Rules: Citizens and commercial corporate entities of the countries with which reciprocity agreements have been signed and companies established in line with Foreign Direct Investment Law No. 4875 in Turkey may purchase a real estate in Turkey on their own names provided that the property is not located in military and security zones.
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.