Shops and offices in Turkey: commercial investment through a foreign buyer’s eyes

Some investors prefer a shop to an apartment: longer leases, sometimes a higher yield, and a tenant who looks after the premises because it is their livelihood. But commercial property is a different game, and its rules are location, demand and the contract.

What can you buy?

• Shops (Dükkan): on commercial streets or at the base of residential complexes.
• Offices (Ofis / Büro): in towers or office buildings.
• Commercial units in mixed-use projects.

Location first

With residential property you buy a neighbourhood; with commercial property you buy a pavement:

• Pedestrian and vehicle traffic.
• The frontage, its width and its visibility.
• Nearby parking.
• The kind of neighbouring shops and the competition.

Commercial leases

• Contracts are longer than residential ones, as a rule.
• Withholding tax: a corporate tenant withholds tax from the rent on business premises and pays it over, and you declare the income and deduct the amount withheld. See the rental income tax guide.
• Vacancy: allow for months without a tenant in every cycle.

Taxes and fees

• VAT on a first purchase from a company is usually higher than for residential property, with an exemption for non-resident foreigners under certain conditions. See the VAT guide.
• Property tax on non-residential buildings is higher than on residential ones. See the annual property tax guide.
• Tapu (title deed) fees are the same as for residential property. See the guide to the declared value on the tapu.

Residency and citizenship

• A property-based residence permit requires a residential property, so a commercial one is not enough.
• Citizenship has its own conditions, so ask whether a commercial property suits your file before buying. See the guide to citizenship file mistakes.

Checks before buying

1. The use registered on the title deed: shop, office or residence?
2. The iskan (occupancy certificate). See the iskan guide.
3. Suitability for the business: some activities need special licences, and the building’s regulations may restrict them.
4. The existing lease (if any): term, rent, annual increase and the tenant’s financial strength.
5. Maintenance fees in commercial complexes.

Who is it for?

• An investor who accepts longer vacancies in exchange for a potentially higher yield.
• Someone with enough cash to cover months without income.
• Someone who does not need a property-based residence permit from this property.

Summary

Commercial property can be a good lever for your portfolio, but it does not forgive a mistake in location. Buy the pavement before the unit, calculate vacancy and taxes, check the registered use, and remember that it does not grant residency.

Browse shops in Trabzon and offices in Trabzon, or contact us.