Buying Commercial Property in Turkey as a Foreigner: Rules and Costs

Yes, foreigners can buy commercial property in Turkey. Foreign individuals can buy shops, offices and other commercial property under Article 35 of the Title Deed Law No. 2644, within the same limits that apply to homes, and a company established in Turkey with foreign capital can acquire the property it needs for its activities with permission from the governorship (Article 36). In every case the building needs the right zoning and an occupancy permit, and the business needs a workplace licence from the municipality.

Rules change, so confirm the current position for your specific case.

Should you buy as an individual or through a company in Turkey?

As a foreign individual (Article 35)

Foreign individuals can buy subject to the general limits: no military or security zones, a cap of 10% of a district's private land area for foreign ownership, and 30 hectares per person nationwide; nationals of a few countries face restrictions. This suits an investor buying an office, shop or unit to hold and rent out.

Through a Turkish company with foreign capital (Article 36)

A company established in Turkey with foreign capital can acquire property needed for its activities, with permission from the governorship after a military and security assessment (Law No. 2644, Art. 36; Foreign Direct Investment Law No. 4875). It suits an operating business such as a manufacturer, logistics firm or hotel operator, and the permission step adds time to the timetable.

The choice affects tax, accounting, a later sale and whether the property can support a citizenship application, and a company registered abroad needs particular care. Decide the structure with an independent lawyer or accountant before you make an offer.

What is special about each type of commercial property?

Factories and industrial buildings

Factories need industrial zoning. Inside an Organised Industrial Zone (OSB, Law No. 4562), plots and buildings are allocated or transferred with the OSB management's approval, which becomes part of the timetable. Manufacturers usually need an industrial registry certificate (Sanayi Sicil Belgesi) and, depending on the activity, environmental permits such as an EIA (ÇED). Istanbul examples are İkitelli, Dudullu, Tuzla and Beylikdüzü OSBs; much manufacturing is in neighbouring Kocaeli (Gebze, Dilovası), Tekirdağ (Çerkezköy, Çorlu), Bursa and Sakarya. See factories for sale and rent in Turkey.

Warehouses and logistics buildings

On Istanbul's European side, the main areas are Hadımköy, Esenyurt, Arnavutköy (near Istanbul Airport), the Ambarlı port area and Silivri/Çatalca; on the Asian side, Tuzla, Pendik (near Sabiha Gökçen Airport) and Gebze in Kocaeli. Check ceiling height, loading docks, floor load, truck access, fire safety and zoning for storage use. Browse warehouses for sale and rent.

Shops and retail units

Main retail streets include İstiklal Caddesi (Beyoğlu), Bağdat Caddesi (Kadıköy) and Nişantaşı (Abdi İpekçi and Teşvikiye, Şişli). Shopping-centre units are usually leased, not sold. A shop advertised as "devren kiralık" is a business offered for transfer with its lease, usually against a key-money or goodwill payment (devir bedeli or hava parası) to the outgoing tenant: you buy the business and take over the lease, not the property. Assigning a workplace lease needs the landlord's written consent, which cannot be refused without just cause (Turkish Code of Obligations No. 6098, Art. 323). See shops for sale and rent in Istanbul.

Restaurants and cafes

A restaurant or cafe needs a workplace opening and operating licence (işyeri açma ve çalışma ruhsatı) from the municipality, in a building with the right zoning and an occupancy permit; selling alcohol needs an additional permit. Check the licence exists for the current use, ask the municipality what a change of operator involves, and inspect extraction, gas and fire safety. Explore restaurants and cafes for sale and rent.

Hotels

Hotels operate either with a tourism operation certificate from the Ministry of Culture and Tourism (Turizm İşletme Belgesi) or with a municipal licence. Buying a hotel can mean buying the property, the operating business or both, so the licences, occupancy history and accounts must be reviewed. Boutique hotels are found in Sultanahmet (Fatih), Beyoğlu/Galata, Karaköy and Kadıköy; resorts on the coast in Antalya, Bodrum and Fethiye. See hotels for sale in Turkey.

Offices

Istanbul's main business districts are Levent, Maslak and Şişli/Mecidiyeköy on the European side, and Ataşehir (Istanbul Financial Centre) and Kozyatağı on the Asian side. Check the unit's recorded use, occupancy permit (iskan), service charge (aidat) and parking. Office units in mixed-use projects can qualify for citizenship. See offices for sale and rent in Istanbul.

Asset types, key permits and checks

Why do zoning and the occupancy permit matter?

A business needs a workplace licence, which requires the right zoning and an occupancy permit (iskan, or yapı kullanma izin belgesi) for the building. Without them, you may not be able to open your business or let to a business tenant, whatever the seller says.

Before an offer, we check the plot's zoning status, whether an occupancy permit exists and matches the building as it stands, and whether the use recorded on the title deed fits your plans. In our experience, the most common surprise is a building that has grown since its permit, with an extra floor, a closed-in terrace or a mezzanine missing from the approved plans; another is an office registered as a residence. Ask for documents, not reassurance.

What does commercial property cost to buy, and how is it taxed?

• Title-deed transfer fee: 4% of the declared value, legally split 2% buyer and 2% seller but often agreed otherwise; put the split in writing. A small revolving-fund fee also applies.
• Valuation report: foreign buyers must obtain an official valuation from an appraiser licensed by the Capital Markets Board (SPK) before the transfer.
• VAT: new-build commercial units sold by VAT-registered sellers generally carry 20% VAT; second-hand sales between private individuals generally do not. If the seller is a company, check how VAT applies. Non-resident foreign buyers paying with foreign currency brought into Turkey can qualify for an exemption on the first sale of a residence or workplace (VAT Law No. 3065, Art. 13(i)), subject to conditions including not selling within a set period.
• Annual property tax: set by the municipality on the tax value (Law No. 1319); commercial buildings and land are taxed at higher rates than homes.
• Withholding on rent: if you own as an individual and let to a company or business tenant, the tenant withholds 20% income tax (stopaj) and pays it to the tax office (Income Tax Law No. 193, Art. 94).
• Brokerage fee: 2% of the agreed price plus 20% VAT from the buyer, the same for Turkish and foreign clients, payable only on completion (on a USD 400,000 purchase, USD 8,000 + VAT = USD 9,600).
• Running costs: DASK, aidat, insurance and, for a company, accounting.

Confirm VAT, 13(i) eligibility and the tax on rent for your structure with a tax adviser before you sign.

What should you check when buying a property with a tenant in place?

A let shop, office or warehouse can produce income from the start, but the lease shapes your return as much as the building. Ask for the lease and check:

• the term, rent and increase clause (renewal increases for roofed-workplace leases are capped at the 12-month CPI average, Art. 344);
• the deposit (capped at three months' rent, Art. 342) and its handover;
• who pays the aidat, repairs and insurance;
• the assignment and subletting clauses (Art. 323);
• bank records of rent actually paid, not just the lease figure;
• the tenant's business licence, and whether a company tenant withholds stopaj.

We model income on the rent actually paid, net of stopaj, property tax, aidat and an allowance for empty periods. Ask your lawyer to confirm how the existing lease will apply to you as the new owner.

Can a commercial property qualify for Turkish citizenship?

Yes. Offices and commercial units can qualify for Turkish citizenship by investment as well as homes, provided the property is worth at least USD 400,000 by official valuation and is kept for at least three years, with a no-sale annotation on the title deed.

Citizenship is a personal application, so check early whether your ownership route works for it. We can assist you with the citizenship application procedures through our citizenship by investment service.

What should you check before buying commercial property?

As your broker, we check:

• the title-deed (tapu) record: owner, shares, mortgages, annotations and recorded use;
• the zoning status and the occupancy permit (iskan);
• that the business licences exist, and whether OSB approval is needed for the transfer;
• physical specifications against your brief;
• the asking price against recent sales and rents;
• the developer's track record, for a new build;
• service charges, arrears, and any lease and rent records.

Alongside our checks, an independent lawyer and accountant should cover the ownership structure and Art. 36 permission, contracts and leases, the effect of annotations, licence transfers, environmental requirements and tax, including VAT, 13(i), stopaj and an operating business's accounts.

How Bosphorus Brokers can help with commercial property

Bosphorus Brokers is a licensed real-estate brokerage in Istanbul, authorised by the Republic of Türkiye Ministry of Trade (license no. 3408704). Our commercial property service covers factories, warehouses, shops, restaurants, hotels and offices, for sale and for rent, in Istanbul and in Ankara, Izmir, Antalya, Bodrum and Fethiye. We shortlist properties, compare prices with recent sales, carry out the checks above, negotiate, prepare the sale paperwork with the parties, coordinate with notaries, valuers, accountants and the authorities, and accompany you at the title-deed transfer.

Our founder, Burak Ünal (MSc in Finance, London School of Economics), lists retail leasing, real-estate appraising, real-estate development and property management among his specialties and advises personally in English, Turkish and French. Our fee is the same for Turkish and foreign clients and payable only on completion. We are rated 5.0 on Google. Call or WhatsApp +90 533 140 04 96, or email contact@bosphorusbrokers.com.