The ‘Property Buying Guide: Istanbul’ to guide the global investors wishing to invest in real estate in Turkey has been published.
Clarifying the investors’ questions on buying property, the guide at the same time directs the investors by their demands. Thus, the guide is regarded as a reference to facilitate foreign investors’ property buying process. Published in English, brochures in Arabic, French, Chinese, Russian and Persian have been added to the guide.
POINTS INCLUDED IN THE GUIDE
The chapters in the guide penned by the Istanbul Chamber of Commerce (ICOC) with the contributions of the Real Estate International Promotion Association (GIGDER) are as follows:
- Data on Turkey
- Owning property in Turkey and investment stages
- International banking processes
- Turkish citizenship by investment
- Investment and project opportunities in Turkey
- Sectors offering investment opportunities and significant projects
ACCESS TO INFORMATION
ICOC and GIGDER built the ‘Home Turkey Home’ project - a digital platform covering all relevant information and legal regulations. The guide was published as the first step to this end. Links to the guide can be found at social media platforms and access through numerous international websites will also be available. Guide’s PDF version can be downloaded from ICOC’s website with language options.
TENS OF THOUSANDS PREFER TURKEY
The real estate sales to foreigners used to be conducted in line with Turkey’s reciprocity principle. In 2012 the relevant legislation was changed and a smoother system was adopted. Nowadays, foreigners who do not have Turkish citizenship are quickly buying properties/real estate in Turkey. Thanks to the alteration in the system, the demands on purchasing property in Turkey increased.
The number of housing sales in the last five years across Turkey reached nearly 7 million. The housing sales conducted to foreigners were recorded as 155 thousand.
On the other hand, the total number of properties sold to foreign investors escalated to 378 thousand 225.
As per a law enacted in 2018, buying a property of a minimum of US$250,000 worth will be sufficient for foreigners in acquiring Turkish citizenship. This new legislation increased foreigners’ demand for real estate. In 2019, foreigners bought around
70 thousand properties and their strong demand continued in 2020, despite the pandemic.
In addition to its secure atmosphere, Turkey’s historical and natural beauties play a great role in this considerable interest.
CITIZENSHIP BY INVESTMENT
Under certain conditions, citizenship is granted to foreigners buying property or making investments in Turkey. Besides, foreigners are qualified for VAT exemption in these sales. The criteria to be fulfilled for acquiring Turkish citizenship are as follows:
- Buying minimum US$250,000 worth of real estate.
- Investing a minimum of US$500,000 fixed capital contribution.
- Depositing a minimum of US$500,000 into a Turkish bank account.
- Providing employment opportunities to 50 Turkish citizens.
THE CHOICE OF EUROPEANS AND RUSSIANS
Europeans and Russians were somewhat interested in smaller houses in the forms of 1+1, 2+1; demands on Middle East buyers were mostly toward villas or large homes with multiple rooms. In recent years, buyers are going for houses equipped with furniture and houses with smart technology enabling its inhabitants to control the heating-cooling, ventilation, and lighting processes from thousands of kilometers away.
ADVANTAGES IN BUYING PROPERTY
Easy payment, low expenditure
Payment plans up to 12 months
VAT reduction up to 18 percent
Low property tax rates
Affordable water, electricity, etc. costs