PROPERTY PURCHASE FOR TURKISH CITIZENSHIP | ULTIMATE GUIDE (2024)
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 developments on the Turkish Citizenship by Investment Law in Turkey the real estate project developers more focusing on foreigner clients. Since, as a result of this new law, property purchase for Turkish Citizenship became very popular. Since, 13th June 2022 the value of the property for Turkish Citizenship must be 400.000-USD
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 you make this purchase in another country, the clients should be more careful. In this guide we will give some tips to potential clients when purchasing a property in Turkey.
Are you Eligible for Property Purchase for Turkish Citizenship
After the law is changed it is possible to obtain title deed in Turkey for almost all countries. However, there are 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 shall make clear the eligibility of purchasing a property in Turkey.
Are all Properties 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 400.000-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, there shall be no mortgage on real estate in Turkey for citizenship. At least, the mortgage amount shall be less than the amount for citizenship. Finally, the earlier owner of the property in Turkey should not be a foreigner.
These are the basic principles about the properties available for Turkish citizenship. However, each case has it’s own dynamics. 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.
My Property Really Worth 400.000 USD?
One of the basic condition for Turkish Citizenship Through Property Investment is, the value of the property. It should be 400.000 USD and an offical expert shall prove this value. Therefore, technically your purchased property will be 400.000-USD. However, there are numerous factors affecting the market value of the property in Turkey. Such as location, distance to the transportation network, age, 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.
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 400.000-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.
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 in Turkey between 19.09.2018 and 13.06.2022 must worth at least 250,000 USD to apply Turkish Citizenship by Investment.
The value of property in Turkey after 13.06.2022 the must be at least 400.000 USD
For the properties purchased before 12.01.2017 you cannot apply for the Citizenship by Investment in Turkey.
Should I reach the 400.000 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?
The title deed tax rate in Turkey is %4. Which means if someone buys a property there will be a new tax of %4 of the property amount. By law the buyer and seller shares this tax. However, in practice the buyer pays the whole tax. There is VAT exemption for the property purchase in Turkey for the foreigners. However, either the buyer or a consultant shall follow a complex process for this.
Conclusion
Purchasing a property even in your own country is a sensitive process. Doing it in another country 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.