I would like to give some specific information about property acquisition in Turkey;
According to the Turkish regulations; legal ownership of a property is proved by a title deed which can only be acquired at the Land Registry Directorates in Turkey. Therefore real estate purchase agreements signed between parties or preliminary(promissory) sales agreements issued by authorized notaries, do not ensure property transfer. If granted relevant powers with a PoA buyers presence is not required at the Land Registry Directorate at the time of title deed transfer.
Foreigners who purchase a property on the value of minimum 250.000,00 USD or equivalent amount as Turkish Lira or in foreign currency are able to apply for Turkish citizenship. The price exceeding 250.000 USD can be purchased by mortgage. An annotation "not to be sold for three years" should be added to the title deed.
TCBI in a nutshell;
The client grants us powers to buy, sell a property, open a bank account, handle banking transactions, apply for residence permit, apply for Turkish citizenship from any Turkish Consulate General.
The purchase price must be sent from the client's(buyer's) account to the seller's account. There are 3 possible ways;
Client can transfer directly to the buyer from his overseas account;
Client can transfer to his appointed representative's account (in this case it is either an Agent or a lawyer) then the representative can transfer the money to the Seller on behalf of the client. Please note a duly issued Power of Attorney is required at the time of money transfer.
If granted us(LegalSquare) the relevant powers we can open a bank account in Turkey on behalf of the client and transfer the amount to the Buyer.
[06.11.2020 19:32] Irmak Hanım Avukat: After the money transfer is completed, we will be able to obtain the title deed. The money may be held in an escrow account(TAPUTAKAS) and transfer can be completed at the time of deed transfer.
Once title deed is transferred to the applicant; a conformity report will be issued within a month.
After it is issued, a residence permit application will be submitted only for the main applicant. The residence permit card is obtained after 1-2 weeks after its submission. The duration of the card is for 9-12 months.
After receiving a residence permit card, finally citizenship application for the main applicant, dependents(spouse and children under 18) follows.
The process is lasted within 4-5 months by receiving the "citizenship approval letter".
Investor and dependents can apply for Turkish passport and ID card either from any Turkish Consulate in foreign countries or Civil Registry in Turkey.
Biometrics for passport and ID cards can be collected at any Turkish Consulate General.
To mention about the taxes that client needs to pay;
Property transfer tax (%+) To sell and buy property. This amount is generally shared mutually between the Buyer(%2) and The Seller (%2).
Annual property tax, Clients are exempt from paying this tax for the first year of acquiring the property. Turkish property tax is paid annually, in two installments. The tax amount is rated between 0.1% and 0.6% of the property value.
Foreigners are exempt from VAT on property purchase.
Rental income tax, to be applied if the client rents out his apartment. This tax type has a complex calculation method, the amount to be paid generally corresponds to the rent amount per a month.
Capital gains tax; also has a complex calculation method; varies from 15% to 35% on the increased amount. We suggest our clients to state the actual purchase price to the relevant authorities to avoid paying massive capital gains tax amounts.