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10 January 2024 / Properties

The New Property Rules in Turkey

Such is the activity of the property industry in Turkey; rules and regulations are constantly changing to keep up with current trends, demands and markets. Over the last year, there have been several changes, some of which affect property buyers and others that don't. Some have been warmly received, while others have been criticized.

New Property Rules in Turkey

Istanbul Apartment For Sale

Renting Out Short-Term Property – The 100-day Rule

For many years, there have been critics in the Turkish hotel industry of short-term self-catering apartments or villa rentals on sites like Airbnb. Hotel associations say they cause under-occupancy, yet owners follow less regulated rules and regulations than they do. Repeated lobbying and support within the government has prompted the 100-day rule that governs these short-term rentals and will also affect anyone looking at the buy-to-let industry.

This was published on the 28th of December 2023 under the title "Regulation on the Rental of Residential Properties for Tourism Purposes" in Turkey's official gazette. (Falls under law 7464)

The new rule says…

  • Short-term tourism properties can only be rented for 100 days every year.
  • If the property is an apartment on a complex, the owner needs the agreements of all neighbours.
  • All tenants need to be declared at the police station.
  • The owner must obtain a licence from the Ministry of Culture and Tourism and display this licence at all times. The application procedure for this currently takes 3 months.
  • If owners fail to fulfil these obligations, they can receive fines of 100,000 lira or more, and tenants can be evicted on the spot.

IMPACT: Many hotel owners will welcome the regulations, given the impact of self-catering apartments and villas on their occupancy rates and prices. However, the move is also likely to be welcomed by long-term renters in some touristic provinces. It is well known within the buy-to-let industries that short-term rentals generate more income. This often means high demand and low supply for long-term renters in tourist provinces. If the law sees more owners swapping to long-term rentals, this could bring down rental prices.

Property Valuation Rules for Residency

From October 2023, anyone applying for a new residency based on property ownership has to prove a market value of $200,000, according to the valuation report. This replaced the previous amount of $75,000 but did not affect prior real estate investments. 2023 also saw many provinces restrict residency applications to foreigners due to an over-application ratio to Turkish locals. The new law changes Law No. 6458 on Foreigners and International Protection (LFIP).

Notary Offices Can Conduct Real Estate Transactions

Starting in July of 2023, notary offices gained the power to carry out official real estate transactions, should buyers and sellers want to use them instead of the land registry office. Once a sale has been agreed upon, sellers will book their appointment via the e-Application page on the Union of Turkish Notaries' website. They will enter all property details, submit necessary documents, and enter the details of the seller and buyer. Notary offices will then confirm all applications with the land and cadastre office before sending an SMS confirming the time and date to carry out the transaction.

Turkish Citizenship by Investment

Anyone buying a property to purchase Turkish citizenship and a passport has also seen increased costs. The minimum investment amount rose from $250,000 to $400,000. The scheme that allows applicants and their families to receive permanent Turkish citizenship is still one of the cheapest in the world, with fast processing times. (More about Turkish citizenship by investment)

Are You Looking to Buy Property in Turkey?

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See the Rest of Our Blog

When looking at the best places to buy property in Turkey, be assured there are good choices. If you have already visited Turkey on holiday, you may know where to buy property. If you have not, you might be confused because Turkey is a vast country. Moreover, Turkey's real estate market fluctuates from region to region. Still, the great news is that many districts have impressive portfolios of apartments and villas. Our blog about Turkey discusses all subjects that property buyers, holiday home owners and expats are interested in.

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