New Laws and Changes in the Turkish Real Estate Sector in 2024

The Turkish real estate market continues to grow, attracting an increasing number of foreign investors. In 2024, several changes were introduced in Turkey’s real estate sector that may impact the work of realtors.

Legislative Changes

• Citizenship by Investment Requirements:

In April 2023, the Turkish government passed a law altering the conditions for obtaining Turkish citizenship through real estate investment. The minimum required investment has increased from $250,000 to $400,000. Additionally, investors must now reside in Turkey continuously for 5 years.

• Property Valuation for Foreign Buyers:

As of October 2023, new regulations set a minimum valuation requirement of $200,000 for properties purchased by foreign nationals. This simplifies the buying process for foreign investors, as they no longer need to separately commission an appraisal report.

Tax Changes

• Capital Gains Tax Reduction:

Starting January 1, 2024, the capital gains tax rate on the sale of real estate was reduced from 20% to 15%.

• New Exemption for Pensioners:

Pensioners residing in Turkey for at least 5 years are now exempt from paying capital gains tax when selling real estate, provided they use the proceeds to purchase another property in Turkey.

Policy Changes

• Increased Loan Limits for Foreign Buyers:

The maximum mortgage loan amount available to foreign buyers has been raised to 80% of the property’s value.

• Subsidized Mortgage Program for Young Families:

The Turkish government has introduced a program to subsidize mortgage loans for young families, further stimulating the real estate market.

Impact on Realtors

These legislative and policy changes may have both positive and negative effects on the real estate profession:

• Opportunities:

Higher demand for Turkish real estate could open new opportunities for realtors, especially with improved accessibility to financing and tax benefits for specific groups.

• Challenges:

The increased investment thresholds and residency requirements may complicate the buying process for foreign clients, demanding more expertise and in-depth knowledge from realtors.

Realtors operating in Turkey must stay updated on the latest legal and policy changes to provide accurate and relevant information to their clients and remain competitive in this dynamic market.