Buying Property in Turkey: Taxes, Costs, ROI, Property Maintenance, Residence Permit and Citizenship

Initial costs:

• Purchase tax (Tapu Harcı) – 4% of the cadastral value of the property (usually lower than the market price).
• Notary and legal services – about 1,000–1,500 euros.
• State fee for registration of property rights – from 300 to 600 euros.
• Real estate appraisal – 100–300 euros.

Annual taxes and expenses:

• Property tax – 0.1–0.6% of the value depending on the type and location of the property.
• Rental property tax – 15–35% of income depending on the amount of profit.
• Utility payments – from 50 to 200 euros per month depending on the region and type of housing.
• Aidat (complex maintenance) – from 20 to 200 euros per month depending on the level of infrastructure.

The average rental yield of real estate in Turkey is 5-8% per annum, depending on the location and type of property. The most popular regions for investment are:

• Istanbul is a dynamic market with high rates of price growth.
• Antalya and Alanya are popular resorts with high demand for rentals.
• Izmir is a promising city with a growing economy and infrastructure.

Profit can also be obtained due to the growth in real estate values. On average, prices grow by 5-15% per year, depending on the region.

Property owners bear the costs of its maintenance, including:

• Utilities (electricity, water, gas) – 50-100 euros per month.
• Maintenance of the residential complex (aidat) – depends on the infrastructure.
• Housing insurance – about 150-300 euros per year.
• Repair and maintenance of the property – individual expenses.

Residence permit in Turkey when buying real estate

In Turkey, a residence permit is called Ikamet. It comes in two types: short-term (Kısa Dönem Ikamet İzni) and long-term (Uzun Dönem Ikamet İzni). A short-term residence permit can be issued to tourists, property owners, entrepreneurs, students and family members (for family reunification).

This status allows you to legally reside in Turkey from 3 months to 3 years with the possibility of extension.

One of the grounds for obtaining a residence permit is the purchase of real estate worth at least $200,000 - this is a relatively low threshold compared to other countries. Residence permit holders receive a number of benefits: the opportunity to buy a car, obtain a local driver's license, enroll children in public schools and kindergartens, and also use health insurance.

The cost of obtaining a residence permit for a year averages from 200 to 300 US dollars. This amount includes the state fee for Ikamet and health insurance (cost depends on age). Additional costs may include translation and notarization of documents, photographs and purchase of a SIM card.

Processing time: According to official data, the process of obtaining a residence permit takes up to 90 days.

A long-term residence permit in Turkey is issued to foreigners who have permanently resided in Turkey for at least 8 years under one of the main types of residence permit

Turkish Citizenship by Investment

Turkey has an investment citizenship program that allows foreigners to obtain a Turkish passport in an expedited manner. One of the most popular methods is the purchase of residential or commercial real estate worth at least $400,000. Unlike a residence permit, a passport can be obtained not only by the investor, but also by his/her spouse and children, even if they are not co-owners of the property. The main condition is that the property must be registered to the main applicant, and its cadastral value must not be lower than the established threshold.

Since the end of 2023, the authorities have begun to tighten the conditions of the program. In particular, if an object is purchased under a notarized agreement in a building under construction, only purchases from one developer and in one project are counted. The purchase of several objects from different developers is no longer accepted. At the same time, for secondary housing and real estate at the final stage of construction, the possibility of combining several objects remains.

Advantages of the program:

• passport in 3-6 months;
• the ability to sell the property in three years;
• inclusion of family members in the application;
• access to health care and other rights of citizens.
• Basic requirements for the applicant:
• age from 18 years;
• health insurance issued in Turkey;
• proof of investment: title deed (TAPU) and statement of transfer of funds from the applicant's account to the seller.

Turkey is an attractive destination for property purchases due to its affordable prices, high ROI, and opportunities for residency and citizenship. However, it is important for investors to consider taxes, maintenance costs, and local regulations to make the most of their investment.

Have you decided to buy real estate in Turkey as a profitable investment, personal residence or obtaining citizenship? Contact us!

Mercury Group specialists offer individual solutions for each client:

• we will monitor the market and select real estate in Turkey that meets your criteria;
• we will accompany you at all stages of the turnkey transaction;
• we will prepare the necessary package of documents for obtaining citizenship in Turkey.