Buying Property in Turkey
Buying property in Turkey can be a safe and easy process if buyers use the services of a reputable estate agent and/or solicitor.
Foreigners are allowed to buy property in Turkey providing it has a government Title Deed recorded at the Land Registry. Properties in many village areas have title deeds under a separate ownership system and are governed by new regulations passed by the Turkish government in 2006.
Make sure you know what you are buying and that you are quite confident that you are buying from a bona fide agent, builder or private owner. Would you really buy a two bedroom apartment in the UK from the uncle of the local taxi driver whom you met for the first time last week? I doubt it. Some people have done so, whilst on holiday, and have lived to regret it.
You do not need to use a solicitor for the purchase of a property in Turkey but we recommend that you use a good local registered solicitor who will assist with all steps of the purchase and ensure that you fully understand all the steps being taken. The cost is about £500 but is well worthwhile.
The solicitor will ensure that the following points are checked:
The person selling the property actually owns it.
Whether there are any charges on the property.
Where applicable, that building licences and permissions are in order. This is particularly important with new build as they now must be licensed for occupation by the local municipality, otherwise you will not be allowed to live in the building.
The terms and conditions stipulated by the seller are checked for fairness.
Once a sale is agreed the buyer must give a minimum deposit of 10% to secure the property. A contract will be drawn up at this stage, the buyer may give a power of attorney to the agent or lawyer. ( This can help speed up the process later on and does mean that the buyer does not have to be present at all stages which saves both time and money. )
Once the contract is signed the deposit becomes binding and should the buyer change their mind it is non refundable. In the event the seller pulls out the deposit will be refunded and some agents and lawyers will enforce a penalty clause.
In many cases staged payments may be agreed and quite often a smaller cash deposit may well be accepted so that the overseas buyer may return home to finalise financial arrangements. The balance of the deposit would be expected within 14 days and, if not sent, the contract would be cancelled and all monies forfeited.
At completion the balance of the agreed price is sent by the buyer to the agent or lawyer and both buyer(s) and seller (s) must meet in person at the title deed office to undertake the transfer of title (tapu). If the property is to be purchased in joint names all buyers must be present. If power of attorney has been arranged then the solicitor / agent will be able to complete the transfer without the need of the purchaser/s’ presence.
The only anomaly in the Turkish buying process is the requirement of an approval paper from the Military in Izmir . This application is made to ensure that the foreigner is buying property within the permitted areas, i.e. those which do not constitute national forestry or are located close to military installations. The application is made by the agent or lawyer and requires a photocopy of the buyer’s passport and details of the property to be submitted. The approval is usually granted 10 to 16 weeks later, after which the buyer can complete. If the property is already in foreign ownership or on a site e.g. apartments, where other foreign owners are already present, the approval process is shorter usually being granted in 4 weeks. The agent or lawyer can give advice as to the likely timescales involved.
It is Turkish practice that buyers pay a commission to the estate agent when purchasing Turkish property. This commission is usually 3%. Stamp duty is also payable at 3% of the council valuation of the property. Currently this valuation is usually less than the purchase price. The agent or lawyer can give advice as to what the council valuation is likely to be for the calculation of purchase tax.
On completion all residential property must have obligatory government DASK insurance.( Earthquake insurance – this is obligatory for all buildings ) After completion buyers should take out additional private insurance to increase the level of building cover and to insure contents. They will also need to re register the property with the local authority for payment of council tax and with the utility companies. The utility companies will levy a charge for this service and may require a security deposit.
For the connection of a new telephone line, foreigner owners must first apply for a residential visa. This application can be made in at the Turkish Consulate in London and ratified by the authorities in Antalya. A residential visa will also be necessary should owners wish to ship their house contents into Turkey from abroad.
Post purchase we recommend that foreign owners should undertake a Turkish will. Whilst property in Turkey will not revert to government ownership on death, there are differences in Turkish inheritance law and foreign owners should ensure they are protected.
Power of Attorney.
Power of attorney is arranged through the Notary’s office. You will need to visit this office along with the person to whom you are giving the power of attorney and be accompanied by an official translator. The Notary’s office is open Monday to Friday only, so allow time for arranging this, if this is your preferred method of completion.
You will need your passport and at least two passport photographs of each buyer.
Buyers tax: Approximately 1.5% based on the declared price of the property.
Government tax: Approximately £100
Community tax: Approximately £8 paid yearly for local services. ( This will vary on location )
Property tax : Approximately 0.5% based on the declared value of property, paid yearly.
Water & electricity connection fee: Approximately £250
Earthquake Insurance: Depends on property price and location.
(required by law)
If property is bought in a complex: There is an average maintenance charge of approximately £ 150 - £ 400 per year or more, again subject to size and style of complex and services provided.
When purchasing property, the buyer will be responsible for paying the water and electricity connection fee.
The legal translator’s costs £50
Notary charges approximately £60 for power of attorney and translator.
The above advice is given to assist in understanding the steps of buying property in Turkey and should not be taken as a definitive guide nor will Kalkanblue accept any responsibility for any inaccuracies or changes in Turkish law that may affect the above guidelines.
We strongly advise you to check the web site below that gives very accurate and detailed advice on all aspects of Turkish law and guidance in buying property in Turkey and also the laws on taxation of earnings in Turkey.
If you are buying a property to let in Turkey then earnings made on that property are subject to taxation in Turkey. Turkey has a reciprocal agreement with the UK government for UK citizens to claim against tax paid in Turkey against their UK tax returns.
Turkish Embassy Economic Office: