Legal Process of Buying Property in Turkey: Step-by-Step Guide for Foreign Investors

Turkey is emerging as among the best real estate investment destinations all over the world. The country is located in a strategic position at the junction of Europe and Asia, boasts of a high standard of living, and an extensive legal system that has never been witnessed before and thus is presenting opportunities to those who wish to add variety to their portfolio. Be it vacation house purchase, renting high yield properties, or obtaining a Turkish passport, the legal structure is the initial step to making a successful purchase.

Being aware of the legal process of buying property in Turkey is not only a matter of choosing an awe-inspiring villa or a tower apartment in Istanbul anymore, but it is a matter of having to adhere to a strict set of administrative and financial rules that are present to ensure that your investment is safe, and in the long run, lead to the door to your residence or citizenship.

Step 1: Receive Turkish Tax Identification Number

The greatest administrative task, which any foreign investor must undertake is to get a Turkish Tax Identification Number, generally known as a Vergi Numarası. This secret code is the key to all the official financial operations in the country. You will need it to open up a bank account where you can pay property taxes and also register your title deed. The procedure is extremely simple and may be carried out at any of the local tax offices where you create your original passport and a copy of the same. This is accessible online as well, in most cases, through the portal of the Interactive Tax Office and is therefore available even before you get to the country.

Step 2: Open a Turkish Bank Account

Even though it is technically possible to make money transfers across countries, it is always better to open an account in a local bank in Turkey which will be more open and handy to conduct business. Most of the Turkish banks are accustomed to transacting with foreign clients and can offer services in English. This is because with a local account, deposits, utility bills among other required payments can be easily paid as well as conversion of the currency as per the law. To open an account, you will usually require your Tax ID, your passport and a document of address where you reside e.g. a recent utility bill. This will be your investment financial centre.

Step 3: Select Your Real Estate and Conduct Research

It is not just a nice view knowing how to locate the right property. The legal process of buying property in Turkey is a little more complex in terms of law. It should begin by verifying the title deed of the property (Tapu) and establish whether the property is subject to any liens on the property or mortgage, or any other legal annotation that could restrict the use of the property or even sale of the property. Before the investors purchase a property, they need to make sure that it can be owned by foreigners and that the property will be used according to their interested purpose and that is either residence or citizenship. Besides, a range of paying options should be considered by this time.

The installment plans of properties in Turkey are now being offered by almost every developer, whereby the investor is able to pay installments over a few years and installments will not attract any interest. The plans are especially appealing to off-plan projects, which enables a loose entrance gate to the market.

Step 4: Sell the Mandatory Currency Exchange Document

A strict requirement, known as the Foreign Exchange Purchase Certificate, or Döviz Alim Belgesi (DAB) has been enforced in Turkey since the beginning of 2022. The process of transferring the title deed has to occur before the process of selling foreign currency can occur by the foreign buyer who needs to sell the foreign currency to a Turkish bank which in turn sells the currency to the Central Bank of the Republic of Turkey. The bank provides the DAB certificate as evidence that the investment has been made in foreign currency and converted to Turkish Lira using official means.

Step 5: Have an Independent Property Valuation Report

In order to provide the necessary market transparency and avoid fraudulent price reporting, the Turkish government requires the independent valuation of all the property sales to a foreigner. It is a report referred to as a Değerleme Raporu, which is supposed to be prepared by a licensed appraisal firm that is authorized by the Capital Markets Board. The appraiser will be going to the property to determine its physical condition, location and similar market value. This report of three months is valid in terms of ensuring that there is accuracy in the value of transactions undertaken and is employed by the Land Registry.

Step 6: Sign the Sales Agreement and Pay Deposit

After deciding on the property and making the initial investigations, the parties are required to sign a preliminary sales agreement. This contract contains the conditions of sale, payment time and date of delivery. During this step, the deposit is normally paid to secure the property. It is strongly recommendable that a legal expert must examine this contract to add protective provisions about the refunding and fines in case there is a default.

Step 7: Conclude the Transfer of the Title Deed at the Land Registry

The last and the ultimate process is transfer of the title deed or Tapu. This occurs in the local Land Registry Office ( Tapu ve Kadastro Genel Müdurlu ). The buyer and the seller or their legal agents with Power of Attorney need to be present. In case the buyer is not a Turkish speaker a government certified translator has the legal right to explain the documents to him or her. In this meeting, the last payment will be made, title deed payment and the registry officially registered under the name of a buyer will be updated.

About Emlak Platform

We are Emlak Platform, the holistic real estate ecosystem intended to enable investors and agencies. We offer high-end technological services and exclusive listing in Turkey to facilitate transparency and safety of transactions. We intend to steer us towards a better ordered market and assist you to realize your investment desires with a sense of confidence and comfort.

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