NEWS & EVENTS
How to become A Home Owner in Turkiye: Explained
A young and modern nation rooted in deep history sandwich in between the east and the west. We are talking about Turkey and how its real estate market boom after 2018. Turkey’s real estate market was up on the rise, but since 2018 the demand skyrocketed. One main turning point to Turkey’s real estate market is its investment schemes. The demand skyrocketed since the government changed the investment scheme from 1 million USD to 250,000 USD to gain citizenship. However, when the government kept the investment scheme at 1 million USD, they were no takers.
Turkey has grown to be an attractive location for foreign investors to increase their investments portfolio. Moreover, even for first-time buyers, Turkey is a beautiful location as the real estate market is offering attractive prices. Fast forward since the government amended their investment scheme. Sales of real estate to foreign investors have increased by almost 70%. With the increased demand for foreign investments, the Turkish economy is stable and doing quite well. If the economy is tough and not doing well, it decreases the confidence of foreign investors to come to Turkey even more for investments.
The questions remain, for how to purchase a property in Turkey? For example, can all foreign investors own property in Turkey, and is Turkey an attractive country to have “a home away from home.” Below in this article will focus on the steps and process of purchasing a property in Turkey.
Why Real Estate in Turkiye?
First and foremost, the prices of real estate in Turkey are desirable to all ranges of foreign investors. Apartments and house prices in Istanbul per square meter are below USD 1,000. Anything good deal below USD 1,000 in a major financial city of the world is fantastic. The heart of Turkey, Istanbul, has a wide range of real estate. From penthouses to three bedrooms apartments looking over the Bosphorus, or one-bedroom university dorms, with such prices, investors are looking for a healthy return of investments (ROI), with some action taken before becoming a property owner in Turkey.
Why choose Turkey as “a home away from home” because of prices, exchanges rates, low-interest rates, and the meeting point of Asia and Europe. As stated in previous articles, the Turkish Lira in 2018 was nosedived to be one of the weakest currencies. But it turned out to be an opportunity for the country to increase its GDP.
The increase in tourism, emerging start-ups, and trade talks have made Turkey’s economy grow than its European Union counterparts. Turkey has adopted both the Asian and European sides of cultures and traditions. Turkish got the easy, carefree, easy-going out lifestyle from the “west.” On the other, Turkey got the business, calculations, and hassle side from the “east.” Turkey has one of the youngest populations in the world. With the median age to be around 31 years old. Lots of its young populations are educated, hungry, and creating many start-ups in and around Istanbul. There is much opportunity in Turkey as of now.
How to Invest In Turkiye?
As anyone who wants to purchase something in value, some research goes into the product. Even you are seasoned investors or first-time buyers; some research should be going in to know the product you want to purchase. Research on what kind of properties you are looking to invest in. You should know and understand what neighborhood you want to be in. Istanbul is a vast city; they are a few areas to live. From Besiktas (popular, young community) to Cihangir (businesses and ex-pats stay) or go to famous coastlines of Antalya or Kalkan for luxury villas and luxury apartments, they are vast places to choose and research.
They are legal documents that go into purchase real estate in Turkey. They are three essential documents needed to become a homeowner in Turkey. According to globalpropergyideguide.com, foreigners can acquire a maximum of 30 hectares (74 acres) of real estate. The three primary documents are title deeds, habitual documents, and building licenses. Most of the documents can be obtained through a scheduled meeting at the land registry office in Turkey.
How to Invest In Turkiye?
An important document to become a homeowner in Turkey. A legal document that passes the ownership property to you from someone else. Most title deed fees count for around 4% of your property transactions. For example, if you are investing in a property which is at USD 200,000. Your title deed fees will be USD 16,000. A title deed is when a buyer knows which property to purchase. Language barriers can be a problem in Turkey as people speak English, but not widely spoken yet.
So as the lawyer is drawing up your title deed and habituation certificate. You will be searching to hire a solicitor that can translate the documents for you. Investors would not need a solicitor but recommended no there won’t be an issue with translators when the transfer for ownership is in action. They will be a fee for a translator solicitor, as you can give an attorney power to purchase your property for you if you can not come to the country yet.
The habitual certificate is also paramount because, in Turkey, the country is prone to earthquakes. It is a way to keep you safe and have insurance to cover your property. If you do not have a habitual certificate in Turkey, you might not purchase a property in Turkey. As investors obtain both title deeds and habitual certificates to authorize transfer for ownership and living conditions, your solicitors will check the building certificate. A building certificate is to cross-reference that your apartment comes from the same developer as it is paramount in Turkey.
To finalize and become a property owner in Turkey, you need to go to the Land Registry office. In Turkey, during the transfer of ownership, it is a legal arrangement that both the buyers and sellers are present on the day of the transfer. Therefore, the investors’ case is the case you are receiving your title deed to be a property owner in Turkey.
What’s VAT in Turkiye?
According to some experts, one of the most complex fees in Turkey is VAT. VAT is mainly complex to follow and to calculate. In Turkey, the rules and laws around added taxes change frequently. As stated on globalpropertyguide.com, there are two exceptions you do not have to pay VAT when you are a first-time owner of a new project. Secondly, when your property is not a channel of income. The second exception is you do not have to pay income tax. If you are not looking for rental yields of your property, you do not have to pay income tax in Turkey.
Taxes for your property in Turkey depends on the surface area for your property and building license date. It comes down to how old, or new your building is and how big or small your property is measured. Taxes in Turkey can go high or low depending on surface area and building license (vital document to obtain to be a property owner). For example, if the surface area is 150m squared and above and the building license date is 2018, then tax is 1%. On the other hand, if your building license year is the same as 2018. But your property surface area exceeded 150m squared. The tax jumps up to 18%. It depends on how big and small your property you are investing in Turkey.
It is an excellent time to start investing in Turkey to become a property owner. You have different and various locations in Turkey to become a property owner. From the previous article, you can choose your place in the heart of Turkey, Istanbul, or go down the Mediterreance coastline of your summer villa house in Kalkan. In Turkey, how the economy is stable and improving more than the EU represents a sign of strength. The weather is summer all year and brings lots of tourism to the coastline, which leads to excellent rental yields for a homeowner in Turkey. For rental yield or summer homes, Turkey real estate market is booming. The steps to becoming a homeowner are straightforward with some legwork, but the opportunity is here, and people are moving to Turkey as “a home away from home.”