Can I sell the property on to someone else before getting the title deed? (under construction projects)
Yes, you can but there will be a cost associated with this change. The amount of this cost will vary from one developer to another which will be clearly stated on the sales contract.
What does a Freehold Title Deed mean?
Freehold title deed means you have full ownership and possesion rights on that property which you can inherit, sell or rent at any time.
Can I get a Title Deed with my 100 year old father’s name on it?
Yes, you can.
Can I get a Title Deed with my 1 year old baby’s name on it?
Yes, you can.
Can I get a Title Deed with my partners name on it?
Yes, you can.
How long does it take to receive the title deed?
It takes around 2-5 working days once you apply.
Are Foreigners allowed to buy properties in Turkey?
Yes, foreigners are allowed to buy property in Turkey.
If I pay by instalment, when do I get the title deed?
The title deed will be issued at the end of the payments and upon completion of the project. If the payment plan is longer than the completion date, then the title deed registration will be after all the payments are completed.
I am Syrian – can I own a property in Istanbul?
Yes, you can by setting up a company in Turkey. You can buy off-plan projects now before setting up a company. However, you will need to establish a company before receiving the title deed. Our solicitor could help you set up and maintain the company.
If I buy a property in Istanbul, can I get residency?
Yes, you can.
How can I get a residency permit? If I buy a home in Turkey
The residency must be applied for via the Police Department and takes around 1 month to receive the permission. Our company solicitor can help you with this process.
Can I get long term residency permit for Turkey and can I get full Citizenship?
Long term residency cannot be obtained just by purchasing a property. The applicant must have had residency for 8 years before long term residency can be obtained.
Which family members will be eligible to get the benefits of residency?
The wife/husband and their children below the age of 18
What is the minimum amount that I should invest in purchasing a house in order to apply for residency?
There is no such restriction
What is the inheritence law?
Turkish Inheritance Law will be applied to deceased foreigners who own property in Turkey. According to Turkish Inheritance Law the wife or husband shares the inheritance together with the children. In case there are no children the wife or husband shares it with the parents of deceased person. There is a detailed calculation for the tax on inheritence law. But this will typically vary between 1% and 3%.
Why would I buy with you, not by myself?
We are the market leaders in Turkey and our size allows us to get you the best deals in the market. Also, in order to protect our name and reputation, we only work with reputable developers who have all necessary paperwork and who has the financial power to complete their project; furthermore, with Turesta you will get full support for after sales process, title deed handling, payment follow ups, utilities connections and many other features from A to Z. With us, you can buy in confidence without any hassle.
Your prices are expensive, another agency offered me a cheaper price for the same flat
In one project there are different prices for the same type of apartment. i.e. for 1+1 bedroom apartments in the same project prices are different according to the floor, size, directions and views. Turesta is a market leader in Turkey, and we are providing the best deals for our clients, and we can guarantee that our prices are the best in the market. However, to provide you piece of mind, we guarantee not only to match any price but we guarantee to beat any written offer you have!
Your prices are expensive, a Turkish friend bought in the same project much cheaper than your price
In one project there are different prices for the same type of apartment. i.e. for 1+1 bedroom apartments in the same project prices are different according to the floor, size, directions and views. The prices Turesta provides are the developer’s prices which are the same for everyone. However, to provide you piece of mind, we guarantee not only to match any price but we guarantee to beat any written offer you have!
What is the longest period I can pay by instalments in Istanbul?
Some of our projects offer payment over 48 months, but the majority do 36 months installment plans.
My budget is $50,000. Can I buy anything in Istanbul?
Unfortunately within a radius of 50 km from Taksim/Sultanahmet, you cannot find a proper house for living or investment for less than $65,000. Our company sells thousands of properties and all our local search agents have been looking for properties for around $50,000 for the last 5 years and have not been able to find any proper property for sale. 4 years ago a few developers started to sell 1 bedroom apartments for $50,000, now all of them have been declared bankrupt! In the centre of Istanbul, land is very limited and prices are very high, for that reason it is impossible to build any apartment less than $65,000, however, if you can increase your budget to $65,000 you can get a studio apartment – or you can use your $50,000 as a down payment and pay installments over one or two years and buy a nice 1+1 bedroom apartment.
Can I pay by instalments?
Yes. Usually all under construction projects provides installment payment plans and some completed projects do that too. But most of the completed projects require full cash payment.
How much is a 2 bedroom apartment in the centre of Istanbul?
Decent apartments, with good quality and facilities in Istanbul city centre, start from $500,000 for 2+1 bedrooms apartments. You can also find cheaper alternatives in city centre but these will be old low quality housing in or around slum housing areas. These places will typically lack infrastructure, quality will be poor, they will have title deed issues and they will have no facilities; even the basic necessities such as earthquake resistance, elevators, security or car parking will be missing. The price of these properties in city centre start from around $200,000.
How much tax do I have to pay when I sell my property?
You don’t pay any tax, if you sell your property after 5 years of purchase. If you sell your property within the first five years of purchase, you will need to pay a profit tax from the difference between the price you bought the flat and the price you sell it for. On average you will be taxed around 20% of the profit. However, this amount can go up or down significantly, depending on how much you claim the sales price on the title deed.Here is a detailed explanation. For example if you bought the flat for 100,000 TL and you are selling for 140,000 TL three years later, you will be responsible to pay a profit tax for 40,000 TL. Every year the Turkish Finance Ministry declares the rates and the free allowance amounts. Free allowance rate and the gradual tax rates for 2015 are as below:
Tax free 10.600 TL
First 10.700 TL %15
Following 10.700-26.000 TL %20
Following 26.000-60.000 TL %27
Following 60.000.000 TL and above %35
So, with the above example, you will be responsible for tax as below:
40,000 – 10,600 (tax free amount) = 29, 400 (this is the amount you are responsible for)
Of this 29,400 you will pay 20% rate for the part up to 26,000 and then you will pay 27% rate for the remaining part of 3,400. So you will end up paying:
(20% x 26,000) + (27% x 3,400) = 6,118 TL
Note: These figures are calculated according to current tax regulations. The Government has a right to increase or decrease this amount.
How much tax am I paying when I rent my property?
You will pay 15% of your yearly rent income as tax.
Why should I make an investment in real estate in Istanbul?
There are many reasons to make investment in real estate in Istanbul. First of all Istanbul has a long history, cultural heritage and a vibrant social life which makes it attractive for every type of people. It is the only city that lies on two continents and is now a hub from where you can reach anywhere. Istanbul is also one of the fastest growing metropolis’ of the world, with still reasonable prices when compared with other big cities around the globe. The city can actually be called “a hidden gem” which is now being re-discovered. In addition, Turkey is one of the most stable countries in the region, offering a peaceful environment and welcoming people from all origins.
Which area is the best to invest in Istanbul? Asian or European side?
Many people think (and the experiences and figures also support this) that the European side of Istanbul is better to invest than the Asian side of the city. The majority of the population of Istanbul lives in the European side, which is within the 20km radius of Taksim. Also, the historical city centre, most of the business and commercial life of the city along with the major infrastructure projects are more concentrated in the European side of the city. Almost all foreigners buy in the European side of the city for urban projects like New Istanbul Airport, Canal Istanbul
How many bedroom properties are good for investment?
We advise you to concentrate on 1 & 2 bedroom properties as the best properties for investment, as lives are more compact and practical in Istanbul, families get smaller and the number of people living alone is increasing. People also do not want to pay extra money for maintenance fees or heating bills, as these are calculated according to the size of the property.
How much can I rent my apartment for?
On average, Istanbul rental income is around 6% of the property price, per year. You can earn more or less than this rate, depending on your property, its location and facilities. To make the most of the rental income, you should target highly rentable project. In terms of size, these should be studios, 1 bedrooms, or 2 bedrooms as they are easier to rent. Also it is easier to rent apartments in compounds as people prefer to live in places which offer them certain amenities and a quality lifestyle.
What is the average Return On Investment (ROI) on property in Istanbul?
In the last 5 years, on average, house prices in Turkey has increased 15% year on year. However, new development prices in İstanbul have increased by 25% in 2014! Depending on the future prospects that the property is offering like the amenities you have in the project or nearby, big investments coming in the region like a metro line, shopping mall, hospital etc. you might achieve even higher rates than these.
Are foreigners paying more money for the same flat versus local people?
We don’t work with developers who have a double pricing policy, one for locals and one for foreigners; therefore you can be assured that you are paying the same amount as a local person.
Are there any other expenses involved in purchasing a property in Istanbul?
The utility connection charges will be around 2000 TL and the maintenance fee which is around 3 TL per m2 of your house. The Contract Stamp Duty is %0.01.
Are there any Taxes to be paid?
The Contract Stamp Duty & the annual property tax which is 0,01% of the price
The annual property tax which is 0,02% of the price.
Are the prices quoted the full price I will pay, or are there any other costs?
Some projects include VAT in their prices. You can check this information at the bottom of the fact sheet just before the prices of the apartments. It is written either “VAT included” or “VAT excluded”. Most of the projects do not include the VAT in their prices.
What are the purchase costs?
There are 3 different purchase costs: First one is the purchase tax. The purchasing tax is 4% but we have an agreement with some developers whereby they pay 2% and the client pays 2% (In some projects, the developer pays the 4%). This amount has to be paid during the transfer of the title deed. Second cost is the VAT cost, which differs from project to project. But it will be either 1%, 8% or 18%. For properties where the construction began after 2013, then VAT is 18%. All the projects we are currently selling were granted their building permission before 2013. So VAT for the majority of our projects is 1%. The only exception to this are the apartments whose net area is greater than 150m2. On these instances the VAT will be 18%.Final cost is the utility connection and habitation licence costs which is around 2,000 TL which will be paid after completion.
Can I become an agent? How can I become an agent?
For sure you can. I will ask my colleague who is responsible for organising our agents network to contact you asap.
Do you sell other projects that are not on your website?
Yes we do have other projects that are not on our websites. These includes resale opportunities, new developments and projects that are left with only a few propoerty availabilty options.
Do you only sell properties that you have agreement with?
In order to secure your investment and protect our reputation, we are only working with the developers where we have checked their paper work, financial capability and the quality of the projects that they have previously delivered. Our team of solicitors, construction engineers, property consultants and finance department ensures that your investment is safe and looked after. However, we can do these checks for any of the property that you are interested as well. The property you are asking for might have already gone through our checks and might have failed. In any case, we will provide you full information about any project whether we have an agreement with them or not. There is no other real estate organisation in Turkey like Turesta, with such a vast knowledge about all real estate projects in Istanbul and Turkey. Give us any project you are intereted in and even it is not in our portfolio, we will provide all information and history of the project in 24 hours.
How do I know I am buying from a trustable project?
Turesta is the biggest real estate company for foreigners in Turkey. As well as your investment, we also have our reputation to protect as well. We are only working with the developers where we have checked their paper work, financial capability and the quality of the projects that they have previously delivered with our team of solicitors, construction engineers and finance department.
Can I rent my flat after I pay the down payment, or shall I wait until I fulfill my payments?
You can’t rent a property without the title deed. Title deed will be transferred after all payments completed. But you can rent your property by the name of the developer if the developer agrees to this.
Can I start using my flat after I pay only the down payment?
Yes you can. But you need to agree with the developer about the situation.
Is my deposit refundable?
Your deposit is refundable for 7 days. After that you have to pay the agreed down payment and sign the sales contract.
What would happen if the developer didn't continue the construction?
As Turesta we are only working with the developers who have given completion guarantee to banks. According to new real estate law, if developers are not providing completion guarantee to banks, they cannot provide off plan mortgages to their clients. Therefore your off plan investment is safe with us. But, just to provide the general rules & laws about this subject: In sales contracts, there are penalties for both sides. The developer needs to abide by the construction completion date which is written on the contract. If developer cannot complete the project on this date, then by law they have another 6 months to complete. However, from this date forward, the developer will start paying you monthly penalties which would be the equivalent of a monthly rental income. Alternatively, they can give all your deposits and payments back to you.
Can I bring my friend/wife/kids/etc to view the properties with me?
Given that you have given us enough advance warning, we can arrange to pick you up with your family in our company cars to cater for your viewing party.
Can you meet me at the airport to show me properties?
Your dedicates sales executive can meet you in your hotel, airport or any other place choice of yours.
How do I get a tax number in Turkey as a foreigner?
Our after sales department will assist you with this. All you need is your passport copy and an address in Turkey.
Do I need a tax number?
Yes you will need a tax number to purchase a house. Our after sales department will assist you with this.
Can foreigners open a bank account and what do I need to open a bank account?
Yes, foreigners can open a bank account. All you need is to have a tax number and to provide acceptable proof of your home address.
Do I have to come to Istanbul to buy a property?
Normally you don’t need to come. By going to the nearest Turkish Embassy in your country and sending a “Power of Attorney” to our company to allow us to follow all steps in your name, we can complete all procedures. But we advise you to come and see the apartments by yourself first in Turkey. After that, you can decide and buy while you are in your own country.
What is the procedure for buying a flat in Istanbul for a foreigner?
It is an easy procedure, nearly the same as for Turkish citizens. I will send you the detailed Buying Procedure Brochure after our telephone call. But in summary, everything can be done in a day and we will assign a dedicated after sales team member to you to manage the whole process for you.
Is there a property bubble price in İstanbul?
Real estate Bubble can be understood by looking at two metricsA. Affordability indexHow expensive houses are in relation to what most people can afford. When this is too high, then house prices first stall then decline.B. Mortgage as a Percentage Of IncomeActual monthly cost of the mortgage to family income. When the ratio gets too high, households become increasingly dependent on rising property values to service their debt. World average on affordabilty index ratio is 12 and this ratio is only 6 in İstanbul. Also, world average mortgage payment as a percentage of income is 140%, whereas this rate is only 80% in Turkey. Furthermore, in Europe and North America, downpayment of a mortgage ranges anywhere between 1% to 10%. However, one has to pay at least 25% of the house value as a deposit in Turkey. Also, this loan has to be covered in 10 years maximum unlike the world average of 25 years. This simple check step avoids property prices to grow Therefore with this security check in place, and no mathematical evidence of property bubble price in the key metrics, we can conclude that there is still significant room for property prices to grow in Turkey.
What is the outlook of İstanbul property market?
International financial & real estate experts such as Deloitte, HSBC, Bloomberg, KPMG and Knight Frank are expecting property prices in İstanbul to keep soaring up in the next 5 year period due to below reasons:
- It’s now cheaper and faster to build new properties thanks to improved construction technology
- Increasing house prices driven by the demand & young population
- Rising foreign demand in Turkish property market
- Actual and forecasted record levels of tourism in Turkey
- Extremely healthy economic conditions of Turkey
What are the most important factors in investing in a house in İstanbul?
Invest in areas where there is demand/trend
B. Built Year
Properties built before 2006 are not earthquake proof
C. Transport Links
Property values close to transport links goes up higher and faster
D. Distance to CBD
People wants to be within commuting distance of CBD (commercial business district)
E. Facilities of the building
People prefer buildings which caters for all needs (shopping, sports, entertainment, etc)
F. Close to landmarks
There is a close corellation between the house prices & landmarks
G. Paperwork/Due dilligence
Title deed status & off-plan pre check
H. Future outlook & retun on investment
How safe is your investment
What happened to new development prices in İstanbul in the last 5 years?
House prices in İstanbul’s new developments grew 25% year on year in the last 5 years.
What happened to Istanbul house prices in the last 5 years?
House prices in Turkey grew 15% year on year in the last 5 years.
What happened to Turkish house prices in the last 5 years?
House prices in Turkey grew 15% year on year in the last 5 years.
How do house prices in İstanbul compare to the rest of the world?
Average square metre of a house in İstanbul is $2,150 per m2 in city centre and $1,000 outside of the city centre. Prices of villas in Bosphorus, old and low quality houses in slum areas and also the new development prices are also in these average prices. These prices are slightly behind Kuala Lumpur. Sydney, Toronto and Munich are 4 times more expensive than İstanbul and cities like Paris, Geneva, London, and Hong Kong are 5-10 times more expensive than İstanbul. As İstanbul is currently a major metropolis with huge growth plans, it makes İstanbul house prices a real bargain!
Trends & Statistics
Average square metre of a house in İstanbul is $2,150 per m2 in city centre and $1,000 outside of the city centre. Prices of villas in Bosphorus, old and low quality houses in slum areas and also the new development prices are also in these average prices. These prices are in line with Tehran, Kuwait and Damascus and they are around 50% more expensive than Kabul, Palestine, Jordan, Saudi Arabia and Iraq. However, these prices are less than half price of Kuwait, Lebanon and Qatar. As İstanbul is currently a major metropolis, with huge growth plans, it makes İstanbul house prices a real bargain!
How much does it cost to furnish the house?
This depends on the quality you choose. But on average, for medium quality furniture we can fully furnish 1 bedroom apartment starting from $8,000, 2 bedrooms $10,000 and 3 bedrooms $12,000.
Do I have to pay the maintenance fee as an owner if l rent my apartment?
There is a simple answer for this question: whoever uses the apartment, he/she pays all maintenance fees.
What is the general Maintenance Fee when I buy an apartment in Istanbul?
Maintenance fee is the amount you pay for the costs of security, swiming pool, fitness centre, sauna, cleaning of the common places, elevator, etc. Cost of this is usually around 1 dollar per square meter of the house you have purchased.
Are properties sold with kitchen equipment?
Lots of our projects are offering some kitchen equipments (stove, oven) and some of them are providing all white goods (oven, stove, fridge, dishwasher) with the exception of washing machine. Our after sales department can cater for all of your furniture and white goods needs.
Are your properties sold furnished?
New properties are sold without furniture. Only a few secondhand resale apartments are sold furnished, but we don’t recommend this to our clients as they are usually really hard to rent due to the different tastes of the tenants.
Can you find a tenant for my apartment?
Of course. We have a dedicated rental management department.
What services will be offered to me when I pay Turesta Fee?
- Helping clients to take a Turkish tax number
- Signing the contract on their behalf, (once we have your Power of Attorney)
- Following all your payments and ensure that developer issues receipts for same
- Assistance with furnishing your property
- Opening your bank account, on their behalf
- Arrange utility connections (gas, water, electricity)
- Following official documents required from you
- Liaising with all necessary Government and municipality bodies on their behalf
- Representing you, and signing necessary documentation on your behalf, when necessary
- Ensuring all necessary actions are undertaken relating to Stamp Duties and all taxes for which you are responsible
- Following the Title Deed process, including transferring same to their name(s)
- Key delivery upon completion
- Answering client’s (many & varied) questions regarding their purchase