Instead of buying buildings one by one, hold units in a professionally managed, CMB-regulated fund. This guide explains how a Turkish REIF works, who it suits and how it is set up.
Four parties are involved, each with a role set by regulation. The structure protects the investor's assets and makes them transparent.
Establishes the fund, makes investment decisions and runs leasing, maintenance, sales and reporting. It must hold a CMB licence.
Holds and checks the fund's assets and records independently; the manager cannot use fund assets for its own account.
CMB-licensed valuation firms set the value of the fund's properties, and the unit price is based on these values.
Invests cash or, in some cases, property in kind and receives fund units. Fund disclosures are published on KAP.
| REIF (GYF) | REIT (GYO) | Direct ownership | |
|---|---|---|---|
| Legal form | Fund, no legal personality | Listed joint-stock company | Owned by a person or company |
| Investors | Qualified investors | Anyone, via the stock exchange | Anyone |
| Income at vehicle level | Exempt from corporate tax (conditions apply) | Exempt from corporate tax (conditions apply) | Rent and sale gains taxable |
| Withholding on unit gains | 0% after more than two years | Stock market rules | Capital gains tax if sold within 5 years |
| Management | Licensed portfolio manager | Company management | The owner |
| Oversight | CMB, custodian, audit, KAP | CMB, stock exchange, KAP | Land registry |
| Exit | Redemption or transfer under fund rules | Sell on the exchange | Find a buyer |
REIF units can be sold only to qualified investors: institutional investors, companies and individuals who meet the financial asset or income thresholds set by regulation. Foreign investors who qualify can invest as well. The fund route to Turkish citizenship (USD 500,000 held for three years) is built on this structure; see Turkish citizenship through a real estate investment fund.
Companies and families can transfer existing properties to the fund in kind and receive units in return. This turns a scattered portfolio into professionally managed, easily divisible units. Title deed fees, VAT and capital gains effects depend on the transferor's situation and should be modelled for each portfolio.
REIF income is exempt from corporate tax (Corporate Tax Law art. 5/1-d). From 1 January 2025, at least 50% of real estate income must be distributed as dividends (Law No. 7524).
Gains on REIF units held for more than two years carry 0% withholding (Presidential Decree 11107, 27.03.2026).
A project real estate investment fund (PGYF) is a REIF whose portfolio consists mainly of properties under development. Developers use it for project financing and pre-sale structuring.
FT Portföy is a CMB-licensed real estate and venture capital portfolio management company managing several REIFs and project REIFs. See our real estate investment funds. Türkçe
A REIT (GYO) is a listed company whose shares anyone can buy. A REIF (GYF) is a fund without legal personality, sold to qualified investors, with a more flexible and investor-specific structure.
The minimum is set in the fund's issuance document. Investors must also meet the qualified investor criteria.
Yes, foreigners who meet the qualified investor criteria can invest. The USD 500,000 fund route to Turkish citizenship uses this structure.
Units are redeemed to the fund on the dates and terms in the issuance document, or transferred in line with regulation; there is no need to find a buyer.
Usually a few months, covering the documents, the CMB review and the custody and valuation agreements; contributions in kind add valuation time.
Related guides: Venture capital fund tax benefits in Turkey · Fund documents: bylaws and issuance document · Turkish citizenship through a fund · FT Portföy
This page is general information, not an investment offer or investment, tax or legal advice. Tax law can change; please confirm your own position with a tax adviser. Fund units carry risk and their value may go up or down; past performance is not a guarantee of future results.
Sources: Capital Markets Board of Türkiye · Law No. 7524 commentary · Presidential Decree 11107 · KAP.
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