Turkey Through a Lawyer’s Eyes: 5 Legal Mistakes Foreigners Make

Turkey remains a priority destination for investment and relocation. However, in recent years, the country’s legislation regarding non-residents has become significantly stricter. A lack of awareness of current regulations now leads not merely to bureaucratic hurdles, but to deportation or loss of asset rights. In this article, we examine five common legal mistakes made by foreign nationals.

1. Failing to Meet the Financial Threshold for an Investment-Based Residence Permit

One of the main issues in Turkish legal practice remains clients’ lack of awareness of updated investment limits. The outdated figure of $75,000 is no longer applicable. As of late 2023, the minimum appraised value of a property required to obtain a residence permit based on real estate ownership is $200,000.

Key procedural requirements for obtaining an Ikamet (residence permit):

• A mandatory independent property valuation report.
• The property value must be recorded at no less than $200,000 in the title deed (TAPU).
• Proof of the source of funds through a bank transaction.
• Conversion of foreign currency into Turkish lira through the Central Bank of Turkey with the issuance of the appropriate certificate.

To eliminate the risk of a residence permit denial, it is crucial to secure the support of a qualified expert at the document preparation stage. You can receive professional advice and legal support at tuncaybarcinlawoffice.com.

2. Non-Compliance with Short-Term Rental Regulations

As of 2024, the short-term tourist rental sector (leases of up to 100 days) has been placed under strict government control. Conducting such activity now requires a special license from the Ministry of Culture and Tourism. Operating without authorization qualifies as an administrative offense and results in fines.

An additional legal barrier to renting out property is the requirement to obtain written consent from all co-owners within the residential complex. The absence of even one signature makes legalization of the business impossible. For a foreign national, violating these regulations may lead not only to financial losses but also to the cancellation of a residence permit due to engagement in illegal commercial activity.

3. Incorrect Determination of Tax Status

Many foreign nationals mistakenly believe that their tax obligations apply only to income earned within Turkey. However, under local tax law, an individual who spends more than 183 days per year in the country is recognized as a full tax resident.

Common tax planning oversights among foreigners:

• Failure to declare worldwide income (including income from abroad).
• Incorrect application—or non-application—of double taxation treaties.
• Inability to accurately calculate in advance the amount of taxes owed.

4. Purchasing Property in Restricted Zones

Turkish law limits foreigners’ rights to purchase real estate in certain locations. These include border areas, zones near military facilities, and districts where non-resident ownership quotas have been exceeded.

In addition, there is a list of “closed” neighborhoods where the concentration of foreign residents has surpassed the permitted 20% threshold. In such locations, obtaining an initial residence permit based on property ownership is impossible, making the purchase impractical for relocation purposes.

5. Ignoring the Specifics of Turkish Inheritance Law

Asset succession issues often become the source of prolonged litigation. Turkey applies the concept of a “mandatory share” for first-line heirs. Without a will executed before a Turkish notary, a foreigner’s property will be distributed in accordance with local law, which often contradicts the owner’s intentions.

To ensure legal validity, all foreign documents must undergo apostille certification and professional translation. Neglecting these formalities at the property acquisition stage may result in court disputes and loss of control over assets in the future.