The acquired property may be resold or rented out and the proceeds of the sale or the rental income may be transferred out of Turkey freely.
Procedure: The sale procedure for foreigners is the same as Turkish citizens except a search for the abovementioned military and security zones restriction. Once a sale agreed with the owner, an application has to be made to the local Land Registry Office. The Land Registry Office then carries out a search for the abovementioned restriction through correspondence with the military authorities in the area. As soon as the search is completed, the Land Registry Office then transfers the title and issues the new deed.

Taxes: Both purchaser and seller are liable for a 1.5 per cent property transfer tax, based on the declared price of the property. There is also a municipal property tax, again, based on the declared value of the property, at the rate of 0.1 per cent for residential properties and 0.3 per cent for land annually. One fourth of the tax value (minimum YTL 2,500) of newly built residential properties is exempt from the municipal real estate tax for the first five years. (In most sales this is the case, but in certain resales the seller states that the buyer pays all the tax, but in cases where new properties are contracted it is usually the case that the seller/developer covers these costs.)

   

1. Legal Basis:
   Real persons of foreign nationality may buy property in Turkey if reciprocity exists between Turkey and the country of which they are a citizen. Information on reciprocity lists can be obtained either from your country`s diplomatic missions in Turkey, or from the Turkish Embassy/Consulates General in your country. Real persons of foreign nationality are advised to take due notice of the following points in order to avoid incurring loss when buying immovable property.
    
2. Official drawing up of contracts:
   According to effective Turkish legislation, official contracts transferring ownership of real estate must only be drawn up at the Land Title Registry Office where the immovable is located. It is possible also to sign, in the presence of a notary public, a “promise-to-sell” contract prior to the official sale.
   
   Acquisition of ownership of the immovable, the sale contract of which is concluded, can take effect only after registration at the Land Title Registry Office.
    
3. Legal Restrictions on Sale of Real Estate to Foreign Nationals:
   
   A. Foreign nationals may buy immovable property in Turkey, as a work place or private residence, provided reciprocity exists between Turkey and their country, and legal restrictions are observed. However, the total area of the immovable purchased by a foreign national may not exceed 25.000 (twenty five thousand) square meters, even if the immovable is in a different localities.
   
   B. Permission has to be obtained from the military authorities of the region, through the Land Title Registry Office, before the purchase of an immovable. Sale to foreign nationals of immovable property located in a military security area is prohibited by law, and it is important to clarify this matter before any payment is made.
    
4. Practical Information:
   
   A. Real person of foreign nationality should bring with them the following to Land Title Registry Offices when acquiring immovable;
   
       1. Identity document or passport,
       2. Foreign nationals whose acquisition of property is subject to a valid residence permit: Residence permit issued by the relevant
           police department,
       3. If they wish to act on the basis of a power of attorney issued abroad (i.e. outside Turkey), the original or certified copy of the
          power of attorney together with a certified Turkish translation.
   
   B. Before a real estate sale contract is drawn up, an inquiry should be made at the relevant Land Title Registry Office as to whether such immovable is subject to restricted real rights, mortgaged, or any other situation exists which prohibits its sale.
   
   C. Foreign nationals who wish to buy real estate in Turkey are advised,
   
      • Not to sign legally binding sales contracts or make any payments before obtaining information at the correct Land Title Registry
         Office about the immovable involved
   
      • Not to initiate procedures before investigating the sales persons or agencies involved, and to refrain from conducting business
         with persons or agencies who are not able to provide sufficient proof of their credibility.

In case of a disagreement concerning the sale or purchase, the matter has to be referred to the judiciary, and a lawsuit has to be filed with the Turkish courts. It is not possible for the Ministry of Foreign Affairs of Turkey and Turkish diplomatic missions to interfere in the judicial process.