Real Estate Sector in Turkey

Turkey’s strategic location, growing economy, urban transformation projects, and government incentives like the Citizenship by Investment program make its real estate market appealing to both local and international investors.

Yes, foreigners can buy property in Turkey, except in restricted areas such as military zones. There are no citizenship requirements, but specific rules and procedures must be followed.

Foreigners and locals can buy residential, commercial, industrial, and agricultural properties, subject to certain zoning and regulatory conditions.

Property prices vary widely depending on location, type, and size. For instance, residential properties in Istanbul may cost between $1,500 to $5,000 per square meter, while smaller cities are more affordable.

Foreigners who purchase property worth at least $400,000 can apply for Turkish citizenship. The property must be held for at least three years to maintain eligibility.

• Property Purchase Tax: 4% of the property’s sale price (shared between buyer and seller).
• VAT: Applies to brand-new residences. Varies between 1% and 18% depending on the square meter of the property.
• Annual Property Tax: Between 0.1% and 0.6%, depending on property location and type. 
• Valuable Housing Tax: It is a type of tax collected at rates ranging from 0.3% to 1% on real estate whose value exceeds a certain threshold. It targets those who own more than one real estate. The thresholds for 2024 are as follows.
  • For properties valued between TRY 9,967,000 and TRY 14,952,000: 0.3%
  • For properties valued between TRY 14,952,001 and TRY 19,936,000: 0.6%
  • For properties valued above TRY 19,936,000: 1%

• Passport (translated and notarized).
• Tax identification number.
• Proof of address.
• Property title deed (Tapu).
• Appraisal report (Ekspertiz Raporu).

The Tapu is the official title deed that confirms ownership of a property in Turkey. It is issued by the local land registry office.

Yes, banks in Turkey offer mortgage loans to both local and foreign buyers. Loan terms, interest rates, and eligibility criteria vary depending on the buyer’s profile and property type.

• Istanbul: The economic and cultural hub, offering high returns.
• Antalya: Popular for tourism and luxury properties.
• Izmir: Known for its coastal charm and growing market.
• Bursa: Affordable housing and proximity to Istanbul.

There are no general restrictions on reselling properties, but for properties purchased under the Citizenship by Investment program, the buyer must hold the property for at least three years.

Real estate agents assist with property searches, negotiations, documentation, and ensuring compliance with Turkish real estate laws.

Yes, property owners can rent out their residential or commercial properties and earn rental income. However, rental income is subject to taxation in Turkey.

• Location and property type.
• Market trends and demand.
• Legal and regulatory requirements.
• Tax obligations and costs.

Urban transformation projects aim to renovate old and unsafe buildings, especially in earthquake-prone areas, creating new opportunities for real estate investment.

The ROI varies depending on property type and location but typically ranges between 4% and 8% annually for rental properties, with potential for capital appreciation.

Inflation can increase construction costs and property prices, but real estate often acts as a hedge against inflation, attracting investors seeking stable assets.

• Smart and sustainable housing developments.
• Increased demand for coastal and resort properties.
• Growth in commercial real estate due to e-commerce and hybrid work models.

Yes, foreigners can establish a real estate company in Turkey. They enjoy the same rights as Turkish citizens, with no restrictions on company ownership, except in certain restricted zones such as military areas.

The most common types of companies for real estate businesses in Turkey are:

• Limited Liability Company (LLC) (Limited Şirket): Ideal for small to medium businesses.
• Joint Stock Company (JSC) (Anonim Şirket): Suitable for larger ventures requiring significant capital.

Yes, you need a real estate brokerage license to operate legally. Additional permits may be required depending on the nature of your business, such as property management or development.

• Choose a company type (LLC or JSC).
• Prepare and notarize the Articles of Association.
• Submit required documents to the Trade Registry Office.
• Obtain a tax identification number.
• Open a corporate bank account and deposit the required capital.
• Apply for licenses and permits.
• Register with the Social Security Institution (SGK).

Foreign-owned real estate companies can operate nationwide, except in restricted zones such as military areas or strategic locations.

Yes, a registered office address is mandatory for company registration. You can either rent or use a virtual office service initially.

• Corporate Tax: 25% of profits.
• VAT: 1%, 8%, 18% or 20%, depending on the property type.
• Stamp Duty: 0.189% on certain documents.
• WHT : 20% for some payments such as freelancers, salaries, business place rent payments

Yes, real estate companies can develop, manage, and sell properties. Ensure compliance with zoning laws and obtain any necessary permits for construction.

Yes, real estate companies can manage rental properties, including residential and commercial spaces. This can include marketing, tenant management, and maintenance services.

While it’s helpful to be in Turkey during the setup process, you can appoint a legal representative  like a Turkish Accountant with a notarized power of attorney to handle the process on your behalf.

• Navigating complex regulations and permits.
• Understanding local market dynamics and competition.
• Managing currency fluctuations and economic instability.

Yes, your company can cater to international clients by offering property brokerage, consultancy, and legal assistance services.

Yes, strategies such as digital marketing, leveraging online real estate platforms, and partnerships with international brokers can help you succeed in Turkey’s competitive real estate market.