Real Estate by Citizenship or Residence Permit for Investment

Buying property in Turkey is necessary for becoming a citizen, obtaining a residence permit, or establishing permanent residency in the country.

Turkey is a wonderful country that has a lot to offer to both its residents and tourists. It boasts beautiful natural scenery, a vibrant culture, rich history, and delicious cuisine, making it easy to fall in love with. For international investors seeking significant returns, investing in Turkey's thriving real estate market could be a wise choice. With projections estimating real estate investments to reach $1 billion by 2023, Turkey is becoming more and more attractive to investors worldwide. As an ex-pat, you have the opportunity to take advantage of this market, and Algebra is here to help you navigate the requirements and opportunities involved in investing in Turkey's real estate market, including the Citizenship by Investment programs. We will help you maximize your investment and achieve your desired return. Don't wait any longer! Investing in Turkey's real estate market could be the perfect way to increase your profits and secure a prosperous future. With Algebra by your side to simplify the process of investing in this thriving landscape, you'll have the confidence to take control of your financial future.

Breaking Down the Basics of Citizenship by Investment Program in Turkey

Algebra offers a great opportunity for foreign investors and entrepreneurs to become Turkish citizens through the Citizenship by Investment Program (CBI). This program aims to attract more foreign investments by providing them with a quicker and easier path to Turkish citizenship.

To be eligible for Turkish citizenship through the CBI, foreign investors are required to make a minimum investment of $400,000 in real estate, either in a single property or multiple properties. The investment can be held in the form of a mortgage, loan, or ownership of the property.

In addition to the investment amount, there are also taxes and fees associated with the CBI. A property tax of 0.2-0.6% of the property's value and a luxury tax for properties worth more than 5 million Turkish liras (approximately $305,000) must be paid. Moreover, a 2% transaction fee is charged for primary objects, and a 4% fee is charged for secondary objects.

Investors have a range of options to choose from, including purchasing real estate and investing in government bonds. Real estate is the most popular option since it is a secure and profitable investment. Prices in the Turkish real estate market have been growing by 15-25% annually, and the annual rental yield is 2-8%.

What Makes Turkey Favourable for Real Estate Investors?

More and more investors are considering Turkey as a top destination for real estate investment due to its many attractive features. These include a tax system that is favourable for investors, a growing property market, a strong economy, and a wealth of cultural attractions. Let's take a closer look at why Turkey is an ideal place to invest in real estate.

High Return on Investment

Investing in real estate in Turkey is a great option as it offers high returns on investment. The prices of properties in Turkey have been rising consistently over the past few years, making it one of the most affordable places to buy real estate in Europe. The average rental yield in Turkey ranges from 2-8 per cent, which is higher than most other countries in the region. Therefore, if you are planning to invest in real estate and want to get a good return on investment, Turkey is an excellent choice.

Incentives from the Government

Apart from the program that grants citizenship by investment, the Turkish government also provides several incentives to attract foreign investors to invest in the real estate industry. These incentives include the exemption of Value Added Tax (VAT) and other tax reductions, such as the duty stamp. These measures have made it more convenient for foreign investors to buy properties in Turkey and benefit from the country's favorable tax and investment environment.

Who is Eligible to Buy a Property in Turkey?

If you want to buy property in Turkey, there are a few important things to keep in mind. First, all foreigners are allowed to buy real estate except for citizens of certain countries such as Syria, Armenia, Cyprus, Cuba, Taiwan, North Korea, and Eritrea. You can buy residential or commercial real estate, a new or previously owned building, a share in a building under construction, or a plot of land.

However, there are some restrictions to be aware of. Foreigners are not allowed to buy real estate near military facilities and land plots that exceed 30 hectares or 300,000 square meters. Additionally, citizens of certain countries may have additional restrictions. For example, Russians cannot own real estate on the Black Sea coast.

Exploring the Property Prices by Region of Turkey

Over the last ten years, real estate prices in Turkey have risen a lot, and the country is now at the top of the Eurostat price index. The price per square meter of real estate varies from $300 to $2,500, depending on the location and type of property. Istanbul, Bodrum, and Alanya have the highest average prices per square meter at $1,800, $1,750, and $900, respectively. Meanwhile, Izmir, Antalya, and Bursa have average prices ranging from $700 to $800 per square meter.

Algebra is Your Go-to Source for Relocating, Investing, and Travelling in Turkey

Purchasing property in Turkey can be a fulfilling experience due to its magnificent landscapes, diverse culture, and promising investment options, making it a top choice for people who want to own real estate overseas.

Before making a purchase, it's crucial to comprehend the eligibility criteria and the procedures for buying property in Turkey. With appropriate assistance, you can ensure a seamless and fruitful transaction.

Whether you're planning to relocate, invest, or travel to Turkey, Algebra is your ultimate resource for all information regarding expat life in the country. We're excited to help you discover the vast opportunities this incredible country has to offer! Get in touch with us today to kick-start your journey!