Investing in Real Estate in Turkey: A Guide for Foreigners

The real estate sector is one of the largest and fastest-growing industries globally and in Turkey. It offers numerous opportunities for entrepreneurs seeking profitable ventures. Globally, real estate is considered among the most lucrative sectors, alongside industries like oil, healthcare, and telecommunications. According to research, real estate ranks among the top 12 most profitable industries.

In Turkey, the real estate market has paralleled the country’s economic growth, emerging as a leading sector for investments. Data from the Turkish Statistical Institute (TÜİK) shows that the real estate sector generated 103 billion Turkish Liras in revenue in 2023, highlighting its potential for investors.

Real estate in Turkey has also become a focal point for foreign entrepreneurs. Studies reveal that 45% of foreign investors in Turkish real estate aim to generate profit, while others invest for vacation homes or permanent relocation. Interestingly, 75% of these investors have not obtained Turkish citizenship, showcasing diverse motivations beyond residency.

Key Considerations for Foreign Investors

Foreign investors should be aware of specific regulations when purchasing property in Turkey:

• If the property is classified as farmland, a permit from the Ministry of Agriculture and Forestry is required.
• For undeveloped land, a project must be prepared in accordance with the land’s zoning plan and submitted to the relevant ministry within two years.

Required Documents for Property Purchase

To purchase property in Turkey, the following documents are needed:

1. Passport and photocopy of the foreign buyer.
2. Property Value Certificate obtained from the municipality where the property is located.
3. A valuation report showing the market value of the property, prepared by a certified valuation institution.
4. Compulsory earthquake insurance policy if the property is a building.
5. One passport-sized photo of the seller and two passport-sized photos of the buyer.
6. If the buyer does not speak Turkish, a sworn interpreter must be present.
7. If using a power of attorney issued abroad, the original or certified copy, along with its Turkish translation, must be provided.

Applications with these documents should be submitted to the Land Registry Directorate.

Buying Property in Turkey as a Legal Entity

Companies in Turkey with foreign capital (i.e., at least 50% of their shares owned by a non-Turkish resident) must follow specific regulations to own property:

1. Obtain permission from the Provincial Planning and Coordination Directorate through the town governorship.
2. Properties can only be purchased for purposes stated in the company’s articles of association.
3. Submit an undertaking declaring that the property will be used solely for activities outlined in the articles of association.

Operating as a Real Estate Company in Turkey: A Guide for Foreigners

Foreigners can establish and operate real estate companies in Turkey. These companies can be set up as limited liability (LLC) or joint-stock (JSC) entities. While no special permits are required before establishment, operating in the real estate sector requires compliance with specific regulations:

• Employing, granting shares to, or appointing as manager an individual with the Real Estate Authorization Certificate (“Emlak Yetki Belgesi”). Foreigners can obtain this certificate, but the courses and exams are conducted only in Turkish.
• Alternatively, collaborating with a Turkish citizen who holds this certificate is a practical solution. This collaboration can be achieved by employing the certificate holder in your company, giving them shares, or appointing them as the manager.

Consultancy Companies as an Alternative

Opening a consultancy company instead of a real estate company is another viable option. Consultancy companies can invoice services without requiring the Real Estate Authorization Certificate or hiring certified personnel, allowing foreign investors to operate more flexibly.

How to Get Started?

To start your journey in the Turkish real estate market, partnering with experienced professionals like Workon is crucial. Workon specializes in guiding investors through every step of establishing their real estate ventures. By exploring our Company Registration Package, you can set up your real estate company in Turkey seamlessly and with confidence.

Sources

1. Why Do Foreign Investors Buy Real Estate in Turkey?
2. Guide for Foreign Investors Buying Real Estate in Turkey
3. GİGDER Report: Why Foreign Investors Choose Turkey