Buying Property in Turkey

About Turkey

With a population of around 73 million and an average growth of 1,5 % Turkey will constitute one of the largest populations in the Middle East and Eastern Europe.  The population of Turkey is much younger than that of European countries (approximately 70% of the population is below the age of 35).  Turkish is the official language and the dominant religion is Islam.  The Republic of Turkey is a secular, democratic and social state governed by the rule of law.  

Geographically situated at the crossroads where two continents meet, Turkey is an ideal centre for investors at the gateway between Europe and Asia.  Petroleum and natural gas pipelines from Russian Federation and CIS countries (Armenian, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Republic of Moldova, Tajikistan, Turkmenistan, Ukraine, Uzbekistan) place Turkey at the crossroad of worlds' future natural energy resources.  

The dynamic, growing economy and huge market has drawn the attention of many international investors.  More than 15,000 foreign companies experience Turkey as a stable and reliable investment environment.  According to statistics from the Investment Advisory Council the number of foreign investors and companies has grown enormously.  German companies are in the lead with 2762, followed by the British with 1536 and as third the Netherlands with 1254 companies in Turkey.
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Why Turkey?

In the past many Europeans have bought property mainly in European Mediterranean countries, such as Spain, France and Italy.  These countries have recently become extremely expensive and saturated.  European citizens are now seeking other alternative overseas destinations that are affordable and at the beginning of a property boom, where the return on the investment is higher.  

Turkey, surrounded by the Aegean, Black, Mediterranean and Marmara seas, where the two continents meet, is a wonderful country that has been the cradle of the oldest cultures, civilizations and religions.  Furthermore the cost of living is very low and life in Turkey is easy.  People in Turkey are warm, outgoing and hospitable to foreigners.  Turkey is also deservedly famous for its wide ranging and delicious cuisine.  

Turkey has an abundance of spectacular beaches, continuous summer sun and magnificent views.  Add to that historical places of interest, sport facilities such as sailing, diving, golf, etc.  and all interests are catered for in a friendly relaxed environment.  

More than 19 million tourists visited Turkey last year and an increase expected for this year.  Moreover with the Formula 1 races and future projects such as creation of congress, trade fair & exhibitions, golf and health centres, winter olympiads is expected to double the number tourists within a few years.  In addition to this Istanbul has been chosen as the European Capital of Culture for the year 2010.  

The Turkish government has set its goals and strategies in its mid- and long-term tourism report (Investment and strategies of the Ministry of Tourism report 2007-2013,2023).  Huge investments have been made and will be continued for the coming years.  An important part of the tourism investment is infrastructure.  The number of marinas and airports will increase with accessibility for the whole year.  Throughout Turkey railway connections and high speed trains will expand and the improvement of the highways have been given high priority.
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Property Market

House prices are highly expected to increase dramatically within a few years.  Next to the demand of foreign second home buyers and investors the demand within the inner market will grow as Turkey prospers.  The development in the inner market with the new mortgage law that is enacted this year, the insufficient supply of good housing and the increased standard of living will also lift the demand for Turkish property.  Those who bought a property within the last few years have already experienced a high capital growth on their investment and since this property boom is at its conception, the return on investment for the oncoming years is expected to be high.  
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Who can Buy?

Foreigners can purchase property in Turkey providing that:

1. There is a reciprocal agreement between the government of Turkey and that of the purchaser.  This agreement does exist between Turkey and among others includes the U.K., Ireland, Germany, Holland, Belgium and the Scandinavian countries.  
2. The intended property does not lie within the boundaries of a military zone
3. The intended property lies within the boundaries of a municipal area, town or village with more than 2,000 registered inhabitants.  

Procedures

In contrast to most European countries purchase and registration of ownership, the Tapu, is comparatively easy in Turkey with set procedures.  The formal entry in the property register in Turkey is not performed by a public notary, but by the Land Registry Office (Tapu ve Kadastro Mudurlugu).  A copy of the passport, 2 photos and a tax registration number is required.  

Both parties (the seller and the buyer) must be present at time of issue of the title deed, although the buyer or seller can give power of attorney to a lawyer or trusted agent.  The Land Registry Office will send the tapu to the City council who in turn send it to the military office in Izmir.  This process can take approximately 6 - 12 weeks.  
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Purchase Costs

Taxes in Turkey

Mortgages

In many cases it is possible to get a mortgage when you buy a property in Turkey.  
Who can apply for a mortgage?

1. You are aged 25 or more, and will be no older than 70 at the time your mortgage expires.  
2. You are a citizen of a country with reciprocal rights with Turkey receiving an income in that country
3. You can prove your income from tax returns and wage slips
4. You are self-employed and are able to show this with an accountant's certificate