The Turkish Property Market
Historically, it was nearly impossible in most instances for a foreign national to purchase real estate in Turkey. Indeed, for the most part, Turkey maintained a nearly absolutely blanket prohibition against foreign nationals having the ability to directly purchase and own real estate in that country.

In 2003, the Turkish government liberalized the laws pertaining to the ownership of real estate in that country. The actual steps taken by the Turkish government to liberalize the real estate ownership laws in that country as far as foreign nationals are concerned is discussed in a bit more detail later.

With the liberalization of real estate laws in Turkey, a growing number of foreign nationals are taking a second look at the possibilities and opportunities that exist when it comes to real estate in that country.

Investment Property in Turkey
Only in the past couple of years has there been any real movement in regard to investment by foreign nationals in Turkish real estate. Of course, the primary reason that this is a development of recent times is the fact that Turkish laws regarding foreign ownership of real estate were very restrictive until the past few years.

In any event, a growing number of foreign investors are turning towards Turkey when it comes to real estate acquisitions. While there certainly is not a flood of foreign money being invested in Turkish real estate at this juncture, more and more foreign investors are taking a close look at what real estate investment opportunities are now available in Turkey.

With that said and understood, many industry analysts maintain that now is the perfect time for a foreign national to take steps towards investing in real estate in Turkey. With Turkey's admission into the European Union, Turkey will be able to reap many economic benefits that are attendant to being a part of the EU. This likely will translate positively for men and women who have invested in real estate in that country.

Residential Real Estate in Turkey
With the relaxation of Turkish laws governing the foreign ownership of real estate, some foreign nationals are now taking a look at the prospect of buying residential property in that country. While the movement of foreign nationals towards buying residential property in that country has not been overwhelming at this juncture, there is an ever increasing number of foreign nationals who are buying residential real estate in Turkey with each passing month.

Most of the residential real estate that is being purchased in Turkey by foreign nationals is located in more of the resort communities in that nation.

Residential Real Estate in Turkey - Apartments
When it comes to the purchase of residential property in Turkey, apartments are serving as solid investments that people from other nations are beginning to purchase to gain a foothold in the Turkish residential property market. There is a wide array of different types of apartments available to sale in Turkey at this point in time. For example, there are very high end properties that are luxurious. At the other end of the spectrum, there are more moderately priced units that are suitable for men and women who find themselves finding a part of the year in Turkey in business and desire a second residence for their time in country.

Holiday Property in Turkey
The newest movement that has occurred as a result of the liberalization of real estate ownership laws in Turkey is the advent of foreign nationals making the purchase of residential properties to be used for vacation purposes

With Turkey's entry into the EU, a growing number of Europeans are examining the country as a location for holiday travel. Historically, Turkey was not particularly a destination of choice when it came to holiday travel by Europeans. Generally, the same was true for tourists from many other locales around the world.

However, in recent years, more and more foreign nationals have marked Turkey as a definite tourist destination. In addition, Turkish governmental officials as well as business and civic leaders have taken strong steps towards promoting Turkey as a travel and holiday destination.

Because of this movement, a notable number of men and women are now purchasing vacation residences in the form of apartments, villas and other types of houses in Turkey. For the first time, some foreign nationals are purchasing residential property in Turkey that they are using for their own travel needs. In turn, these same people are then turning around and letting these residences to other people during those times of the year that these foreign owners are not using these properties for their holiday purposes. In short, many foreign investors are now taking the initiative to turn their own vacation properties in Turkey into profit generating enterprises.

Tax on Property Rental Income
Income received from property rental is subject to withholding tax at a rate of 22% to be withheld by the occupant if they are a tax payer. If the rent is paid by a non-tax payer the recipient is required to file a tax return in respect of such income. Rental income will then be taxed at the marginal rate of tax applying to other income. Annual rental income is not subject to declaration provided the income has already been subject to withholding tax, it is in respect of property let as accommodation and does not exceed the exemption limit of TL 1.8billion

Wealth Taxes
There are no wealth taxes in Turkey

Capital Gains Tax
The first 12 billion Turkish Lira of capital gains are exempt from taxation as are capital gains from shares traded on the Turkish stock exchange which have been held for at least three months prior to being sold. Gains in the sale of shares in Turkish resident companies are also exempt provided they have been held for more than one year. Capital gains are then added to taxable income and taxed at the progressive rates applying to other income.

Inheritance and Gift Tax
Inheritance and capital transfer or gift tax applies to assets passing on death and to lifetime gifts. Rates between 1% and 30% apply depending on the amount transferred and the relationship between the donor and the recipient.

Regional and Municipal Taxes
There are no regional or municipal taxes in Turkey.

Property Taxes
An annual property tax, collected by the local municipalities, of between 0.1% and 0.3% is payable on land and buildings located in Turkey, the tax rate depends upon the type of property and is applied to the taxable value of the property as declared periodically by the tax office.

Stamp Duty/Transfer Tax
A property transfer tax of 1.5% is levied on the purchaser and the vendor on the sale of real estate. Stamp tax applies to a wide range of documents including, but not limited to, agreements, financial statements and payrolls. Stamp tax is levied as a percentage of the monetary value stated on the agreements at rates ranging from 0.15% to 0.75%.