Commercial property in Turkey can be in the form of an entire building, a single flat, a shop, or a vacant area, with various properties for sale in Istanbul. It is the income from the property that turns the property into commercial real estate. Even if it is built for individuals and families, once it is used for income, any property can turn into a commercial property. Commercial property that is used to earn income can be used for different usage areas. These may include shopping malls, banks, offices, and bureaus.
What are the Documents Required to buy Commercial Property in Turkey?
Real persons of foreign nationality can purchase any kind of immovable (residence, workplace, land, field, etc.) in Turkey, provided that legal restrictions are observed.
The documents necessary to buy commercial property in Turkey are;
- Identity document or passport of the foreign citizen, with translation, if necessary
- 1 photo for the “Identity Declaration Form” of the foreign person
- If there is representation in the transaction, the document regarding the representation
- If any, the title deed of the real estate subject to sale
- Appraisal report of the real estate approved by CMB (Capital Markets Board of Turkey)
- Compulsory earthquake insurance policy for units such as houses, workplaces, etc.
- Sworn translator if there is a party who does not know Turkish
Who can Buy Commercial Property in Turkey?
Foreigners can purchase property to be used as a workplace or residence in Turkey, provided that they comply with legal restrictions. Anyone can buy commercial property in Turkey. If you are a real estate owner and you learn that you can generate much more income from commercial real estate, it is perfectly natural for you to want to rent or sell your property in this way. On the other hand, the suitability of your real estate for commercial use is of great importance.
Where should You Buy Commercial Property in Turkey?
Real estate has two main categories: residential and commercial. Residential property includes homes built for the sole purpose of housing an individual or family. Commercial real estate includes everything else, but sometimes industrial buildings such as apartment complexes or factories are labeled as commercial.
- The total area of immovables acquired by real persons of foreign nationality and limited independent and permanent real rights cannot exceed ten percent of the area of the district subject to private property.
- The total area of immovables acquired by real persons of foreign nationality and limited independent and permanent rights in rem cannot exceed thirty hectares per person throughout the country. However; The Council of Ministers can increase the amount that can be obtained throughout the country per capita up to twice.
- Besides, it is not possible for foreign real persons to acquire and lease real estate in military forbidden zones and security zones, unless permission is obtained.
- Commercial property for sale in Istanbul Turkey especially offers the buyers beyond their expectations. Moreover, commercial property for sale in Fethiye Turkey and commercial property for sale in Izmir Turkey is among the real estate opportunities for you to benefit from.
In addition to the cities of Antalya and Izmir, the districts you can buy commercial property in Istanbul, Turkey are as follows;
- Basin Ekspres
What are the Pros and Cons of Buying Commercial Property in Turkey?
The advantages of purchasing commercial property for sale in Turkey are as follows;
- They are usually located at easily accessible points.
- You can find many options to suit different budgets.
- You can find a wide customer range consisting of Turkish and foreign customers.
- There will be no parking problem due to the parking requirement.
The disadvantages of purchasing commercial property for sale in Turkey are as follows;
- Commercial property in a low-income neighborhood may not be profitable for you.
- The fact that the real estate is not located in an area suitable for commercial purposes may cause damage.
- If the area does not have enough functionality, it can drive your potential buyers away.
- Renting or selling an apartment or building designed for a family for commercial purposes can be a bit of a challenge.
How much are Commercial Property Taxes in Turkey?
The tax and duty liabilities that foreign investors will encounter in the process that will start with the transfer of the real estate are as follows;
- Title Deed Fee
- Property Tax
- Taxes on Income
If you purchase a commercial property in Turkey, it’s mandatory to pay the tax. Even though it is simply the 1.5% buyer’s tax and stamp duty (a sliding scale of 0.15 to 0.75%) on the acquisition price.
Individuals can pay property taxes each year in two installments. The first installment of the tax payment period starts on March 1 and ends on May 31, while the second installment is paid in November.
Can You be a Turkish Citizen by buying Commercial Property in Turkey?
According to the amendment of the Turkish Citizenship Law dated 19.09.2018, foreigners who buy a commercial property for sale in Turkey for 400.000 USD can obtain Turkish citizenship for also their families.
What You Should Consider Before Buying a Commercial Property in Turkey?
If you want to buy real estate as commercial property, alongside property for sale in Istanbul, you need to work with professional people who are experts in this field. This is exactly where Realty Group comes into play and offers you the best services in Turkey. So that, you will be able to;
- accurately determine the value of the commercial property,
- evaluate what types of businesses and institutions it would be suitable for
- minimize the loss of time and sign the most profitable deals.
Besides, your commercial property for sale in Turkey;
- should be close to public transport
- should be in the city center
- commercial property should be purchased from big cities
- commercial property must be inside the business center or shopping mall
1. Should be Close to Public Transport
Especially in densely populated cities like Istanbul, commercial properties close to public transportation are very advantageous. Thus, it will be possible for your customers to reach your real estate, which you use for commercial purposes, in a short time. Moreover, its value will increase over time.
2. Should be in the City Center
The city center is the heart of the city, where transportation facilities are developed, close to working areas, and where all kinds of urban activities and services are concentrated. Therefore, it is the first criterion in choosing a commercial property location. If you are doing business in a central location, even the address directions are easier and more understandable. Furthermore, it is a criterion that will enable you to integrate with your environment in terms of being able to participate in any activity at any time and being social.
3. Commercial Property Should Be Purchased from Big Cities
There are many benefits of owning a commercial property in a big cities in Turkey such as Istanbul, Ankara, Izmir, and Bursa. The mobility of big cities is also reflected in businesses. For instance; it will be so much easier for you to reach options such as a quality workforce, advanced infrastructure, diverse customer base, and professional networks.
4. Commercial Property Must Be Inside the Business Center or Shopping Mall
Shopping centers and business centers contain stores for all kinds of needs. Having a commercial property here is to increases the probability that people who want to meet their other needs will also visit your property.
Is Buying a Commercial Property in Turkey Safe?
Yes, it is safe and, in most cases, provides a profitable real estate investment. The Turkish government has tightened laws and regulations to create a more reliable process. Thus, they made some changes to enable foreigners to get their commercial properties quickly like a Turkish citizen. On the other hand, there are some guidelines you should follow to make it safe to buy a house in Turkey.
- Always get a lawyer: Turkish laws do not require you to get a lawyer, but it may be more ideal to carry out the processes with a lawyer. They will be responsible for drafting contracts, and your attorney is responsible for acting on your behalf and checking the property, such as seeking a mortgage.
- Get notarized contracts in Turkey: No court in Turkey will accept a contract that is not notarized. As a result, if there is a dispute over your commercial property purchase, the contract is void.
- Consult only a licensed real estate agent: A licensed real estate agent provides the most reliable buying process.
- Research the Turkish real estate market: Instead of looking at Turkey as a whole, research regional markets. Prices vary from place to place. One property may be expensive due to its neighborhood, while another may be quite cheaper.