Frequently Asked Questions
1- Are the prices same for Turkish people and foreigners?
Yes. There is a price list which is same for both Turkish and international buyers. You can be sure that for all the projects we are marketing, conditions are the same for all buyers.
2- Is the taxation same for Turkish people and foreigners?
Yes. The taxation system is exactly same for everybody. Please check the “closing costs” in useful info part in our website. These taxes given should be paid to the government while purchasing a property.
3- Wouldn’t I get cheaper price when I go to the developer directly?
No. Even if you go by yourself or through the consultancy of our company, same prices are offered by the developers. Even, as we are experts in this business, we know how much discount you can get depending on the project. For that reason, in many cases we will help you to get a better price than normal. Sometimes, the developers might also have special promotions for our company as we have numerous sales in some periods.
4- What needs to be done to reserve a property?
You need to bring your passport with you when we go for viewing the projects. %1 of the sales price should be paid as reservation either cash or by credit card. This will reserve the apartment on your name, freeze the price for you and give you two weeks’ time for you to make the down payment. Surely this amount will be deducted from the down payment.
5- How can I open bank account?
In order to open a bank account, firstly you need to go to a Tax office with your passport and get a Tax number. After that you need to provide; 1- a statement showing your current address (it could be an electricity or gas bill, or a statement from your bank in your country), 2- your passport and 3- your tax number to the Turkish bank you want to open an account in.
6- How can I get residency permit?
Foreign visitors can stay in Turkey for maximum 90 days with Tourist visa. After you hold the title deed, this gives you automatically one year residency permit. You can do the application online through Foreigners Police website.
7- Can my family get residency permit too?
Yes. Your wife and your children under 18 years old can also get residency permit after your application.
8- How can I get citizenship in Turkey?
Foreigners must have five years of uninterrupted residency in Turkey in order to apply for citizenship. Even if all the conditions are complied, there is no guarantee that the application will be approved by Turkish authorities.
9- What are the penalties when I terminate my contract with the developer?
Usually in sales contracts, there is an article related to termination penalty. This might change around 10-20% of the sales price. If at any stage the buyer decides to terminate the contract, this penalty will be deducted and the remaining amount will be paid to the buyer by the developer.
10- What are my rights if the developer does not complete the project on time?
Given by the law, an extension period of 6 months will be granted to developers for the delivery of the project. After these 6 months, if the developer still does not deliver the apartment, the developer will pay a penalty monthly to the buyer which is stated in the contract.
11- What is the ROI (return on investment) in average in Istanbul market?
As the initial investment you have to make is very high in old city centers, the rental returns will be around 4-5%. However, in developing new areas of Istanbul this percentage can go up to 7-8%. Besides when you buy at earlier stages of a project, better rental return is possible. In addition to this, surely there will be appreciation for the sales price of your property which is around 15-20% yearly. When you take into account all these positive factors, you can easily get 100% profit on your investment in some years in Turkey.
12- What are the benefits of buying at early stages of a construction?
If you would like to make the maximum possible profit in a project, you have to buy at the launching phase of it. Almost always, there is regular increase in sales prices from the beginning stages of a project until the completion.
13- Where exactly is the center of Istanbul?
This is a very common question that is being asked by foreigners and there is a big misconception here as neither Taksim nor Sultanahmet are the centers of Istanbul. These are mainly the touristic areas.
Istanbul has a population of 17 million and there are 39 districts in the city. Many of these districts have a population of five hundred thousand people living in and all these districts have their own centers. For this reason, you will be able to find whatever you need in the district you live in.
14- Is the reservation fee refundable?
All the reservation fees you will be paying are fully refundable during the reservation period which is two weeks. For any reason, you have option to cancel.
15- Can I pay in installment payment plan?
There is almost always an installment payment plan until the completion of the projects. Down payments will be changing between %20 and %40 depending on the project.
In some cases, there might a payment plan ending even after the completion of the projects. Again sometimes, there can be payment plans for completed projects as well.
16- Do I have chance to sell my property before the completion of the project?
Depending on the project you have bought, you can sell your property during the construction stage. There might be %2 or %3 commissions to be paid to the developer if stated in the sales contract in some cases.
17- Can I apply for mortgage in Turkey?
In order to get mortgage through banks for buying property in Turkey, you need to have regular income here. As this is usually not possible, it is not possible to get credits by banks in Turkey. Still we will support you in this issue as there can be privileges for some projects.
18- What is the maintenance fee that I have to pay for a compound?
Depending on the project, the maintenance fees will differ surely. When there is more facilities in a compound, maintenance fees can increase. However, compared to other cities like Dubai, maintenance fees in Istanbul are very reasonable. Usually, monthly it will be around 1-1.5 USD/m2. For instance, for a two bedroom apartment which is 100 m2, you will be paying 100 USD per month for the maintenance fee to the management.
19- What are the yearly costs for owning a property in Turkey?
- Maintenance fee which is around 1-1,5 USD/m2 monthly
- Property tax which is %0,2 of the property value yearly.
- DASK (Compulsory Earthquake insurance) which is around 70-80 USD yearly.
20- What are the closing costs / taxes for buying a property?
- Purchasing tax: %4 of the sales price. (usually it is being divided between the buyer and the developer which makes it %2 for each party)
- VAT (Value Added Tax): %1 of the sales price. (if the apartment is bigger than 150 m2, VAT to be paid is increased to %18 of the sales price)
- Utilities application (Electricity, water, gas connections): Approximately 1000 USD.
- Stamp duty + notary charges: To be paid only for government supported projects that belongs to Emlak Konut. Usually VAT is not paid for these projects which make the conditions almost equal for the buyer.
21- What is the capital gain tax when I sell my property?
The capital gain tax rate varies from %15 to %35. This tax is to be paid in case you decide to sell your property within five years after purchasing a property. In other words, if you keep your property for five years at least and sell it afterwards, there is not going to be any capital gain tax to be paid to the government.
22- What is the rental income tax I have to pay?
Basically, rental income tax is increasing progressively. Up to a limit there is no tax. After that limit, the tax to be paid will be increasing from %15 to %35. However, many costs can be cut from this income and this tax can be reduced. Please check useful info section to get more information about this topic.
23- What are the plans of the government for metro system in Istanbul?
In 2014, the metro system network was only 45 km. By 2014, it has reached to 142km and by 2019 the government is aiming to increase it to 430 km. This means in five years’ time, there will be underground metro connection to all areas of the city from each district.
24- Is owning a property in Turkey freehold?
Yes. Whoever buys a property in Turkey from any nationality will own the property freehold in other words with all its rights.
25- What is the inheritance law in Turkey?
The reserved portion and legal inheritance right of children is %75 for the property and money left by the deceased. It will be equally divided depending on the number of children in the family. Remaining %25 go to the wife/husband.
26- Can I get used to Turkish food easily?
Turkish cuisine is one of the best in the world as it is the common idea of many people. The variety gives reason for everybody to like it. Wherever you will be coming from to Turkey, you will easily get used to the Turkish food and start enjoying it.
27- Are there English teaching schools/collages?
There are many English/Arabic teaching schools in Istanbul in different locations where mainly foreigners are studying in. Besides, Turkey is becoming an important country for students who would like to continue their studies abroad for university. Many universities have their courses both in Turkish and English.
28- Is it safe to live in Istanbul for foreigners?
Due to some demonstrations that took place in Turkey in the last year, this is a question that started to be asked from some of our clients too. These protests took place only in the old centers of the city and ended in short time. We can surely tell you that Istanbul is a very safe city too live in and now one of the most attractive destinations for tourists worldwide.
29- How is the climate in Istanbul?
Istanbul is one of the luckiest cities in the world for its climate with all four seasons. The characteristic weather here can be seen as a cooler version of the Mediterranean climate; a great spring, ideal summer temperatures which is maximum 30-35 degrees, an easy autumn with blue skies, and a rainy winter around 5 degrees.
30- Can we use credit card in Turkey or is it better to have cash with me?
You can almost use your credit card everywhere which is maybe the safest way to do shopping. Still, we advise you to have some cash with you to use for taxis or other needs.
31- Can I buy a car in Turkey?
You can buy a car with the same conditions as a Turkish citizen is buying a car. However, due to high taxes for cars in Turkey, we do not recommend you to do so. Instead, there are numerous rental car companies offering good prices. You can rent a car daily/weekly/monthly depending on your interest.
32- Why my phone doesn’t work with the Turkish SIM card?
As Turkish government wants to charge those who buy mobile phones outside Turkey, your phone will be blocked within two weeks after you start using a Turkish SIM card in Turkey. To activate it, you need to first deposit 120 TL to a tax office and then take this receipt to the Turkish GSM operator you buy your SIM card from.
Please do not hesitate to contact us by filling the contact form below to get a prompt reply about any of your other questions.