If you are considering investing in Turkish Real Estate, you should be aware of several key factors to consider. Not only is Turkish Real Estate growing fast, but it is also tax-exempt and can yield lucrative returns. However, foreigners cannot own property in Turkey. In this article, we will discuss some of the key points to keep in mind when investing in this country. You will also learn how to buy Turkish Real Estate, including the tax benefits and the pros and cons of investing in this particular market.
Turkey’s real estate market is growing rapidly
The Turkish real estate market is expanding rapidly. After a long period of slow growth, prices have jumped again in December. The country’s prime market has seen a 77% increase in foreign home sales. This rise is the result of a wide variety of factors, including the recent depreciation of the Turkish lira. In addition to rising foreign home prices, the Turkish government has pursued a policy of cutting interest rates to support the country’s exports.
Turkey’s real estate market has also experienced an investment spring in March and April. In March, sales reached a record high, with more than 100,000 homes sold. During April, sales slowed slightly, but in May, sales rose to 97,217 residential units, up 124% from April 2020. A nationwide lockdown disrupted sales in May and June, but in June, home sales doubled, to almost 1,34,000 units.
It offers lucrative returns
The recent rise in prices of Turkish Real Estate has attracted investors from around the world. Turkey’s real estate market continues to offer lucrative returns for investors, with the average increase in price being around 100% annually. In addition, the Turkish economy has experienced the fastest growth rate of all the G20 nations, and its foreign investment has been steadily increasing. According to Bloomberg experts, Turkey is the best place to invest in real estate for the future.
Foreign and local investors alike have taken note of the booming Turkish real estate market. New projects have a 50% annual growth rate, and the value of ready projects is increasing by specific numbers each year. These increases are followed by a predetermined redemption period of ten to fifteen years. During this period, investors receive a passive income and see their capital double in value. In addition, Turkish Real Estate is diverse and offers a high rate of return.
It is tax-exempt
If you are a foreigner who wants to invest in Turkey, you are not required to pay taxes on Turkish real estate. The country has many tax-exempt benefits for foreigners. These benefits include buying residential and commercial properties without paying taxes. There are some conditions that you must meet to qualify for a tax-exempt certificate. Here are some of them. To qualify, you must meet the following requirements:
Tax-exempt real estate is available to foreign and local investors. The country’s foreign investment laws provide equal treatment for both types of investors. The exemption applies to annual property taxes, transfer of ownership, subscriptions, and services. The only exception is the title deed tax. This tax is paid when a buyer registers the property at the Real Estate Registry Department in Turkey. For foreigners, this tax can be even lower than the real estate tax.
It is prohibited for foreigners to own
Although it is illegal for foreigners to own real estate in Turkey, it is possible to purchase a piece of property in a tourist or touristic area. Until recently, these purchases were prohibited, but the laws have changed and foreigners can purchase property in Turkey. However, there are still restrictions, such as nationality. Five nationalities are prohibited from owning real estate in Turkey: Syrians, Armenians, Cypriots, North Koreans, and Cubans.
The laws have changed considerably since the Turkish government made it illegal for foreigners to buy real estate in Turkey. While the number of property ownership permits have increased, foreigners are still not allowed to own more than ten percent of the country’s land. However, these limits have been reduced to a mere thirty percent of each region. However, if the government grants equal rights to Turkish citizens, foreigners can buy real estate in Turkey.
It is a popular destination for foreigners to call a second home
For seasoned investors, Turkish Real Estate is a great investment opportunity. In addition to being a highly desirable place to call a second home, Turkish real estate is affordable. In addition to a monthly fee of just over $1,500, the price of Turkish Real Estate includes a communal garden, part of the stairwell, four additional fees, and the cost of the communal garden.
Before buying a property in Turkey, consider what your purpose is. If you plan to live in the home for 90 days per year, a spacious, well-maintained home with a private pool is ideal. Otherwise, avoid purchasing a property that needs renovations as these will tend to cost more money and take longer. If you plan on making your home an investment, consider the Aegean or Mediterranean coast for its natural beauty and potential capital growth.
Source : عقارات تركيا
