Foreign nationals may purchase real estate in Turkey provided there is mutual reciprocity between the two countries. In other words, if a Turkish national is permitted to purchase property in your country of origin, then you are allowed to purchase property in Turkey.

Foreign nationals were limited to purchasing property within the boundaries of major municipalities prior to 2003. Subsequently the law was amended and foreigners are now permitted to purchase property outside of these areas. However, foreign nationals may NOT purchase property within village boundaries or within designated military zones. Land or farms larger than 74 acres located outside of village boundaries may be foreign-owned, but special permission from the Turkish Government is required.

Property owners (even foreigners) are allowed by law to rent their property to others. When a property is sold, the proceeds can be moved out of the country without penalty after real estate transfer taxes are paid. Property taxes are paid annually, and residential property is re-assessed yearly for tax purposes.

Business and investment property are subject to different regulations than residential property. For details on these regulations please contact the nearest Turkish Consulate.

It is strongly advised that a prospective buyer work with a reputable Real Estate Agency that is experienced in dealing with foreigners and their requirements. Commissions to the agent are negotiable in most cases. The majority of Real Estate Agencies are multi-lingual, with English, German, French and Italian speaking agents available.

A good source for reputable Real Estate Agencies is the English language newspaper "The Turkish Daily News", available at newsstands and bookstores across the country.

In addition to purchasing existing homes, it is possible to buy land and have a home custom built. However, it is advisable to rent initially in order to ensure that the location you are considering will actually meet your needs over the long term.

In order to purchase property you will need to provide: the original plus 4 photocopies of your passport, 12 passport-style photographs, a Turkish tax number, and a Turkish bank account number (foreign currency account and/or Turkish lira account).

A Notary Public will draw up the formal contract between the buyer and seller. Both parties must sign in the Notary's presence. The Notary requires a translator for transactions involving a foreign national. The Notary fee and the translator's fee are payable in cash upon signing.

Purchase tax (currently 1.5% of purchase price) is due upon delivery of the Deed. The time needed from initiating the purchase process to Deed delivery may be as long as three to four months.

It is advisable to engage the services of a reputable attorney when buying real estate in Turkey.

Added 19/9/05 by Alan - Please be aware that the Turkish government have repealed the laws pertaining to the amount of land which may be purchased by a foreign buyer. The government will be passing a new law, decreasing this amount, probably in October when they return from the summer recess.

This does not affect people who have bought property or who have started the buying process, but it is aimed at large scale developers who are seeking to cash in on the Turkish property boom.

This change in law has affected the length of time it takes to obtain the deeds to your property however and I have heard of some instances of a 9 month wait for the deeds to be authorised.

Added 20/12/05 by Henry - The law allowing foreigners to buy land and property in Turkey is going through parliament again (20 Dec 2005) and is likely to be law in January 2006 or later. Currently no foreigner can complete a house pruchase and obtain the Tapu (deeds) until the law comes into force. I like many others have a deposit sitting on a property and am awaiting the change before we can complete.