The real estate market in Turkey has been a turning point in the Turkish economy. Turkey has become the preferred destination for the Arab investors who are interested in buying properties in Turkey and especially buying apartments in Istanbul and looking for cheap apartments in Istanbul for sale.
Foreigners’ ownership of property in Turkey is a big step and the investors have to know about the Turkish real estate market before entering the investment world. The investor should know the laws of property ownership for foreigners in Turkey So he protects his money from falling victim to fraud.
In this context, we highlight everything an investor needs to know about the laws of foreign ownership of property in Turkey.
Property Inheritance Law For Foreigners
The laws of property inheritance in Turkey are depending on the location of the property, which means the law applies to property within the borders of Turkish land while the laws of the deceased’s country apply to his movable property.
Turkish law determines the heirs of property in Turkey as follows;
The first heirs are the children and the husband or wife. If the deceased has no children, the father and mother will be identified as the heirs of the deceased, and if the parents are not alive, his brothers inherit him. As for the grandchildren, they are selected at the bottom of the list.
If there are no heirs for the deceased, all his property goes to the Turkish government. It is worth noting that the Turkish government relies on the official will. On the other hand, the inheritance is distributed after the deceased is cleared of “bank debts, installments, mortgage”.
According to Turkish law, the wife inherits half of what the husband left and the other half goes to the children, and the shares of males and females are equal.
The heir must to pay the inheritance tax, and the tax is between 1-10% of the value of the property, and the value of the tax is determined according to the value of the property. For example, if the property price is 570000-240000 Turkish liras, the ratio is 1-3%.
57000-1270000 The tax rate is 5%
1270000 – 2200000 the rate is 7%
2200000-4280000 The tax is 10%
By the way, inheritance tax is relatively low in Turkey compared to other countries.
Documents Required To Transfer Property Ownership To Heirs
– A family statement showing the heirs and the degree of kinship, certified and translated into Turkish.
– Tax register in Turkey and obtain tax numbers for all heirs.
– A valid passport and personal photos.
Property Valuation Law
The Turkish Ministry of Housing issued earlier a decision requiring the presence of a real estate expert recognized by the ownership department whose task is to assess the price of the property.
This law came to protect investors from those who manipulate property prices and target the foreign investor because he does not know the real value of the property.
The evaluation committee report depends on the location of the property in the first place Where property prices in Istanbul vary according to regions.
For example, property prices in Sisli, the central district of Istanbul, which are the highest, differ from property prices in Beylikdüzü.
The total area of the apartment and the age and type of construction (commercial, residential) are also taken into account.
Obtaining Residency By Owning A Property
The residence permit is granted by owning a property in Turkey for two years, renewable.
It is also given to those who establish a business or company and buy a property and register the property ownership for this company.
Residence is granted to the family members of the property owner under the same title deed. The residency procedures are very simple and it takes a maximum one month to respond to the residency request from the date of submission. The property residency is considered the most secure, where the property owner and his family ensure that it is periodically renewed. Some types of residencies are denied or refused to be renewed.
When buying apartments in Turkey, you can submit a residence permit application with attaching documents showing your ownership of the property, and your application will be approved as you are an apartment owner in Turkey.
An investor who is interested in buying apartments in Turkey can obtain Turkish citizenship by buying property in Turkey in the amount of 250 thousand US dollars and above.
Documents required to obtain Turkish citizenship:
- • A copy of the passport translated by the sworn translator, and certified.
- • 4 personal photos (for each family member)
- • A document showing the civil status (proving the property owner’s relationship with the wife and children), marriage contract, children’s birth certificates.
- Residence Permit in Turkey
- Health certificate
- A copy of the Turkish residence and the address of a friend or relative in Turkey, if any
- A document proving the purchase and ownership of real estate in Turkey (Tabu papers, purchase contract registered with the notary public)
- Evaluation Expert Report
- A bank document of the transfers that were paid to pay the price of the property through the bank.