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Is it possible to obtain a residency permit after acquiring a property?

According to the “Law on Foreigners” and “International Protection”, foreigners who have acquired property in Turkiye are entitled to apply for a short-term residency permit. Short-term residency permits are granted for a period of up to two years for each application. The applicant is required to declare a residence address when filling out the forms.

Is it possible to obtain citizenship, after acquiring a property?

As explained above, the foreigners who have acquired property in Turkiye are entitled to apply for a short-term residency permit up to two years. As per the Turkish Citizenship Law and the Regulation on the Application of the Turkish Citizenship Law, a foreigner may acquire Turkish citizenship by residing in Turkiye for continuously five years before the date of application.

However, there has been a recent amendment in the Regulation on the Application of the Turkish Citizenship Law and with this recent amendment; it became possible for a foreigner holding a residence permit to acquire Turkish citizenship by purchasing a property worth at least USD 1.000.000. So, if the value of the property is more than USD 1.000.000, the foreign owner of such property will not have to wait for 5 years for acquiring Turkish citizenship after having the short-term residency permit. The spouse and the children who have not attained maturity of a person purchasing a property worth at least USD 1.000.000 can also benefit from the right of acquiring Turkish citizenship without the need to reside in Turkiye for continuously five years.

As per the Regulation, an annotation must be registered in the land registry records of such property stating that the property would not be subject to sale for 3 years. Thus, it will not be possible to sell the property within 3 years if the foreign owner of the property has acquired citizenship after purchasing the property.


How to start using the utility services?

The owner of a property may only apply for subscription of the utility services (such as electricity, water and sewage system connection) following the issuance of the building utilization permit. Accordingly, if the building utilization permit is in place, following the acquisition or leasing of the property, the new owner or tenant must apply to the relevant institution, and should execute an agreement regarding usage of the relevant utility service. The new owner or tenant can use the utility services following the execution of the utility service agreement, and after making payment of the subscription or deposit fee.


What are my tax liabilities if I hold the property only for my own use?

Income tax is applicable only if you rent your property and earn “rental income” or sell your property and derive “capital gains”. So, if you hold your property in Turkiye only for your own use and not rent it to any other parties, you will not be subject to any income tax in Turkiye.


Can I lease my property to third parties?

Turkish citizens as well as foreign real persons are free to dispose of their property. They may sell, lease or pledge their property to third parties.


Can the parties freely determine rental amounts?

The freedom of contract is one of the main principles of the Turkish Lease Law. Therefore, except for the mandatory provisions of the Turkish Code of Obligations (TCO), the parties can freely determine contract terms, including rental amounts.


Is rental adjustment possible?

Parties to a lease agreement can regulate a rental adjustment rate. According to the TCO, adjustment rates for rents paid in Turkish Lira cannot exceed the Producer Price Index. However, the parties may determine a higher adjustment rate in their lease agreement and exercise such rate if they both agree to do so. In the event that the rental is determined as a foreign currency, no adjustments can be made to the rental for the first 5 years. However, such restriction shall not apply until 1 July 2020 for lease of workplaces if the lessee is a merchant as specified under the TCC or a private/public legal person.

Is foreign currency rental possible?

The parties may determine a foreign currency for rent payments. As mentioned above, if the rental is determined as a foreign currency, no adjustments can be made to the rental for the first 5 years. After the expiry of the first 5 years, the judge will determine the rental in accordance with (1) the PPI, (2) the current status of the leased property, (3) the precedent rentals, and (4) changes in the foreign currency.


What is the maximum lease duration?

There are no restrictions regarding the term of a lease agreement. Parties are free to determine the term of the lease agreement by mutual agreement. The TCO also regulates extensions of term of lease agreement in case there is no mutual agreement between the parties and it also determines conditions to terminate.


Do lease agreements bind third parties?

Lease contracts can be annotated before the relevant title deed registry. In such a case, the tenants are entitled to claim their rights against third parties, such as a new owner of the property. The annotation of a lease agreement prevents eviction of the tenant (during the lease term) from the premises, if and when the property is transferred to a third party.

Sosyal Medyada Bizi Takip Edin !