Buying Commercial Property in Turkey as a Foreigner: Process and Taxes
Offices, shops and commercial units follow the same purchase steps as homes, but the zoning checks, VAT, property tax and rental tax rules are different.
Foreigners can buy offices, shops and other commercial units in Turkey in the same way they buy apartments. The purchase steps are the same, but several rules differ: what the title deed allows the unit to be used for, how much VAT applies, the property tax rate, how rent is taxed and whether the unit counts for a residence permit. This guide explains how to buy commercial property in Turkey as a foreigner and what to budget for.
If you want to see available units first, our article on commercial property for sale in Turkey lists current opportunities in Istanbul.
Can Foreigners Buy Commercial Property in Turkey?
Yes. Article 35 of the Land Registry Law allows foreign individuals to buy any type of real estate, within the same limits that apply to homes: a 30-hectare cap per person, the 10% foreign-ownership limit in each district and no purchases in military or security zones. Our guide to Turkish property law for foreigners covers these rules.
Many investors buy commercial units through a Turkish company instead, especially if they plan to run a business from the unit or hold several properties. A Turkish company owned by foreigners is treated as a Turkish buyer for most purposes; see company registration and business setup in Turkey.
Commercial vs Residential: What Changes
| Topic | Residential | Commercial |
|---|---|---|
| Purchase steps | Same: tax number, due diligence, valuation report, land registry transfer | |
| Title deed fee | 4% of the declared value | |
| VAT on a new unit | 1% to 20%, depending on size and value | 20% |
| VAT exemption for non-resident foreigners | Available on a first sale of a home or workplace when paid in foreign currency and kept for one year (VAT Law art. 13/i) | |
| Annual property tax (metropolitan city) | 0.2% of the tax value | 0.4% of the tax value |
| Rental income tax | Declared by the owner | A corporate tenant usually withholds 20% of the rent and pays it to the tax office |
| Residence permit | Can support a short-term permit | Does not count |
| Citizenship by investment | Both count towards the USD 400,000 threshold | |
Sources: Land Registry Law No. 2644; VAT Law No. 3065; Real Estate Tax Law No. 1319 (rates doubled in metropolitan municipalities); Income Tax Law No. 193, article 94. Rates as of November 2026.
Step-by-Step: How to Buy Commercial Property in Turkey
- Define the use. Will you let the unit to a tenant, run your own business or hold it for citizenship? The answer decides the location, size and lease you need.
- Check zoning and the title deed. The title must show a commercial use such as office (büro), shop (dükkan) or workplace (işyeri). A residential flat used as an office may face problems with the building management and the municipality.
- Check permits and existing leases. Ask for the occupancy permit and any current lease. In Turkey a lease stays valid after a sale, so a sitting tenant comes with the property.
- Get a tax number and bank account. As with any purchase; see our legal process of buying property in Turkey.
- Agree VAT treatment with the developer. For a new unit, confirm in writing whether the price includes 20% VAT or whether you will use the foreigner exemption.
- Valuation report and transfer. A licensed appraiser values the unit, you pay the fees, and the title deed is transferred at the land registry.
Renting Out a Commercial Unit
Commercial leases in Turkey are usually longer than residential ones, often three to five years, with annual increases linked to inflation. When the tenant is a company, it normally withholds 20% of the gross rent and pays it to the tax office on your behalf; you then declare the income each year and offset the amount already withheld. Keep the lease, invoices and payment records, because the tax office uses them to calculate your final bill.
Check who pays the property's service charges and repairs, and whether the tenant can sublet. A clear lease drafted in both Turkish and English avoids most disputes.
Commercial Property and Turkish Citizenship
Commercial units count towards the USD 400,000 citizenship threshold, alone or combined with residential units. The usual rules apply: the valuation report must show the threshold, payment must be documented through a Turkish bank and the property must be kept for three years. A residence permit, however, can only be based on residential property. Learn more about Turkish citizenship by investment.
What Commercial Units Cost in Istanbul
Commercial listings in our portfolio currently range from about USD 175,000 for an office unit in Başakşehir to around USD 300,000 for a shop unit. Prices depend on frontage, footfall and the strength of the surrounding business district far more than on floor area. Compare options with our office listings in Istanbul.
For the overall buying process, start with our guide to buying property in Turkey.
Frequently Asked Questions
Can a foreigner buy a shop in Turkey?
Yes. A foreign individual can buy a shop in their own name, subject to the same limits as for homes. Running a business from it requires a work permit or a company.
Is VAT charged on commercial property in Turkey?
New commercial units carry 20% VAT. Non-resident foreigners can be exempt on a developer's first sale if they pay in foreign currency brought from abroad and keep the unit for at least one year.
Do I need a Turkish company to buy commercial property?
No, but a company can make sense if you will operate a business, hold several units or want to deduct costs against business income.
General information only, not tax or legal advice. Confirm current rates with a Turkish accountant or lawyer before you buy.