For most buyers, the core differences are the legal venue for transfer, the tax profile at purchase, and how ownership links to residency options. In Turkey, transfer is completed at the Land Registry; in Spain and Portugal, a notary-led deed is later registered. Purchase taxes are typically lower in Turkey than in Spain and Portugal, but rules on VAT, stamp duties, and ongoing taxes differ by country and, in Spain and Portugal, by region. Residency-by-purchase is not automatic in any of the three countries.
Legal basis and who can buy
Foreign nationals can buy freehold property in Turkey subject to national security zones and country-based reciprocity limits, under Article 35 of the Turkish Land Registry Law No. 2644. The title transfer is executed before an officer of the Land Registry and Cadastre (Tapu ve Kadastro) rather than a notary, and a Turkish title deed (tapu) is issued on completion. The General Directorate of Land Registry and Cadastre publishes the applicable procedures, restrictions, and required documents for foreign buyers. A valuation report by a licensed valuer is required in sales to foreign nationals to support the declared value for transfer and taxation purposes. Compulsory earthquake insurance (DASK) is required to complete a transfer. [1][2][5][13]
In Spain, the conveyance deed (escritura pública) must be executed before a notary and then registered at the Property Registry (Registro de la Propiedad). The legal framework is set in the Civil Code and mortgage legislation, and the registrars’ and notaries’ roles are legally mandated. Spanish administrative sources explain that registration provides enforceability and priority protection. Spain permits foreign ownership of urban property without a general cap; specific zones such as defense areas can have additional requirements. [12]
In Portugal, the deed can be executed before a notary or through the “Casa Pronta” one-stop service operated by the Institute of Registries and Notary (IRN), which also handles registration. Foreigners can acquire property without a general quota, subject to standard urban planning and registry checks. The IRN’s Casa Pronta platform sets out the steps, fees, and documents for closing. [11]
Taxes and purchase costs
In Turkey, the title deed fee (tapu harcı) on a sale is 4% of the declared sales value recorded at the Land Registry, assessed under the Fees Law (Harçlar Kanunu). Although parties may agree otherwise, market practice often shares this between buyer and seller. New property may be subject to value added tax (VAT/KDV) depending on factors including the seller’s status and property characteristics; there is a statutory VAT exemption for the first delivery of residences and workplaces to qualifying non-residents meeting strict conditions, administered by the Revenue Administration. Buyers should verify eligibility and documentary requirements with a licensed professional before applying the exemption. [3][4]
In Spain, taxes depend on whether the property is new or resale and on the autonomous community. New residential property attracts VAT at 10% plus a regional stamp duty (Actos Jurídicos Documentados, AJD) typically between 0.5% and 1.5% set by each region. Resale property is generally subject to the Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP) at regional rates commonly in the 6% to 10% range. Notary and registry fees apply under regulated schedules. The Spanish Tax Agency sets the VAT rules for housing, and autonomous regional governments legislate ITP and AJD rates. [7][12]
In Portugal, property purchases are not subject to VAT in the ordinary case; instead, buyers pay the Municipal Property Transfer Tax (Imposto Municipal sobre as Transmissões Onerosas de Imóveis, IMT) at progressive rates depending on use and value, with top marginal rates for urban housing purchases reaching 7.5% for second homes and other categories. A 0.8% Stamp Duty (Imposto do Selo) on the deed is also payable, and annual Municipal Property Tax (IMI) is charged on ownership at rates published by municipalities within the national band. The Portuguese Tax and Customs Authority provides the IMT tables and stamp duty rules, and explains IMI parameters. [9][10]
Procedure and timing
In Turkey, a sale is concluded by signing the official transfer at the Land Registry Directorate once the file is prepared, identity and tax numbers are verified, the valuation (for foreign buyers) is on file, the compulsory earthquake insurance is current, and taxes and fees are paid. Applications are submitted online or in person, and appointments are allocated by the Land Registry. Since 2023, certain second-hand residential sales can also be executed at notaries under amendments to notary legislation, with electronic data exchange to the registry; however, registration remains the decisive step conferring ownership. The Land Registry and Cadastre authority specifies document checklists, language and translation rules, and power of attorney (vekaletname) requirements for foreign signatories. [2][13]
In Spain, a reservation or private contract phase often precedes completion, but ownership transfers only upon execution of the public deed before a notary and subsequent registry inscription. Registry turnaround varies by locality. The Registrar’s guidance emphasizes the protective effects of registration for third-party opposability and priority. Financing formalities, energy certificates, and municipal clearance documents are commonly coordinated before the signing. [12]
In Portugal, the Casa Pronta service or a notary organizes deed execution and immediate or rapid registry submission, consolidating tax payments and registrations in one workflow. IMT and stamp duty are paid at or before completion, and registral verification ensures title, encumbrances, and urban status are properly reflected. The IRN outlines timelines and documents, including fiscal numbers, identification, and proof of tax payments. [11]
Residency links and “golden visa” considerations
Owning property in Turkey can support a short-term residence permit application under the Law on Foreigners and International Protection, provided the property is residential and suitable for habitation and the applicant meets the general conditions. This is a discretionary administrative permit and does not automatically follow from ownership; applicants must file with the Provincial Directorate of Migration Management with the required documentation. Separate citizenship-by-investment rules are governed by specific regulations and minimum investment thresholds outside the scope of this comparison. Always seek individualized immigration counsel. [6]
In Spain, purchasing property does not by itself grant residency. Law 14/2013 provides for residence permits for investors meeting defined thresholds, historically including a real estate investment of at least €500,000 free of liens, subject to background and other legal conditions. Legislative competence rests with Spain’s national authorities, and program details can change; applicants should consult official immigration channels or legal counsel for current requirements and processing. Ordinary residence permits follow separate immigration categories not triggered solely by property ownership. [8]
In Portugal, ordinary residence is not conferred by buying property. The residence-by-investment regime (Autorização de Residência para Investimento) was significantly amended, and real estate purchase options have been removed from eligible investment categories by legislative change in 2023. Applicants must review the current law and eligible categories with official immigration sources or licensed lawyers before pursuing any application. These immigration pathways are separate from the property purchase process described above. [9][11]
Market data context and closing considerations
Foreign demand is a factor in all three markets but follows different legal and tax frameworks. According to TurkStat, housing sales to foreigners in Turkey were published regularly in official housing statistics, providing monthly and annual counts by nationality and province. Buyers evaluating cross-country purchases should compare not only purchase taxes and closing venues, but also ongoing property taxation, inheritance and gift tax regimes, local compliance requirements such as insurance, and currency risk where purchase or maintenance costs are in a different currency. This information is general in nature; seek advice from licensed professionals tailored to your circumstances. [14]
A structured, document-first approach reduces risk in each jurisdiction. In Turkey, confirm title, zoning, valuation, and DASK before transfer at the Land Registry. In Spain and Portugal, coordinate notary, registry, and tax steps in the correct order and verify regional tax rates. In all three, ensure translations, powers of attorney, and identification meet the exact statutory standards to avoid delays.
Related Questions:
– Q2 (What taxes do foreign buyers pay when purchasing property in Turkey?)
– Q3 (What documents do I need to buy a home in Turkey as a foreigner?)
– Q4 (Can property ownership in Turkey lead to residency or citizenship?)
– Q5 (How are property purchases in Turkey registered and what is the tapu?)
References:
[1] Republic of Türkiye Official Gazette. “Land Registry Law No. 2644 (Article 35).” https://www.mevzuat.gov.tr/MevzuatMetin/1.3.2644.pdf
[2] General Directorate of Land Registry and Cadastre (TKGM). “Acquisition of Property by Foreigners.” https://www.tkgm.gov.tr/tr/icerik/yabancilarin-tasinmaz-edinimi
[3] Republic of Türkiye Revenue Administration (GİB). “VAT Exemption for Delivery of Residences and Workplaces to Non-Residents.” https://www.gib.gov.tr/yabancilara-konut-ve-is-yeri-teslimlerinde-kdv-istisnasi
[4] Republic of Türkiye Revenue Administration (GİB). “Title Deed and Cadastre Fees (Tapu ve Kadastro Harçları).” https://www.gib.gov.tr/tapu-ve-kadastro-harclari
[5] General Directorate of Land Registry and Cadastre (TKGM). “Real Estate Valuation Report Requirement in Sales to Foreigners.” https://www.tkgm.gov.tr/tr/icerik/degerleme-raporu
[6] Directorate General of Migration Management (Göç İdaresi). “Short-Term Residence Permit (Property Ownership).” https://www.goc.gov.tr/ikamet-izinleri
[7] Agencia Tributaria (AEAT), Spain. “Tipo impositivo del 10% en IVA para viviendas.” https://sede.agenciatributaria.gob.es
[8] Boletín Oficial del Estado (BOE), Spain. “Ley 14/2013, de apoyo a los emprendedores y su internacionalización.” https://www.boe.es/buscar/act.php?id=BOE-A-2013-10074
[9] Autoridade Tributária e Aduaneira (AT), Portugal. “IMT — Imposto Municipal sobre as Transmissões Onerosas de Imóveis.” https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/IMT/
[10] Autoridade Tributária e Aduaneira (AT), Portugal. “Imposto do Selo — Tabela Geral.” https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/Imposto_do_Selo/
[11] Instituto dos Registos e do Notariado (IRN), Portugal. “Casa Pronta — Buying a House.” https://www.irn.mj.pt/sections/irn/a_registral/casa-pronta
[12] Colegio de Registradores de España. “Registro de la Propiedad — Functions and Effects.” https://www.registradores.org
[13] Turkish Catastrophe Insurance Pool (DASK). “Compulsory Earthquake Insurance (Zorunlu Deprem Sigortası).” https://www.dask.gov.tr/
[14] Turkish Statistical Institute (TurkStat). “Housing Sales Statistics.” https://data.tuik.gov.tr
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or investment advice. Property law and tax rules in Turkey change frequently. Consult a licensed Turkish lawyer, accountant, or real estate professional before making any purchasing decision.