Turkey Real Estate: Top 5 Important Questions

Real Estate in Turkey – is one of the priority requests of our clients. Renting out properties brings about 5-6% income for long-term rentals and 10-12% for short-term ones. These are approximate figures; everything depends on the type of real estate (residential or commercial), its elitism, and location (demand and income are higher in resort cities). In addition to this, purchasing real estate for an amount of $400,000 allows obtaining Turkish citizenship within 6-8 months.

It's no wonder that it's Turkish real estate that our lawyers receive a lot of questions about. Today, we want to shed light on the 5 most popular ones.

Opening a bank account to buy real estate

If you are not a Turkish resident, a bank account will be needed for obtaining a residence permit, permanent residence, payment of utilities, conclusion of lease or sale contracts, deposit placement, tax payment, and other payments to the state treasury, any other non-cash payments and transfers.

To open an account in any Turkish bank, you need to obtain a TIN (tax identification number) at the Vergi Dairesi Müdürlüğü - tax office at the place of residence. To do this, you need to present the resident's passport and its copy. The procedure takes no more than 15 minutes. You can get a TIN even without a residence permit. After obtaining the TIN, you need to wait a day and only then contact the bank - during this time, the client's data will be updated and appear in the system.

Documents required to open a bank account

Together with the obtained TIN, the applicant provides to the bank:

1. valid passport with a stamp confirming entry into Turkey;
2. resident passport with registration. Some banking institutions request copies of all passport pages, translated and notarized;
3. a document confirming that the applicant currently resides in Turkey – TAPU, lease agreement, or receipt for payment of utility bills;
4. 3*4 cm photo - 3 pieces;
5. SIM card from any local mobile operator;
6. if there is a residence permit status - a copy of the document.

A bank employee accepts documents and fills out an application. The client checks it, signs it, and receives an account number. A debit card will be ready within 10 working days. The account can be opened in Turkish lira, dollars, or euros.

Signing a real estate purchase agreement

After choosing real estate, and agreeing on all the terms of the transaction, a contract is signed. It is important to know that the signed document is not yet a basis for transferring ownership. The purchase and sale agreement specifies the following points:

• Passport data of both parties.
• Full information about the subject of the contract.
• Payment terms, amounts, and terms of money transfer.
• Rights and obligations of the parties, penalties in case of violation of the contract terms.

When drawing up the purchase agreement, the buyer must have a passport with him/her. The document is drawn up in 2 copies in 2 languages: Turkish and the buyer's language. At this stage, the buyer pays an advance of 5% of the transaction amount. This is evidence of the buyer's intentions and a guarantee of completing the transaction.

To register the purchased real estate to a new owner, it is necessary to prepare several documents required for the transaction:

• Power of attorney for a representative of a real estate agency, certified by a notary - if the purchase and sale issues are handled by a trusted person. Involving a specialist simplifies and accelerates the procedure. Our lawyers will take care of solving all related issues. The future owner only needs to come to sign the ready-made verified contract.
• Registered account in a Turkish bank with full details.
• Permission from Turkish government agencies. This is an optional item; it should be fulfilled in separate cases. Sometimes it is necessary to confirm that the object is not located in a restricted area, on strategically important territory, or under the protection of the army.

The package of documents may be expanded depending on the terms of the transaction, the type of real estate, and other factors.

Payment for real estate

The main part of the amount must be transferred to the seller's current account, the remaining part is transferred in cash. The transfer of ownership is allowed only after full payment. If the transaction is to be made through a mortgage or in installments, the certificate will indicate the presence of an encumbrance valid until the full repayment of the debt.

If real estate is purchased to obtain citizenship, payment must be made only in non-cash form - transferring money from the buyer's account to the seller's account through a Turkish bank. For the payment purposes, it is mandatory to specify that the real estate is purchased to obtain Turkish citizenship.

Transfer of ownership rights

After all calculations have been made, the seller and the buyer (it is permissible to have authorized persons on their behalf) meet at the Cadastre Office. A sworn translator is an essential participant in the meeting. He acts as a guarantor that the buyer will fully understand the terms of the property transfer. Here, an application for the transfer of TAPU is also submitted, and within 5 working days, the buyer receives it on hand, becoming a new owner and full-fledged owner.

In addition to TAPU, the new owner must also renew contracts with utility companies.
We have discussed the main points related to real estate in Turkey. Each issue contains a lot of nuances that depend on each specific case.

Our lawyers can advise you or take care of solving all issues related to Turkish real estate. With us, you save time, effort, and money.