Buying property in Turkey is relatively straightforward, legislation permits foreign nationals to purchase property in Turkey and is based on reciprocity, in other words where there is an agreement between Turkey and the country of the purchaser.  Most property in Turkey is sold on a freehold basis and a new title deed 'Tapu' is issued upon purchase.

 

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Where can I buy property..?

 

Foreign nationals can purchase property or land provided that it is not in restricted or prohibited  areas i.e. strategically important, protected habitats or areas that possess religious or cultural significance, military zones, special security areas or other prohibited areas

 

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Do I need a lawyer/solicitor..?

 

Whilst it is not strictly necessary or mandatory to use a lawyer/solicitor we would recommend that you use a good English speaking lawyer who will ensure all the legalities and procedures are carried out correctly and act in your best interests.

 

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Do I have to be there to buy a property..?

 

Obviously it is better for you to be here as you will know what is happening first hand, but if this is not possible then power of attorney can be given to a trusted person to act and sign any documents on your behalf.  This can be arranged through your lawyer/solicitor.

 

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How easy is it to buy land.. ?

 

Purchasing land is also quite straightforward, however you should ensure that you have the necessary finances already in place as land is purchased outright with the total purchase price normally being paid on signing any contract. 

 

If it is your intention to build you should ensure that all necessary checks are made to ensure that building consents/permissions are in place and that road access is not a problem. You should also check that utilities (electricity/water) are close by.

 

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Are there any restrictions on the size of property I can purchase ..?

 

Yes there are restrictions on size of land/property you can purchase.  Recent legislation restricts the size of land/property that foreign nationals can buy to 2.5 hectares (25,000 sq meters) but can be increased to 30 hectares by Cabinet decree.

 

Foreign foundations, associations, co-operatives, communities and groups are not allowed to purchase real estate in Turkey. 

 

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How do I pay for the purchase of property ..?

 

If you are visiting with the intention to purchase it would be advisable to have a deposit readily available which is normally 10-20% of the purchase price.  The balance payment would normally be paid at the time of completing the sale. 

 

Usually payment terms are included in any sales contract.

 

In the case of buildings under construction stage payments would be normal, however all prices are negotiable and you may find by paying 'up front' off plan that you could obtain a substantial discount.

 

It would also be advisable to open a bank account in Turkey for the transfer of funds.

 

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What extra payments will I be required to pay in addition to the purchase price... ?

 

In addition to the purchase price of any property the following must be taken into account and you should ask for an estimate of costs in relation to any particular property.  Roughly these additional costs are up to 10% of the purchase price paid.

 

Additional Costs

 

1)  Legal & other fees - these would vary depending on the amount of work carried out by the lawyer, obtain an estimate from your lawyer to include such things as investigations of title deed, translations, notary fees, registration of title deed transfer, transfer of utilities etc.

 

2) Purchase tax - a purchase tax is levied by the government on registration  of title deed transfer, currently 3% of the registered value of the property.  You should check with you lawyer for any changes to the rates levied.

 

3) Mandatory insurance (DASK) - It is mandatory to take out 'earthquake' insurance cover which will be based on the value/size of the property.

 

4)  Agents fees - normally buying through an estate agent you can expect to pay 3% of the purchase price in agents commissions.

 

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What ongoing costs can I expect to pay ..?

 

You can expect to pay the following ongoing costs.

 

1) Property tax - Normally paid twice yearly (May/Nov) similar to UK rates and is based on a fixed percentage of the declared value.  Do not expect an account to be sent, it is up to you to find out when this is due and ensure payment is made to the local council. After receiving your title deeds you should visit your local council offices and register the ownership of your property.

 

2) Building & contents insurance - In addition to the mandatory earthquake insurance (DASK) you should consider comprehensive cover for buildings and contents, of course premiums will depend upon value and risks covered. 

 

3) Electricity (Tedas) - Normally there are three tariffs charged based on the time of day, the cheapest being during the night.  Meters are read on a two monthly basis but expect some leeway in meter readings.  The electricity bill is usually left at the property at the time of reading.  You will find on the bill the dates between which the account can be paid either by payment over the counter at most banks or direct to the electricity company.  Direct debit arrangements can be made for the payment of electricity bills through most banks providing of course you have an account in credit with them.

Failure to pay the bill by the latest date will result in a late payment fine being levied on your account.

 

4) Water - Charges for council supplied water (metered) can vary from district to district.  In many areas you can expect to pay higher water charges if you own a swimming pool.

 

How often the meter is read can also vary from district to district and can vary from 2 months to 6 months.

 

The water bill is normally left at the property at the time of the meter reading and again you will find on the bill dates that payment can be made, normally at council offices.

 

5)  Apartments/Complex - If you own an apartment or villa on a complex there will normally be annual charges levied for maintenance and management of common areas and swimming pool if there is one.  You should check to see how much and when payments are due. 

 

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Can I rent out my property ..?

 

Yes of course you can rent out any property you own.  Your should however be sure to check your tax liabilities with a suitably qualified accountant or tax advisor. 

 

Any rental income will be liable for tax assessment either in your home country or Turkey, your own personal tax situation will determine what is payable.

 

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If I sell my property can I take the money out of Turkey ..?

 

Yes you can sell your property and take the proceeds out of the country.  You may however be liable for capital gains tax and you should seek advice from a suitably qualified accountant or tax advisor. 

 

If you place your property for sale by an estate agent you will of course be liable to pay their commission fees, you should ask what these are at the time of placing your property with them and of any other selling costs i.e. sales tax, local documentation and any legal fees.

 

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Do I get title deeds for any property I purchase ..?

 

Provided you have purchased a property within permitted areas the sale/purchase is recorded by an official of the Property Registration Department. 

 

It is a legal requirement for both parties seller and buyer (or their legal representative with power of attorney) to be present when the entry is made.

 

After the entry is made in the register a title deed (Tapu) is issued.

 

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Are all services i.e. water, gas, electricity, phone lines connected ..?

 

This rather depends on where you have purchased property.  In most towns electricity and water is connected and metered.  In villages and in more rural areas council water may not be connected and you may have to rely upon either your own well water or tankered water.

 

Natural gas is only available in the main cities, outside of these areas bottled gas (LPG) is the norm and is supplied in various sizes.  It is also available via tanker delivered to a suitably installed holding tank.

 

If your property is not close to an existing telephone connection point then there may be a delay in getting connected, in this case you should apply to TurkTelecom for installation as early as possible.  ADSL is readily available in most town areas.

 

Satellite TV is available via DIGITURK (similar to SKY) offering various packages with channels in English.

 

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Can I bring my household effects into Turkey ..?

 

You can bring your household effects to Turkey if you are taking up residency.  You must obtain your residency permit before shipping as failure to do this may result in difficulties being experienced with customs clearance.

 

In many cases the cost of transportation and insurance v cost of goods in Turkey will not make this a worthwhile.  International movers can deal with the whole process including clearing customs in Turkey if they are given power of attorney to handle the process on your behalf. 

 

NB YOU MUST MAKE SURE YOU HAVE ALL THE RELEVANT PAPERWORK TO HAND BEFORE SHIPPING FAILURE TO DO THIS MAY BE VERY EXPENSIVE!

 

Contact the Turkish Consulate in London for up to date information regarding the requirements for residency and importing household effects.

 

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Can I get a mortgage to purchase a property in Turkey..?

 

Yes..Clover Builders Ltd have access to lenders for first time buyers and investors there are even options available if you have difficulty with your credit history. 

 

To check you eligibility for a Turkish mortgage 'click here' to complete our pre-mortgage application check.

 

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How much can I borrow..?

 

Typically 85% - 90% of the property value, it will also be based on your net monthly income.  Minimum loan £25,000 GBP with up to 25 year re-payment term.

 

To check you eligibility for a Turkish mortgage 'click here' to complete our pre-mortgage application check.

 

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