Property for Sale with a Payment Plan in Istanbul: How Developer Instalments Work
Many new-build projects in Istanbul, especially those sold before completion, come with a developer payment plan. Typically you pay a down payment of 25–50% and the balance in instalments over 24 to 60 months, directly to the developer and without a bank loan. Plans can be a sensible way to spread the cost. They also tie you to one developer for years, so the contract matters as much as the price.
This guide explains how the plans are usually structured, how lira and dollar plans differ, when you receive the title deed, what to check before you sign, and why a payment plan affects Turkish citizenship by investment.
How developer payment plans work
A payment plan is a private agreement between you and the developer. There is no bank involved and usually no credit check. Common structures:
| Structure | How it works |
|---|---|
| Down payment + monthly instalments | For example 30–50% on signing, the rest spread evenly over 24–60 months |
| Down payment + quarterly or interim payments | Larger payments every few months, sometimes linked to construction stages |
| Down payment + payment at handover | Part of the price paid on signing, a large final payment when the keys are handed over |
| Instalments continuing after handover | You move in or let the home before the plan ends. Less common, and usually with a higher down payment |
Terms vary by project and developer, and they change with market conditions. A longer plan or a smaller down payment usually means a higher total price. Paying in full, or with a large down payment, can often secure a better price. Always compare the cash price with the total you will pay under the plan, not only the monthly amount.
A lesson from the 20-year campaign of 2017
In February 2017 a government-backed campaign, starting with Emlak Konut projects, offered Turkish citizens a 5% down payment and up to 240 months to pay. Plans of 60 months were interest-free, while 120- and 240-month plans charged monthly interest. We calculated at the time that on a 1,000,000 TL home, the 240-month plan brought the total cost to about 2.17 million TL, some 127% above the price. That campaign was for Turkish citizens only. Foreign buyers were offered 36 to 60 months without interest. The lesson still holds: the longer the plan, the more you should check what it really costs. Read more about Emlak Konut.
Lira or dollar: which currency is the plan in?
Under Turkey's currency rules, property sale contracts between residents of Turkey must be priced in Turkish lira. Buyers who are not Turkish citizens are exempt: the price and instalments can be agreed in US dollars, euros or another currency, or indexed to one. They can also be agreed in lira if both sides prefer.
- Dollar or euro plans fix the amount you owe in that currency. If you earn in dollars or euros, this removes exchange-rate risk on the instalments.
- Lira plans fix the amount in lira. With high inflation in Turkey, developers usually shorten lira plans, raise the price, or link the instalments to an index. Read the indexation clause carefully.
When do you get the title deed?
This is the most important question to ask about any payment plan. There are three common arrangements:
- Title deed at signing, with a mortgage for the developer. The deed (often a kat irtifakı deed for a building still under construction) is transferred to you at the start, and the developer registers a mortgage on it until you have paid in full. This gives the buyer the strongest position.
- Title deed after the final payment. Until then, you rely on the sales contract.
- A notarised sales promise contract (satış vaadi sözleşmesi), annotated on the land registry, until the deed can be transferred.
When construction is finished and the occupancy permit (iskân) is issued, the construction-servitude deed is converted into full condominium ownership (kat mülkiyeti). Read more about the link between iskân and kat mülkiyeti.
Keep in mind that, as a foreign buyer, you need a currency exchange document from a Turkish bank when the title deed is transferred, and a valuation report from a licensed appraiser if you are buying for citizenship. The title deed fee is 4% of the declared price, usually split 2% buyer and 2% seller. Your contract should say who pays it.
What to check in the contract
- Delivery date and grace period. Contracts often allow an extra period (for example several months) before the developer is late. Know the exact final date.
- Late-delivery penalties. What does the developer pay you if delivery is late? Is it a fixed amount per month, and is there a cap?
- Late-payment terms. What happens if you miss an instalment: interest, a notice period, or cancellation with part of your money kept? This clause often says more about the developer than the price does.
- Selling before completion. Can you assign the contract to another buyer before handover? Many developers require their approval, charge a transfer fee, or forbid resale until a set share of the price is paid.
- Specification and area. The exact unit number, net and gross square metres, the materials list, and what happens if the project changes.
- Price currency and indexation. Which currency, and whether any instalments are linked to an index or exchange rate.
- VAT and costs. VAT on homes is 1%, 10% or 20% depending on the net area, the building permit date and the land value. Foreign buyers who are not resident in Turkey may be exempt when they buy a new home directly from the developer (its first sale), under conditions that include paying in foreign currency brought from abroad; there is no limit on the number of homes. Check which rate applies and who pays it.
- Completion guarantees. Check whether the project has building completion insurance or a bank guarantee, and the developer's record of finishing projects on time.
Turkish consumer law gives individual buyers of off-plan homes specific protection. The sale must be made by a written contract at a notary or at the land registry. You must receive a pre-contract information form at least one day before you sign. You can withdraw within 14 days without giving a reason. Delivery must take place within 36 months. A consumer buyer can also end the contract before delivery by paying costs and limited compensation. Ask a lawyer how these rules apply to your purchase.
Payment plans and Turkish citizenship
To obtain Turkish citizenship through real estate, you must buy property worth at least USD 400,000 and have a three-year no-sale annotation placed on the title deed. Your spouse and children under 18 are included.
A property on an open payment plan does not qualify until the full USD 400,000 has been paid. The regulation accepts two routes: a title deed transfer, or a notarised sales promise contract for a unit with kat irtifakı or kat mülkiyeti. In the second route, at least USD 400,000 must be paid in advance and the three-year restriction annotated on the land registry. In practice this means:
- If citizenship is your goal, plan to pay at least USD 400,000 before you apply. A plan whose instalments run for several years puts off your application until they are paid.
- Some buyers pay the qualifying amount upfront and use a plan only for any balance above it. Whether a developer accepts this depends on the project, so confirm it in writing before you sign.
See our citizenship guide for the full process and documents.
What this means for buyers
- A payment plan is a credit relationship with a developer. Check the developer's record as closely as the project.
- Compare total cost, not just the monthly amount. The cash price is your benchmark.
- Get the title deed as early as the developer allows, ideally at signing with a mortgage in the developer's favour.
- Match the plan to your goal. For citizenship, the qualifying amount must be paid in full first. For residence, a home worth at least USD 200,000 in Istanbul is one of the conditions, and a permit is not automatic.
- Use independent legal advice for the contract, especially the clauses on late delivery, cancellation and resale.
CCT Investments charges buyers no commission on new-build projects; the developer pays us. Project visits, title deed follow-up and after-sales support are free. Browse properties for sale in Istanbul, read our buyer's guide, or contact us to ask which projects currently offer payment plans.
