Real Estate Law in Turkey

Turkey’s property market sits at the intersection of strong demand, evolving regulation, and genuine legal complexity. Foreign buyers, investors, and expats move here with serious capital and, too often, incomplete information about how Turkish property law actually works. At Aslan Attorney, real estate transactions make up a significant portion of our practice — from straightforward apartment purchases in Istanbul to multi-property citizenship applications and commercial acquisitions.

This guide covers the legal framework foreign buyers need to understand before committing to any transaction in Turkey in 2026.

Legal Notice: This page provides general legal information for educational purposes only. It does not constitute legal advice. For guidance specific to your situation, please consult a qualified attorney.

The Legal Framework

Turkish real estate law is built on several intersecting pillars:

Turkish Civil Code No. 4721, the foundation of property rights in Turkey. Defines ownership, co-ownership, easements, mortgages, and the legal relationship between owners and their assets.

Land Registry Law No. 2644, governs how property rights are registered, transferred, and annotated at the Land Registry (Tapu ve Kadastro). All property rights in Turkey exist only when registered here.

Foreign Direct Investment Law No. 4875, establishes the equal treatment principle for foreign investors in Turkish property markets.

Expropriation Law No. 2942, governs state expropriation of private property for public use, with compensation requirements.

Condominium Law No. 634, regulates apartment ownership, common areas, building management, and maintenance obligations in multi-unit buildings.

Law of Obligations No. 6098, governs all contracts including purchase agreements, lease contracts, and construction agreements.

All property transfers are executed at and overseen by the General Directorate of Land Registry and Cadastre (TKGM).

Can Foreigners Buy Property in Turkey?

Yes, with defined parameters. Foreign nationals may purchase property in Turkey subject to the following rules under Article 35 of Land Registry Law No. 2644 as amended:

Maximum holding: Up to 30 hectares of land per individual across Turkey in total.

Restricted zones: Property in military security zones, strategic areas, and certain border regions cannot be purchased by foreign nationals. The General Directorate of Land Registry and Cadastre verifies zone status before approving any transfer.

Reciprocity principle: Nationals of countries that allow Turkish citizens to purchase property in their jurisdiction may purchase in Turkey. A list of eligible nationalities is maintained by the Ministry of Environment, Urbanisation and Climate Change.

Company-held property: Foreign companies registered in Turkey under Turkish Commercial Code No. 6102 and Foreign Direct Investment Law No. 4875 may purchase property subject to specific sectoral limitations.

Buying Property in Turkey: The Legal Process

Step 1: Due Diligence and Title Investigation

This is where most problems originate, and where qualified legal representation pays for itself many times over.

A proper title investigation at the General Directorate of Land Registry and Cadastre covers: current registered owner and ownership history, mortgages and liens (ipotek, haciz), easements and servitudes, pending legal disputes or court orders, zoning classification and permitted use, building permits and occupancy certificates (yapı ruhsatı, iskan), and citizenship annotation status confirming the property has not been used in a prior citizenship application.

For off-plan purchases, due diligence extends to the developer’s financial standing, construction permits, project completion guarantees, and the terms of any escrow or payment milestone structures.

We conduct full title investigations before any funds are committed. For property sourcing and market advisory, we work with our partners at Ivyhold Global Real Estate, who operate across Istanbul, Antalya, Bodrum, and other key Turkish markets.

Step 2: Purchase Agreement

Once due diligence clears, a preliminary purchase agreement (ön sözleşme) or notarized sales promise agreement (gayrimenkul satış vaadi sözleşmesi) is typically signed. The notarized version is registrable at the Land Registry and provides stronger legal protection for the buyer.

Key terms to review carefully: payment schedule and conditions, title transfer timeline, penalty clauses for delays, warranty provisions, VAT and tax allocation between buyer and seller, and conditions precedent to completion.

Step 3: Obtain a Turkish Tax Identification Number

Required before any property transaction. Obtained at any local tax office with your passport. Takes under an hour.

Step 4: Open a Turkish Bank Account

All purchase funds must flow through a Turkish bank account in the buyer’s name. Since July 1, 2026, all real estate purchase payments must be processed through Turkey’s Secure Payment System (Güvenli Ödeme Sistemi) per the regulation published in Official Gazette No. 33238, April 29, 2026. Under this system, funds are held in a secure escrow account and released to the seller only after the title deed transfer is confirmed at the Land Registry.

Step 5: Official Valuation Report (for citizenship applications)

For purchases intended to qualify for the Turkish citizenship program, an official valuation report must be obtained from an appraiser licensed by the Capital Markets Board (SPK). The report must confirm the property value meets the USD 400,000 threshold.

For standard purchases not linked to citizenship, the SPK valuation is not legally mandatory but is recommended as independent price verification.

Step 6: Title Deed Transfer at the Land Registry

The title deed transfer (tapu devri) takes place at the General Directorate of Land Registry and Cadastre. Both buyer and seller or their authorized representatives under notarized power of attorney must be present. A sworn translator is required if any party does not speak Turkish.

On the same day: title deed transfer tax of 4% of the declared value is paid to the government. Both parties sign the transfer documents. The new title deed (tapu senedi) is issued in the buyer’s name.

For citizenship applications, a three-year non-sale annotation (vatandaşlık şerhi) is placed on the title deed simultaneously.

Selling Property in Turkey

Property owners selling in Turkey should account for the following legal and tax obligations:

Documentation required for sale: Current title deed, identity documents, compulsory earthquake insurance (DASK) certificate, building energy performance certificate, and any applicable occupancy permits.

Capital gains tax: Under Article 80 of Income Tax Law No. 193, gains on property sold within five years of acquisition are subject to income tax. Properties held for five years or more are exempt. The taxable gain is calculated as the difference between the inflation-adjusted acquisition cost and the sale price.

Title deed transfer tax: 4% of the declared property value, typically shared between buyer and seller though this is negotiable.

VAT on property sales: New residential properties with a net area exceeding 150 sqm are subject to 20% VAT. New properties under 150 sqm attract a reduced rate. Second-hand residential property sales are generally exempt from VAT under VAT Law No. 3065.

For sellers subject to citizenship holding restrictions, any sale before the three-year annotation period expires requires legal review. In certain circumstances, government-approved property exchanges may be possible.

Leasing and Rental Law

Residential and commercial leasing in Turkey is governed by the Law of Obligations No. 6098, Articles 299 through 378. Key points for landlords and tenants:

Residential leases: The annual rent increase is capped at the 12-month average of Turkey’s Consumer Price Index (TÜFE), published monthly by TÜİK (Turkish Statistical Institute). Landlords cannot raise rent above this cap during the lease term.

Eviction grounds: A landlord may legally terminate a residential lease only on specified statutory grounds under Articles 347-356 of Law No. 6098, including failure to pay rent, breach of lease terms, the landlord’s genuine need to use the property, or major renovation requiring vacant possession. Eviction without legal grounds exposes the landlord to liability.

Short-term rentals: Properties listed on platforms such as Airbnb require a short-term rental permit (günlük kiralama izni) under regulations administered by the Ministry of Culture and Tourism. Operating without a permit carries administrative fines. The regulatory framework for short-term rentals has tightened significantly since 2023.

Rental income tax: Rental income is declared annually under Income Tax Law No. 193. A lump-sum deduction or actual expense deduction method may be applied. Non-declaration of rental income is treated as tax evasion by the Revenue Administration (GİB).

For detailed guidance on rental matters see our Lease and Rental Law page.

Property Taxes in Turkey

Annual property tax (emlak vergisi): Levied under Real Estate Tax Law No. 1319. Rates range from 0.1% to 0.6% of assessed value depending on property type and municipality. Paid in two equal installments in March and November each year to the relevant municipality.

Compulsory earthquake insurance (DASK): All residential buildings in Turkey must carry compulsory earthquake insurance under Decree Law No. 587. Administered by the Natural Disaster Insurance Institution (DASK). Required for utility connections and property transactions.

Environment cleaning tax (çevre temizlik vergisi): A modest annual levy collected by the municipality based on water consumption or property type.

Foreign Ownership: Practical Considerations

Currency and payment: Property transactions can be denominated in foreign currency but the official value for title deed purposes is declared in Turkish Lira at the Central Bank rate on the transfer date. The Secure Payment System requirement effective July 1, 2026, means all citizenship-related purchase payments must be routed through the regulated escrow mechanism established under Official Gazette No. 33238.

Power of attorney: Foreign buyers who cannot be present in Turkey for the transaction can grant a notarized power of attorney to their legal representative. The power of attorney must be apostilled or certified at a Turkish consulate, then translated by a sworn translator and notarized in Turkey.

Inheritance: Turkish succession law under Turkish Civil Code No. 4721 applies to Turkish-sited property regardless of the owner’s nationality. Foreign owners should prepare wills and estate planning structures with this in mind. Inheritance tax applies under Inheritance and Gift Tax Law No. 7338.

FATF and AML compliance: Source of funds documentation for all property purchases is reviewed in compliance with Law No. 5549 on Prevention of Laundering Proceeds of Crime. Foreign buyers should have clean, traceable fund documentation prepared before initiating any transaction.

Turkish Citizenship Through Real Estate

The Turkish citizenship by investment program allows foreign buyers to obtain Turkish citizenship by purchasing qualifying real estate worth a minimum of USD 400,000 and holding it for three years. This is the most popular route in the citizenship program and one that directly combines our real estate and citizenship practices.

For a complete breakdown of the citizenship route, requirements, process, and costs see our dedicated page: Turkish Citizenship by Real Estate.

For a comparison of all six citizenship routes including non-property options: Turkish Citizenship by Investment — All Routes.

Common Pitfalls and How to Avoid Them

Undisclosed encumbrances: Mortgages, liens, enforcement orders, and legal disputes attached to a property are not always disclosed by sellers. A Land Registry investigation conducted before payment resolves this.

Valuation gaps on citizenship applications: The SPK appraisal may come in below the agreed purchase price. Getting an independent valuation before signing the sale contract, not after, eliminates this risk.

Occupancy permit gaps: A building without a valid occupancy permit (iskan) cannot be legally inhabited and cannot be connected to utilities on a permanent basis. Always verify iskan status before purchase.

Closed neighborhoods: Certain residential developments designated as closed neighborhoods (kapalı site) carry deed restrictions that require approval from the homeowners’ association for any transfer. These restrictions must be identified at due diligence.

Off-plan developer risk: Developers have become insolvent mid-project. Buyer protections depend entirely on how the purchase contract is structured. Escrow, performance bonds, and completion guarantees should be in every off-plan contract.

Short-term rental compliance: Foreign buyers who purchase with the intention of short-term letting without first confirming permit availability in the relevant municipality face administrative fines and forced removal from platforms.

Frequently Asked Questions

What is the process for buying property in Turkey as a foreigner?

The core steps are: legal due diligence and title search, purchase agreement, Turkish Tax ID, Turkish bank account, Secure Payment System fund transfer, and title deed transfer at the Land Registry. For citizenship applications, an SPK valuation and citizenship annotation are added. The full process for a clean second-hand property typically completes in 3 to 6 weeks.

What are the total costs of buying property in Turkey?

Budget for: 4% title deed transfer tax, SPK valuation fee (if applicable), legal fees, currency conversion costs, sworn translator fees at the Land Registry, and compulsory earthquake insurance. For a USD 400,000 property the title deed tax alone is approximately USD 16,000.

Is a lawyer required for property transactions in Turkey?

Not legally mandatory, but strongly advisable. Turkish law does not require a buyer’s attorney for title deed registration. In practice, buyers without legal representation regularly encounter undisclosed encumbrances, valuation issues, non-compliant contracts, and AML documentation gaps, all of which are preventable with proper counsel.

Can property be purchased in a Turkish company name?

Yes. A Turkish-registered company may purchase property subject to company formation requirements under Turkish Commercial Code No. 6102. This structure is sometimes used for tax or estate planning reasons. We advise on company-held property structures as part of our company formation practice.

What happens if the seller does not deliver the property as agreed?

Remedies depend on contract terms and the nature of the breach. Under Law of Obligations No. 6098, the buyer may claim specific performance, price reduction, contract termination, or damages. For off-plan purchases, construction guarantee and insurance structures affect available remedies. Immediate legal counsel is essential when disputes arise.

Our Real Estate Practice

Aslan Attorney handles the full range of real estate matters for foreign buyers, investors, and developers in Turkey. Our work covers property purchase and sale, title due diligence, purchase contract review and negotiation, title deed registration, lease drafting and disputes, eviction proceedings, rental income tax compliance, and citizenship by real estate.

For property sourcing, market advisory, and investment strategy across Turkey, the UK, UAE, and Europe, we work with our partners at Ivyhold Global Real Estate.

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