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October 04, 2021
What does 1+1, 2+1, 3+1 and 4+1 mean in Turkish Real estate ?

It’s always been asked, especially by foreigners who want to buy apartments in Turkey, about common symbols used to denote the number of rooms in the apartment. These numbers are well known in the Turkish real estate market and among Turkish citizens, but they may be somewhat strange for foreigners, as we mentioned.

For example, for three-room houses, the expression 2 + 1 is used, so what does it mean? This means that this house has two bedrooms and a living room "salon". Of course, these numbers do not include spaces such as the bathroom, balcony, and garden, if any.

These numbers are one of the basic features of the apartment, and one of the first things to ask about when buying or renting alike.

Considering the foregoing, the most common room distribution in Turkey is as follows:

   ♦ 1 + 1 apartments: they consist of a bedroom + living room "salon", and mostly in this model the kitchen is American style (open to the living room).

   ♦ 2+1 apartments: it consists of two bedrooms (parents' room and children's room) + salon. The kitchen can be open to the salon or separate according to the metric area of ​​the apartment.

   ♦ 3 + 1 apartments: they consist of 3 bedrooms (one for the parents, and two for the children) + a salon, and most likely they have a separate kitchen and a balcony.

   ♦ 4+1 apartments: it consists of 4 rooms (all of them may be used for sleeping or one of the rooms may be used to receive guests independent of the living room) + salon, and this type most definitely has a          kitchen that is separate from the living room.

   ♦ 5+1 apartments: consisting of 5 rooms (often one of them is a guest room, in addition to a bedroom for guests, and this is according to the apartment residents and their preference on how to distribute the rooms) + a salon, this type of apartment is often on the ground floors where a garden or a private terrace is attached to it. .

These types that we mentioned are the most common in Turkish residential apartments, and certainly there may be apartments with more rooms than what we mentioned, but they are often duplexes, and also, we do not forget to mention the one-room apartments "studio", which is symbolized by 0 + 1.

 

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August 31, 2021
How to invest in Real Estate in Turkey ?

Real estate investment is the practice of owning immovable assets “real estate” for the purpose of selling or exploiting them. Real estate investment is one of the most important types of investment around the world, because it provides long-term stability for investors, unlike other types of investments such as trade offers, stock trading and other types of investment that Involve risk. This stability or “security” is mainly due to the fixed and permanent nature of real estate, and this is what prompts many major companies and global investors to invest part of their capital in the real estate sector, even if real estate is not the main form of investment that they practice.

This demand for real estate investment prompted many countries to compete to provide facilities and incentives to investors wishing to invest in real estate to attract them to it, such as tax exemptions and amending laws and government procedures and the renewal of infrastructure and the provision of building materials at reasonable prices.

 Turkey was among the pioneers in the real estate investment sector, as the Turkish government worked to provide the necessary facilities for local and foreign real estate investors alike and worked to attract capital from all over the world to invest in real estate in Turkey.

There are many ways and forms of real estate investment in Turkey in terms of the time set for this investment, and in terms of the amount of investment return, and this varies according to the investors’ view of the market, their plans, and their goals for this investment.

Before talking about the types of real estate investment in Turkey, it is necessary to highlight some of the main points that must be considered before deciding to invest money in the real estate sector.

Important points to ensure a successful real estate investment:

♦ Investment evaluation and market monitoring: This is one of the main steps that precede the real estate purchase process, where the investor must calculate the feasibility and investment return from the purchase, determine the best areas and type of investment required, is it short or long-term, in short, determine the expected future return from this investment.

♦ Searching for the best price in the market, and the most appropriate time to buy.

♦ Determining the costs of the purchase process and the expenses that it entails, as well as the annual fees, expenses, and taxes for the property.

♦ Consultation with a real estate expert: This is one of the very important points before any investment, which is to seek advice from experienced people, and this is what we at Taksim Real Estate Consultancy offer to you based on our experience - more than 10 years - with the movement of the real estate market in Turkey and the best real estate suitable for investment.

Real estate investment styles:

By this expression, we mean the expected period to achieve a return on investment, and accordingly we can define it in three styles:

1- Long-term investment: in which the investor does not aim to achieve immediate profit, but rather looks to achieve a double profit after a relatively long period of time, while maintaining the value of the capital, and therefore this type of investment involves a desire for current savings and future profit.

2- Short-term investment: It is the opposite of the previous style, the investor is intended to achieve immediate profit through resale operations, without freezing the capital for long periods, and this type of investment requires experience in the real estate market and continuous monitoring of market movement.

3- Periodic profit investment: This style includes features from the two previous types, as it involves the investor’s desire to save, such as long-term investment, but at the same time, making a profit in the short term, but this profit is in the form of a periodic return from the exploitation of the property, and this return is low. If we compare it to the quick profit that the investor achieves in the short-term investment.

Types of real estate investment in Turkey:

Considering the foregoing real estate investment styles, we can summarize the types of real estate investment in the Turkish market in the following forms:

1- Buying and reselling: It is the most common type of real estate investment, as it simply depends on the market movement and the increase in demand, which raises the price of real estate and thus achieve profit, and its forms include:

• Buying agricultural land, waiting for it to enter the regulatory area, allowing building on it, and then reselling it. This type of land is widely spread in Turkey, especially outside Istanbul and in the eastern states.

• Buying real estate that is still under construction where prices are low and installments are comfortable and sell it on delivery.

• Purchasing lands intended for construction and building on them, and this type requires a relatively large capital in addition to experience, and this may force the investor to form partnerships to execute the project.

• Buying ready-made properties (whether residential or commercial and reselling them).

• Buying, renovating, and reselling old real estate.

2- Purchasing real estate for the purpose of renting: This type achieves for the investor a periodic return (monthly or annually) while retaining the value of his capital as real estate, and this type also can be in several forms, including:

• Buying and renting shops: It achieves a higher investment return than residential real estate.

• Buying and renting residential real estate: This type can achieve a return either by renting the apartment on an annual basis, or the apartment can be furnished and rented on a daily or weekly basis as a furnished apartment with a higher return.

• Buying and renting ready-made hotel apartments, which are popular in Turkey due to the demand of tourists.

3- Acquisition of Turkish citizenship: The Turkish Nationality Law and its amendments stipulate that anyone who owns a property worth $250,000 or more can apply for Turkish citizenship with his wife and children under the age of 18. We have included this item among the types of real estate investment in Turkey because it is already considered a long-term investment. If the family of an investor consists of 5 people on average, the value of obtaining Turkish citizenship for an individual is only $50,000, frozen for 3 years, as the ownership of the property remains for the investor. He can dispose of it after 3 years. While many countries grant their citizenship at an amount higher than this amount and without the right to recover it by the investor later.

In this article, we discussed the most important real estate investment methods in Turkey in general, and we will talk in detail about the expected return on investment for each type of investment in a another article. 

Read also : What is return On Investment ROI in real estate in Turkey

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August 28, 2020
10 points you have to read well before singing a property sales contract in Turkey

The sales contract is an agreement to buy a specific property for an agreed amount of money in return for ownership of the property, usually sales contract has 2 parties the buyer and the seller (which is usually the construction company )
Singing the sales contract of the property you want to buy in Turkey is the starting point of owning it , it’s not the final step like the title deed but the contract is very important to avoid any possible future risks
We in Taksim real estate advice all customers to have a draft copy of the contract before signing it, in order to read it well , translate it to their language in case the contract is in Turkish language .

And here are 10 points you should read well before signing your contract :

1 - Title deed cost: 

Title deed is the real proof of owning a property in Turkey, construction companies in Turkey usually transfer the ownership of property after finishing all payments by customer.
Title deed cost in turkey is usually 4 %.
Usually the cost is divided equally between two parties 2 % from buyer, 2 % from seller.
But sometimes construction companies put the whole cost to be paid by customer. So, the customer should be careful about this point and ask about it in case it was not mentioned clearly

2 - Number and area of property: 

In Turkey, they usually number all the apartments, shops of a compound even if its still under construction. So, the number of property should be written in the contract
Also, the square meters of the property (apartment, shop …etc) should be written in the contract for both gross and net area.
Even the floor plan of property should be attached with the contract and signed by both parties.

3 - Floor and block:

In case you are buying an apartment, floor of apartment and block number should be written clearly in the sales contract , Even if you are buying a shop, the block number where the shop is located should be written as well

4 - Direction: 

Direction of the apartment is important to be written in sales contract to avoid any mistakes or scam connected to the numbering of apartments specially if you are buying an under construction property.

5 - Date of delivery: 

In case the property is under construction, so the Date of delivery should be written in a clear way in the contract , If the property is ready to be delivered, so no need to be mentioned.

6 - Payment methods and installments : 

The price agreed between two parties should be written in the contract along with the date and amount of all payments (deposit, down payment, installments) as agreed.

7 - Terms of cancellations:

All contracts should have a subject about what will happen in case the customer (buyer) wants to cancel the deal.
Usually in Turkey, in case the customer wants to cancel the deal after signing the contract and paying an amount of the money or total amount, they subtract 3 % from the total amount and refund the rest to him.
But this is changeable from company to another, so you should read the point well.

8 - Penalties for both parties: 

♦ Penalty for the delay of buyer: In Turkey, they usually add an interest on buyers when they delay their payments. So, this point should be added clearly in the contract and buyer should be aware of this point and the interest rate which the company may apply it when payments are delayed.

♦ Penalty for the delay of developer (construction company): The sales contract must contain a penalty clause on the construction company if it delays in delivering the property on the specified deadline agreed in the contract.
The penalty which should be paid by developers usually is the market value of monthly rent for property for each month’s delay.

Note:  the law in Turkey give all construction companies a right to delay for only 6 months after the date agreed in the contract. So, any penalty on developers should be calculated after these 6 months.

9 - Bank account of the owner:

The bank account of the construction company must be clearly mentioned in the contract and be signed by both parties.

10 - Specification of the property: 

All the specifications of the property and how it will be delivered should be written clearly in the contract as kitchen specification, floor of apartment, windows brands …etc.
In Turkey, if you are buying an under construction apartment for example, they usually show you the sample apartment and all the Specification you see (except for furniture which is only for show) in sample apartment should be the same when you receive your apartment

We as Taksim real estate consultancy read the contract well on behalf of our customer (in case our customers  want that) to make sure that everything is alright and all points are mentioned and true.

Note: these points for those who are buying from developers (construction companies), in case you are buying a second hand apartment directly from its owner for example. the procedures are different

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July 15, 2020
Do I need to have a residence permit to buy a property in Turkey ?

No, you do not

The only requirement document you need to make the deal with construction company is your passport.
After buying the property in Turkey you will get automatic residence permit for a year instead of 3 months which was issued in your visa, even renewing it in the future will be easier since you are a property owner.
Buying a property in turkey may allow you to get the Turkish citizenship as well if you fulfil the requirements.


 

Read Also : 

• 10 points you have to read well before singing a property sales contract in Turkey

• Can foreigners buy a property in Turkey ?

• How to buy a property in Turkey in 10 steps ? 

• Turkish citizenship by buying a property .. conditions and documents required 

• Property taxes in Turkey

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July 14, 2020
Can I get a residence permit in Turkey If I buy a property ?

Applying for residence permit in turkey does not need to buy a property in Turkey, in other words, all people can apply for residence permit even if they live in a rented apartment
So, all people can apply and get residence permit in Turkey whether they own a property or not
But it is easier for owners of properties to get residence permit and easier when they renew it in the future.
 

Read Also : 

• 10 points you have to read well before singing a property sales contract in Turkey

• Can foreigners buy a property in Turkey ?

• How to buy a property in Turkey in 10 steps ? 

• Turkish citizenship by buying a property .. conditions and documents required 

• Property taxes in Turkey

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July 14, 2020
Can foreigners buy a property in Turkey ?

Before 2012, Turkey has a strict for a lot of nationalities to buy properties in Turkey.
However, in May 2012, new law was released to allow people from 129 countries to buy all kind of  properties in Turkey ( lands , shops , apartments , offices , villas  …etc )

So nowadays, all nationalities can buy properties in turkey including Americans, Canadians, Europeans, middle eastern, … etc.
Except the people who are from the following countries :  Syria, Armenia, North Korea, Cuba.

If you are not sure whether you are allowed to buy a property in Turkey or not, please do not hesitate to contact us. we will be happy to answer all your questions

 

Read Also : 

• 10 points you have to read well before singing a property sales contract in Turkey

• How to buy a property in Turkey in 10 steps ? 

• Turkish citizenship by buying a property .. conditions and documents required 

• Property taxes in Turkey

Read more
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April 07, 2020
How to buy a property in Turkey in 10 steps

Whether you are looking to buy an apartment, villa, shop or an office in Turkey, all these kinds of properties have the same 10 steps.
Generally, buying a property in turkey will be very simple and clear for you with the following 10 steps:

Step 1. Research about a real estate company

Start the first step by searching and reviewing the website / YouTube / Facebook …. etc. for real estate companies in Turkey in order to choose one of them to contact and to review their properties later in the field.

Step 2. Getting a visa

Getting a visa to Turkey is very easy for a lot of countries , you can get it online for some countries and some other countries are exempted from visa for 90 days , and there are countries that need to visit the Turkish embassy in their countries You can check your country status from the following link :
https://www.evisa.gov.tr/en/apply/

Step 3. Travel to Turkey

Its very important to know more about the country before buying a property, so it’s very necessary to visit and check the areas and streets, in order to love an area which you may buy a property in later.
There are some customers who prefer to buy a property without coming, we in TAKSIM REAL ESTATE don’t recommend our customer to do so, it’s very important to see the property and area before buying.

Step 4. A tour to field

After coming to turkey and choosing the agency which will show you properties , here you start to see properties on the field , we in TAKSIM REAL ESTATE usually offer our customers a free tour to explore and show the properties in order to get a great image about the market and properties before any decisions

Step 5. Choosing the location and a property

This is the most important step of all , we in TAKSIM REAL ESTATE highly recommend our customers to concentrate about location , location and location.
Usually choosing a good location will make it easier for you later to rent it if you prefer, and it will be even more profitable as an investment property in the long run if you would like to resell it.

Tips for choosing a location when you want to buy an apartment :

• Determine your main purpose of  the property .. is it for living or investment ?! Determining the goal of buying a property will play an important role in choosing the most appropriate location

• Should be Close to main streets 

• Should be close to public transportation like metrobus or a metro station 

• Should be close to universities

• Should be close to shopping malls

Tips for choosing an apartment :

• Direction is very important ( in Istanbul for example : north is cold in winter, south is hot in summer )

• If you prefer landscapes view so we recommend you to choose low floors 

• Should be sunny

• Should have at least 2 bathrooms

Step 6. Negotiating and paying deposit

After choosing a property you like, here it comes the negotiating step in order to get best discount for the payment method you selected, we in TAKSIM REAL ESTATE usually get the best prices for our customers.
Paying a deposit is very important after both sides agree about a price even if you don’t want to continue the procedures directly because it stops the developers from showing this property to other customers and to fix the price.
Note: all developers in Turkey give you a 15 days period for your deposit to be refundable in case you changed your mind, or you find another proper property or what ever reason its.

Step 7. Hire a lawyer

After completing the negotiation process and paying the deposit, it is preferable to obtain an draft copy of the sales contract and present it to a legal advisor
This step is to make sure that all the procedures are legal with no scam or any kind of fraud.

Usually the lawyer should do the following:

• Check the contract and read it well

• Check the developer status in the market , financial situation and the actual ownership of the property

• Check the status of the title deed and the absence of any mortgages or seizures on the property

we usually don’t offer our customers any properties from low reputation developing companies or Financially unstable , but making a double check by customer is better

Step 8. Signing the contract

After making sure that every thing is legal by your lawyer , here you can sign the agreement between you and the seller (developer) which contains all the required info about the property , space , price , date of delivery , payment method and day of payments … etc.

Step 9. Completing the rest of the payment as agreed

In this step, developers usually give customers a period time to go back to their countries and transfer the rest of money, usually up to 30 days

Step 10. Receiving the title deed

After paying the whole amount of the price , here you can get the title deed which is the proof of owning this property in turkey , and usually this step cost about 4 % of the property value , usually its paid equally between seller and buyer.
 

Here we finish the 10 steps, in case you have any further questions about procedures of buying a property in turkey You may contact us .

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July 11, 2019
Property taxes in Turkey

Many people who want to buy real estate in Turkey are asking a lot of questions about the taxes on the property. To whom and when to pay? .. Of course, it may be difficult to access the information accurately, either because it is not available in English or is not sufficiently clarified. The following is a simplified explanation of the taxes on property in Turkey from the date of purchase until the transfer of ownership.

Taxes when buying the property in Turkey:

1-  Title deed fees 'Tapu Harcı':
Paid one time when the ownership of the property is transferred to the new owner at Real Estate Registry Department, its amounts is 4% of the declared value of the property and falls to the seller and the buyer equally (2% to the seller and 2% to the buyer).

2- Value added tax 'KDV':
Is a tax imposed on different rates for all products in Turkey, the rate of VAT varies according to the product and ranges from 3 segments 1%, 8% and 18%.
With regard to value added tax on real estate is imposed according to the price per square meter of the property and is worth when the sale of the property, although the real estate with a net area of less than 150 square meters, the tax is applied at the minimum of 1%.
In order to attract foreign investments, the Turkish government abolished the value added tax on the sale of real estate to foreigners and Turkish citizens residing abroad for more than 6 months, according to certain conditions that must be achieved to benefit from the exemption, (the property must be new and be purchased from a construction company, and a pledge not to sell for one year from the date of purchase, and that the price of the property shall be transferred from abroad in foreign currency).

Taxes during owning the property in Turkey:

1- Immovable property tax 'Emlak vergisi':
Is an annual tax imposed on all types of real estate (housing, shop, agricultural land, etc.). This tax is paid to the municipality to which the property belongs.
This tax is payable in two installments during the year (for the current year). The first payment should be made within 3 months from 1 March to 31 May. The second payment must be made within one month from 1 to 30 November of each year. 
It should be noted that payments are not delayed for specified periods to avoid the accumulation of fines. Financial penalties are added to the amount of the tax by 1.4% per month in case of delay in payment during the previous periods of each year.
The value of the property tax varies according to the type and location of the property and is calculated as follows:

Property Type inside metropolitan municipalities outside metropolitan municipalities
housing 0.2 % of the value of the property 0.1 % of the value of the property
workplace 0.4 % of the value of the property 0.2 % of the value of the property
building land 0.6 % of the value of the property 0.3 % of the value of the property
land 0.2 % of the value of the property 0.1 % of the value of the property


It is noteworthy that there are some categories of taxpayers are exempt from property tax, such as families of martyrs, war victims and people with special needs, within the conditions regulated by law.

2- Environment tax 'Çevre Temizlik Vergisi':
- This tax shall be imposed on the built-up and inhabited properties (Houses, workplace ..), While the unbuilt land of all kinds and vacant real estate shall be exempted.
- The Occupant of property is the one Who is charged with paying this tax, whether it is the landlord or the lessee.
- Calculated based on the amount of water consumption in residential units as follows:

• Housing in the metropolitan municipalities (cities): 39 piasters per cubic meter consumption.

• Housing in other municipalities (outside cities) 29 piasters per cubic meter consumption .. (the amount of consumption is mentioned in the water bills).

- For workplace (shops, offices ...), a lump sum determined by the Ministry of Environment shall be paid according to the category of property and its location outside or inside the cities. To view these categories you can click on the link:  https://www.verginet.net/dtt/1/Cevre_Temizlik_Vergisi_Tutarlari.aspx
- This tax is paid to the municipality to which the property belongs in two installments, during the months of March and November of each year.

3- Rental return tax ' Kira gelir vergisi': 
Imposed on the owners of the leased properties, ie those who earn income from renting their properties. Are calculated according to the annual income tax rates mentioned in the previous table, after determining the amount of taxable net income and lowering the minimum income tax exemption of 4,400 Turkish lira for 2018 and 5400 Turkish lira for 2019. This tax shall be paid ta the Tax Department for the income of the current year in two installments during the months of March and July of the following year.
Note : this tax is only for those who rent their property for others , in case you dont rent it to any one , there will be no rent tax.
 

♦  Taxes when selling the property in Turkey:

1-  Value increment tax 'Değer artış kazancı vergisi':
Or it can be called real estate profits tax. Article 80 of the Turkish Income Tax Law regulates how this tax shall be deducted and its amount, This article states that: "If the ownership of the property is transferred from the owner's hand within a period of 5 years from the date of purchase, it is subject to the Value increment tax".
The same article excludes properties that are transferred from the owner's hands without the sale. It states: "If the ownership of the property is transferred without a paid allowance (inheritance, gift, etc.), it is not a subject to the Value increment tax". To simplify this tax we will explain it in the following points:

A) This tax shall be imposed on the value difference between the date of purchase of the property and the date of its sale, for example, a property purchased on 1/1/2016 in the amount of 200,000 Turkish lira, and sold on 1/1/2019 at 350,000 Turkish lira. Thus the amount of 150,000 Turkish lira is the amount of the increase in value, which will be subject to a calculation to determine the amount of tax.
B) If the property is sold after 5 years or more from the date of purchase (the date of purchase is the date of registration with the Tabu Department), it shall be exempt from this tax.
C) Real estate that is transferred without a Paid allowance such as inheritance and gift is also exempted from this tax.
D) The calculation of the amount of this tax goes through a somewhat complex process, where the real purchase price (the property purchase price in the currency value at the date of sale) should be determined to determine the real profit amount, in light of the inflation rate.
in addition to deducting some expenses and fees from the real profit amount, The amount of the tax exemption determined by the Income Department is also raised each year. At the end of this process we get the amount of taxable amount.
E) After determining the taxable value, the tax shall be deducted according to the annual income tax tranches, as follows:

 

The amount to be taxed Deduction rate
Less than 18,000 TL 15 %
From 18,000 TL to 40,000 TL 20 %
From 40,000 TL to 98,000 TL 27 %
more than 98,000 TL 35 %


F) The tax return for properties sold in a year (2018 for example) will be presented during the period from 1 to 25 March of the next year (2019). The tax should be paid at the Tax Department 'vergi dairesi' in two installments during the months of March and July of 2019.

2 - Inheritance and transfer tax 'Veraset ve İntikal Vergisi':
The inheritance tax includes all the deceased's money, but we will talk here about the real estate part of the inheritance.
This tax shall be imposed on immovable property situated within the territory of the Republic of Turkey and which is transferred by inheritance or without paid allowance such as gifts, prizes and donations.
The taxpayers are the heirs of the deceased. They must extract a Devolution of estate of the deceased and obtain tax id number for each of them. The tax declaration shall be submitted to the tax department within four months of the date of death (in case of death in Turkey, and the taxpayer is resident in Turkey), and within six months of the date of death (In the case of death outside Turkey or that the taxpayer was resident outside Turkey).
After Inventory of the estate of the deceased and determining the amount of the tax deduction, the tax shall be deducted according to the following rates:

 

The tax base Rate of inheritance tax Rate of gift tax
The first 290,000 TL 1 % 10 %
The next 700,000 TL 3 % 15 %
The next 1,500,000 TL 5 % 20 %
The next 2,700,000 TL 7 % 25 %
Exceeding the amount of 5.190.000 TL 10 % 30 %


The inheritance tax must be paid within a maximum period of 3 years from the due date. The amount of the tax can be paid in six equal installments payable in May and November of each of these three years.

- Note: the foreigner who owns a property in Turkey is treated as a Turkish citizen without imposing any additional fees or taxes. On the contrary, the foreigner may benefit from some facilities, in the desire of the government to encourage investment.
It remains to be mentioned that all information contained in the article is in force until the date of publication, and will be updated in the event of any amendments.


In case you have any other questions about property taxes in turkey , you may contact us.


Sources:
gelir idaresi başkanliği
verginet.net
hesapkurdu.com
emlakkulisi.com

 

 

Read Also : 

• 10 points you have to read well before singing a property sales contract in Turkey

• Can foreigners buy a property in Turkey ?

• How to buy a property in Turkey in 10 steps ? 

• Turkish citizenship by buying a property .. conditions and documents required 
 

Read more

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