We know investing in property abroad can be a daunting prospect! So, here's a run down of all you'll need to keep in mind.
Inspection tours are a great opportunity to see and compare several properties in one visit, get an idea of local amenities and facilities, put your questions to the experts, secure your dream property by putting down a deposit, explore the surrounding areas and maybe squeeze in some time on the beach or at the golf course. To find out about getting here, more about the immediate area and various distances, please see our 'Location' page.
Once you have decided which property to buy, you need to pay a deposit to reserve it until all procedures are done. The reservation fee is around €1000. Once a reservation fee has been paid, your property will be taken off the market for a period of 14 days during which time a Property Purchase Agreement will be signed and the first payment will be organized.
A purchase agreement is written in both English and Turkish. This contract includes information about the real estate, the buyer and the seller, necessary details about the payment, the time of the conveyance, property completion date, etc.
If you appointed a solicitor he will conduct the following property searches:
● Does the property have good title
● Does the owner actually own it
● Is the land/property clear of outstanding debts
● Has the builder got a legal construction permit
The payment structure depends on the building stage of the construction. In cases where the property is completed, then the breakdown of payment is as follows:
- 10% upon signing of contract
- 40% within 14 days of contract being signed
- 40% within 60 days of contract being signed
- 10% upon delivery of title deeds
In cases where purchase of a property is off-plan, then the breakdown of payment is thus:
- 10% upon signing of contract
- 30% within 14 days of contract being signed
- 30% upon completion of roof of property
- 20% upon completion of plastering and doors and windows being fitted
- 10% upon delivery of title deeds
In most European countries the buyer and seller go to a public notary to have the property put in the name of the new owner. The public notary is responsible for the correct settlement of this procedure. They are also responsible for the delivery, which often takes place in the form of a 'deed exchange' and subsequent entry into the property register.
In contrast to this, entry into the property register in Turkey is not performed by a public notary, but by an official of the Property Registry Department (Land Registry Office). It is legally compulsory for both sides (the seller and the buyer) to be present at the entry. It is possible to authorize another person to do so (i.e. give someone power of attorney) but the authorization requires a notary deed.
The delivery of the deed of transfer does not require the intervention of a public notary in Turkey. The only applicable stipulation concerning the delivery is that it takes place in writing. After entry into the property register, you will get a proof of ownership, which is called the 'TAPU'.
A photocopy of your passport, details of your mother's & father's names and 4 passport size photos are needed at this point.
The time allowed for receipt of your TAPU will normally take up to 6 months. This is due mainly to the application having to be approved by the Ministry of Defence. However, if the property is purchased through a Turkish company, the delivery of the TAPU is immediate. Bear in mind, however, that if you purchase through a Turkish company in order to secure immediate delivery of the TAPU, your property will have a fixed 20% Capital Gains tax levied on it regardless of the period of ownership..
Lawyer’s fee: In Turkey it is not compulsory to engage a lawyer in purchasing a property. However it is highly recommend using a lawyer for peace of mind. We like to work with a reputable English & German speaking lawyer in the area to whom we can forward you. The lawyer's fee is a set 1.5% of the property purchase price, the 1% of which is payable at the start of all proceedings and the final 0.5% at their completion. The lawyer will handle all the contractual and closing process up to and including the delivery of the title deeds.
Purchase tax: 3.3% plus 335 TL to complete formalities.
Notary fees: If you would like to appoint another person to accomplish title deed transfer instead of you, you will need to grant Power of Attorney to your lawyer. Official translations of documents will require notary stamps which incur notary fees. The cost of these certifications are set by the notaries themselves.
Land Registry Fee: This fee is taken by the Land Registry Office on completion of the title deed transfer procedure.
Estate Agent Fees: The Buyer normally pays a 3% estate agent fee as standard. We, however, charge only 1.5%.
Real Estate Tax: Payable twice a year as a municipality tax amounting to €30 per 6 months.
Accountant fees: A Turkish accountant is helpful, as they will organize the payment of income tax and real estate tax.
Income Tax: It is recommended that the owner discuss this subject with his/her lawyer or accountant.
Capital Gain Tax: If you own a property personally, and hold it for more than 5 years there is no capital gain tax. If you sell within 5 years, then there is a 20% Capital gain tax. If you own your property through a corporation (Turkish), then there will always be a 20% Capital gain tax regardless of the period of time in which you own the property.
Maintainence Charges: This is a monthly fee payable to the site management where your property is located. It varies from place to place, but usually hovers around the €50 - €70 mark. This includes 24/7 gated security, garden maintenance, rubbish removal, road maintenance and lighting.
Earthquake insurance: It is compulsory in Turkey to ensure your property against earthquakes. The value of insurance depends on size, price, location and construction material of the property.
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