Icmeler Estate Agency

PURCHASING PROPERTY IN TURKEY

Foreigners can purchase property or land in Turkey for private use, it is very straight forward and easy and we guarantee its not as complicated as you might think. The whole procedure is often much simpler than in other European countries. Foreigners are allowed to puchase property and land in their own names as long as it is within the boundaries of a muncipality.There are a few restrictions in Turkey and the Turkish law states that foreigners cannot purchase property or land if its location is in a particular distance of military sites or of areas of strategical importance.
The first step for buying property or land, is an application is made to the Land Registry Office [ This department is responsible for carrying out all the necessary searches on the vendor and buyer of the property and transferring the title deeds from vendor to the buyer], normally this process will take a few months.
In Turkey a solicitor is not required as the Notary Office and the Land Registry Office performs these duties, but of course you may want to use the services of a solicitor. We can advise you on this, and recommend English speaking solicitors to represent you. You also always have the option to appoint a third party to act on you behalf to purchase the property by Power of Attorney, this has to notorized at the Notary Office,[ Power Of Attorney is a document authorizing an individual to act on behalf of someone else). The buyer has the option to give us at Sweet Homes Estate Agency, the Power of Attorney, this allows us authorization to act on your behalf, and complete all duties and manage formalities that is involved when buying property or land.
Finally after all checks are completed by the Land Register Office, the property developer/owner and the buyer ( or their legal representatives) will be called to witness and sign all documents that are relavant to the property or land and at this time the Title Deed (Tapu) proof of ownership to the buyer, is issued in the buyers name.
If you are thinking about buying property here in Turkey, the most important piece of advice is always use a registered Agent, the agent should be a member of the ‘Association of Estate Agents’.This will ensure that if any problems arise you would have support and would be able to challenge the Agency with the help of the Association.

PROPERTY PURCHASE
EXPENSES

Turkey Property Buyers Tax (Stamp Duty/Transfer Tax),
Approximately 3% is paid based on the declared value of the property, it is paid to one of the state banks and is calculated on the property value stated in the Deed Office,(The amount stated in the Deed Office is lower than the real property value).
This is tax that is paid at the time of the title deed conversion over to the buyer’s name.

Property Tax,
Approximately 0.5% of the property value declared by the local municipality, this is always paid before the end of May each year.

Government Tax,
Approximately £130 per year.

Community Tax,
A amount of approximatley £40 is paid each year for the local services.

Earthquake Insurance,
Depends on property price and location (required by law),

Real Estate Agency Fee, (Commission Rates)
Registered and licenced real estate agents receive 3% + VAT service fee over the actual purchase price of the property from each party (buyer and seller).

Electric, Water, Telephone Connections
Connections for your new home range between £20 –£150

Maintenance fee
If you buy a property on a larger develpment (complex) the owners will decide on the community charges. Currently the charges are approx £45 per month.

We always advice our clients to add the above expenses up to a total amount, once you have, then add around £1,800, approximatley on to this, this will cover extra fees, Giving Power of Attorney at Notary Office (if required). Registration Fee at the Property Registry Department (Deed/Tapu Office) the Registration Fee increases slightly when more than one persons name is included on the Title Deed. Completion Report: Obtaining “Completion Report” (New built properties only), starting from £200 depends on the size and location, translator,etc…

Capital Gains made from the sale of a property will be taxable in Turkey if the owner is a Company. Individuals do not have to pay capital gains, provided they have owned the property for five years.