Country Overview | Key Property Facts

Types of Tenure:

Forms of Ownership:
The law relating to the purchase of property by foreigners in Turkey was ratified by Turkish Parliament on 7 January 2006 and is now in force. In real terms, foreigners can only own up to a maximum of 2.5 hectares (25,000 m2) of land and property. Upon application, the Council of Ministers may use its discretion to increase this threshold to a maximum of 30 hectares (300,000m2) providing this figure does not exceed a total of 0.5% of the land area of the province in question.

Restrictions:
Foreign nationals and foreign commercial companies are not allowed to buy property in the military, strategic and security zones of Turkey. In addition, the Council of Ministers is authorised to determine specific zones to be preserved such as lands which are strategically very important in terms of energy, agriculture, mining, history, cultural values, biological flora, and national security.

The maximum size of all lands owned by foreign real persons in a province shall be capped by the Council of Ministers and this cap cannot be more than 0.5% of the total area of the whole province.|

Property Rights:
British citizens may purchase property in Turkey, subject to the following conditions:

• The property can be paid for in either Turkish lira or foreign currency. There are also no restrictions about the transfer of foreign currency or Turkish Lira from a Turkish or foreign bank.
  
  
• Applications should be made to the District Land Registry office (Tapu ve Kadastro Mudurlugu), when a suitable property for purchase is found.

A recent change in Turkish legislation now permits foreigners to buy a property outside the boundaries of a municipality, i.e. council district (Belediye) and within a village or rural area. However, it is still necessary to obtain permission from the Military, prior to purchase.

Note: Turkey and the UK have a bilateral agreement to avoid double taxation. Tax of the property in Turkey is payable to the Turkish tax authorities as the relevant law requires

Reciprocity principle
If a foreign citizen or company can acquire real estate in Turkey, the citizens and companies of the Republic of Turkey should also have the right to acquire real estate in that particular country. This right must be accepted by law and must be put into practice. The new regulation stipulates that the rights given by a foreign country to its own citizens or companies should also be given to the citizens and companies of the Republic of Turkey.

Mortgage Finance:
Mortgages are available to foreigners in Turkey, and if you are planning to live in Turkey this may well be the best option. However, if you will be continuing to live and work in the UK you may find that it is easier to fund your Turkish property with a British mortgage or by remortgaging your existing UK home.

By withdrawing equity from your UK home or taking a loan in the UK, you will be able to buy your Turkish property for cash and avoid the time-consuming process of applying for a Turkish mortgage.

You can't secure a UK mortgage on a Turkish property, but you may find specialist overseas investment companies who will arrange a suitable specialist loan or mortgage.

Issues & Risks:
Turkey scores 50% in the Heritage Foundation’s assessment of the security of its property rights.  The Heritage Foundation states, “Property rights are generally enforced, but the courts are overburdened and slow, and judges are not well trained for commercial cases.

“The judiciary is subject to government influence. The intellectual property rights regime has improved, but insufficient protection of confidential pharmaceutical test data and high levels of piracy and counterfeiting of copyrighted and trademarked materials remain concerns.”

EU Entry
Turkey has been a NATO member for many years, and is negotiating hard to enter the EU, although issues surrounding the dispute with Greece over Cyprus are slowing that down and it is not considered likely that Turkey will join until around 2018 at the earliest.

Economic stability and growth, with increased foreign investment, has been seen since the introduction of the new Lira in 2005. Recent law changes allow foreigners to buy up to 2.5 hectares, except in remote rural areas which aren’t controlled by a town or borough council, and with the bulk of the housing supply quite old, new builds are popping up everywhere.

Buying risks
Buying is a straightforward process but working with a reputable and registered estate agent is vital. There were instances in the early days of off-plan properties being sold to more than one buyer, so engaging a Turkish bi-lingual lawyer is advised, although they are not required by law.

Finally, you will have to open a bank account in Turkey as any transaction of more than 8000 YTL (new Turkish Lira, about £3000) must go through the banking system or the Post Office.

Earthquakes
Turkey is prone to occasional earthquakes and following the major earthquake experience in Izmit in 1999, the Turkish government introduced new legislation designed to provide homeowners with greater protection from earthquakes.

There are two aspects of this that you should be aware of:

• Homes built since 1999 should have been built to earthquake specifications - ask to see the "Use of Building Permit ("Yapi Kullanma Izni") or "Habitation Certificate ("Oturma Izni/Ruhsati")
• Once you have purchased your property, you will be required to pay an annual contribution to the government's earthquake insurance scheme.

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