Turkish Real Estate Lawyer for Foreigners
Whether for the purpose of obtaining Turkish citizenship by real estate investment or a residence permit via property purchase in Turkey, or for investment, the acquisition of real estate in Turkey is one of the most common legal transactions for foreigners. The sale or rental of real estate acquired in Turkey, the eviction of tenants from rented properties in Turkey, or rental disputes involving foreigners living in Turkey also frequently create a need for foreigners to consult an English-speaking Turkish real estate attorney.
It is essential to benefit from the assistance of a lawyer in buying, selling, and renting real estate in Turkey. Conducting preliminary research on the zoning and title deed status of the property and providing legal support for sales transactions are indispensable steps in real estate purchase and sale transactions in Turkey. In real estate lease agreements in Turkey, whether it is a residential or workplace lease, many issues such as the arrangement of the lease agreement, deposit disputes, determination of the condition of the leased property, rent increase, and eviction cases require the support of a Turkish real estate lawyer. Also, to overcome the language and cultural barrier and avoid mistakes, especially in a foreign legal system, getting support from a real estate lawyer in Turkey will provide you with the highest benefit in vital transactions such as the sale and purchase of real estate in Turkey.
As Viridis Legal Partners, your real estate lawyer in Istanbul, we are here to assist you in every aspect of your real estate transaction in Turkey. From buying a property in Turkey to your lease disputes, we offer comprehensive and efficient real estate and lease law services.
How We Help with Real Estate in Turkey?
During the pre-purchase stages:
We review and draft your deposit agreements,
We conduct the necessary due diligence on the title deed,
We provide the necessary legal support to remove encumbrances, statements, liens, mortgages, annotations, and other restrictions on the title deed,
We resolve zoning, property tax, and similar restrictions through the municipal authorities
If the real estate is being acquired for the purpose of obtaining Turkish citizenship or a residence permit in Turkey, we provide an assessment of whether the targeted property is suitable for your purposes,
Additionally, for our clients who have not yet decided on a property, we provide the necessary expertise and connections.
During the purchase and sale of property in Turkey:
We handle land registry (TAPU) procedures with the necessary power of attorney for real estate transactions in Turkey on behalf of our clients who are unable to be present in Turkey for purchase and sale transactions.
For your rental properties in Turkey:
We draft, review, or amend your lease agreements,
We draft your eviction undertakings in Turkey,
We provide legal support for the collection of unpaid rent in Turkey,
We provide legal support for the eviction of tenants in Turkey,
We provide legal support at various stages of your rental or property disputes in Turkey, including mediation and litigation processes.
Buying Property in Turkey: The Legal Process
It is important to highlight a few key points for a foreigner to purchase real estate in Turkey should be aware of.
First, foreigners are generally not prohibited from purchasing real estate in Turkey. However, citizens of Syria, the Greek Cypriot Administration in Southern Cyprus, and North Korea are not permitted to acquire real estate in Turkey. Additionally, in accordance with the principle of reciprocity, the list of countries whose citizens are permitted to acquire real estate in Turkey is determined by a Presidential Decree; it is advisable to check the current legislation at the outset.
Secondly, the amount of real estate that foreigners can acquire in Turkey is limited to a maximum of 30 hectares and may not exceed 10% of the total area of the district where the property is located; furthermore, foreigners are prohibited from purchasing real estate near military zones. In addition to these, if the purpose of the real estate acquisition is to obtain a residence permit in Turkey, it is advisable to verify whether the district where the targeted property is located is eligible for a residence permit.
When purchasing real estate in Turkey, it is mandatory to present a Foreign Currency Purchase Certificate to the Land Registry; in other words, the foreign currency to be used for the purchase must be sold to the Central Bank of Turkey (TCMB) through a bank in Turkey. This rule applies regardless of whether the goal is to obtain Turkish citizenship or a residence permit in Turkey. Again, when purchasing real estate, it is mandatory to submit a real estate appraisal report prepared by an expert licensed by the Capital Markets Board (SPK). Upon acquiring real estate, if the goal is to obtain Turkish citizenship, the certificate of eligibility must also be obtained.
It is essential to emphasize again, especially for foreigners who are not accustomed to Turkish law practice, that ownership of real estate in Turkey is transferred exclusively through an official transaction recorded in the Land Registry (Tapu). In other words, ownership of real estate is not transferred through contracts executed at a notary’s office, simple written contracts, or verbal agreements. Furthermore, the “Sales Promise Agreement in the Form of a Notarial Deed,” which is commonly used in Turkey, does not transfer real estate ownership.
Title Deed (Tapu) Transactions & Due Diligence
The first step in land registry (Tapu) procedures in Turkey is, of course, to schedule an appointment for the relevant procedure at the appropriate Land Registry Office (Tapu). This appointment can be made online or by phone (ALO 181). Foreign nationals can schedule an appointment using their foreign ID numbers or provisional tax numbers. In addition, applications can be made in person by the foreign national or through representatives authorized by a power of attorney drawn up at a notary public.
In land registry transactions, the first document that foreign individuals are required to present is either a passport or a foreign national identification document issued by the competent authorities of their country of citizenship. If the transaction is to be conducted on behalf of a foreign legal entity, a certificate of authorization issued by the competent authorities of the country where the company is incorporated must be submitted, confirming that the company was duly established, is currently in operation, and is authorized to conduct the relevant real estate transactions. This document must be the original bearing an apostille in accordance with the Hague Convention of October 5, 1961, on the Abolition of the Requirement of Legalization for Foreign Public Documents, along with a certified translation; if an apostille is not available, the same documents must be presented with certification from the Turkish Consulate in that country.
In all sales transactions where a foreign individual is a party, whether as the buyer or the seller, a valuation report (Real Estate Valuation Report) indicating the market value of the real estate is another document that must be submitted.
Leasing, Landlord–Tenant & Eviction
There are a few points that foreigners should be aware of in advance when purchasing real estate in Turkey for investment or rental income.
First, in residential leases, specifying the term of the lease agreement does not grant the landlord the right to evict the tenant. In Turkey, for residential and commercial property leases, if the tenant does not wish to terminate the lease, they may continue to occupy the property for up to 10 years. However, if grounds for eviction exist, the landlord may also terminate the lease. The first of these grounds is the tenant’s failure to pay rent. If the tenant fails to pay rent, the landlord may initiate enforcement proceedings and request eviction. Additionally, if the tenant is late in paying rent multiple times within a single year and has been issued a formal notice for this reason, the landlord is entitled to file an eviction lawsuit. Furthermore, the landlord may file an eviction lawsuit if the property is needed for the landlord’s own use or that of a close relative.
In practice, it is common to obtain an eviction agreement from the tenant to bypass this ten-year period and ensure the tenant’s eviction can be easily secured at the desired time.
Another important point to consider regarding residential rents is the determination of the rent amount. In Turkey, rent increases for residential properties are capped at the 12-month average of the CPI rates announced by TÜİK (Turkish Statistical Institute). Even if the rent is set in a foreign currency, or if the lease agreement provides for higher increase rates, the increase rate cannot exceed the CPI average.
Property Disputes & Litigation
In addition to all mentioned above, real property ownership and land registry law encompasses a wide range of cases, from actions for the cancellation and registration of title deeds to claims for damages arising from defective construction and delivery, and from actions to prevent unlawful possession to expropriation cases. To these can be added lawsuits and non-contentious judicial proceedings arising from inherited property in Turkey.
Commercial & Investment Real Estate
Foreign companies and individuals also invest in real estate in Turkey for the purpose of investment or to generate a steady return. Retail spaces, stores, warehouses, and other properties intended to generate rental income, as well as professionally managed hotel room investments in Turkey or “hands-off” projects involving short-term lease agreements, are among the top choices for foreigners, alongside residential property purchases aimed at generating rental income.
Why Viridis Legal Partners : Your Real Estate Lawyer In Turkey
As Viridis Legal Partners, we know how important it is for you to utilise the services of the right lawyer. As your real estate lawyer in Turkey, Nadide Özdemir founder of Viridis Legal Partners (Yeditepe Hukuk 2016, İstanbul Barosu 57790) can assist you in obtaining citizenship through the purchase of real estate in Turkey, representing you in disputes arising out of the purchase of real estate in Turkey, the sale of your real estate in Turkey or the management and leasing of your real estate in Turkey, or in resolving problems and damages you face as a tenant in Turkey. We also eliminate language barriers by providing real estate law services in fluent English so that you can fully understand your legal options and related procedures.
Frequently Asked Questions
Can foreigners buy property in Turkey?
Yes, foreigners can buy property in Turkey except for the citizens of Syria, the Greek Cypriot Administration in Southern Cyprus, and North Korea.
What is a Tapu and how is it verified?
“Tapu” is the name given to the official document that proves real estate ownership in Turkey. The tapu specifies the location and boundaries of the owned property, its type (land, farmland, condominium, or co-ownership), the basis of acquisition, and its value. Tapu can be verified online or by visiting the relevant Title Deed Registry Office (Tapu Müdürlüğü) in person.
Do I need to be in Turkey to buy real estate in Turkey?
No, you don’t. Foreigners do not necessarily need to be physically present in Turkey to purchase real estate. They can buy real estate remotely, authorizing someone else with a power of attorney for property purchase in Turkey.
What taxes apply to property in Turkey?
First of all, there are four types of official fees involved in the purchase of real estate in Turkey: Land Registry Transfer Tax, Value-Added Tax (VAT), stamp duty, and the Land Registry revolving fund fee.
The Land Registry Transfer Tax is levied at a rate of 4% of the declared purchase value of the real estate (legally split between the buyer and seller, but typically paid in full by the buyer). Value-Added Tax (VAT) is for newly constructed or commercial real estate purchased from legal entities or contractors, it is applied at rates ranging from 1% to 20%, depending on the property’s size and classification; exemptions may apply for certain foreign buyers. Stamp Duty ranges from 0.1% to 0.6% on official sales contracts. The Land Registry revolving fund fee is a fixed service charge determined based on the property’s location and value.
Taxes and payments arising from real estate ownership in Turkey consist of the annual property tax, mandatory earthquake insurance (DASK), the High-Value Residence Tax, Rental Income Tax, and Capital Gains Tax. Annual Property Tax (Emlak Vergisi) is paid to local municipalities based on the government-assessed value of the property. Rates for annual property tax in Turkey are double for properties located in major metropolitan areas such as Istanbul or Ankara, and rates also vary depending on the type of real estate. For residential property, the rate is 0.1% (0.2% in metropolitan areas); for commercial property, it is 0.2% (0.4% in metropolitan areas); and for land or building plots, it ranges from 0.3% to 0.6%. Compulsory Earthquake Insurance (DASK) is the mandatory annual policy required for all property owners. The High-Value Residence Tax is an additional progressive tax (0.3% to 1.0%) on luxury residential properties in Turkey that exceed high statutory value thresholds. Rental Income Tax is levied at progressive income tax rates (15% to 40%) on net rental profits after statutory deductions, subject to an annual exemption threshold. Capital Gains Tax on real estate is applied to profits from real estate sales if the property is sold within 5 years of purchase; sales after 5 years are generally exempt.
Contact us today to benefit from our services and consulting, ranging from real estate purchases to rental disputes in Turkey