Whilst the vast majority of nationalities can own in Turkey, just four nationalities cannot. The loophole to this law is buying through a Turkish established company.
The other reason for buying the property in the name of a company is for tax reasons.
Setting up a Turkish company must be done through an accountant. Most accountants will charge $3,000 for this service. The company must then establish a capital of 100,000 Turkish Lira, which is usually made up of the funds to be used for the purchase of the property in question.
Whilst the procedure is taken care of by your accountant, it’s important to understand the detail to ensure a working knowledge.
The company must have a minimum of two owners, one of which must be Turkish. This is usually solved by bestowing a very small share to a solicitor or the accountant.
- Registration must be done through MERSIS
- The company documents then must be notarised, and the foreign owner will need to register for a tax ID (a one hour process at the tax office);
- A 25% amount of the working capital must be deposited at a bank, to be reimbursed later on;
- The company will then need to be registered at the trade registry;
- The tax office and social security will be automatically notified and the company will be issued with relevant registration numbers;
- The company then must have an invoice book printed, with these numbers.
Upon completion, you may then issue your solicitor with a power of attorney to buy the property in the name of your company.
The company will also have ongoing annual running costs, which amount to 4-5,000 TL per annum.
Figures are provided based on our actual experience, and are over estimates. Pera Property prefers to provide realistic figures based on our experience over the last ten years, rather than optimistic idealistic figures.
