After acceptance of an offer on a property, the following procedure will be followed but you will be assisted in all:
Obtain several photocopies of the passport of the person(s) purchasing the property
Obtain 12 passport-sized photographs of each person purchasing the property (cost approx 15 YTL each person)
Obtain a Turkish tax number for each person
Open a Turkish bank account(s) – these may be in Euros or Sterling. It will be advantageous to also have an account in Turkish Lira.
Obtain a copy of the deeds of the property being purchased and check that the deeds are “clean”, i.e. that the property can be sold.
When ready to complete the purchase, go to the Notary (government regulated lawyer) to have the formal contract drawn up and for it to be signed by both the vendor and the purchaser. Please note that, for all foreign purchasers, a translator is insisted upon by the Notary. The Notary fee and fee for the translator are payable in cash on the day.
The purchase documents will be sent to the Turkish army, which will check the identity of the purchaser through various channels and, in particular, will check there is no criminal record.
an English-speaking lawyer to follow up the deeds, which can take several months. Alternatively, Samyeli Real Estate (Samyeli Real Estate) is able to perform this service. Fees will be explained at the time of instruction.
Purchase tax on the property is payable to the Turkish Government at the time of collection of the Deeds. It is possible to authorise Samyeli Real Estate to collect the Deeds on the purchaser’s behalf. Buying property in Turkey is not as complicated as you might imagine. The procedure is often far simpler than in most other European countries. Foreign nationals may purchase land and property in Turkey under their own names provided that properties are not located close to a military airport, station etc. After an agreed sale, in order to acquire the title of a property, an application has to be made to the local Land Registry Office. The title may be transferred once checks have been made to ensure the property meets all necessary requirements. A solicitor is not needed in Turkey although it makes sense to consult one for your own piece of mind. Persons wishing to buy property in Turkey can be apprehensive about their choice of Solicitor since they will not be familiar with the firms nor, in most cases, with the civil law system. We can put these misgivings to rest by recommending the Solicitors we work with who are reliable and will provide an efficient and professional service.
We can further assist by explaining the civil law procedures and translating documents. If a client so wishes we can also act on their behalf, through a Power of Attorney or a written authority, to actually complete a purchase or sale of a property on their behalf. During the transaction, the seller declares that he has received the full purchase price from the buyer. This process can take a number of months, as the Land Registry office needs the official permit papers from the military administration. The acquired property may be resold and the proceeds of the sale may be transferred out of Turkey. There is no time restriction for reselling property after having bought, you can get it registered in your name and resell it the next day. Remember, that to reserve a property you will normally be required to pay a 10% deposit.
At the moment, it is virtually impossible to get a Turkish mortgage unless you are resident and working in Turkey.
The easiest way to raise finance to buy a Turkish property is by remortgaging your property in the UK or Ireland. It is advised that funds for the purchase should be transferred into the country through a Turkish bank and specifically identified for that purpose. The foreign currency should be sufficient to cover both the purchase cost plus other costs incidental to the purchase. A recent decree aimed at aligning Turkey’s currency laws with the EU states that importation of foreign currency is free, it cannot be subject to any legislation and it’s origins cannot be questioned Foreign nationals can buy land or property anywhere in Turkey except in military zones
Title Deeds: Each freehold property will have a property deed known as a tapu, the name of the present owner is written on the tapu in addition to a photograph and general information about the plot size, plan number, district town and location.
Using a lawyer: It is possible to buy in Turkey without using a lawyer and go directly to the Land Registry Office, however we strongly recommend that you use a solicitor or lawyer familiar with Turkish property laws.
The lawyer/solicitor will carry out all necessary checks on the property. These include, but not limited to, checking the seller of the property is the owner, checking there are no outstanding bills on the property, location checks, seek living permission and arranging electricity and water connection.
Aegean Army Search: A military background check is made on all foreign nationals buying in Turkey. Anyone with a criminal record cannot buy property in Turkey. The cost of this is included in the purchase costs detailed under the heading “Purchase and Running costs. This process takes about six months, and once approved the TAPU will be issued.
Land Registry: Both buyer and seller can be present to enter new details in the Registry book at the Land Registry Office. However if Power of Attorney has been given to a lawyer/solicitor, they can act on behalf of the client and will retain the TAPU until contacting the client
Insurance of the property is the responsibility of the owner once the TAPU is in their name.
Bank account: it is a good idea to open a Turkish bank account for payment of bills.
UK Tax: Turkey has a double taxation agreement with the UK and Ireland. We advise you to consult a UK taxation specialist regarding rental income and capital gains tax (CGT)
Will: A will is advisable for both English & Turkish law
Annual Real Estate Tax (ARET) This tax, which will be levied at c.0.1% of the declared value of your property, will be due annually. Normally, the seller of your property will have paid the ARET for your year of purchase.
This tax will be collected through your water bills at a rate of c.0.13 YTL/m3 for residential property.
This figure will be in line with the estimate included in your specific contract. As an example, £55-80 for a 2-bedroom apartment is normal, depending on facilities. Insurance and DASK Although the rebuild value of your apartment will need to be agreed, buildings insurance, including glass cover and contents cover and the legally required DASK earthquake insurance will be c. £200 per annum, for an average 2 bedroom apartment, depending on the levels of cover you require. Utilities Although it’s impossible to quantify the ongoing cost of your utilities, as they are charged on a meter basis, Edison Ford has been advised that c. £40-50 per month is average for a couple living full time in a property. This figure is an average, in order to reflect the differences between summer and winter usage.
Individual Property Maintenance
If you wish to have your property cleaned and inspected regularly during the year, above and beyond any standard rental package services, this will be available from either a developer direct, or many third party sources. Quotes in the region of £200-250 per annum are normal, depending on the level of service you require. If you have any problems with your property, which are not covered by the building and manufacturers guarantees, then you will of course be liable to cover these maintenance costs.
This will depend on your choice of company and there tariff. Packages can either be on a one-off fee basis (c.£200 per annum), or a small annual charge (c.£50 per annum), followed by a percentage of your return.
When you come to sell your property there are two main avenues open to you, each with their own nuances. The first option is only available for purchasers of off plan property.
Selling Before Completion
This option incurs the lowest legal fees and also the lowest level of costs in general. If you are successful in selling your property before completion, you do not need to take ownership of the property in the eyes of the land registry. As such, any buyer buying from you before you complete will be liable for your final completion payment for the property and also any associated taxes and legal fees due on completion. The expenses you are likely to occur are legal fees, which depending on the method employed for the transaction could vary around the level of £500. You may not be liable for any income tax / CGT in Turkey; however, your UK liability will remain. It is important to note however, that this method does also have several disadvantages. If you do not complete on the property in terms of both payment and title, you are still effectively selling an off plan property, which commonly will not attract the same value as it’s completed equivalent. Secondly, it is possible that choosing to sell your contract can narrow your audience, as buying off plan is perceived as a higher risk.
Selling After Completion
This option means that you will need to complete on your property, which will involve making your final payment for the property and also the associated costs and taxes involved in completion. For more information on the costs associated with completion, please refer to Edison Ford’s completion document.
Although selling after completion will incur the full level of purchase and legal costs, it has several advantages. Firstly, a completed property is likely to attract a higher value than that of a property sold off plan. Secondly, a completed property is likely to attract a wider audience, including people who do not have the confidence to purchase off plan. Finally, completing on your property gives you the option to hold the property and prospect for further growth.
The costs involved in selling a property registered in your name are as follows:
– Any costs associated with ownership such as ARET for the year of sale. – Transfer tax at the rate of 1.5% – As the normal 3% figure will commonly be split with your buyer. – Land Registry fees of c. £50. – Full legal fees, which are likely to be £1,000 – 1,400. – Minimal Military Permission fees, as the seller commonly starts a buyers application. – Capital Gains Tax/Income Tax in Turkey. Whether or not you decide to sell your property before or after completion, you will have to pay agents fees for the marketing of your property. Edison Ford is pleased to announce it’s standard rate is only 3% for the sale of your Turkish property.
The following table highlights the current rates of Turkish Income and Capital Gains Tax. The Turkish system treats any capital gain realised as additional income for that tax year. It is important to note, that after 4 years of ownership of a residential property your liability to Capital Gains Tax in Turkey diminishes. Although this table will give you an insight into your potential tax liability, there is a system in place, which adjusts the purchase price of your property in line with inflation, to ensure you are not over taxed. Calculating CGT is therefore not as straightforward as deducting the purchase price from the sale price. 0-7,000.00 YTL 15% 18,000.00 YTL for the first 7,000 a fixed 1,050 YTL, then 20% 40,000.00 YTL for the first 18,000 a fixed 3,250, then 27% 40,000.00 – over 40,000 YTL for the first 40,000 a fixed 9,190, then 35%
It is also important to note that there is a double taxation agreement between Turkey and the UK, which ensures you will not be taxed on the same gain twice. The figures and suggestions made in this document are not guaranteed to be accurate, as the tax system is inherently complicated. Therefore if you would like specific information or advice relating to your tax situation please consult a specialist tax adviser. If you do not have such an individual in place, please contact Salman Kurt who will provide you with the appropriate contact details. For details of our current Turkish offerings, please use our comprehensive property search, which can be found on any page of the EFIP website – selecting Turkey in the country field.
Having said this, it always pays to firstname.lastname@example.org as some of our recommendations will sell out almost instantly as they usually come with very lucrative discounts. The above information and estimates are prepared to the best of our knowledge. Edison Ford accepts no liability for errors or omissions.
Property rent a tax
Firstly, you can rent it out and earn rental income. In that case, you are to pay a personal income tax.
Personal income tax (based on rental income and capital gains)
Inheritance and succession tax
the market value of your asset may rise and hence you can attain a gain. If you sell out your real property in the four-year-period following the acquisition date, you shall be subject to personal income tax based on the difference between the selling price.
Producer Price Index (PPI) is applied to acquisition price for Inflatin adjustment excluding the months in which property is acquired and sold out if the inflation exceeds 10%. However, YTL 6,000 of the gain attained from sale is exempted from income tax starting from 1st January 2006.
For sales by individuals after the 4-year-period following the purchase, no personal income tax is charged on the gains to be attained. On the other hand, firms which are subject to corporate tax are exempt from any corporate tax relating to the real estate-based gains, real estate sale-and-acquisition levy, and VAT, if they sell a real estate that they have owned for at least two years and add the gaining to their capital