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Investing and getting rentals without work permit in Turkey?

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THY

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Hey friends,

 

I am back with yet another interesting question here with me. With a few days research on this forum I have come to a conclusion that anyone who gets a residence permit by property purchase gets ONLY the residence permit and not the work permit. Which means he can only LIVE and DO NOT ENGAGE in commercial activity and get salary.

 

Now another interesting question comes in my mind. This is what me and my father have been planning to. What if I purchase an apartment for myself and get my residence permit. After that I import some more money into Turkiye and lets say purchase another 2 apartments and rent them. Purchasing apartment/investing does not require a work permit.

 

Now I am not physically being involved in the business. I am just an investor of immovable property. I will be paying 15% income tax as stated by law. Is it allowed? Or what are the conditions for such investment. There must be some catch. Because if someone wishes to open an LLC company in Turkiye and wishes to purchase some immovable property as investment and rent it. What are the conditions for him/her? We can not let him/her wait for five years before he can actually bring more money into Turkiye to invest.

 

Every country encourages the import of money from other countries; this is what grows the economy of a country. And if someone is renting. He is also paying the tax to government so overall being beneficial to Turkiye and its economy. 

 

I would love to hear a little light from my seniors on this regard and thought.

 

Awaiting,
Faisal.

 

 

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There are lots of foreigners who buy properties in Turkey and rent them out. You don't need a work permit to rent out a property that you own. I hope some of the other members can tell you about the rules involved since I have never rented out a property here.

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If you are an investor and you earn income on your investments in Turkey, you are liable to pay tax on these too.
 
Tax rate table based on income liabity in Turkey:

0 -10,000 Turkish lira is taxed at 15%;

 

10,001-25,000 lira is taxed at 20%;

 

25,001-58,000 lira is taxed at 27%,

 

58,001 lira and above is taxed at 35%.

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I have tried to source out your question from your statement, which was not so clear.

 

However when you purchase a property in Turkey as a foreign citizen, for example an apartment, villa or house TO LIVE IN, you are entitled to be granted a 1 year residence permit by the Turkish government. As long as the tapu (deed title) stays in your name, upon your request the residence permit can be renewed each year. This new system by all eliminates, a person who owns a property in Turkey to stay with a three month visa (thereafter when the three month visa expires, as procedure to WAIT OUT another three months --to get another 3 month visa).

 

On the other hand to get a work permit, the first requirement is to have a valid residence permit. Then a sponsor which is the employer can only apply for the work permit, social security etc. You cannot apply for a work permit yourself and say I will find a job sooner or later as the system does not allow this. Should a foreigner in Turkey work illegal and get caught on the spot, the employer gets fined 2.000 euro, the foreigner gets fined 200 euro and gets deported out of the country.

 

Furthermore a foreigner can setup a company in Turkey. Before you need to have 2 persons for a limited company, one being turkish citizen. The new law now allows a single person to own a limited company as a foreigner. The requirements are basic where you need an accountant to do the work for you. It takes around 5 business days to complete with a cost of 3.000 TL. Then there are ongoing costs to keep the company active, do monthly book and tax declatation statements which is about 200-300 euro per year.

 

On the other hand as a foreigner, you can bank transfer as much money as you want into the country, buy as many apartments as you wish and rent them out. Should you rent them out on a daily basis for higher income there is no legal document in place unless you declare the income to pay tax. Renting out the apartments on a yearly basis is a bit different as the renter would need to register himself in the central address system, if children for school, thus a yearly rental contract would be required not to get caught gaming the tax system, as an apartment owner.

 

Please let us know if you have further questions, that we can be of more help.

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