Sale and Purchase of Real Estate in Turkey for Foreigners. Looking for a clear, practical roadmap to the sale and purchase of real estate in Turkey for foreigners—with up-to-date legal requirements, step-by-step workflow, tax notes, and risk controls? This comprehensive guide is written for international buyers and sellers who want clean execution, full compliance, and strong protection at each stage.
WHY TURKEY—AND WHY YOU NEED A LEGAL GAME PLAN
Turkey continues to draw international interest thanks to its stable land-registry infrastructure, dynamic rental markets in major cities (Istanbul, Ankara, Izmir, Antalya), and a maturing legal framework for cross-border transactions. That said, foreign parties must meet documentary prerequisites, navigate location and ownership limits, run tight due diligence on title/encumbrances, and follow special valuation and payment rules that apply to foreign-involved transactions and—where relevant—the Turkish citizenship by investment route.
Below, we set out the essentials and the pitfalls—so you can invest (or exit) with confidence.
CAN FOREIGNERS BUY REAL ESTATE IN TURKEY?
Yes—subject to certain statutory restrictions.
Core limits include location restrictions (no purchases in military or security zones) and ownership caps (per-person hectare limits nation-wide and percentage limits within a district).
In this context, foreigners cannot acquire property in military or security zones, one person may hold at most thirty hectares nationwide with a limited possibility of increase by decree, and in any district foreign ownership of private land may not exceed ten percent, and these checks are performed at the start of the transaction before any payment while a competent lawyer verifies the parcel’s eligibility including quotas with the Land Registry, the Cadastre, and the relevant local authorities.
MANDATORY VALUATION AND WHY IT MATTERS
Since 2019, a real estate valuation report from a licensed appraisal company has been mandatory for foreign-involved sales (buyers or sellers). For citizenship-linked purchases, the appraiser must be SPK-licensed (Capital Markets Board of Turkey). Do not bypass this step: the Tapu (title office) expects the report at transfer, and citizenship filings scrutinize valuations closely.
In 2025, the importance of this valuation has amplified due to market volatility and anti-inflation measures. The report not only sets a fair market value but also serves as a benchmark for tax calculations, preventing under-declaration disputes with the Revenue Administration. Appraisers now incorporate more data points, including recent comparable sales and economic forecasts, to ensure accuracy.
CITIZENSHIP BY REAL ESTATE INVESTMENT (OPTIONAL TRACK)
If your acquisition is also aimed at obtaining Turkish nationality, current rules provide an exceptional path to citizenship for a real estate purchase of at least USD 400,000 with a three-year no-sale undertaking annotated on the title. For citizenship cases, payments must be traceable via bank transfer with proper receipts.
RESIDENCY BY REAL ESTATE INVESTMENT (ANOTHER OPTION)
For those not pursuing full citizenship, 2025 introduces clearer pathways to residency via property ownership. Under Article 31 of the Foreigners and International Protection Law, purchasing a property with a cadastral value set by the migration authorities (As of the date of this article at least $200,000) qualifies for a short-term residence permit, renewable annually. Benefits extend to spouses, children under 25, and dependent parents (with two-year permits). This is ideal for retirees or digital nomads seeking extended stays without the higher citizenship investment.
THE END-TO-END WORKFLOW (BUYER SIDE)
Step 1: Document readiness and tax number
Start with identity and compliance basics. Prepare valid passports (with notarized translations if the Land Registry requests them). Obtain a Turkish Tax Number for each buyer—your counsel can coordinate this quickly. Keep proof of address and basic KYC documents on hand, as banks and appraisers may request them.
Step 2: Financial setup & currency
Set up clean, traceable payment rails before you sign. Your lawyer will confirm acceptable banking channels and the transfer evidence the Tapu Office expects. If you are pursuing citizenship by investment, ensure you will have stamped/signed bank transfer receipts; cash payments do not qualify for the program.
Step 3: Property due diligence (DD)
Treat diligence as your risk filter. Before any deposit, your lawyer should verify the title deed (owner, parcel/lot, independent section if a flat, and annotations), screen encumbrances (mortgages, seizures, usufructs, project restrictions, pending litigations, construction servitudes), and check zoning/occupancy (lawful construction and the presence of an occupancy permit—iskan). Usage and management issues (co-op rules, HOA/aidat, any reserved developer rights) should be mapped, and the location’s eligibility confirmed (not in military or security zones and no district-quota issues). Red flags include off-plan units without robust developer guarantees, properties lacking occupancy permits, annotations limiting private use (e.g., tourism-residence restrictions), and seller-side tax or arrest liens.
Step 4: Valuation (compulsory)
Anchor the price with a compliant appraisal. Order a valuation report from a licensed firm; if you are seeking citizenship, make sure the appraiser is SPK-licensed. Confirm that the appraised value matches or exceeds your contractual price where program thresholds apply.
Step 5: Contracting and deposits
Let the contract reflect the deal you actually intend to close. Use a bilingual sale agreement that sets a clear payment schedule, delivery and fixtures, default and rescission rights, and—when needed—escrow or bank-letter mechanics. For project or staged purchases, build in milestones and penalties. If you cannot attend in person, issue a Power of Attorney to your lawyer (notarized and apostilled if executed abroad), and have counsel localize the Turkish formalities.
Step 6: Payment and Döviz Alım Belgesi (where applicable)
Pay through traceable banking channels and retain proof. Coordinate the bank transfer in the correct currency flow and keep official receipts. For citizenship cases, make sure the transfer evidence fully aligns with program checks and that documentation is preserved with the application file.
Step 7: Closing at the Tapu Office
Arrive with a complete, consistent file. If you do not speak Turkish, attend with a sworn interpreter. Submit the valuation report, tax numbers, photographs, any utility-related insurance numbers, and bank receipts (for citizenship purchases). After the final checks and fee payments, the officer issues the new title deed.
Step 8: Post-completion
Stabilize the asset and stay compliant. Transfer electricity, water, and gas accounts to your name. Obtain or update compulsory earthquake insurance (DASK), which is typically required for utility activation. Register for annual property tax and, if you plan to let the property, withhold and declare rental income tax in line with Turkish requirements.
SELLER’S CHECKLIST (FOREIGN OR TURKISH SELLER)
Step 1: Start clean and prove it.
Confirm that the title is clean—no hidden liens, seizures, usufructs, pending lawsuits, or restrictive annotations. Have your counsel run a fresh registry extract and, if applicable, condominium/management confirmations so buyers can rely on the file without surprises.
Step 2: Provide a compliant valuation when the counterparty is foreign.
If the buyer is a foreign person or entity, a valuation report is mandatory for the transaction. Commission it from a licensed appraisal company (and SPK-licensed if the deal will be used for a citizenship application). Make sure the report will still be valid on the intended closing date.
Step 3: Align the payment trail with Tapu (and, if relevant, citizenship) requirements.
Agree early on banking channels and the evidence you will deliver (stamped transfer receipts, SWIFT messages, etc.). For citizenship-linked deals, ensure that every payment is traceable and that the deed will carry any required annotations (e.g., no-sale undertaking).
Step 4: Prepare habitation and technical documentation.
Collect occupancy permit (iskan), zoning/plan approvals, and any building/energy documents the buyer or registry may request. Clarify what fixtures and installations transfer with the property, and have building management dues (aidat) status ready to disclose.
Step 5: Get your taxes in order.
Coordinate tax compliance ahead of signing—capital gains timing, possible VAT exemptions, and any municipal dues. Align the declared sale value with the valuation and your tax reporting to avoid reconciliation issues post-closing.
TYPICAL COSTS AND WHO PAYS WHAT
While parties can contractually allocate most items, expect the following common cost components:
- Title deed fee (Tapu harcı): 4% of the declared sale price (shared as per law but frequently paid by the buyer in practice).
- Notary & translation costs (for PoA, sworn translations, interpreter at Tapu).
- Valuation report fee (appraiser’s tariff).
- Bank charges (incoming/outgoing transfer fees, FX conversion; ensure clean audit trail).
- Legal fees (fixed or value-based).
- Taxes: Annual property tax; rental income tax if leasing; possible capital gains tax on sale (subject to exemptions/timing).
COMMON RISKS—AND HOW TO AVOID THEM
1) Under-declared sale price—align every figure. Never understate the purchase price. Keep the contract price, bank transfer receipts, and valuation perfectly consistent. Use escrow or bank letters to evidence the full amount. Under-declaration can trigger tax penalties and invalidate citizenship filings.
2) Unclear encumbrances—surface everything before money moves. Order a fresh Land Registry (Tapu) extract and review all annotations: mortgages, seizures, liens, usufructs, project-based restrictions, litigation notices, construction servitudes. Obtain payoff letters where needed and arrange for releases to be registered at closing.
3) Non-eligible location—pre-clear zones and quotas. Confirm the property is outside military/security zones and that district-level foreign ownership quotas are not exceeded. Get written confirmations early and include a walk-away clause if eligibility checks fail.
4) Developer risk (off-plan)—treat it like project finance. Require robust guarantees (e.g., bank guarantee/insurance), milestone-based payments into escrow, independent progress certificates, long-stop dates, and default remedies/penalties. Verify permits, occupancy trajectory, and the developer’s solvency; review any performance bonds.
5) Mismatched documentation—reconcile the file before Tapu. Ensure names, parcel/lot IDs, independent section numbers, and floor plans match across the Tapu records, municipal files, and valuation report. Fix discrepancies with updated plans or registry corrections before the closing window to avoid delays or refusal.
FREQUENTLY ASKED QUESTIONS
Q1: Can foreigners buy property in Turkey in 2025?
A- Yes, foreigners can purchase real estate in Turkey, subject to restrictions like no buys in military zones, a 30-hectare nationwide cap per person, and a 10% foreign ownership limit per district. A lawyer verifies eligibility early via the Land Registry and local authorities.
Q2: What is required for Turkish citizenship by real estate investment?
A- A minimum USD 400,000 purchase with a three-year no-sale commitment, traceable bank payments, and an SPK-licensed valuation report. This optional path grants citizenship upon compliance.
Q3: What are the key steps for foreigners buying property in Turkey?
A- Essential steps include obtaining a tax number, due diligence on title and encumbrances, mandatory valuation, bilingual contracting, bank payments, Tapu closing, and post-completion tasks like utility transfers and earthquake insurance.
Q4: What costs are involved in Turkish real estate transactions for foreigners?
A- Typical costs include a 4% title deed fee, valuation and notary fees, bank charges, legal fees, and taxes like annual property tax or capital gains. Parties can allocate these contractually.
Q5: How can foreigners avoid common risks when buying property in Turkey?
A- Mitigate risks by aligning all prices and documents, conducting thorough due diligence, pre-clearing locations and quotas, securing developer guarantees for off-plan buys, and reconciling files before closing.