A Step by Step Guide To The Buying Process In Turkey
There are
many ways to buy in Turkey. Some people are buying a holiday home for family and
friends, some people who may be retired or semi-retired want to spend long
periods, if not all year there and some want a property to let to not only make
some money but also for their own use as a holiday home, whilst others may never
visit the property and are purely buying as an investment. Whatever your reason
it is important to get it right and do your homework.
Just A Few Hints!
- Decide on the region that you want before you even start looking at property.
- Look for somewhere that is not too far from a major airport, this will make life much easier for you and more attractive if you intend to let the property.
- Agree on the type of property that best suits your needs and importantly your budget
There are many ways of owning a property in Turkey and the options include:
- In your own name
- In joint names of you and your husband/wife or co-purchaser(s)
- In your children's name or in the name of someone who will eventually inherit the property from you
- In the name of a limited company, whether British, Turkish or "off-shore"
Individuals will not pay any capital gains tax on property sold after one year. Companies will have to pay capital gains tax in Turkey. You should decide on this before buying your property.
A Typical Buying Process Is As Follows:
When you have selected the property of your choice you will be asked to sign a reservation contract. This takes the property off the market for a limited period of around 2-3 weeks, in exchange for a holding deposit of typically £2-3,000. If you are unable to put down this reservation sum you will risk losing the property to someone else. The deposit fixes the price and takes the property off the market until the contract stage.
During this period we advise that you should appoint a lawyer to carry out all necessary searches and legal requirements on your behalf. Our offices in Turkey are able to introduce you to independent and unconnected English speaking Turkish lawyers, or you may appoint your own. Should you appoint your own please ensure beforehand that they are competent and well versed in the property buying process in Turkey.
Exchange
Of Contracts
The next step is to sign a contract to purchase with the seller, recording all the specific details of the property and the parties involved. At the same time you pay 50% (less initial deposit) of the price of the property. This commits you to the purchase and the seller to the sale, and initiates the title deeds (Tapu) transfer application.
The next step is to pay the balance of the purchase price as per contract less a final payment of 10%. This is paid when you receive the deeds (Tapu).
Taxes and fees payable when buying property in Turkey
- Property transfer tax of 1.5% of the value of the title deeds
- Land registration fees, usually not more than £100
- Others - surveyors fees, lawyers fees (when buying in Alanya the lawyers fees are included in the purchase price) unless otherwise agreed, agents fees, water and electricity connection charges etc.
We can assist you in opening a bank account in Turkey, if required.
Please note that these costs and notes are offered as a guide only; fees and charges and the purchasing process can vary from region to region and the size of the property.
TurkeySUN act as an agent for the builder, vendor or real-estate agent only and will not be responsible for completing the contract with you. The contract signed will be between you and the builder or vendor and anything related to the contract itself must be determined between yourself, your lawyer and the builder or vendor. TurkeySUN are introducing agents only.