Turkey real estate market 2023 is attracting foreign investors to invest their money in Turkey.
The foreign investor must know the laws of properties ownership for foreigners in Turkey, before entering Turkey real estate market 2023.
In this context, we highlight everything an investor needs to know about foreign ownership of property in Turkey.
What is a notary’s bond?
The title deed registered with the notary public is a legal document.
The property is registered with the notary when the purchase is in installments. After all payments are made by the owner of the apartment, it is registered in his name in the Land Registry and he obtains the title deed in Turkey real estate market 2023.
Construction companies resort to registering the property with the notary in order to guarantee their legal right and the right of the buyer.
Real estate easement deed:
The property is registered with an easement title deed when a property is purchased in Turkey as part of a project under construction.
The easement deed is the title deed in which each section of the property is registered separately. In other words, when the construction company plans the project and lays out the plan to build on the plot of land, and gets approval for construction.
The project is divided into sections (number of apartments within the building), and each apartment is organized with a special document showing the location and area of the apartment and the information about it. Upon completion of the construction work, the full title deed is granted.
When you buy apartments in Turkey real estate market 2023, ready for delivery, you are given a full title deed, which proves the ownership of the apartment and preserves your legal right.
It should be noted that the real estate registry of the apartment must be disclosed before purchasing.
This is to find out if the property is subject to restrictions such as seizure or mortgage, and the Land Registry Department must be reviewed to detect the property, because the restrictions, if any, are not mentioned in the title deed.
Turkey real estate market 2023 Property Taxes:
Title deed Tax:
This tax is imposed when the title deed is registered in the Land Registry Department in Turkey, and its value is equivalent to 4% of the property price specified in the sales contract, and is usually paid equally between the buyer and seller.
Municipal Tax Fee:
Turkish municipalities impose on properties established within the area under the municipality’s service, an annual fee of 0.03% of the value of the property in Turkey real estate market 2023, which is equivalent to $ 30 per year for a property whose price is 100 thousand dollars. This tax is paid for the services provided by the municipality to the area.
Earthquake and Natural Disaster Insurance Fees:
It is an annual tax paid by the property owner in Turkey real estate market 2023, to insure his home against natural disasters, and is equal to the value of 2 dollars per square meter of the apartment area. The value of the natural disaster insurance tax varies depending on the location of the property.
What is the housing document?
The housing document is the approval that is issued by the municipality for buildings if they are built according to specific standards.
Where the completion of the construction process must be proven according to what was mentioned in the approved project.
The standards imposed by the state and the competent authorities must be adhered to in order to obtain housing approval, for example (the presence of safe exits for emergency situations, the building being earthquake-resistant).
The construction company must also obtain housing approval, and easement title deed for those who bought apartments within the building are converted into title deeds after obtaining housing approval.
It is necessary for the owner of the apartment in Turkey real estate market 2023 to obtain a housing document in order to guarantee his right.
Real estate inheritance law for foreigners:
Real estate inheritance laws in Turkey real estate market 2023, in principle, depend on the location of the property.
That is, the law applies to real estate within the borders of Turkish lands, real estate and immovable property, while the laws of the deceased’s country apply to his movable property.
Turkish law determines the heirs to property in Turkey real estate market 2023 as follows:
The first heirs are the children and the husband or wife, and in the event that the deceased did not have children, the father and mother are determined as the heirs of the deceased. If the father and mother are not alive, his brothers inherit it. As for the grandchildren, they are identified at the bottom of the list.
And 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, if any.
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.
Real Estate Valuation Law:
The Turkish Ministry of Housing issued 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 in Turkey real estate market 2023.
The evaluation committee report depends on the location of the property in the first place, as real estate prices in Istanbul vary from one region to another. The total area of the apartment, the age of the building and its type (commercial, residential) are also taken into consideration.
The decision entered into force on March 4, 2019, when the General Directorate of Real Estate Records of the Ministry of Environment and Cities published a decision requiring foreign investors coming to buy a property in Turkey real estate market 2023 to commit to obtaining the report of the evaluation committee for the price of the property, in order to complete the purchase process and register the property in the Department of the real estate registry in the name of the property owner.
Obtaining a residence permit by owning a property:
Real estate residency is granted by owning a property in Turkey real estate market 2023 for two years. It is also granted to those who establish a business or company and own property in the name of the company.
Real estate residency is given to the family members of the owner of the property under the same title deed. The procedures for real estate residency are simple, and it takes a maximum of one month to respond to the residency request from the date of submission.
When buying a property in Turkey real estate market 2023, you can submit a residence permit application with documents showing your ownership of the property, and your application will be approved as the owner of an apartment in Turkey real estate market 2023.
Investment in Turkey real estate market 2023:
There are many types of investment in Turkey real estate market 2023.
In this context, we are going to high light the commercial property investment in Turkey real estate market 2023
Commercial properties in Istanbul:
There are many types of commercial properties in Istanbul and their prices vary according to several factors, including:
The location of property in Istanbul:
Commercial property prices in Istanbul vary by region, for example, the price of a property in Sisli is higher than a similar property in Esenyurt.
This is because the property price in the central areas is much higher than other areas in Istanbul.
The property type:
There are several types of commercial property in Turkey real estate market 2023, including shops and home office. The price of the commercial store is higher than the price of the home office.
The most common property that attract foreign investors are home office.
This is due to the high profitability it provides. These properties are characterized by the ease of leasing, with a long-term contract, because the tenant establishes an office and a headquarters for his work, and his stay in it will last for years so as not to lose his clients who are accustomed to his location.
We must note to our valued customers who are about to buy apartments in Istanbul in Turkey real estate market 2023, they should choose the strategic location close to the transportation network, hotels and commercial centers, so that their investment will be successful.
Hotel apartments in Istanbul:
Istanbul is considered one of the most beautiful tourist places in Turkey, so its hotels are filled with foreign guests throughout the year.
In recent years, Istanbul has witnessed a wide activity in building hotel apartment projects for the most famous international hotel chains.
The construction companies offer a rental guarantee for several years with a high profit return. We advise you when buying apartments in Turkey real estate market 2023 to be in the city center in a serviced area with beautiful views and close to the airport.
If the investor wants to buy hotel apartments, there are many construction companies that offer a rental guarantee with a high profit return.
The investor can also manage his property through real estate companies in Istanbul. We at Homes and Beyond Real Estate Investment Group, provide property management services.
– Follow up on financial matters such as installments and accounts related to property taxes.
-Equipping and furnishing the apartments, and activating the subscription to water, gas and electricity services
– Leasing and revenue collection services and submitting periodic financial reports.
-Reselling if requested by the owner.
Shops in Turkey real estate market 2023:
Real estate investment in Istanbul’s shops is one of the most important types of investment in Turkey real estate market 2023 that attract the attention of foreign investors.
Where shops provide high profit returns. On the other hand, Istanbul is known to be the largest Turkish city in terms of population, providing a wide segment of consumers in all sectors. We would like to point out here to our clients the necessity of choosing a strategic location commensurate with the business.