Commercial Real Estate in Turkey: How To Buy For Foreigners?

Foreign citizens can purchase not only apartments, villas or other residential properties in Turkey but also commercial real estate. By commercial real estate, we mean properties not intended for residency but for generating income. Commercial real estate in Turkey includes:

• Office spaces
• Warehouses
• Shops, showrooms, etc.
• Hotels
• Beauty salons
• Exhibition pavilions, etc.
• Manufacturing facilities, workshops, etc.
• Food and beverage establishments (cafes, restaurants, etc.)

Agricultural land

Foreigners can buy all of these types of properties in Turkey, either as new or under-construction premises directly from developers or as existing units on the secondary market from owners.

Purposes of Purchase:

Foreigners typically buy commercial real estate in Turkey for two main purposes: to establish and operate their own business or to lease the premises and earn passive income. Some also purchase commercial real estate with the intention of reselling it later, but this constitutes a long-term investment strategy. Generally, commercial properties are bought to start earning from them immediately.

The purchase of commercial real estate by foreigners is increasingly common, indicating its attractiveness as a capital investment. This is indeed the case, as earning from such investments is feasible, especially given the government's encouragement of foreign investors.

Advantages of Purchase:

Profitability: Investing in commercial real estate is generally lucrative. The payback periods for such properties are much shorter compared to residential properties. If the property is bought for renting out, the return on investment can start almost immediately after the purchase.

Citizenship: When buying commercial real estate, similar to residential properties, foreigners can expect to obtain Turkish citizenship quickly, provided the property's value is at least $400,000. Citizenship can be obtained through a simplified process immediately after the purchase transaction. These are the main advantages of buying commercial real estate in Turkey, and they are substantial.

It is worth noting that the value of such real estate is also appreciating. Therefore, it is a reliable capital investment, offering the possibility of at least preserving one's funds. In any case, real estate can be sold, serving as excellent insurance for all life situations.

Choosing Real Estate:

When choosing commercial real estate, numerous factors need to be considered, although they vary in each specific case:

Location:

This is perhaps the most crucial aspect, important for the purchase of any property, both for renting out and for operating one's business. It is also essential to consider the availability of parking spaces, the layout of premises, proximity to public transport stops, and technical characteristics of the premises.

Restrictions:

Before purchasing commercial real estate, it is advisable to consult a lawyer regarding potential restrictions. For example, if one intends to open a shop, it should be remembered that selling alcohol within 100 meters of mosques and educational institutions in Turkey is prohibited.

Rules of Purchase and Taxes:

Foreign individuals can buy commercial real estate in Turkey without needing to register as legal entities, simplifying the process. However, registration will be required for operating one's business. The tax on transferring commercial real estate into ownership is the same as for residential properties, amounting to 4% of the appraised value of the property, usually lower than the market price.

The annual tax on commercial real estate ranges from 0.2% to 0.4%, depending on the location of the property. It is higher in major cities than in smaller towns. It is essential to verify the legal "cleanliness" of the property, especially when buying property on the secondary market. This is typically done by lawyers from the company selling the property. For example, in our company, lawyers first verify each property before it appears on the website. Therefore, we recommend not buying real estate from unknown individuals but using the services of licensed agencies.