Investors in the Turkish real estate market are always accustomed to new procedures and decisions, which are always formulated to provide more facilities to ensure the continued attractiveness and profitability of investment in this market.
According to Circular No. 4 of 2024 issued on 06/13/2024, which was issued by the Presidency of the Foreigners Affairs Department in the Turkish General Directorate of Land Registry and Real Estate Survey, which stipulates new amendments to real estate investment transactions for foreigners in Turkey, and instructions regarding facilities related to real estate evaluation in particular.
This circular contains important legal amendments regarding:
- Laws regulating real estate investment for foreigners.
- Executive regulations related to the application of the Turkish Citizenship Law.
- The legal framework for real estate investment granting the right to apply for Turkish citizenship.
The new decisions have revealed more facilities related to real estate evaluation in particular for properties purchased by foreigners, which can be clarified through the following points:
- Lifting the mandatory real estate evaluation report on real estate purchases for foreigners, except for purchases made to obtain Turkish citizenship.
- The real estate evaluation report remains mandatory in real estate purchase transactions for foreigners that are carried out to obtain Turkish citizenship, to verify that the market value of the property reaches $400,000, which is the qualifying value to apply for Turkish citizenship.
- The new amendments to this circular provided a solution to the issue of the difference in the value of the property between financial and legal documents. If the condition for obtaining Turkish citizenship is met in the official title deed (Tapu) and the currency purchase document (Döviz Alım Belgesi) and this value is not met in the real estate evaluation report, the matter will be referred to the Presidency of Foreigners Affairs in the General Directorate of Land Registry, which will issue a decision on the property’s eligibility to obtain Turkish citizenship if the difference between the documents is less than 15%.
- As for purchasing via installments, according to the new amendment, the price of the property was approved according to the amount specified in the currency purchase document. Accordingly, the price of the property will be calculated on the date of issuing the currency purchase document in the evaluation reports issued after the conclusion of sales contracts, and the value will be fixed in the evaluation report according to the amount specified in the currency purchase document on the date of payment of the first installment.
Basic definitions:
What is a real estate appraisal?
It is a report prepared by specialized companies accredited by the General Directorate of Land Registry and Real Estate Survey to determine the market value of the property. Preparing this report was a mandatory legal requirement in all property purchase transactions for foreigners in Türkiye.
What is the official title deed?
In Turkish, Tapu, or what is known as the “Title Deed,” is the official document that proves ownership of the property to the person who legally owns it. It contains the owner’s name and photo, the type and location of the property, in addition to its area and detailed, archived information about it.
What is a currency purchase document?
In Turkish (Döviz Alım Belgesi) it is a document showing the sale of foreign currency to a bank operating in Turkey to be sold to the Central Bank before the real estate purchase transaction takes place.
What is the qualifying value for Turkish citizenship?
The Turkish Citizenship Law stipulates that a foreign investor has the right to apply for Turkish citizenship on the condition of purchasing a property worth a minimum of 400,000 US dollars or the equivalent in currencies or the Turkish lira, with a pledge not to sell for three years.
For further clarifications and inquiries, you can always contact the real estate consultants at Number One Real Estate.