Eastern Black Sea Interest for Overseas Property Investors

Overseas property investors are showing strong interest in the Eastern Black Sea region of Turkey.

The Eastern Black Sea area has witnessed unprecedented growth in the number of overseas property investors purchasing Turkish properties.

According to data from the Trabzon Land Registry Regional Directorate, foreign investors bought a total of 2,842 properties in 2017, up 155 per cent on the previous year total of 1,112 sold to investors from overseas.

Trabzon, Artvin, Rize, Gümüşhane, Bayburt and Giresun are the most popular property markets in the region among foreign investors.

The increase in interest is thought to be driven by measures introduced by the Turkish government last year, in order to boost overseas investment in Turkish property markets.

The Turkish government last year announced offered many rebates and incentives recently to foreigners. Turkish citizenship is now being offered to foreigners who buy real estate worth $1 million, make a fixed capital investment of at least $2m, or keep at least $3m in a bank account for at least three years, or create at least 100 jobs in the country.

Overseas property investors can also benefit from exemption to the 18 per cent value added tax usually imposed on real estate investment.

To be exempt from the tax on the purchase of their first house or office in Turkey, overseas property investors must pay for their investment in foreign currency and not sell properties for at least one year after acquisition.

The exemption can also apply to Turkish citizens who have lived and worked abroad for more than six months.

Turkey had long been growing in popularity as both a holiday and investment destination for the British before the political unrest over recent times.

Now with the added tax advantages offered to overseas property investors in Turkey it seems that interest is rapidly growing again in the Turkish property market, particularly the Eastern Black Sea region.