Everyone has a desire to have a home. Regardless of the kind of investor you are, owning property in Turkey provides an advantageous situation for the buyers. Generally, Turkish property is cheaper than European and Gulf property. While homebuyers in Turkey may face significant regulatory hurdles, they may also save money on the cost of living, which is lower than in Western nations. A few perks are also appealing, like a slow-paced lifestyle, organic cuisine, and warm summer temperatures.
Buying a house in Turkey is a simple process. With its natural and cultural richness, Turkey’s established transportation network, geopolitical location, tourism, trade, and entertainment, Turkey has long been a country that draws the interest of foreign investors.
The strong, stable, and rising Turkish economy has long provided investors with new possibilities, and it continues to work on raising the value of its assets. If you are still thinking about buying a home, here are the advantages of owning a home in Turkey.
1. Turkish Residency and Citizenship
All non-Turkish citizens with permanent residency in Turkey are eligible to apply for Turkish citizenship. In addition, any foreigner who buys property in Turkey that costs at least US$ 400,000, can apply for Turkish citizenship and is eligible for a Turkish passport that can be used worldwide.
Foreigners can expect to become Turkish citizens within six months. You could make a profitable investment, and receive Turkish citizenship if you purchase property in Turkey. Foreigners who have purchased a property in Turkey will receive residency permits. Your family will also receive a residence permit which is valid for three years. Your spouse and any children under 18 can use this advantage. Foreigners who have gained residency permits in Turkey can apply for the privilege to study in the country.
2. Cost of Living
In Turkey, living expenses are also significantly lower than in EU nations or the US. Because Turkey is an agriculture-based country, fresh fruits and vegetables are available year-round, and grocery costs are remarkably low because of this.
The value of the Turkish currency is advantageous to the foreigners that live in the country, therefore allowing them to enjoy their life in Turkey. Expenses like electric and gas, local taxes, maintenance, food, drink, and transportation are lower than in other countries. People who purchase property will also find the costs of maintaining the property are low in Turkey, rewarding them with extra money to enjoy the other pleasures that Turkey has to offer.
3. Value for Money
People in Turkey truly get their money’s worth. And if you are into finding a luxurious apartment or villa without the usual costs, you’re in luck. Not only properties are very affordable, but they are also relatively cheaper than European countries. You can buy newly built houses that are fully furnished with the best quality.
4. Low Property Taxes
With tax codes in Turkey becoming more in line with international norms, Turkey is becoming more appealing to foreign investors who want to purchase real estate in the country.
The previously confusing corporate tax laws in Turkey have been simplified. As a result, it is clearing any legal obstacles that may discourage investors from buying property in Turkey in the competitive OECD region. This will allow a surge in foreign investment, which will likely drive the country’s growth to great levels in the coming years.
If you are considering a Turkish property investment, aside from the US$400,000 minimum investment for Turkish citizenship, another reason for owning a home in Turkey is the tax advantages. These benefits are listed below.
- Stamp duty is exempted at 0%: A 0.948% stamp duty tax was imposed on real estate “promise to sell” agreements as of January 2017. Buyers routinely rely on real estate purchase agreements when selling a property expected to transfer in a set amount of time, provided the last criteria are met. The same reduction has been made to stamp duty on residential property sales agreements with a down payment, which used to be 0.948% and is now 0.
- Land registration fee decrease: A decree dated March 2017 has reduced the land registry costs for authorized real estate sales and purchases by 2%, with a further 1.5% reduction for the seller and the buyer.
- A VAT exemption: Since March 2017, non-resident foreign nationals and foreign corporations that do not earn money in Turkey via a workplace have been given a VAT exemption on property purchases of 18%. However, this exemption is only available for direct residential or workplace sales. The buyer must acquire the property with foreign currency and keep it for at least one year.
5. High Return on Profit
Turkey’s banking institutions are well established and provide the best financing options for your home acquisition in a fast and straightforward process. Residential and commercial property investment is the most stable and secure means of investing in the real estate market. Turkish real estate values are rising year after year. Investments in the rapidly expanding Turkish real estate market provide investors with remarkable returns.
Research shows that Turkey’s real estate market is the best investment opportunity in the country, with a 150% return. Moreover, the only Turkish financial factor that consistently delivers substantial profit is real estate.
6. Turkey’s Location
Turkey is the 37th biggest country globally and its coastline is full of beach resorts that impress more foreign buyers every time they travel from east to west. An English-themed town dubbed Little Britain sprung up in Altinkum, drawing the attention of many British citizens.
The city of Antalya is also worth mentioning, with its more European flair in lifestyle and the less frequented but equally exclusive Bodrum peninsula. Turkey is also famous for its historical relevance, spectacular mountain landscapes, and breathtaking coastline sights.
Turkey’s location and position have long made it home to various cultures, including the Trojans and the Ottoman Empire. There is too much to discover by history lovers and curious minds alike.
The Turkish resort is a vacation spot with a distinctly different setting than its European counterparts, well-known for a specific target demographic. In many of the world’s most famous cities, living in a neighborhood with several cultures together is seen as standard.
A recent study conducted by AFIRE (The Association for International Real Estate Investors) revealed that a significant percentage of investors stated that climate-related concerns would affect their investment selections. When they are making investments, two out of three respondents in the 2020 poll said that they consider the climate of a location. The weather is changing due to countries releasing radically different amounts of heat-trapping pollutants into the atmosphere.
Generally speaking, this group of poisonous gases terminology is “greenhouse gases,” or GHG. The 2018 enactment of Turkey’s Energy Efficiency Action Act went into effect. It devotes about US$ 11 billion to energy efficiency to lower GHG emissions. Turkey was the co-leader of the assembly that met to discuss zero-carbon buildings at the 2019 UN Climate Action Summit. The government of Eskisehir in Turkey promised to transform all structures in the city to zero emissions by 2050.
Turkey is known for its strong sunshine and Mediterranean climate. Temperatures are moderate and rainfall is minimal. This country’s stunning natural environment is situated between Europe and Asia continents. There are 486 beaches, 22 marinas, and 7 yacht docks bearing the blue flag in the nation, giving its name to turquoise. With almost half of the world’s eco-friendly blue flag beaches, the country ranks third in the number of beaches.
8. Diverse Portfolio
In Turkey, there are real estate properties available for any budget. The real estate industry is growing and has received increasing acknowledgment from skilled architects. Foreign purchasers will find plenty of apartments and villas in various price ranges, from new buildings to resales to refurbished flats. The selection of houses under the sun can range from affordable to expensive and luxurious, including the most recent modern conveniences to choose from.
9. Growing Economy
A country consisting of Asia and Europe, Turkey serves as a link between the two continents. Turkey’s young and active population of over 80 million people makes it a perfect place for investing in the rapidly growing real estate market.
During the past 20 years, Turkish real estate has expanded enormously. While real estate prices are generally decreasing throughout the world, the Knight Frank Index in 2017 found that Turkey sits in the sixth position in terms of price growth, more than 11% each year, putting it ahead of Australia and India.
PWC and Deloitte Consulting have said that Istanbul is the most desirable city in Europe for real estate investment.
Turkey is considered to be the third most prosperous country in the world for property investment. Foreign investors in Turkish real estate have seen their interest rise because of the prospect of Turkey joining the EU. This boosted tourism and investment in real estate.
More significant reforms include new legislation passed regarding various property laws, including the real estate registry legislation, the mortgage law, and the law that grants residency. In addition, the Turkish tax regulations have been revised, which directly affects how overseas investors can acquire and develop property in Turkey.
These changes made the Turkish real estate market more competitive. More than US$100 billion in loans were utilized by banks and mortgage companies in 2018. Turkey welcomed 46 million tourists in 2018, making it the sixth most popular destination on the globe. Many tourists demonstrate Turkey’s promising future in holiday homes and hotels.
Each year millions of people visit Turkey for business and other reasons, making it an economic powerhouse with ultra-modern business centers and excellent access. This naturally leads to greater demand for infrastructure and amenities in the nation.
What are the Best Places to Buy Property in Turkey?
When deciding where to purchase a property, knowledge about popular regions and cities can be helpful. According to the official state statistics bureau, Istanbul, Antalya, and Bursa are among the top cities for international property. Here are some of the best cities to buy property in Turkey.
- Istanbul: According to the data from 2013 to the present day, foreigners have purchased around 40,000 Istanbul houses, making it the most popular area in Turkey. It is also the top city in domestic sales. Because it is Turkey’s leading tourist, education, business, and economic center with 39 districts. A top-notch new airport opened on the European side of Istanbul and transportation and infrastructure became more sophisticated. The neighborhoods vary, from conservative communities to areas for partying and shopping. Istanbul has many available options for those who enjoy urban living.
- Antalya Province: Antalya province is aggressively competing with other local markets. In the city of Antalya and its seaside resorts such as Alanya, Side, Kemer, and Belek, foreigners purchased around 33,600 houses between 2013 to 2018. As a result of its international atmosphere, various foreigners including Russians, Europeans, Brits, Asians, and Middle Easterners flock to the area. They now call it home and spend the whole year here. Its exceptional hospitality, nightlife, retail sector, and the top beaches in Turkey ranked by TripAdvisor, having this region stand out.
- Bursa: Despite being in the top 6 locations for foreign home sales in 2013, Bursa saw a significant boost in 2016 when it became the third most popular for property sales. Properties in Bursa start at just under US$ 27,000 as it is one of the more affordable locations in Turkey. Bursa is also home to the Uludag ski resort, providing outdoor activities year-round.
Apart from the popular cities mentioned above, many foreign investors prefer the shores of the Black Sea, Aegean, and the Mediterranean, and some of them even reside in these places full-time. Other places to buy property in Turkey are listed below.
- Authentic Alacati: Located on the Izmir peninsula in western Turkey, Alacati’s popularity keeps increasing. This charming, small town is a base for many people from Istanbul who wish to retire or buy a holiday house. However, Alacati’s gained its fame for being one of the best windsurfing destinations in the world. Alacati is just nearby Cesme, a popular holiday destination for tourists.
- The Capital of Turkey, Ankara: Ankara, a well-known location for real estate purchases, is the second-largest city and shines with activities from morning to night. Ankara is a city of adventure and historical interests, boasting a bustling entertainment and retail scene and several points of interest, including the mausoleum of Mustafa Kemal Ataturk. In addition, locals visit areas like Beypazari and Cappadocia to enjoy some downtime.
- Bodrum Peninsula: Even though people from many nations have acquired homes, especially Brits, foreigners have long adored Bodrum. Many ex-pats from the UK call Bodrum home, and their affection for the city is not new. Creative artists and authors have sought out Bodrum for inspiration for decades. Prospective property buyers can browse 20 coastal villages and resorts, known as the origin of Turkish blue voyage cruises. This location now attracts yacht owners from all over the world.
Turkey, a country with a significant economy, offers many cities with stunning coastal views, diverse cultural and historical heritage, vibrant demographics, and sustainable tourism. When you buy a property in Turkey, you can start enjoying all these advantages.
Is It Good To Buy A House In Turkey?
Turkey is a unique country in the world with its weather, nature, and human beauties it promises. The hospitable behavior and warm-blooded nature of the Turks is another reason why there are foreigners living happily in Turkey. Buying a house in Turkey is a system that gives you both real estate investment and Turkish citizenship.
Buying a house in Turkey would be a very good idea. Turkey adopts a different culture and lifestyle in all 7 regions, which offers you different house options. In addition, you can have luxury homes at very affordable prices compared to Europe.
What are the Disadvantages of Being a Home Owner in Turkey?
In the title above, we have examined the positive elements of buying a house by foreigners from Turkey, now let’s take a look at the disadvantages of having a house in Turkey. The disadvantages of being a homeowner in Turkey are listed below:
- Turkey is one of the rare countries that can experience 4 seasons in the same year. This situation arises due to the geographical location of Turkey. In the directional position, it is seen that Turkey is located in a region that we call the middle belt, so that, 4 seasons are experienced distinctly in Turkey. In conclusion, weather conditions such as rain and snow can delay the delivery date of a project.
- Before you buy the house you like, have the house checked by the inspectors, so if the house is repaired or there are defective parts, you can have it done by the landlord at no additional cost, otherwise you will pay all these costs additionally after the sale.
- If your tenants don’t speak another language, it can be difficult to communicate because of the language barrier.