

14,69

16,94

24-02-2017

11,28

14,97

17,30

27-01-2017

11,46

15,13

17,45

30-12-2016

11,43

14,51

17,03

25-11-2016

11,48

14,63

17,16

28-10-2016

12,09

15,43

18,02

30-09-2016

12,05

15,28

18,05

26-08-2016

12,07

15,64

18,67

29-07-2016

13,72

16,42

19,53

24-06-2016

13,79

16,37

19,30

27-05-2016

13,93

16,43

19,25

29-04-2016

14,13

16,62

19,57

25-03-2016

14,44

16,98

19,94

26-02-2016

14,43

17,01

19,85

29-01-2016

14,41

16,90

19,80

25-12-2015

14,07

16,42

19,45

29.11.2015

13,98

16,36

19,70

30-10-2015

14,41

16,84

20,57

25-09-2015

13,74

16,54

22,49

28-08-2015

12,93

15,36

18,36

31-07-2015

12,33

14,80

18,13

26-06-2015

12,14

14,48

17,76

29-05-2015

11,60

14,25

16,89

03-04-2015

10,96

13,57

16,42

27-03-2015

10,95

13,48

16,35

27-02-2015

10,75

13,54

16,49

30-01-2015

10,91

13,77

16,64

What are the Documents Needed for Mortgage in Turkey?

Before applying for a mortgage in Turkey, make sure you have all the necessary documents ready, including: 

  • The borrower’s age should be between 25-70 years old. For example, a borrower who is 60 years old receives a loan for ten years but a borrower for 65 years only five years.
  • Life insurance is mandatory. 
  • Proof of document for an existing house outside Turkey. 
  • The payback period of the loan is 15 years only. 
  • The Loan currency is holding the US dollar, British pound, Euro, or Turkish Lira only.
  • Borrowers must choose the Fixed interest rate.  
  • Early repayment opportunity with 1% – 2% penalty.
  • The Insurance document for the property (DASK) is mandatory.
  • The Minimum Value of the loan is 25,000 Euro or equivalent to the Turkish Lira.

What are the Documents Needed for Mortgage in Turkey?

 

Individual Employed

Business owners

Pensioners

Documents required to apply for a mortgage loan

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Turkish return tax number taken a year before, issued in the Mortgagor country.

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A copy of the document affirming the right of ownership (tabu) and technical passport of the property purchased.

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The buyer’s passport, translated into Turkish and certified by the bank or notarized.

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Letter of Employment issued by the employee.

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Photocopy of the seller’s passport.

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Borrower’s statement of account for the last 6 months stamped & signed.

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Company Registration Certificate

 

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Document proving common shares in the case of partnership and activities of the company done for the previous two years.

 

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Information on other borrower incomes ( Payment of apartment, loans, monthly expenses, etc..)

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Valid documents ensure the borrowers’ property title ( Real estate, vehicles, stocks, etc..)

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A statement of proof showing that borrowers have no loan or other debts to any bank

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Turkish Tax Number

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Mortgage loan application signed by the borrower

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After collecting all the documents needed and translating them to Turkish, they will be delivered to the Bank for examination. 

  • The Bank will review the documents with the real estate agent and then issue a pre-approval document, including the loan value, interest rate, and payment terms. 
  • Bank will provide the offer period -4 months. At this phase, the borrower should consider paying 150 Euros to the company for their services. 
  • Start with the Tapu certificate of title registering process, in which the Tapu will be given to the new owner, and the Bank imposes the mortgage. 
  • The buyer receives the certificate of title when the Bank will pay the loan through transfer to the real estate agency into their account. 
  • When the loan is paid, the borrower should pay the additional expenses to the Bank at 2 %.

How many mortgages Can You Get in Turkey?

Foreigners can arrange their mortgages through Turkish banks, but each bank carries different offers. For example, most banks are ready to offer you 70 % of the property value, in which very few will give you a higher percent, while other banks will limit loans up to 65 %.

Most of the banks in Turkey can lend you a loan of around 75,000 USD which makes approx. 67,500 in Euros, but here you’ll have to repay in USD currency. Also, loans are offered in Dollars, Euros, or Pounds for borrows who want to avoid exchange rates. For instance, you need £200,000 to purchase a property in Turkey, and the bank accepts to loan you 75% of its market value, they will give you a mortgage of £150,000.

This would mean that you need a 25% deposit of £50,000.

Today, the interest rate in Turkey is relatively high compared to the United States and Europe, covering up to 13%. The most preferred interest rate used in Turkey is the fixed rate because it doesn’t vary if the rate increased in the market.

What are the Payment Options of Mortgage?

After receiving your loan from the bank, you must pay it back upon the payment terms agreed on. You will pay your debt on monthly mortgage installments to the bank from a bank located in Turkey by opening an account in the same bank you granted the mortgage to and then transferring the amount.

Although you can make payments from the bank in your home country via transfer or cash, neither of these methods are recommended since both can create problems that you want to avoid. 

You must always pay your debt on time. Otherwise, a 1 % to 2 % penalty may apply on the monthly payment. 

What are the Banks that You Can Get Mortgage in Turkey?

If you have a residence permit or work permit in Turkey, you can take out a loan to purchase the property. However, each bank has its own rules, payment plans, interest rates, different contracts, and fees they will charge you. 

Banks, including Garanti Bankasi, Kuvyet Turk Bank, Ziraat Bank, Deniz Bank, etc., lend mortgages to foreigners in Turkey. 

But what are the top banks for loans for foreigners? 

  1. Deniz Bank is one of the leading banks providing mortgages to foreigners up to 60 % for 15 years. They give the loan with three different foreign currencies USD, EUR, and GDP. Also, installments are accepted in other foreign currencies.
  2. Garanti BBVA Bank provides fixed and variable interest rate mortgage options in different currencies for 240 months, the max term of the loan. The max loan value is 500,000 TRY or the equivalence of the foreign currency. Furthermore, a special offer is made for EU citizens, in which they have the right to take a loan for 65 % LTV, while non-EU citizens for 50 % LTV.
  3. Turkey Finance Banks provides a 12-year payment plan with a reasonable and allocation fee rate. In addition, the mortgage loan is up to 75% LTV for the purchased property. 

How to Find Property in Turkey?

If you’re looking to find a property in Turkey as a foreigner, some conditions must be considered before making any decision.

Real estate companies in Europe and the USA are highly recommended for property purchases. Yet, Turkey today is one of the top countries for property purchasing in the real estate market. However, the Turkish market had few protections for the property buyer until the government took the hand and worked hard to improve this situation.

There are essentials steps to follow upon deciding to purchase a property in Turkey. Follow these steps and find the property you’re looking for.

  • Conduct research about the Turkish market to collect information about the lifestyle, the culture of the country, and the kind of properties that meets your budget and needs. 
  • If you haven’t been to Turkey before, you will need to visit it to decide which area you want to reside in, knowing each city has its colors, culture, and lifestyle.  
  • Find a professional certified real estate agent. They can provide you with many options for properties across Turkey, give you answers to your questions, and take you on a free ride to check projects constructed and done.
  • Go on a Property tour guide with the real estate agent you choose that will provide you with detailed information about the prices of properties depending on the region and the city you choose. 
  • Get some advice from a lawyer about your property choice within location and fair price.

If you want to have more information regarding how to find a house in Turkey, please check this article. https://www.realtygroup.com.tr/how-to-buy-a-house-in-turkey

How Much Deposit Do You Need to Buy a House in Turkey?

On the date of completion of the contract, to secure the property, you will be asked to leave a non-refundable holding deposit. The holding deposit of a property is 2,000 USD which is given to the seller of the property. 

What are the Prices of Houses in Turkey?

Turkey is the most beautiful country with its diverse landscape that has no end to its beauty. It’s challenging to decide where to live in Turkey. If you’re wondering what the best part of Turkey is, look at the best regions of Turkey.

Istanbul is the largest city in Turkey, straddling two continents, Asia and Europe. Istanbul has always been an important center for investors seeking properties and trade businesses.  It’s the capital of the first Byzantine and then the Ottoman Empire; though it’s not the capital of Turkey, it still grabs the attention with its population of 14 million. Today, Istanbul property prices range from low prices to expensive luxury apartments and villas. Due to the decrease of the Turkish lira in 2018, investors took advantage of constructing new buildings with young professionals and established new businesses.

In 2020, investors were looking in Beylikduzu, a central area for the foreigners on the city’s European side, with an average price of 66,800 USD. Also, they’re properties with sea views in the regions of Zeytinburnu and Bakirkoy for 600,000 USD. Investors looking for a lower price can check the areas of Bahcelievler and Bahcesehir where families can live. On the other hand, properties built in the areas of Kucukcekmece or Kadikoy are quietly expensive since they’re in the heart of Istanbul. In addition, transportations are more accessible in this area since Metrobus and metro stations are close. As a result, the average price for each property is 140,000 USD and 250,000 USD, respectively.

In terms of luxury and leisure, Bodrum is the best destination for international brands and luxury property. The stylish Bodrum has always been known for its small fishing villages with a mixture of shops, tours, and luxury hotels with summer activities.

For a sweet escape, Bodrum is the best option for purchasing a property! In the last few years, Bodrum has gained a reputation for upmarket with prominent architect’s names from all over the world who built their mark with luxuries like Yalikavak hills, which is known for international brand stores and marina. The best two regions in Bodrum are Gumusluk and Yalikavak. Gumusluk is known for its peace in the modern fishing villas, unlike Yalikavak, designed with luxurious homes and speechless views. The price of properties in Bodrum varies between 957,092 USD to 1,534,620 USD.

Finally, speaking in terms of history, culture, and beaches at every chance, Antalya is a destination for every season and everyone. The Mediterranean city of Antalya, it not only decisive for the economy, but it’s the most fantastic gateway for the end of the week.

The properties in Atalaya consists of mid-range luxury apartments for young and adult professional.  For families, side is the best option to purchase or rent an apartment in the sunshine valley. On the other hand, Kemer and Belek are quiet regions for luxury apartments and villas. The cost of property in Antalya changes each season, in which the prices get higher every year.

Is Buying Property in Turkey a Good Investment?

Yes. Buying a property in Turkey is a good investment.

The first thing you should know, Turkey has one of the fastest-growing economies in the world today. People always choose to move and live in Turkey, because it’s a cheap country compared to European countries. The cost of living is relatively low because the price of renting a house is approx. 300 USD, buying clothing is cheap, services and expenses are low. However, the prices of properties of the sale in Turkey are much lower than properties in Europe of Gulf.

Turkey is the only country on the map located between Asia and Europe, literally place in the heart of the world. So even their transportation costs and the system are wide easy and can access from most places around the world.

The real estate market in Turkey provides a great choice of properties for sale for every budget.

The most important benefit of investing in Turkey is getting the Turkish residency or citizenship granted from the government through buying a property.

Does Turkey Grant Citizenship to Home Buyers?

Yes. Tukey Grand citizenship to home buyers.

The Republic of Turkey grants citizenship to foreigners who complete the following upon buying a house for 250,000 USD with the new regulations.

1. Get a tax registration number

You need your passport and photo to obtain the tax registration number from any tax office in Turkey.

2. Open a Turkish bank account

You need your passport, tax registration number, and rent contract with the residence permit ID received from the Turkish government.

3. Finding a property

It’s necessary to purchase a property for 250,000 USD to register it at the land registry. After that, the property can’t be sold nor transferred for a minimum of three years.

4. Buying the property

Get title deed registry with not to be sold for three years. Then payment must be one through a bank transfer and document the transaction by a receipt.

5. Obtain the certificate of Conformity

Bank receipt showing that the amount has been paid to the seller and real estate valuation report requested to apply to the Ministry of Environment and Urbanization.

6. Application for Turkish Residency Types:

If you hold a tourist visa, you can apply for a tourist residence permit:

  • Residence permit validity is up to 1 year.
  • Property ownership documents or rental contracts in Turkey must be presented to officials.
  • Application documents must be translated into Turkish and notarized in the Turkish Notary office. 

If you hold a business visa or opened a business in Turkey, you can apply for a business residence permit:

  • Residence permit validity is up to 1 year.
  • Evidence of financial independence and the ability to support dependent family members is required.

If you have lived in Turkey, you can apply for long-term residence:

  • Stayed in Turkey for at least eight years.
  • No financial help from the Turkish government and Financially self-stable. 
  • No criminal record.

If you want to study in Turkey, you can apply for a student residence permit:

  • Letter of acceptance from Turkish educational institute.
  • Evidence of Turkish private health insurance.
  • A financial self-sufficiency declaration.

 If you are a victim of human trafficking, then you can apply for a residence permit:

  • Residence permit validity for thirty (30) days.
  • Residence permits extension is for six (6) months.

In addition, if you have a Turkish spouse or relative, you can apply for the family residence permit, which is valid for three years.

If you are suffering from the displacement of civil war, violation of human rights, and refugees, you can apply for a humanitarian residence permit valid for up one year. 

Documents required for Turkish Residency:

  • Residence permit application form.
  • Four biometric photographs.
  • Original passport photocopy.
  • Notarized Rental Contract
  • Statement of Account holding the amount of 1,000 USD approx.
  • Health Insurance is valid for a year.

Application for Turkish Citizenship Documents:

  • Birth certificate
  • Certificate of residence
  • The vital record that shows all family members (Husband, Wife, and Children) / Divorce Certificate / Marriage certificate
  • Health Insurance 
  • 12 biometric photos taken on white background 
  • Original Passport 
  • Original and notarized Turkish translation of these documents 
  • Power of attorney 
  • If the applicant is widowed, the spouse death certificate
  • Application form

Another option for receiving Turkish Citizenship:

  • Invest a minimum of five hundred thousand United States dollars (USD 500,000) for a minimum term of three (3) years in a fixed deposit in Turkey.
  • Purchase real estate for no less than two hundred and fifty thousand United States dollars (USD 250,000)
  • Create job opportunities for a minimum of fifty (50) employees.

Please read this article for more information about the process and guidance of granting citizenship by purchasing a property. https://www.realtygroup.com.tr/turkish-citizenship-by-investment-process-and-guide

Is It Safe to Buy Property in Turkey?

Yes, it is safe to buy a property in Turkey. 

If you want to do things right and make it easy for you, you should search for a professional real estate company that provides you with their years of experience in this field and confidence. 

When specifying your requirement to the real estate agent, they will fulfill your needs with their luxurious properties. 

There are great locations with a sea view and green areas to purchase a property in Turkey. For example, you can check the below destinations: 

  • Istanbul including the district of Kadikoy, Usukdar, Sariyer, Zeytinburnu, Bakirkoy, and Atakoy, etc.
  • Trabzon 
  • Antalya
  • Bodrum
  • Izmir
  • Sakarya

Is There Property Tax in Turkey?

Yes, there is, but it depends on residency. 

If you’re a citizen of Turkey, you have to pay the income tax in Turkey. If you want to buy a property in Turkey, you will need to pay a tax property. Even if the amount is small, you will have to pay it both ways. 

The real estate tax in turkey is familiar with the taxes you pay to the local government in any country. It is calculated on the value of the property you purchase (land or buildings). In metropolitan cities, taxes are set between 0.1 % and 0.3 % of the notional value per year. VAT on Property in Turkey doesn’t require property owners to pay VAT on the sale of a real estate agent unless they happen to be a real estate agency or corporate entity. 

Capital Gain Tax in Turkey is for the sale of immovable property. If this property is owned for less than five years, you’re required to pay the income tax on the money you receive. But after five years, you are exempt from paying the income after holding the property.

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