10 Mistakes Foreigners Make When Buying Property in Istanbul

10 Mistakes Foreigners Make When Buying Property in Istanbul

Most weeks we sit at a land registry office (tapu müdürlüğü) next to a foreign buyer. The purchases that go wrong rarely fail because of the market. They fail because a check was skipped or a payment was made the easy way instead of the right way. Here are the ten mistakes we see most often, and how to avoid them.

1. Not checking the tapu record for debts and encumbrances

The tapu (title deed) shows who owns the property. The land registry record behind it shows what is attached to it: ipotek (a mortgage in favour of a bank or person), haciz (an attachment placed by a creditor or the tax office) and şerh (annotations such as a court injunction, a lease or a pre-sale contract). A unit with a haciz may be impossible to transfer cleanly. A unit with an ipotek can be transferred, but the lender's right stays on the property, not on the seller.

• Have your lawyer obtain a current land registry extract shortly before the transfer, not weeks earlier.
• In new projects the land is often mortgaged to a bank for construction finance. Get a written commitment that the mortgage on your unit is released (ipotek fekki) at or before your transfer.
• Ask for proof that property tax (emlak vergisi) and utility bills are paid up.

2. Buying without iskan, or without knowing what it means

Iskan is the occupancy permit the municipality issues when a building is completed in line with its approved project. Until iskan is obtained, units usually remain under kat irtifakı (construction servitude) rather than kat mülkiyeti (full condominium ownership). Permanent utility subscriptions, some bank procedures and later resale can all become harder. If you plan to apply for a residence permit based on the property, the unit must be recorded as a residence (konut) in the land registry.

Missing iskan is not automatically a deal-breaker; many off-plan purchases are made under kat irtifakı. But you should know the current status, why iskan is missing in a completed building, and the date by which the developer commits to obtaining it.

3. Declaring a lower price on the tapu

Sellers sometimes ask to declare a lower price to reduce the title deed fee and their own tax. The tapu fee (tapu harcı) is 2% from the buyer and 2% from the seller. In July 2026 the Revenue Administration (GİB) reminded buyers and sellers that the fee must be paid on the real sale price; if a lower amount is declared, the missing fee is collected from both sides together with a tax-loss penalty equal to the missing amount.

For foreigners there is a second problem. The price you declare is linked to the valuation report and to the bank's foreign-currency conversion certificate, so an artificially low figure can undermine a citizenship file and increases your taxable gain when you sell.

4. Paying in cash or without a clear bank trail

Cash handed over in an office, or currency changed at an exchange bureau, leaves you with no proof of what you paid. Since January 2022 the land registry has required foreign individuals buying property to present a döviz alım belgesi (DAB, foreign-currency purchase certificate) issued by a bank in Turkey after the foreign currency is sold to that bank. Currency changed at an exchange office cannot be used for this.

In addition, Turkey's new Secure Payment System (Güvenli Ödeme Sistemi), which holds the buyer's money in a protected account until the title transfer is completed, is scheduled to become mandatory for property sales on 1 December 2026 after two postponements. Pay by bank transfer, from an account in your own name, with the property clearly referenced.

5. Ignoring the details of citizenship eligibility

The headline rule is well known: a property worth at least USD 400,000 and a three-year no-sale annotation on the tapu. Applications usually fail on the details:

• The valuation report, the contract price and the price on the tapu all need to support the USD 400,000 threshold.
• The foreign currency must be sold to a bank in Turkey, and the DAB and payment receipts (showing sender and receiver names) must match the purchase.
• A property that has already been used for a citizenship application cannot be used again.
• A property transferred by a foreign national to a Turkish citizen or company within the last three years is, as a rule, excluded.
• Two investors cannot split one property; each applicant needs a qualifying investment of their own.
• The property must be bought in your own name, not in the name of your spouse, child or your company.

Have eligibility confirmed before you pay a deposit, not after.

6. Trusting renders instead of documents

Renders always show the best version of a project. Before paying, check the paperwork:

• The building permit (yapı ruhsatı), and that the approved project matches the unit you are being sold: floor, size, view and facilities.
• The developer's completed projects. Visit one and speak to residents.
• The delivery date, the penalty if it is missed, and what guarantee the developer offers.
• Net versus gross area. Listings often quote gross (brüt) square metres, which include walls and a share of common areas.

7. Signing without your own sworn translator

If you do not speak Turkish, the land registry office will normally not proceed without an interpreter, and a power of attorney signed at a notary also needs one. Use a sworn translator (yeminli tercüman) you have chosen, not one supplied by the seller. Their job is to tell you exactly what you are signing, including the declared price, not to help the deal close faster.

8. Forgetting the aidat (monthly maintenance fee)

In residential compounds (site) with security, pools, gyms and concierge services, the monthly aidat can be a real cost. It is set by the building management and owners' decisions, not by the sales brochure. Under the Condominium Law (Kat Mülkiyeti Kanunu) every owner must contribute to common expenses, and unpaid aidat can be pursued legally. Before buying, ask for:

• The latest management decision setting the fee, and how it has changed over the past year.
• Any planned special contributions, for example for façade, lift or roof works.
• Written confirmation that the seller has no outstanding aidat.

9. Not thinking about resale on day one

Every purchase is also a future sale. Consider:

• Tax: if you sell within five years of acquisition, the gain is subject to Turkish income tax as değer artış kazancı (capital gain). GİB's 2026 guide sets the annual exemption for such gains at TRY 150,000.
• Citizenship properties: besides the three-year annotation, a property used for citizenship cannot be reused by another applicant, so your future buyer pool excludes citizenship investors.
• Residence-permit buyers: under rules announced by the Presidency of Migration Management, property bought since October 2023 must be worth at least USD 200,000 to support a residence permit, and some neighbourhoods are closed to new foreign residence registrations. Both affect who can buy from you.

10. Signing a Turkish-only contract you do not understand

A contract in Turkish is normal. Signing one you have not had translated and reviewed is not. Ask for a bilingual version stating which language prevails, and check the key clauses: price and currency, payment schedule, delivery date and late-delivery penalty, what happens if iskan is delayed, the specification list, and cancellation terms. For off-plan purchases, a promise-to-sell contract (satış vaadi sözleşmesi) is only valid when made before a notary, and it can be annotated on the tapu so the unit cannot be sold to someone else.

Note: laws, fees and procedures in Turkey change often. Treat this article as general guidance and confirm the current rules with a licensed lawyer or accountant before you act.

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