Introduction
The Turkish property market covers a huge environment from West to East. This article will shed light on all necessary steps before and beyond owning a property.
Is Türkiye good for business?
The strengthening rates of foreign currencies, the development of capital markets, and ever increasing youth population makes Turkey a more popular and attractive investment area for foreign direct investments. Besides, several Turkish companies are interested in growing their business and extending their investments inside or outside the country. Business lawyers play a crucial role in growing businesses of foreign and domestic investors.
Regarding different investment advice and opportunities, you can take a look at our investment practice areas.
What is the role of the real estate sector for doing business in Turkey?
The property purchase is of great importance in navigating any investment project for foreigners or Turkish citizens. Owning a property is considered as a golden gate for the residence permit and or citizenship for foreigners.
For more information you can take a look at our articles on
What is the meaning of property management in Turkey?
Property management contains a wide range of tasks including due diligence, checking clearances, safe transfer of title deed to the new owner, property maintenance, tenant screening, rent collection and ongoing legal compliance. An estate management requires the acquisition of commercial property such as shops and hotels and/or residential property such as houses. Therefore, property management is a type of process of supervising and maintaining a property on behalf of the tenant following the provision of the title deed. A proper property management requires an end-to-end expertise for contract law, tenancy law, real estate law, law of obligations, tax law.
How much is property tax for the proper property management in Turkey?
The tax rates for residence buildings are between 0.1% and 2 and between 0.2% and 0.4% for other buildings. Additionally, property tax is paid by %4 of the value of the property.
For a comprehensive analysis of Turkish tax system, check out our article on Tax Guide
What is meant by property management in Turkey for foreigners?
In a nutshell, even Turkish property owners find real estate law very complex. When it comes to foreign investors, regional regulatory nuances and language-based troubles make the picture so complicated. It necessarily follows that being a landlord presents a challenging field for people living abroad. Therefore, a full-fledged real estate legal assistance must be a first step within the context of professional real estate management. Such help must ensure preserving the rights of owner, improving contractual relationship with tenants on behalf of landlords as well as the performance of daily and/or monthly obligations.
What are significant obligations for a real estate contract?
In terms of sale contracts, under Article 237 of Turkish Code of Obligations [Numbered 6098], sale contracts for real estate must be formally prepared and signed. Formal type may be proven any pre-sale contract before notaries and/or Land Registry Offices. In the lack of these requirements, sale contracts cannot be regarded as legally binding to third parties and national authorities. It means that sale contracts are not suitable for providing the ownership of relevant lands.
Concerning further obligations, take a look at our article on Contract Law
Legal compliance of a proper lease agreement can be only possible in the light of effective and timely legal guidance.
Conclusion
In the light of the foregoing, it is worth underlining that a genuine property management should involve all previous and follow-up steps including due diligence and checking clearances for safe transfer of title deed, optimization of rental income, protection of the rights of landlord, maintenance of property value, tax consultation, ongoing legal compliance advice. The assistance of real estate experts and real estate lawyers are found very beneficial by foreigners. It is significant to underscore that Pi Legal Consultancy acts, in close cooperation with Eslend İnşaat Emlak Sanayi Ticaret ve Limited Şirketi, one of the most reliable Turkish real estate agencies, in the field of real estate.
