PROPERTY PURCHASE GUIDE FOR THE CITIZENSHIP BY INVESTMENT
Real Estate and Construction Sector is one of the most important sectors in Turkey. Such importance creates a competition between the project developers and motivate them to build the best residences for their both local and foreigner clients.
After the recent development on the Citizenship by Investment Law in Turkey the real estate project developers are started to focus on foreigner clients. Since, as a result of this new law, it is possible to acquire Turkish Citizenship by purchasing 250.000 USD value property.
Especially the citizens of Muslim countries, such as Saudi Arabia, Yemen, Palestine, Iran, Iraq, Pakistan, Jordan and Pakistan show interest on the Citizenship by Investment Program of Turkey.
The reasons behind this interest are; the benefits of Turkish Citizenship, the geopolitical and commercial importance of Turkey, the quality of the real estates in Turkey, high rental incomes of the properties in Turkey and so on.
However, purchasing property is a sensitive process. When this purchase is made in another country, the clients should be more careful. In this article we will give some tips to potential clients when purchasing a property in Turkey.
1- Are you eligible to purchase a property in Turkey?
After the law is changed it is possible to obtain title deed in Turkey for almost all countries. However, there still some several exceptions. For example, Syrian citizens cannot purchase a property in Turkey. In such case, the applicant may choose other methods for Turkish Citizenship by investment. At first the client make clear the eligibility of purchasing a property in Turkey.
2- Are all properties are appropriate for the Citizenship by Investment Program of Turkey.
The basic condition is the value of the real estate in Turkey should be equal or more than 250.000-USD. Additionally, the property should not be on the restricted zones of Turkey. Besides, the process of acquisition of Turkish Citizenship through some types of real estates are different. Also, the property project should be either completed or establishment of floor easement should be completed or preliminary sale contract should be signed at proper date. Most importantly, the real estate in Turkey for citizenship should be cleared from mortgage. Finally,the property in Turkey should not be purchased from a foreigner to apply the citizenship program by investment in Turkey.
These are the basic principles about the properties available for Turkish citizenship. However, each case should be analysed differently. Seemingly a property can be available for Turkish citizenship, but there can be barriers. Quite the opposite, seemingly a project unavailable for Turkish citizenship can be appropriate in practice.
Since, the property in Turkey, is the most crucial element of the Citizenship by Investment process of Turkey, please consult an expert before the purchase.
3- My Property Really Worth 250.000 USD?
One of the basic condition for Turkish Citizenship Through Property Investment is, the value of the property should be 250.000 USD and this value should be proved by licensed experts report. Therefore, technically your purchased property will be 250.000-USD. However, the market value of the property in Turkey will be affected by numerous factors. Such as location, distance to the transportation network, when it was built, the brand of the developer and so on. It would be difficult for the Turkish Citizenship applicant to discover the such conditions of the property in Turkey. Also, the main motivation of the real estate consultants are their commission from the property. Due to all above reasons, it is quite important for Turkish Citizenship applicant to analyse the condition of the property in Turkey with the support of a reliable assistant.
4- When and How Will I make the payment for the property to be a Turkish Citizen?
In order to be eligible for Turkish Citizenship through property purchase the payment of the 250.000-USD or its equivalent currency should be completed. Therefore, some campaigns of the project developers are not useful for Turkish Citizenship applicant. Also, one of the important conditions that, the payment should be made directly by the buyer (or his/her authorized attorney) to the seller. So, the payment through brokers for the property purchase in Turkey may create problem for your Turkish Citizenship by Investment application process.
5- I Already have a property, can I apply Turkish citizenship by investment ?
For the answer of this question the date when you purchased a property in Turkey is important.
Between 12.01.2017-18.09.2018 the value of the purchased property should 1,000,000 USD to apply Turkish Citizenship by Investment.
Value of real estate purchased / to be purchased in Turkey after 19.09.2018 must worth 250,000 USD to apply Turkish Citizenship by Investment.
The value of property in Turkey which preliminary contract for sale was signed / to be signed after 07.12.2018 is to be worth 250.000 USD to apply Turkish Citizenship by Investment.
For the properties purchased before 12.01.2017 you cannot apply for the Citizenship by Investment in Turkey.
Should I reach the 250.000 USD threshold amount with single property to acquire Turkish Citizenship ?
No, you can buy more than one properties in Turkey, such as 1 office 1 residence to apply Turkish citizenship by investment.
What kind of taxes will be applicable after I purchase a property in Turkey?
With the rate of %3 title deed tax will be accrued when a property is purchased in Turkey. There is VAT exemption for the property purchase in Turkey for the foreigners, however there is a procedure to be followed to get benefit from this exemption.
Purchasing a property even in your own country is a sensitive process, if you do it in another country it can be more difficult. Besides, generally the main purpose of the foreigners to purchase a property in Turkey is citizenship. The documents and compliance with regulations is crucially essential during the citizenship by investment process. Any mistake may irrevocably affect you Turkish Citizenship through investment process. We wish the above guidance will be helpful to create awareness at your side, please contact us for further details.