How Is the Real Estate Purchase and Sale Process Managed for Foreigners?
The management of the real estate purchase and sale process for foreigners is carried out through the following main stages:
At the first stage, it is legally examined whether the immovable property planned to be purchased is eligible for sale to a foreign national. Within this scope, it is examined in detail whether the property is located in a military restricted zone, its zoning status, title deed records, encumbrances, and whether it has previously been used in a citizenship application.
At the second stage, a legal strategy is determined according to the purpose of the purchase (investment, residence permit, Turkish citizenship). It is ensured that the purchase price is paid through the banking system and in compliance with the legislation. Cash payments or undocumented payments create serious legal risks for foreigners.
At the third stage, if required, a real estate valuation report is obtained. This report is of critical importance especially for citizenship applications, VAT exemption, and high-value transactions.
At the title deed transfer stage, during the registration procedures to be carried out in the name of the foreign buyer, mandatory title deed annotations, sale restrictions, and legally required declarations are completed in full. Even a minor mistake made during title deed transactions may later render the sale of the property or a citizenship application invalid.
At the post-sale stage, procedures such as tax obligations, VAT exemption controls, residence permit, or citizenship applications are followed up. Thus, the entire legal process arising from the real estate investment of the foreign investor is completed securely.
FREQUENTLY ASKED QUESTIONS (FAQ)
- Can foreigners purchase real estate in Türkiye?
Yes. Foreign nationals may purchase residential and commercial properties in Türkiye within the framework of the Land Registry Law and relevant legislation. However, country-based restrictions, military restricted zones, and surface area limitations must be taken into account.
- Why should the real estate purchase and sale process for foreigners be managed professionally?
This process is intertwined with land registry law, tax law, foreigners law, and often citizenship legislation. An incorrect transaction may lead to the cancellation of the property transfer or serious financial losses. Professional process management minimizes these risks.
- What are the most common mistakes made by foreigners when purchasing real estate?
The most common mistakes include purchasing property that is not eligible for sale, using payment methods that are not compliant with the legislation, failing to include required title deed annotations, incorrect application of VAT exemption, and neglecting post-sale obligations.
- Is VAT exemption possible for foreigners purchasing real estate?
Yes. Provided that the conditions are met, VAT exemption is possible for foreigners purchasing real estate. However, incorrect application of the exemption may result in significant VAT liabilities later on.
- Does purchasing real estate grant Turkish citizenship to foreigners?
Not every real estate purchase grants citizenship on its own. However, if the amount and conditions stipulated by the legislation are met, an application for Turkish citizenship through real estate investment may be made. This process must be planned correctly from the purchase stage onward.
- Can a foreign buyer purchase real estate without coming to Türkiye?
Yes. A foreign buyer may carry out the entire real estate purchase and sale process without coming to Türkiye by authorizing a lawyer through a power of attorney issued by a notary or consulate.
- Can the purchased real estate be sold later?
Yes. However, in properties acquired under citizenship or VAT exemption schemes, there may be sale restrictions for certain periods. Sales made before the expiration of these periods may result in serious legal consequences.
- What are the tax obligations for foreigners when selling real estate?
During the sale, capital gains tax, title deed fees, and other financial obligations may arise. Proceeding with a sale without tax planning may lead to financial losses.
- What is the role of a lawyer in real estate purchase and sale transactions?
A lawyer conducts the legal due diligence of the property, reviews contracts, manages the title deed process, identifies risks in advance, and ensures that the foreign client completes the entire process securely.
- What does Uzunpınar & Tüfek Law Office provide in this process?
As Uzunpınar & Tüfek International Law Office, we manage the real estate purchase and sale process for foreigners in an end-to-end professional manner, including property selection, legal due diligence, title deed transfer, tax procedures, and citizenship processes.