Sale-to-foreigner valuation report
For property sales to foreign individuals in Turkey, a valuation report obtained from an SPK-licensed appraiser has been a legal requirement since 2019. The report is submitted to the land registry office and is taken as a reference as the sale transaction is completed.
Bodrum is one of the districts where foreign investors show intense interest; across the peninsula, particularly in Yalıkavak, Göltürkbükü and Turgutreis, many sales to foreigners are recorded in the land registry each year. On this page we have compiled the legal framework of the process, the required documents, the validity period of the report and common mistakes.
Legal framework
With the regulation issued in 2018 and brought into force in 2019, a valuation report became mandatory for all property sales to foreign individuals. The main aims of the regulation:
- Verification by an independent appraiser that the sale price is consistent with market value
- Protection of the foreign investor against the risk of under-declaration and off-market pricing
- Recording of foreign currency inflows according to their true market value before the land registry office and the Central Bank of the Republic of Turkey
The regulation is based on reports prepared in accordance with regulations by an SPK-licensed appraiser. Without a report, a sale to a foreigner is not recorded in the land registry.
Process and documents
The sale-to-foreigner valuation process consists of four basic stages:
- Request and preliminary information: The block/parcel information, title record and sale value of the property are provided.
- Title and cadastre enquiry: A check of encumbrances, mortgages and attachments via Web Tapu (Takbis); parcel verification from the cadastre office.
- On-site inspection: The property is physically examined and photographed; a check for military prohibited zones and security zones is carried out.
- Report preparation and delivery: Market value is determined using the sales comparison method; a report compliant with regulations is drawn up by an SPK-licensed appraiser.
Required documents: the title deed or a Web Tapu printout, a copy of the seller’s identity document, a building permit and occupancy permit if available, the zoning status document and the architectural project if available. The buyer’s passport information is not the subject of the report; it is requested separately during the land registry transaction.
Validity period and renewal
Sale-to-foreigner valuation reports are valid for 3 months from the date of preparation. Unlike the 1-year validity of standard real estate appraisal reports, this period is kept shorter because, in a sale to a foreigner, exchange rates and market fluctuations can affect value within a short time.
If the title transfer is not completed within the 3-month period, a new report must be obtained. Booking the land registry appointment within a reasonable time of the report’s preparation date is important to avoid unnecessary renewal costs.
Sale to foreigners in Bodrum: local matters
Local features to be aware of in a sale to a foreigner on the Bodrum peninsula:
- Military prohibited and security zones: Some areas of Bodrum have military prohibited zone and security zone restrictions; foreign acquisition is limited in these areas.
- Conservation areas: In areas with conservation-area status, particularly Gümüşlük, the appraisal methodology differs.
- Luxury villa segment: In premium areas such as Yalıkavak and Göltürkbükü, proximity to the yacht harbour, the view and bespoke architectural features must be weighted correctly in the appraisal.
- Typical foreign buyer profiles: Russian, British, German, Dutch, Belgian and Scandinavian buyers, along with the rising demand in recent years from Gulf countries and Chinese-origin investors.
Common mistakes
- Under-declaration: Declaring below market value to save on the title transfer fee carries the risk of a discrepancy with the report and rejection of the transaction.
- Missing documents: A missing occupancy permit or problems arising from zoning status lead to discounts in the appraisal.
- Time management: If the land registry appointment does not fall within the report’s 3-month validity period, the report has to be renewed.
- Unauthorised appraiser: Reports prepared by a person or organisation without an SPK licence are not accepted by the land registry office.
Frequently asked questions
Is a valuation report mandatory for a sale to a foreigner? Yes. Since 2019, a report obtained from an SPK-licensed appraiser has been mandatory for all property sales to foreign individuals. The report is submitted to the land registry office and is the fundamental document for the sale transaction.
How long is the report valid? Sale-to-foreigner valuation reports are valid for 3 months from the date of preparation. If the title transfer is not completed within this period, a new report must be obtained.
Which documents are required? The title deed (Takbis), a copy of the seller’s identity document, a building permit and occupancy permit if available, the zoning status document and the architectural project are required. The buyer’s passport information is not the subject of the report.
How long does it take to prepare the report? After the request is received, the report is delivered within a few business days, including the inspection and data-collection process. In urgent cases, expedited delivery can be considered.
For which property types is it mandatory? It is mandatory for all property types sold to foreign individuals, including residential, villa, land, business premises and agricultural land. Military prohibited zone and security zone restrictions are also checked.
Does it also apply to legal-entity foreign buyers? A valuation report is also required for legal-entity foreign buyers. The acquisition of property in Turkey by legal entities with foreign-capital company status is further assessed within the framework of the relevant regulations.