Natural beauty and archaeological treasures have made Turkey a popular tourist destination for centuries. The country’s pleasant climate, low cost of living, and diversified scenery have made it a popular area to invest in real estate in recent years.
When Should You Invest in Turkish Real Estate?
Investing in real estate in Turkey is becoming increasingly popular as the country becomes a more popular tourist destination. It’s a good idea for investors to look into purchasing property in Turkey.
Buying Turkish real estate has a number of advantages, some of which are as follows:
- Price increases are projected to continue in the Turkish housing market. Property sales in Turkey increased by 113.7 percent in December 2021 as the Turkish Lira plummeted in value.
- The economy of Turkey has been growing steadily for many years, making it a safe haven for investors.
- Residential and commercial properties are available in Turkey.
- A wide range of properties are available to fit a wide range of budgets.
- Real estate purchases of at least $250,000 USD are eligible for a fast-track second passport scheme offered by the Turkish government.
Buying and Selling Houses in Turkey
Selling a house in Turkey is a straightforward procedure:
- A real estate business with a proven track record of success and a broad customer base, both domestically and internationally, is your best bet.
- Talk to the agent about what you want and what you don’t want. Negotiate the cost of the services you’ll need to sell your house, as well as the commission you’ll pay.
- Make a legal agreement with the property management firm.
- Your home will be advertised and shown to potential purchasers by the firm.
To complete the transaction, the agent will help you submit the following paperwork to your local land register office when the agreement has been reached:
- a duplicate of your title deeds (TAPU)
- ID with a notarized seal (translated passport copy)
- Your Turkish tax identification number (Tax ID).
- Passport photographs (two)
- Earthquake insurance mandated by law (known as DASK insurance)
- Documentation of the value of a municipality
Before submitting an official sale application at the land register office, you must have a property appraisal report (obligatory).
In order to complete the sale of your property, the land register will verify that any outstanding municipal property taxes have been paid.
Disconnect your property’s utilities, including power, water, gas, and internet, as soon as the transaction is complete (and receive your initial deposit back you paid when first connecting services).
Getting a receipt to confirm you’ve paid your portion of the community rates up to the day you leave is critical if you’re in development, since it ensures there are no unpaid costs following the sale.
Depending on where you live in Turkey and the type of real estate agent you choose, the expenses of selling your home and the taxes you must pay might vary (for their fees). Selling your home, on the other hand, will cost you the following:
- An agent’s commission for selling real estate
- Notarization costs money.
- On the agreed selling price, a two percent (2%) sales tax will be applied.
- Insurance against earthquakes (which you should already have, but if not, will need to buy before you can sell)
- Property appraisal and property survey expenses
- If you sell your house for more money than you paid for it, you may be subject to capital gains tax (see next paragraph to see if capital gains apply to you)
- Renovating or improving your property before you put it on the market is an option.
Is There a Capital Gains Tax on the Sale of a Turkish Apartment?
How long have you owned the property and what kind of property do you own? You won’t have to pay capital gains on the sale of your property in the following three cases:
- If your property’s title deed was registered before March 2007 and you have owned it for four years previous to the transfer or sale to the new owner, you DON’T PAY CAPITAL GAINS.
- No capital gains are due if the title deed of your property was recorded after March 2007 and you had owned it for five years before it was transferred to the new owner.
- In order to avoid paying capital gains taxes, you must wait the regular five-year term after purchasing a new property and owning it for less than one year before transferring ownership to the new owner.
Please contact us if you are interested in selling your home in Turkey.
For the past decade, many of our partners have been selling houses to foreign purchasers with a 100% satisfaction guarantee. The fact that they have never had a title deed delivery fail makes them the first option of overseas customers.
With us, you can have an obligation-free discussion about selling your home in Turkey through both remote and in-person viewings.
We’re here to help, and we’re pleased to do so with a smile. Every step of the way, our bilingual and multicultural team is here to help you out. Further information is available upon request.