Key Legal Changes Affecting Real Estate in Turkey — 2024 Update

Overview

2024 brought several important regulatory changes to Turkey's real estate sector. Foreign investors and developers should be aware of these updates, which affect taxation, ownership rights, and the citizenship-by-investment program.

1. Foreign Buyer Currency Rules — Tightened Enforcement

The Turkish Treasury and Finance Ministry strengthened enforcement of the requirement that foreign buyers must transfer funds from abroad in foreign currency to benefit from VAT exemptions and citizenship qualification. Practical impact: Banks now require detailed documentation of the origin of funds. Buyers using locally-held TRY funds cannot qualify for VAT exemption or citizenship.

2. Zoning Plan (İmar Planı) Digital Transparency

From January 2024, all municipal zoning plans are publicly accessible via the E-İmar digital platform. Buyers can now verify:

• Permitted building height (kat adedi)
• Parcel usage rights
• Floor area ratio (TAKS/KAKS)
• Green zone restrictions

For investors: Always verify zoning before purchase. This is now straightforward and free via e-imar.gov.tr.

3. Building Inspection Law — Revised Standards

Following the 2023 Kahramanmaraş earthquake, Turkey significantly upgraded mandatory building inspection requirements:

• All new construction must comply with TBDY-2018 (Turkish Earthquake Building Code 2018)
• Developers must provide independent structural engineering certification
• "Yapı Denetim" (building inspection) oversight expanded with stricter audits
• Pre-2000 buildings now require mandatory seismic risk assessment before sale

Impact for buyers: New-build projects now come with higher structural guarantees. Pre-owned properties in older buildings require due diligence on earthquake compliance.

4. Condominium Management Law Update (Kat Mülkiyeti Kanunu)

Amendments to Turkey's condominium law now require:

• Digital record-keeping for management associations (site yönetimi)
• Annual financial audits for complexes with 50+ units
• Mandatory reserve fund (ihtiyat fonu) of minimum 10% of annual maintenance budget
• Online voting permitted for general assembly decisions

For investors: This strengthens buyer protection and improves transparency in complex management, a long-standing concern for foreign buyers.

5. Short-Term Rental Regulation (Airbnb Law)

Turkey enacted its Short-Term Rental Regulation (Law No. 7464) in November 2023, with full implementation through 2024:

• All short-term rentals (under 100 nights) require an official licence (izin belgesi)
• Licence applications submitted through the Ministry of Culture and Tourism
• Building management associations can vote to ban short-term rentals in their complex
• Unlicensed rentals face fines of TRY 100,000–500,000

Critical for investors: Before purchasing for short-term rental income, confirm the building's management rules allow it and verify licence eligibility.

6. Capital Gains Tax — Foreign Seller Clarification

The Turkish Revenue Authority (GİB) issued clarifications on capital gains for foreign sellers:

• Foreign individuals are subject to Turkish CGT if the property is sold within 5 years of purchase
• After 5 years: exempt from CGT
• Rate: progressive, up to 40% on gain

Note: Tax treaties between Turkey and your home country may reduce liability. Consult a bilateral tax advisor.

Outlook for 2025

Expect continued tightening of:

• Foreign ownership reporting requirements
• Short-term rental enforcement
• Building standards compliance verification

Stay updated via official sources: tapu.gov.tr, gib.gov.tr, and the Tourism Ministry for rental licences.