Frequently Asked Questions

Key points to consider when purchasing real estate:

• Title Deed Check: Verify through the Land Registry Office that there are no mortgages, liens, or encumbrances.
• Occupancy Permit: Confirm the building has a valid occupancy permit (iskan).
• Outstanding Debts: Ensure the current owner has no unpaid maintenance fees, electricity, or water bills.
• Zoning Status: Check the intended use of the land in the zoning plan.
• Physical Inspection: Inspect the property with a qualified structural engineer or architect.
• Location & Transport: Evaluate proximity to schools, hospitals, and public transportation.

A mortgage is a long-term loan obtained from a bank at a specified interest rate, secured by the purchased property.

Main Steps:

1. Apply to a bank and submit proof of income, ID, and title deed information.
2. The bank arranges an appraisal of the property you want to buy.
3. You can typically borrow up to 80% of the appraised value.
4. Once approved, the title transfer and mortgage registration are completed simultaneously.

Note: It is recommended to compare interest rates, terms, and monthly installments at multiple banks. Loan costs (processing fees, insurance, etc.) can increase the total cost.

Yes, citizens of many countries can purchase real estate in Turkey. Subject to reciprocity-based restrictions, citizens of more than 183 countries — including EU member states — can acquire property in Turkey.

Key Points:

• Foreign ownership is limited to a maximum of 10% of a district's total area.
• Purchases in military restricted zones and security zones are not permitted.
• Foreigners who purchase property worth $400,000 USD or more can apply for Turkish citizenship.
• A Turkish tax identification number (vergi kimlik numarası) is required for all transactions.

The occupancy permit (yapı kullanım izin belgesi / iskan) is the official document confirming that a building was completed in accordance with its approved plans and is suitable for habitation.

Why It Matters:

• Connecting electricity and water to a building without an iskan is illegal (risk of illegal connections).
• Banks generally require an iskan for mortgage applications.
• Properties without an iskan can face administrative fines and demolition orders.
• DASK (mandatory earthquake insurance) requires a valid iskan.

Always check the iskan status at the Municipality before purchasing.

A title deed (tapu) is the official government document showing who owns a property. There are two main types in Turkey:

• Kat Mülkiyeti (Condominium Ownership): The building has received its occupancy permit. Full ownership rights are secured — this is the safest type.
• Kat İrtifakı (Construction Easement): Issued for unfinished buildings or those without an occupancy permit. Conversion to full condominium ownership is recommended.

Other types include shared title deeds (multiple owners) and land title deeds.

During a title deed transfer, both buyer and seller make separate payments:

• Title Deed Fee (Tapu Harcı): 2% of the declared sale price paid by the buyer and 2% by the seller (4% total).
• Revolving Capital Fee: A fixed amount updated annually, paid to the land registry office.
• Capital Gains Tax: If the seller has owned the property for less than 5 years, income tax applies to the profit.
• VAT (KDV): 1% for residential properties under 150 m² net area, 20% for those above.

Kat İrtifakı (Construction Easement): Established before construction is complete or before an occupancy permit is issued. Units are defined over land shares. Converting to full ownership after the permit is obtained is mandatory.

Kat Mülkiyeti (Condominium Ownership): Issued after the building receives its occupancy permit. Each unit has full ownership rights with maximum state guarantee. This type is preferred for purchases, sales, and mortgages.

When buying property, prefer kat mülkiyeti or ask when the conversion will happen if it is kat irtifakı.

Real estate is historically a hedge against inflation and an asset that appreciates in value over the long term. Key advantages include:

• Capital Appreciation: Properties in the right location gain value over time.
• Regular Rental Income: Creates a passive income stream.
• Inflation Hedge: As a physical asset, it helps preserve purchasing power.
• Financial Leverage: You can invest in higher-value assets using borrowed capital.
• Tangible Asset: Offers concrete security compared to abstract assets like stocks or cryptocurrency.

As with any investment, proper analysis, location selection, and market research are critical.

DASK (Natural Disaster Insurance Institution) is compulsory earthquake insurance for residential properties in Turkey, introduced following the 1999 Marmara earthquake.

What Does It Cover?

• It covers damage to buildings caused by earthquakes, earthquake fires, landslides triggered by earthquakes, and tsunamis.
• Contents and loss of rental income are not covered (optional home insurance can be purchased for these).

Mandatory: DASK is legally required for all independent residential units within municipal boundaries. Without DASK, electricity, water, and natural gas connections cannot be established, and title deed transactions cannot be completed.

Gross rental yield is found by dividing the annual rental income from an investment property by its purchase price:

Gross Rental Yield = (Annual Rental Income ÷ Property Purchase Price) × 100

Example: If you bought an apartment for ₺3,000,000 and receive ₺15,000/month in rent, annual income = ₺180,000 → Yield = 6%

Net rental yield deducts costs such as management fees, maintenance, insurance, taxes, and vacancy periods. In major cities like Istanbul, gross rental yields typically range between 3% and 7%.

Residential rent increases in Turkey are subject to legal regulation. Under temporary legislation introduced in 2022, annual rent increases for housing are capped at the 12-month average CPI (TÜFE).

For commercial leases, rent increases are not capped and can be agreed upon freely by the parties.

Rent increases exceeding the legal limit are void and a tenant may refuse to pay them. As regulations are updated periodically, consulting a legal advisor for the current rules is recommended.

Under the Turkish Code of Obligations, the security deposit for residential and roofed commercial leases cannot exceed 3 months' rent.

The deposit can be provided as cash or a bank guarantee letter. If provided as cash, it must be held in a time deposit account in the tenant's name and returned with interest at the end of the lease.

If the landlord has no outstanding claims when the lease ends, the deposit must be returned within 3 months.

A landlord can only evict a tenant on the limited grounds specified in the Turkish Code of Obligations:

• 10-year extension period: After a 10-year extension, the landlord can terminate the contract with 3 months' notice.
• Personal need: If the landlord or a first-degree relative needs the property for their own housing, eviction can be requested through the courts.
• Reconstruction or major renovation: If the building needs renewal under an approved project.
• Tenant's written commitment: If the tenant has made a written promise to vacate by a specific date.
• Non-payment of rent: A lawsuit can be filed after 2 valid default notices.

Under Turkish law, real estate agent fees can be charged separately to both buyer and seller. The standard rate is 2% + VAT of the sale price, though this may vary with market conditions.

Some agencies may charge only the buyer or only the seller — this should be clearly stated in the contract. Clarify the commission rate and who is responsible for paying it before the service begins.

Under Turkish Income Tax Law, if you sell a property 5 full years after acquiring it, you are exempt from income tax (capital gains tax) on the profit.

For properties sold within 5 years, the difference between the sale price and the purchase price (after inflation adjustment) is subject to income tax. An annual exemption amount is set each year.

Properties acquired through inheritance or donation are subject to different rules — consulting a financial advisor is recommended.