Buyers' Guide - Turkey
How to buy your dream home
Below is a summary of the buying procedure for property in Turkey. The most important factor is to work with a well established agent who will guide you through each step of the process. Although not compulsory South Coast Realty highly recommends you use a reputable solicitor who will be able assist you with your purchase.
Purchase Procedure
Once you have found your ideal property in Turkey and have decided that you would like to purchase you can usually expect to follow the procedure below:
Reservation Contract
The reservation contract takes the property off the market, usually for between 2 - 4 weeks, allowing time for the appointed legal advisor to carry out the required searches on the property in question. Usually a reservation fee of between €3,000 and €6,000 is paid at this point
If you do not continue with the purchase due to a legal problems then you should contractually be entitled to a refund of the paid reservation fee. However, if you decide not to proceed owing to a change of heart or mind then it is standard that you will lose the reservation fee.
If you decide to proceed with the purchase then the reservation fee already paid is treated as part of the payment towards the property in question
Preliminary Contract
After the reservation contract is signed and the required fee is paid, you are presented with a report containing the findings of the legal checks. Subject to the report, you then sign the preliminary contract and at this stage you will be expected to pay the required deposit. On a resale property, this is typically between 10% & 20% and on an off-plan (new) property you must expect to pay varying amounts of around 30%.
If necessary, at this point in the process the vendor is required to apply for permission for you to purchase a property in Turkey. This is normally done on your behalf by your appointed solicitor.
With off-plan property purchases in Turkey the buyer may be expected to pay a number of stage payments throughout the construction process.
Completion
Once all parties are ready to proceed the property sale is completed. The buyer pays the required tax payments and the outstanding balance, (Tapu) is signed. The signing of this document means that the land ownership is transferred to the buyer. This is usually done at the land registry office
Once signed, the deed of sale (Tapu) is registered in the land registry.
Frequently asked question
What Documents Do I Need To Purchase A Property In Turkey?
Your passport details are required to purchase a Turkish property along with a local tax number. We will take you to the tax office to obtain a local tax number for you. Your tax number is also required to open your bank account in Turkey. You will also need two recent photographs (4cm x 6cm); you can get them in Turkey but it maybe useful to get two sets before you travel to Turkey
Do We Need A Lawyer To Buy A Property In Turkey?
Although it is not compulsory to use a lawyer to buy a Turkish property, we strongly recommend you do. We have a panel of independent Turkish lawyers should you choose to use one based both in Turkey and the UK. A lawyer will typically charge £500 - £1,000 for their services, to this you need to add the purchase tax (3% on the declared value of your property in Turkey), accommodation tax, water and electricity connections charges, notary fee and translation fees. Depending on the value of your property you should typically allow £1,500 for all these fees and costs. Ask for a quote from a lawyer before you use them. Should you choose not to use a lawyer the cost will be about £800.
How Long Before You Move Into Your Property In Turkey?
Dependent upon the Turkish Government offices it may take up to 6 months to receive the final Freehold Title Deeds (Tapu) for your Turkish property. First your application goes to a regional Tapu office then to a Military Head office in Izmir to check the property is not in a restricted or Military Zone. This is really a formality and when everything is approved, it takes just one day to complete the property transfer. Once approval has been granted you go to the Tapu office with a translator to sign your freehold ownership documents. A new law for non-residents came into force on 7 January 2006 which is intended to speed up the process. Although the formalities take 8 to 12 weeks, once you have paid a significant part of the purchase price most builders will let you take possession.
How Do You Pay Your Household Bills For Your Property In Turkey?
You can pay all your household bills on your property in Turkey by standing order, much the same as in the UK. However with the cost of living being about a quarter of the UK, typically £40 per week for a single person and £60 per week for a couple (for example council tax is about £80 per annum), you will not notice them so much!
Do You Have To Make A Will In Turkey?
Once your Turkish property is registered in your name, it is advisable to update your UK will referring to your new home. Your UK will is legal in Turkey, but if you want belt and braces it is advised to make a will in Turkey. Our office will be happy to supply details of lawyers. It is not necessary but will help to avoid delays.
Do You Have To Pay Tax If You Sell Your Property in Turkey?
At present, if you sell your Turkish Property within the first 5 years (the law changed from 4 to 5 years in Jan 2007) of your ownership there is a 15% sliding scale property capital gains tax due on any profit. After 5 years it is capital gains free. Any tax paid to the Turkish government will be offset in the UK due to the Reciprocal Taxation agreement between Turkey and the UK.
What About Turkish Property And Household Insurance?
When you finally get your deeds it is advisable to insure your Turkish property (preferably by paying in Euros, as most of the big European insurers operate in Turkey) - our Turkish office will be pleased to help you to arrange it.
Recommended Lawyers
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Acacia International is a legal firm specializing in Turkish Law with offices both in the UK and in Turkey. The scope of our services covers property transactions and investment matters which are subject to Turkish Law. Our advice is independent and impartial and compliant with all aspects of Turkish law. When contacting us mention South Coast for preferred rates. |
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ALKAN DENIZ MAVIOGLU is a boutique law firm serving commercial businesses, financial institutions, as well as private individuals in every area of law. ADMD is preferred by clients having sophisticated corporate and financial transactions and complex dispute resolution proceedings that require attentive and scrupulous approach. |
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