The Process of Buying Real Estate in Turkey for Foreigners

The process of buying real estate in Turkey for foreigners; It consists of the stages of selecting the real estate, examining its legal status, completing payment and foreign exchange transactions, applying for the title deed and registering the ownership in the land registry. It is possible for foreigners to buy housing, workplaces, land or land in Turkey. However, there are some legal limitations in terms of the buyer's citizenship, the region where the property is located, the nature of the property and the purpose of purchase. In connection with this topic Real Estate Law You can also review the content titled.

Before purchasing real estate, only price and physical characteristics should not be evaluated. Mortgage, lien, annotation, usufruct, family residence registration and similar restrictions in the land registry and the zoning and license status of the real estate should also be examined in detail. Especially in purchases made for citizenship or residence permit purposes, it is of great importance to plan the transactions correctly from the beginning. About the relevant aspect of the process Citizenship Process for Foreigners Buying Real Estate There is detailed information on the page.

Can Foreigners Buy Real Estate in Turkey?   

Citizens of countries that are allowed to acquire real estate in Turkey can buy real estate, provided that they comply with legal restrictions. It is not mandatory for a foreign real person to have a residence permit in advance in order to purchase real estate in Turkey. However, the right to purchase is also checked by the land registry office in terms of the buyer's citizenship and the region where the real estate is located.

The acquisition of real estate by foreign real persons is basically regulated in Article 35 of the Land Registry Law No. 2644. Real estate acquisitions by companies established in foreign countries and companies with foreign capital established in Turkey are subject to different rules than real persons. For this reason, investments to be made on behalf of the company should be evaluated separately.

Restrictions Applied to the Acquisition of Real Estate by Foreigners

The fact that the real estate appears to be purchasable does not necessarily mean that it is suitable for acquisition for the foreign buyer. The location, surface area, nature of the real estate and the real estate previously acquired by the buyer in Turkey should be evaluated together.

How Does the Process of Buying Real Estate in Turkey Proceed for Foreigners?

1. The Buyer's Eligibility to Acquire Real Estate is Checked

First of all, it should be determined whether the foreign buyer can acquire real estate in Turkey according to his citizenship. There may be special conditions in terms of some real estate types, regions or acquisition types according to countries. This check must be done before the deposit or sales price is paid.

The immovables previously purchased by the buyer in Turkey are also taken into account in the calculation of the country-wide surface area limit. If there is a citizenship, residence permit or commercial investment purpose, the purchasing model should be planned in accordance with this purpose.

2. The Real Estate to be Purchased is Determined

Foreign buyers can purchase residences, workplaces, land, fields, and other immovable properties permitted by legislation in Turkey. However, it should be checked whether the nature of the real estate in the title deed and its actual use are compatible with each other.

For example, an independent section marketed as a residence may be registered as an office, warehouse or land in the title deed. The title deed nature is especially important as the real estate to be purchased for the purpose of residence permit must be residential and used by the buyer for shelter.

3. Land Registry and Legal Status Are Examined

Before making a purchase decision, the current and detailed title deed record of the real estate should be examined. It is not enough to look only at the owner information during the examination. All records that may affect the transfer, use or value of the real estate must be evaluated.

Within the scope of the legal examination, the following issues should be investigated:

• Whether the seller is the real owner registered in the title deed,
• Whether there is a mortgage or bank guarantee on the immovable,
• Whether there is a seizure, precautionary attachment or injunction record,
• Whether there is a right of usufruct, residence, passage or superiority,
• Whether there is a promise of sale, rent, pre-purchase or buy-back annotation,
• Whether there is a situation that requires family residence annotation or spousal consent,
• Whether the immovable is subject to joint or shared ownership,
• Whether there are site management, dues or common expense debts.

The sale of a mortgaged or foreclosed immovable property is not impossible in all cases. However, it should be clearly determined in the contract how the existing loads will be removed, at what stage the sales price will be paid and how the cancellation procedures will be carried out.

4. Zoning, License and Project Suitability is Investigated

The fact that the title deed registration is clean does not indicate that the real estate is completely compliant with the building and zoning legislation. Especially in the purchase of buildings and independent sections, the technical records in the municipality, land registry directorate and relevant institutions should be examined.

In this context, the building permit, occupancy permit, floor easement or condominium status, approved architectural project and the position of the independent section in the project should be checked. Illegal additions, closed balconies, inclusion of common areas in the independent section or use outside the project may pose a risk of administrative sanctions and demolition in the future.

In land and land purchases, zoning status, right to construction, road frontage, agricultural use restrictions, protected area, coastal legislation and the possibility of expropriation should be investigated separately.

5. Deposit or Prepayment Agreement is Prepared

The parties can sign a reservation, deposit or prepayment agreement before the title deed transfer. However, a simple written contract does not transfer ownership of the real estate to the foreign buyer. Ownership is acquired upon the official completion of the sale transaction and its registration in the land registry.

In the deposit agreement, the open title deed information of the real estate, the sales price, the payment plan, the date of the title deed transfer, the withdrawal conditions and the condition in which the deposit will be returned should be clearly written. Making a high-amount, non-refundable payment before the legal review is completed poses a significant risk.

If a preliminary contract for the sale of real estate is to be made, the contract must be prepared in accordance with the official form stipulated in the law and annotated to the land registry when necessary.

6. Tax Number, Bank and Foreign Exchange Transactions are Completed

The foreign buyer may need a tax identification number or a foreign identification number that can be identified in the relevant systems to be used in title deed transactions. Opening a bank account in Turkey to record payments also makes the process easier in practice.

The foreign exchange purchase certificate process is applied in real estate sales where a foreign real person is a buyer. The foreign currency related to the sales price is converted into Turkish lira through an authorized bank and the foreign currency purchase document issued by the bank is transmitted to the relevant land registry office electronically.

The person, passport, real estate and price information in the foreign currency purchase document must be compatible with the sales transaction. From whose account the payment was made, to whom it was sent and which real estate was specified in the explanation section are important in disputes that may arise in the future.

7. Valuation Procedures Are Carried Out

In real estate investments made for the purpose of Turkish citizenship, the valuation or amount determination process regarding the value of the real estate is carried out through the authorized system. The sales price, bank receipts, foreign exchange purchase document and documents based on valuation must be compatible with each other.

If the market value of the real estate is significantly lower than the sales price, it may cause the citizenship application to be negatively affected. Therefore, it is important for buyers with citizenship purposes to check whether the real estate meets the required investment value before paying a deposit.

8. Title Deed Application Is Made

The application can be made through the Web Tapu system or through the relevant land registry office. It is also possible to draw up the real estate sales contract through the notary public in appropriate transactions. The sales contract made at the notary public is recorded in the land registry information system and the change of ownership is registered in the land registry.

In the title deed application, the sales price, party information and necessary documents are submitted to the system. After the examination of the land registry directorate, information regarding fees and revolving fund payments is notified to the parties.

9. Official Sales and Registration Process is Completed

The parties are present at the land registry office or the authorized notary public on the specified date. An authorized sworn translator must be available for a foreign buyer who does not speak Turkish. The translator explains the legal consequences of the contract and transaction to the foreign buyer.

Upon signing the sales contract and completing the registration process in the land registry, the ownership of the real estate passes to the foreign buyer. The title deed or electronic title deed issued in the name of the buyer is delivered after the transaction.

Documents Required for Real Estate Purchase by Foreigners

The required documents may vary depending on the buyer's citizenship, the nature of the real estate, the representation status and the purpose of purchase. The land registry directorate may request additional documents according to the concrete transaction.

Can Real Estate Be Bought with a Power of Attorney Issued Abroad?

A foreigner can buy real estate through his lawyer or other representative by duly issuing a power of attorney before coming to Turkey. The power of attorney must clearly include the authority to purchase real estate, sign a sales contract, apply for title deeds, request registration and sign the necessary documents.

The power of attorney can be issued at the Turkish consulate. For powers of attorney issued by the foreign country's authority, apostille or consular approval may be required depending on whether the country is a party to the Apostille Convention. A notarized Turkish translation of the document must also be prepared.

If the transaction is to be made for the purpose of Turkish citizenship, it is important to specify the powers regarding the citizenship application, the commitment not to sell for three years and the certificate of conformity transactions separately in the power of attorney.

Title Deed Fee and Other Expenses in Real Estate Purchase

In real estate sales, the title deed fee is calculated over the declared sales price, not lower than the real estate tax value of the real estate. In general practice, a title deed fee of 2 percent of the sales price arises separately on behalf of the buyer and the seller. Thus, the total title deed fee reaches 4 percent. Current rates and exceptions, if any, should be checked before the transaction.

Apart from the title deed fee, the following expenses may also be encountered:

• Title deed revolving fund and service fees,
• Notary public and power of attorney expenses,
• Apostille and translation fees,
• Sworn translator fee,
• Compulsory earthquake insurance premium,
• Valuation or amount determination expenses,
• Real estate consultancy and legal consultancy fees,
• Bank transfer and foreign exchange transaction charges.

Showing the sales price lower than its actual value in the title deed may cause penalty assessments due to missing fees and taxes, and future proof problems between the parties.

Does Buying Real Estate Provide a Residence Permit?

Buying real estate in Turkey does not automatically grant a residence permit to a foreigner. However, a foreigner who meets the necessary conditions can apply for a short-term residence permit on the grounds that he has real estate in Turkey.

In a short-term residence permit based on real estate ownership, the real estate purchased must be residential, used by the applicant for housing purposes, and have a value of at least USD 200,000 as of the date of acquisition. Renting out the house or using it for another income-generating purpose may pose a problem for this residence permit category.

The purchase of real estate does not mean that the residence permit will be issued definitively. The applicant must also meet the conditions of health insurance, financial sufficiency, address registration and other residence permits. Each application is evaluated separately by the Migration Management.

Can Turkish Citizenship Be Acquired by Buying Real Estate?

Foreign real persons who purchase suitable real estate in the amount of at least USD 400,000 or its equivalent in foreign currency can apply for Turkish citizenship in an exceptional way if they meet the other necessary conditions.

A commitment that the real estate purchased for citizenship purposes will not be sold for three years is recorded in the land registry. The sales price, foreign exchange purchase certificate, bank receipts and valuation documents must separately provide the required investment amount and be compatible with each other.

The purchase of real estate does not automatically acquire Turkish citizenship. After the title deed process, a real estate investment determination or conformity certificate is obtained. Then, the investor residence permit and citizenship application stages are started. The final decision is made as a result of the examination of the competent authorities.

If a citizenship application is planned, the following points should be checked before purchasing:

• Whether the real estate is suitable for citizenship application,
• Whether there is a relationship between the seller and the buyer that is prevented by the legislation,
• Whether the immovable property has been used in the citizenship application before,
• Whether the valuation or amount determination result meets the investment amount,
• Whether the payments are made through the bank and with appropriate explanations,
• Whether the foreign currency purchase document is issued with the correct person and real estate information,
• Whether the commitment not to sell for three years is correctly recorded in the title deed.

Risks That Foreigners May Encounter in Real Estate Purchase

Payment to the Seller Not Included in the Title Deed

It should be checked whether the person to be paid is the title deed owner or the person duly authorized by the owner. Payment made to the real estate consultant, project employee or third party may not always mean that the sales price is paid to the seller.

Granting a Deposit Before the Legal Review is Completed

If there is a lien, mortgage or other record that prevents the sale on the immovable, the title deed transfer may not take place. The deposit agreement should include an explicit refund clause for the problems to be determined as a result of the legal examination.

Incorrect Evaluation of the Title Deed Nature

A place used as a residence may be an office, warehouse, land or field in the title deed. This may affect residence permit, bank loan, subscription, resale and citizenship processes.

Purchasing Real Estate from Project or Construction

In projects that have not yet been completed, land ownership, building permit, floor easement, delivery date, delay penalty and guarantee provisions should be carefully examined. Decisions should not be made only based on promotional brochures or sample circles.

Failure to Show the Real Sales Price in the Title Deed

Underestimating the sales price may lead to a penalty for missing fees, failure to disclose money transfers, and failure to prove the actual price paid upon termination of the contract.

Guaranteeing Citizenship or Residence Permit

No real estate consultant, project company or intermediary person can guarantee that the citizenship or residence permit will be granted definitively. The suitability of the real estate is only one of the application conditions; The final evaluation is made by the competent public authorities.

The Importance of Lawyer Support in Real Estate Purchase

Lawyer support for foreigners in the process of buying real estate in Turkey; It is important in terms of examining the title deed and municipal records of the real estate, preparing contracts, creating the payment plan securely and following the title deed transactions.

Within the scope of the legal examination to be carried out by the lawyer, the seller's authority, title deed encumbrances, zoning status, license documents, condominium records, contract provisions and payment documents are evaluated together. For investments with the purpose of citizenship or residence permit, the suitability of the real estate for the relevant application is examined separately before purchase.

If the buyer cannot come to Turkey, the title deed, bank, tax, citizenship and residence transactions can be followed through a lawyer according to the scope of the power of attorney. However, the power of attorney must be prepared in accordance with the purpose of the purchase before the transaction begins.

Frequently Asked Questions

Do foreigners need a residence permit to buy a house in Turkey?

There is no obligation to have a residence permit in advance to buy real estate in Turkey. It is sufficient to meet the acquisition conditions in terms of the buyer's citizenship and the location of the immovable.

Can a foreigner buy real estate without coming to Turkey?

Yes. The foreign person can have the title deed transactions done by his representative or lawyer through a power of attorney that includes the necessary powers and is issued in accordance with Turkish law.

Can a foreigner buy land or fields in Turkey?

Land or land can be purchased as long as the buyer's citizenship and the area where the property is located are suitable. The project to be developed for unbuilt immovables may need to be submitted to the approval of the relevant administration within a certain period of time. Also Is It Possible for Foreigners to Buy Land or Land in Turkey? should be evaluated together with the concrete case.

Must the full sales price be paid before the title deed is transferred?

The payment time can be determined according to the contract of the parties. However, for the security of the buyer, it should be preferred that the payment is made simultaneously with the title deed transfer, through the bank and with explanation. The payment and mortgage closing process in mortgaged real estate should be planned separately.

Is an appraisal report mandatory for foreigners to purchase real estate?

Valuation or amount determination process is mandatory for real estate investments made for the purpose of Turkish citizenship. The documents to be sought in normal purchases may vary depending on the nature of the transaction.

Does buying a house in Turkey automatically give a residence permit?

Buying real estate can only provide the opportunity to apply for a short-term residence permit under certain conditions. In order for the application to be accepted, the real estate and the applicant must also meet the other residence permit conditions.

Does buying a house in Turkey automatically give citizenship?

After an eligible real estate investment of at least USD 400,000, the eligibility certificate, investor residence permit and citizenship application stages must be completed. The final decision is made by the competent authority.

Does the foreign buyer's lack of Turkish prevent the title deed transaction?

For the party who does not speak Turkish, an authorized sworn translator is available during the title deed or notary process. The translator explains the content and legal consequences of the transaction to the foreign buyer.

Can a mortgaged real estate be sold to a foreigner?

Depending on the nature of the mortgage and the status of the creditor, the sale may be possible. However, whether the mortgage will be removed before the sale or simultaneously with the sales price should be determined in writing and with a secure payment plan.

Can shared real estate be purchased?

It is possible for foreigners to buy real estate with shares under favorable conditions. However, shared ownership; use may pose additional legal risks such as dissolution of partnership and pre-emption right. In addition, there are special restrictions on shared real estate for purchases to be made for citizenship purposes. Legal Rights of Foreigners Buying a House in Turkey its content explains other legal points related to this stage.