Preserving Wealth: A Guide to Property Inheritance in Turkey

At GB Invest, we understand that the concerns of our esteemed clients extend far beyond the acquisition of luxurious properties. We recognize that property owners, especially in the realm of luxury real estate, often seek not only to manage their investments remotely but also to secure the legacy of their prized assets for generations to come. In this article, we delve into the intricate world of property inheritance in Turkey, shedding light on the legal nuances and steps to safeguard your investments.

A Trusted Representative for Your Interests

One of the first steps towards ensuring the seamless inheritance of your Turkish property is to appoint a trusted individual who can represent your interests in the country. This representative can assist with property management and other vital matters. You can formalize this arrangement at your country's consulate or through a Turkish notary, ensuring that your assets are in capable hands.

Inheritance Rights for Foreigners

In Turkey, inheritance of property is a well-established right for both locals and foreigners. Foreign property owners enjoy the same inheritance rights as Turkish citizens when it comes to receiving property from deceased relatives. These rights come into effect immediately upon the owner's passing, and it is crucial to initiate the inheritance process promptly. While the legal timeframe for claiming inheritance rights is 10 years, it is advisable not to delay this critical step.

To establish inheritance rights, a valid will must exist. This document outlines the deceased's wishes for the distribution of their assets, including the property in question. Proving the rightful heirship of a foreign citizen, especially if they are distant relatives like third cousins, can be a complex endeavor.

Defining the Order of Inheritance

In cases where the deceased has relatives in Turkey, such as children or a spouse, it is essential to define the order of inheritance. Even if these relatives are not explicitly mentioned in the will, they have a legal right to a share of the property. The order of inheritance in Turkey is structured as follows:

1. Legal spouse and children.

2. Parents.

3. Grandparents.

4. Siblings.

5. Grandchildren.

The distribution of inheritance shares in Turkey typically adheres to the following guidelines:

• Children receive 75%, and the spouse receives 25% (if there are children).

• The spouse and parents each receive 50% (if the deceased has no children).

• The spouse receives 75%, and grandparents receive 25% (if the deceased has no children or parents).

• The spouse receives 100% (if the deceased has no children, parents, or grandparents).

Navigating the Tax and Formalities

To assert your inheritance rights, you must pay a specific tax known as "Veraset ve İntikal Vergisi" and formalize the property transfer. The tax amount is determined by both the cadastral value of the property and the degree of kinship to the deceased. In general, the closer the heir's relationship to the deceased, the lower the tax rate. As of autumn 2023, the tax rates are structured as follows:

• Up to 1,100,000 TL: 1% of the cadastral value.

• Over 2,600,000 TL: 3%.

• Over 5,500,000 TL: 5%.

• Over 10,900,000 TL: 7%.

• Over 20,100,000 TL: 10%.

At GB Invest, we understand the significance of preserving your wealth and securing your legacy for generations to come. Our dedicated team is well-versed in the intricacies of property inheritance in Turkey and stands ready to provide you with the guidance and expertise needed to navigate this process seamlessly. With our support, you can rest assured that your investments will continue to shine as a beacon of prosperity for your heirs.