Are you worried about the steps involved in buying property in Turkey as a foreigner in 2023? Let us guide you on this! It can get quite confusing and risky when navigating the path of buying a property even in a foreign country. Here is a clear-cut foreigner’s guide to buying property in Turkey that will give you a decent idea of the process.
Step 1: Understand the WHY?
The first step is to understand the reason why you are buying property in Turkey. Is it for investment purposes only? Or is it a vacation home and investment? Or are you planning to apply for residency or citizenship? Understanding your motivation for buying property in Turkey will help you make informed decisions.
Rental returns are pretty good in Turkey at this time, you can easily achieve 9-12% gross rental returns in Antalya and Istanbul if you know what you are doing.
Citizenship by investment has gone up to $400,000 USD, and you can get your passport within 3-6 months of applying. This will get you a starter villa in Antalya, however prices are increasing. You can get 1 large apartment (3 to 4 bedrooms) and a 1 bedroom apartment for $400k in either Istanbul or Antalya.
Residence permit requirement is real estate purchase of $75,000 USD in large cities and $50,000 in small towns. You can get residency within 1-3 months of applying. It is very challenging to find anything below $100,000 in any major city and even below $80,000 in smaller towns. The starting point for Turkey has now climbed up to $100k if you are considering investing here.
Step 2: Figure out the location
Once you have determined the reason for buying property in Turkey, the next step is to figure out the location. Turkey has many beautiful regions, including Istanbul, Antalya, Ankara, and Bursa. Each region has its own unique features and benefits. Researching the different regions in Turkey will help you decide which location is right for you, however we will also give you a brief overview in this foreigner’s guide to buying property in Turkey in 2023.
Istanbul
Istanbul is a vibrant city that bridges Europe and Asia. It is the largest city in Turkey and is known for its rich history, diverse culture, and stunning architecture. Istanbul is a popular destination for tourists and is a hub for business, making it an attractive location for those interested in investing in real estate. Not much needs to be said for Istanbul, however the downside is that it can be over crowded with lots of traffic. If you pick your location in Istanbul strategically you will be fine, not to worry.
Antalya
Antalya is a coastal city located in the Mediterranean region of Turkey. It is known for its beautiful beaches, warm weather, and historic sites. Antalya is a popular tourist destination, and the real estate market in the city is booming. Many people are investing in vacation homes and rental properties in Antalya. Also many families are moving here as it does offer a decent range of private schools along with both public and private universities.
Ankara
Ankara is the capital city of Turkey and is located in the central region of the country. It is a modern city that is known for its universities, museums, and government buildings. Ankara is a popular location for foreign investors who have children as it has lots of options for private schools, and both public and private universities. Some of the country’s top universities such as ODTU and Bilkent are located in Ankara.
Bursa
Bursa is a historic conservative city located in the northwest region of Turkey. It is known for its hot springs, ski resorts, and stunning scenery. Bursa is becoming increasingly popular with foreigners who are interested in buying property for vacation homes or investment purposes. It is a good place for families as it is quiet, and has access to schools and universities however mainly the language spoken will be Turkish. The other plus point is that it is only a 2 hour ferry ride from Istanbul.
Step 3: Working with an agent or going freelance
It is highly unadvisable to go out there on your own without a buyer’s agent or consultant on your side. There are too many unknowns when you are coming as a foreigner into a new country and thus please do not make the mistake. Everyone thinks they can handle it until it happens to them and they end up getting scammed. Working with a reputable buyer’s agent who has experience in dealing with foreigners can help simplify the buying process and protect you from unnecessary and easily avoidable risks. To ensure you don’t fall for these traps, please continue reading this foreigner’s guide to buying property in Turkey in 2023.
Step 4: Prior to Traveling to Turkiye
Before traveling to Turkiye, it is good to have conversations with a few firms in order to know which one you plan to work with so that you can be prepared with all documents and complete all the steps needed prior to traveling to Turkiye from your country.
Bring Necessary Documents
Here are a few documents that you should bring with you when traveling to Turkiye for buying property:
- Passport
- Utility bill – gas, water, electricity, internet, or phone bill from your home country with your name and address written clearly on it is required to open a local bank account.
- Marriage certificate – should be apostilled or legalized/attested from MoFA and Turkish Embassy in your home country
- Birth certificate for children- should be apostilled or legalized/attested from MoFA and Turkish Embassy in your home country
The marriage and birth certificate are only required if you are planning to apply for residency or citizenship. Otherwise if you are just coming to buy property, then your passport and utility bill is enough for this trip.
Open Bank Account & Apply for Tax Number
We advise when you land in Turkiye, you should open a bank account in your name as soon as possible, and also apply for a tax number. This can be quite challenging as most banks now don’t allow you or they have really difficult conditions. We assist you with this process so not to worry. Now let me explain why a local bank account is necessary and why we cannot just transfer funds directly to seller from your foreign bank account.
Firstly, the issue is for many banks, large transfers are difficult to do remotely and you will need to be at your bank in your home country to initiate. You need to notify the bank beforehand that you plan to do this and still you may face some issues if you are trying to do remotely while being in Turkiye.
Secondly, SWIFT transfers take long and it is hard to estimate exactly how many days it will take for the funds to reach the seller’s account. Also we cannot confirm or check if they reached or not, and have to rely on what the seller is telling us.
Thirdly, we need to get something called Foreign Currency Exchange Certificate. This is required by law to show that you have transferred the funds from from FX (USD, EUR, GBP, etc) to local currency TRY. This is issued by the bank themselves and can be done by either seller or buyer, but always they expect the buyer to do this in Turkiye as the seller doesn’t want to be bothered with this.
Thus we advise to have your own bank account in your name in Turkiye through which you can receive your funds from abroad in FX form (USD, GBP, EUR) and then once we find a suitable property we may assist you with Foreign Currency Exchange Certificate process as this is also a delicate process which needs to be done correctly otherwise we may face issues on the title deed transfer day.
In order to open a bank account in Turkiye you will need to bring a utility bill with your name and address clearly written on it. This utility bill should be from your home country where your passport is issued from or from a country where you are currently a legal resident. You should be able to provide proof of residency of that country if asked.
Step 5: Property Search & Viewings
Once you have arrived in Turkey, you can start your property search. The consultant or buyer’s agent that you have chosen will now step in and start showing you different properties that meet your requirements. It is important to view the properties in person to get a feel for the location and condition of the property.
Make sure you bookmark this article, so while you are in Turkiye doing viewings don’t be shy to refer back to this foreigner’s guide to buying property in Turkey in 2023 at any point in your property purchasing process to get the most accurate information. I will be updating this document as frequently as I can.
Step 6: Deposit Agreement
If you find a property that you are interested in, the next step is to sign a deposit agreement. This agreement outlines the terms and conditions of the purchase and secures the property while the legal work is being completed. It is important that your consultant checks the agreement to ensure everything is in order and your side is duly protected.
For the deposit, usually you are looking at about $2000-$5000, depending on the property and the owner this may vary. If you don’t have the funds you may use Wise.com for transferring the funds quickly and securely to Turkey. I actually use their service quite often and have found them to very useful.
While doing research on this topic of foreigner’s guide to buying property in Turkey in 2023, I found a really well written article by Wise.com which I urge you to check out.
Step 7: Property Inspection and Legal Work
Appraisal Report
Before finalizing the purchase, the property will need to be appraised by a licensed appraisal expert from a certified appraisal company. This takes approximately 2-3 business days usually, however may take slightly longer if there is a lot of requests in that region. If you are buying this property for residency or citizenship, the appraisal amount should exceed the minimum requirements.
Foreign Exchange Certificate
The funds you have transferred to your own local account in USD/EUR/GBP need to be converted for property purchase purposes through the bank upon which you will get a Foreign Exchange Certificate (Doviz Alma Belgesi). This is a very delicate process and needs to be handled properly to avoid losing additional funds in conversions. This step can usually be completed in 1 day.
Closings Costs
There are various costs involved in closing a property as common in any country, Turkiye has the following closing costs:
- Title deed tax – 4%
- Appraisal report – $350 to $500
- Notary & translation – $150
- Estate agent fees – 2% to 4%
- Attorney – $1000 to $2500 (optional and not required)
If the firm you choose is reliable and has good track record then you don’t need an attorney as it is not required by law.
Attorneys can be an additional and heavy expense so we advise you to work with a good firm/consultant so you can skip on that cost. However if you feel that it will give you more peace of mind, you may consider hiring an attorney to add an additional security level.
Step 8: Closing Deal and Title Deed Transfer
Once the appraisal report is completed, the foreign exchange certificate is issued, and the title deed tax payment is completed, the final step is to take the title deed appointment.
On the day of the appointment you will need to transfer the remaining funds or hand over in cash, and then the title deed will be transferred over to your name by an officer at the local Title Deed Office.
Conclusion
In conclusion, buying property in Turkey as a foreigner can be a straightforward process if you follow the proper steps and work with reputable professionals.
With its attractive real estate market, investing in property in Turkey can be a smart financial decision. Hope this foreigner’s guide to buying property in Turkey was helpful to you and wish you the best of luck in buying property in Turkey in 2023.
Get in touch with us today if you are looking for professional assistance on buying property in Turkey. If you are curious about my background and qualifications, you can read about me here.
