The Turkish government has introduced various significant facilitations to attract investment in Turkey, particularly in real estate. One notable and distinctive facilitation is the ability for foreign investors to obtain a real estate loan for the purpose of buying properties in Turkey.
Definition of Real Estate Loan:
The real estate loan in Turkey is a legal and official facilitation provided by the Turkish government since 2007. It allows foreigners in Turkey to own properties by obtaining a financial loan of up to 70% of the property’s value. The interest rate for real estate loans in Turkey ranges between 4.5% and 7.5% in Turkish banks.
Types of Real Estate Loans in Turkey:
1. Loan for purchasing property in Turkey.
2. Consumer loans in Turkey (cash loans or general loans).
3. Loan for purchasing a car.
Benefits of Obtaining a Loan for Property Purchase in Turkey:
1. The possibility to repay the loan in installments or payments over a period of up to ten years.
2. Starting real estate investment in Turkey with lower initial capital.
3. Reduction in the required cash capital, providing an opportunity to enter various successful investment fields, especially real estate investment in Turkey.
Conditions for Obtaining Real Estate Loan in Turkey for Foreigners:
1. The applicant must be at least 18 years old or not exceed 80 years old to qualify for a real estate loan.
2. Submission of an official legal document confirming the foreign citizen’s income and ability to pay monthly installments.
3. The building in which the apartment is to be purchased must be 80% ready.
4. The repayment period for the real estate loan to buy an apartment in Turkey should not exceed ten years and should not be less than three months.
5. The maximum duration for delivering the property title deed (TAPU) is three months.
Required Documents for Obtaining a Real Estate Loan in Turkey:
1. Copy of the passport.
3. Registration form from the loan management department in Turkey.
4. Copy of the applicant’s address proving the exact location.
5. Document verifying the applicant’s income for the past three months or a bank credit card.
Procedure for Obtaining a Real Estate Loan in Turkey:
1. Determine the budget needed and the amount of real estate financing.
2. Obtain the tax identification number for foreigners in Turkey.
3. Verify the accuracy of all information related to the property title deed with the Land Registry Office.
4. Seek assistance from a reliable and expert real estate agent to complete official paperwork and find the suitable property.
5. Submit a detailed application for obtaining the real estate loan.
6. Visit the Turkish bank to complete the procedures for obtaining the real estate loan.
Major Turkish Banks Offering Real Estate Loans for Buying Apartments in Turkey:
1. Garanti Bank.
2. Kuveyt Turk Bank.
3. Ziraat Bank.
4. Deniz Bank.
5. Turkish Vakif Bank.
6. Turkish İş Bank.
Can a Real Estate Loan Lead to Obtaining Turkish Citizenship?
One of the key features of real estate investment in Turkey is the potential to obtain Turkish citizenship by purchasing property. However, certain conditions must be met:
1. The property’s value must be at least $400,000.
2. The buyer must be at least 18 years old.
3. The buyer must not belong to nationalities prohibited from purchasing property in Turkey.
Keywords:
Real Estate Investment
TAPU in Turkey
Tax Identification Number
Real Estate Agent
Turkish Citizenship
