How do I buy a property in Turkey?
Once you have found a property you want to buy, we will contact the seller and negotiate on your behalf until agreement is reached on the purchase price and the amount of deposit. Most sellers are currently looking for a 10% - 20% deposit with the balance payable on completion. At this stage you will pay deposit monies and sign a contract which will detail property, buyer(s), purchase price, deposit amount and the timing and conditions for the payment of the balance. If, as is likely, you do not have the full deposit immediately available then most sellers will accept a nominal amount as a 'holding deposit' and agree for the balance of the deposit to be transferred within a set period of time. If this is the case, these details will also be included in the contract that is signed.
What is the legal process for buying?
The system of property ownership in Turkey is based on the title of the property being registered at the Land Registry in the owner's name. Once you have found a property and had your offer accepted the process is as follows:
a copy of the existing Tapu (Title Deeds) of the property needs to be sent to the Tapu office together with: copy of buyer(s)' passport(s) and 6 passport sized photographs of the buyer(s);
the Tapu office undertakes a search to ensure the property is suitable for purchase by a foreign national (i.e. not in a designated 'military' zone). This process should take 6-12 weeks, although recently has been taking as much as 4 months or more;
checks are also carried out to ensure that the Tapu provided relates to the property being purchased and the property is owned by the seller; if the property is owned jointly, that all parties comply with the sale; no annotations exist to prohibit sale or purchase of the property; the building complies with regulations; the current owner owes no overdue taxes to the Tax Office; the current owner owes no debts to utility companies;
upon receipt of the military clearance and Tapu from the Tapu office, the buyer and seller apply in person to the local Land Registry office for the transfer of title to take place.
What is the process if the property is not yet built?
For properties that are under construction there will normally be a stage payment schedule for specific amounts (% of the total purchase price) for the deposit and additional stage payments at specific stages of the build. These amounts and the stages will be detailed in the contract. As these are set by each developer they will vary from project to project but will be fully explained to you before you sign the contract.
What extra costs are involved?
The costs involved in purchase of a property are:
a 'Land Registry' fee or tax is payable by you once the Tapu has been received, in order to register you as the owner of the property. It is 3% of the taxable value of the land and/or property;
solicitor's fees vary depending on the price of the property, but start at approximately £200;
Notary fees again vary but will be in the region of £50;
translators for passport, Notary and Tapu office (unless you are fluent in Turkish you are required by law to have a translator);
compulsory earthquake insurance, the cost of which is dependant on the value of your home but will start at around £50. We would also recommend that you take out full house and contents insurance, however this is optional;
fee for connection of utilities if the property is new.
How long does the process take?
It can take as little as 2 - 3 months, but if you're buying off-plan, for example, the time scale could be much longer.
Do I need to provide a Power of Attorney?
If you cannot be here for the Tapu signing, we can arrange for you to sign a Power of Attorney, which delegates authority to us for the limited use of the property purchase and registration. This POA form would be executed with a Notary (similar to a Notary Public in the UK).
Is a Residence Permit required before I buy here?
You do not require a residence visa in order to purchase a property in Turkey.
Am I able to sell my property without restrictions?
Once you are the registered owner of a property, the sale of this is unrestricted and the proceeds of the sale can be taken out of Turkey as long as all outstanding debts, e.g. mortgages, utility bills etc have been settled. Sales within five years of ownership will be subject to tax - more details can be found at www.turkisheconomy.org.uk.
What are the inheritance rules in Turkey?
It is sensible to have an English will which can be translated into Turkish and is treated as valid in Turkey. You can make a Turkish will. If there is no will your property will go to your next of kin.
What taxes are applicable?
Individuals do not have to pay Capital Gains Tax, provided they have owned the property for more than 5 years. In the UK capital gains may be taxable depending on the individual's situation.
Capital gains made from the sale of a property will be taxable in Turkey if the owner is a Company.
There is also an Annual Real Estate Tax, similar to the Council Tax in the UK, based on the declared value of the property and is payable every 6 months to the local municipality (council) - 0.1% of the declared value (i.e. the price on the Tapu).
Do I need insurance?
It is now compulsory to take out earthquake insurance on all property in Turkey, the cost of this varies depending on the value of your home, but there is a uniform national tariff with costs starting at around £50. We would also recommend that you take out full house and contents insurance, however this is optional.
