Buying a property in Turkey is no more difficult than buying a property in any other EU country. The information below gives you an insight into buying property in Turkey:
- Who can buy property in Turkey?
- Are the properties in Turkey Freehold or Leasehold?
- Residents Visa Information
- Can I get a mortgage to buy property in Turkey?
- What is a Military zone and Military permission?
- What is a TAPU?
- Other than the cost of the Property, what other charges will I have to pay?
- What are the ongoing costs once I have purchased a property?
- VAT information
- Personal income tax information
- How Long Before I Move Into My Property?
- How Do I Pay Household Bills for my property?
- Can I rent out my property and what will the income be?
- Do I Have To Make A Will In Turkey?
- Do I need to take out Buildings and Contents insurance?
- Healthcare information
- I've found my dream property - what happens next?
- Appointing an independent Solicitor
- Reservation Agreement & Deposit
- Power of Attorney (POA)
- Purchase Contract
- Procedure for Military Clearance
- Payments, Tax Code and Banking
- Transfer & Registration of Title Deeds (Tapu)
Who can buy property in Turkey?
All foreign nationals can purchase a property in Turkey providing there are reciprocal arrangements. By that we mean, it is essential that property acquisition rights given by a foreign country to its own citizens and to commercial companies established in foreign countries according to the laws of these countries are also given to the citizens and commercial companies of the Republic of Turkey.
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Are the properties in Turkey Freehold or Leasehold?
All properties are Freehold.
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Residents Visa
With a multi entry tourist Visa you can stay for a maximum of 3 months in Turkey.
However, if you would like to apply for a resident's visa, you will need to do this within 1 month of first entry into Turkey. A resident's visa can be granted for a period of one to five years.
For those not wanting to apply for a residents Visa, and are not required to do so as part of their buying process, you can simply leave Turkey for 24 hours and purchase another 3 month visa on re-entering Turkey.
Some nationalities outside of Europe may require a 'residents visa' as part of the buying process. We will be happy to let you know if you need a residents visa.
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Can I get a Mortgage to buy property in Turkey?
Turkish mortgages are now available to all EU residents. Various European banks also offer mortgages for purchasing property in Turkey.
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What is a Military zone and Military permission?
Certain areas are designated on town plans as military zones where foreigners are not allowed to buy at all.
All foreigners purchasing property in Turkey will need to apply for military permission, pay the required fee and await clearance to be obtained from the Aegean Army Command. Your solicitor can help the seller with the application. A check will be made to ensure that the property you are buying is not in a military zone, or in any other prohibited area. Once this permission has been obtained (takes 3-6 months normally), then title deeds can be transferred into your name.
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What is a TAPU?
A TAPU (Title Deed) is an official document which shows you have ownership rights over the property. The owner's full name and photograph and detailed information of the property will appear on this document. There are two types of title deeds:
- Kat Irtifaki:
Ownership of the independent unit which is not ready for use yet (either because of on going development / construction work or due to the fact that usage permit from the municipality has not been approved yet. (also known as provisional title deeds or easement deeds) - Kat Mülkiyeti:
Ownership of the independent unit which is ready to use (flat, house, Office,) These title deeds are transferred into your name once the Kat Irtifaki tapu and the habitation license is presented, together with the necessary payments to the Land Registry. This is normally done by the seller.
And
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Other than the cost of the Property, what other charges will I have to pay?
In addition to the cost of your property, the fees listed below will need to be paid. Depending on the value of your property, as a general rule of thumb, you should allow approximately 5% for these fees, including Solicitors fees.
- Military Permission Fee:
A Military Permission application fee is payable in Turkish Lira to your solicitors, who will forward to the authorities. This amount varies from municipality to municipality. - Property Sale-and-Acquisition Levy fee:
Also sometimes known as, Stamp Duty Fee, property tax, transfer, or purchase tax.This varies according to the declared value of the property noted at the Title Deed Registry Office. The Standard transfer tax is 3% of the property purchase price and this cost is now usually met by the purchaser. However, in some circumstances the vendor may contribute towards the transfer tax. This will be confirmed within the contract. - Notary and translation fees:
A notary is a neutral public official neither acting for the Seller, nor the Buyer, who only oversees the signing of the final deed, transferring the property into your name.
In order to give your solicitor Power of Attorney whilst out in Turkey, you will need to visit the Notary, together with 4 passport size photographs and your passport. We will accompany you as well as your Relationship Manager from the solicitor's office who will arrange for the standard POA to be translated by a sworn interpreter (a legal requirement) and explained to you. This is then stamped and lodged at the Notary. Your passport will also need to be translated into Turkish. Please see our notes on how this can be done from your home country if you are buying without visiting Turkey. - Water and electricity connection charges:
This needs to be done in person or you can ask your solicitor to do this for you with a Power of Attorney. The utility companies charge for the connection is approximately £180. - DASK - Compulsory Earthquake Insurance:
Valid compulsory earthquake insurance has to be in place at the time of the title deed transfer. This is purchased by the buyer and a national tariff is applied. This can be purchased from most insurance companies.
This is very much a general outline and some nationalities, outside of the European Union may need a residence permit prior to starting the buying process.
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What are the ongoing costs of the property?
Once you have purchased, the following are payable:- Property tax:
Annual Property Tax (a tax similar to the Council tax in the UK) is payable as a percentage of the declared value of the property, as follows:- > building land 0.3%,
- > commercial buildings 0.2%
- > residential buildings 0.1%
Tax is calculated on the basis of the declared value of the property, which will not be less than a threshold set by tax authorities. These payments are made in two equal installments in the period March-to-May and in November each year and are collected by the local municipality (Council). The tax base is annually updated and determined by the Ministry of Finance taking into account the inflation rate.
The new owner of a property has to declare the price paid to the municipality by the end of December in the year of purchase.
Property Tax of the property in the year of sale is paid by the seller whereas the consecutive years taxes are paid by the new owner.
Property Tax rates for properties in Antalya, Istanbul, and Izmir as well as other provinces (not featured on this website) are two-fold the normal rates stated above. - Monthly service charge:
This is paid direct to the developer/residents' association if you have purchased in a complex, normally on a monthly basis, payable by standing order. - Buildings and Contents Insurance, payable annually and can be paid by standing order on arrangement.
- Electricity and water charges in accordance with your consumption.
- Gas - there is no piped gas along the southern coastline of Turkey - bottled gas is generally used for cooking and is delivered straight to your door by suppliers. Mild winters mean that central heating in properties is not common. However, where central heating has been installed, larger gas bottles and fuel can be used. Air conditioning units that emit heat in winter and cold air in the summer are generally used for heating in the winter months. Open fireplaces or beautiful wood burning stoves in the older properties are also used.
- Other facts on taxes that may be of interest to you but not in relation to your purchase:
- Inheritance and Succession Tax:
Whilst we are not financial advisors, nor accountants, we believe the Turkish taxation laws on inheritance tax make interesting reading for our UK clients. It makes an interesting proposition! We do suggest you seek further advice from a qualified accountant if this area is of particular interest to you.
The transfer of a property from one to another without any payment or by inheritance is subject to Inheritance and succession tax. The tax is paid by the person acquiring the property and is assessed on the declaration submitted by the taxpayer within the first four months of the date of death, unless the circumstances are as below:
- > If the death occurs in Turkey and the taxpayer is not in the Country, the declaration period is then extended to six months.
- > If the death occurs in a foreign country and the taxpayer is in another foreign country, the declaration period is then extended eight months.
- > If the property is transferred by gratis, the declaration period is one month following the date of acquisition.
- > There are tax discounts for inheritance to daughters, sons and spouses. In the instance of a spouse or children (including legally adopted children) are to take over an inherited property, then the amount of TL 107,604 is deducted from the tax base of each person.
- > If only the spouse is the heir, the amount of deduction from the tax base is TL 215,336.
- > In case of succession without reciprocity (gifts) - the amount of deduction is TL 2,481.
- > As of 1st January 2009 the applicable tax base brackets and rates are as follows:
Tax Base Brackets (Based on the value of the inherited asset)
Inheritance
Tax Rate
Succession Tax Rate (When no reciprocity exists)
First TL 160,000
1%
10%
Next TL 350,000
3%
15%
Next TL 760,000
5%
20%
Next TL 1,500,000
7%
25%
Amount above TL 2,770,000
10%
30%
- Note: a levy of 0.9% of the value of the property will also be charged while the inherited property (or the gift) is being transferred into the name of the new owner at TAPU (Land Registry) Offices.
- Inheritance and Succession Tax:
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VAT
VAT is payable on property over 150m2 but this is generally paid by the developer/seller.
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Personal income tax
Rental income and capital gains on all properties are taxed.
If you sell your Turkish Property within the first 5 years of having the title deeds in your name, there is a 15%-35% sliding scale 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. In addition, there are no restrictions to taking funds out of Turkey upon the sale of your property. Please see our information sheet on rentals.
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How Long Before I Move Into My Property?
Depending on whether you buy off plan or a completed property, the timing varies. On a completed property you can move in as soon as the title deed transfer has taken place - remember it may take up to 3-6 months to receive the final Title Deeds (Tapu) for your property. However, once you have paid a significant percentage of the purchase price of your property, (your solicitors will have arranged a form of security for your funds), then most developers will allow you to move in pending the receipt of the military permission and title deed transfer into your name.
On 'off-plan' properties, the date and terms are specified in the sales contract but generally it's when your property has been completed and 90% of the purchase price has been paid. Maintenance/service charge will be payable as soon as you move into the property regardless of whether the site is completed in its entirety. Facilities on larger projects are generally completed in the 6 months following the completion of the properties.
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How Do I Pay Household Bills for my property?
All bills can be paid by standing order.
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Can I rent out my property and what will the income be?
The holiday home rental market in Turkey is becoming increasingly popular as the availability of completed properties increases. Like elsewhere in the world, its' rentability depends on various factors including, location, closeness to the beach/golf/airport, number of bedrooms and period of rental (short term or long term rental). We can help guide you through this process, please ask for our rental information sheet. If the rental criteria are met, rental yield on your Turkish property can be anything from 6% per annum.
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Do I Have To Make A Will In Turkey?
Wills prepared by foreign nationals in their own countries can be valid in Turkey however there is a lengthy process to have the document verified by the Turkish Consulate General. A new Will can generally be drawn up in Turkey by an English speaking solicitor for approximately £250.
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Do I need to take out Buildings and Contents insurance?
It is advisable to insure your property. Most large European insurers operate in Turkey and the process is straightforward. Please ask for our insurance information sheet.
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Healthcare
The standard of private medical care in Turkey is high. You will find most European health insurances are accepted and many hospitals have interpreters. English is also spoken in most doctors' surgeries in the main tourist resorts.
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I've found my dream property - what happens next?
- 1. Appointing an independent Solicitor:
Once you have made a verbal agreement to reserve the property and agreed the terms, it's time to appoint a solicitor. It is not compulsory to use the services of a solicitor, however we suggest you appoint a reputable solicitor, who speaks your language (and/or is English speaking). who can act independently and will check the current legal status of the property or plot. Your solicitor will request the relevant documents from the seller and check that:
- > The title deed of property is currently free of debts and any other charges or encumbrances.
- > The property is freehold and is located in an area where there are no restrictions for foreigners purchasing properties.
- > Current ownership of the property at the land registry office
- > The developer has all the required planning permissions and building licenses.
There are many transactions for buying a property and some stages are critical. A wise purchaser will utilise the services of a solicitor who has experience in Turkish property law and can give legal advice about all aspects of the purchase, including Power of Attorney, military permission application, Hypotech.
We can recommend independent Solicitors based in Turkey, UK and other locations. - 2. Reservation Deposit and agreement:
Once the checks have been successfully completed, to ensure the property is taken off the market and the price frozen, a reservation agreement is drawn up and a deposit of £2,000 (or sometimes Euro3,000) is payable, generally by credit card. This reservation deposit, if made in country is generally non refundable so it's important to have the checks made first. - 3. Power of Attorney (POA):
Appointing someone POA enables them to complete various administrative tasks on your behalf. Many clients choose to give POA to their Solicitor. This enables them to act on your behalf without you having to be present. A POA is a document, which is specified and drawn up at the Notary office, in your presence. It will allow your solicitor to undertake the following:
- Applications for the purchase of property in Turkey.
- Signing of private purchase contracts.
- Opening bank accounts in Turkey.
- Obtaining tax number on your behalf
- Obtaining title deeds on your behalf
- Connection and registration of water and electricity utilities
- And any other rights you may wish to give them relevant to your particular needs.
- 4. Purchase Contract:
Once the property is taken off the market, a standard sales contract will need to be drawn up. A standard sales contract will include the following, in your language (or English) and Turkish. It's the Turkish version of the contract that is valid and it is important therefore to use a reputable solicitor who will make the translation for you. A contract should include the following:
- Full property details, including, official description and location, according to the details on the deeds
- Payment terms - As agreed between the client and the vendor.
- If the property is being purchased 'Off Plan' or during construction, completion and delivery dates.
- If the property is in a complex, the facilities on site and their completion dates if the property is 'off plan' or under construction.
- If the property is already completed, handover dates.
- Penalty clauses for both buyer and seller.
- Where applicable, details of agreed changes or upgrades to standard technical specifications, and / or agreed additional details.
- Standard technical specifications regarding the development and the property.
- The use of the property pending receipt of military permission.
- Form of security for your funds pending the receipt of the military permission and title deed transfer
- The construction guarantee and its details
- Draft Contract
A draft contract will be prepared for you to sign. If you are not present in Turkey, the contract will be sent to you. Once signed, the Solicitor will witness counter-signing by the vendor.
- 5. Procedure for Military Clearance:
In Turkey, all foreign purchasers are obliged to acquire military clearance from the Aegean Army Headquarters before title deeds can be transferred to an individual's name. These checks control that the property to be purchased is not in a military sensitive area, a registered forest area, archeological site and or a village area without cadastral division. This procedure is the responsibility of the developer/vendor. However, the Solicitor assists the vendor in the collection of the relevant documents required and, where applicable, collection of costs from the purchaser before supervising and controlling the actual application and tracking the response. When purchasing 'off plan' the Military Clearance application cannot be made until the correct easement deeds are in place. - 6. Payments, Tax Code and Banking:
Before sending any funds, it is compulsory if you're buying property in Turkey to have a tax code. Obtaining a code can be done at the local tax office, nearest to your property/land. We can help you with this process locally or your solicitors can apply for this for you with a Power of Attorney.
To open a bank account: once you have your tax code, present it, together with a copy of your passport and two passport size photos to a bank branch to open an account. We can help you with this process at banks locally in Turkey. Most banks in touristic areas have at least one member of staff who speaks English. Once you have opened your bank account, it is easy to use their internet banking services. Turkish banks have won European awards for their internet banking services and are available in English. They provide a comprehensive range of services and are very user friendly!
There are a number of ways to send funds and make payment:
You can transfer money from your home country to pay for your property using either:
- Convert your currency through specialist commercial foreign exchange companies for the best exchange rates, before sending on to your solicitor's Client Account in Turkey, who can make the payment on your behalf, or,
- after exchange, to your Turkish bank account (which can also be a Sterling, Euro or Dollar account) and your solicitors can withdraw from this account, with the POA you have given them to make payment to the seller on your behalf at the appropriate time.
- 7. Transfer & Registration of Title Deeds (Tapu):
After obtaining military clearance and as long as both parties have fulfilled their contractual obligations, both the vendor and buyer must be represented at the Land Registry Office for the title deed transfer into your name and entry onto the Land Registry. If you are not able to attend personally, you can appoint a Power of Attorney to be present in your place. Depending on the terms in the sales contract, the deeds transferred may be classified as 'Kat Irtifak' (also known as 'easement rights' or 'transitional deeds'). If there is a final payment, this will be transferred to the vendor simultaneously upon the completion of the exchange of deeds. Following the completion of construction, the developer is usually responsible for the completion of administration necessary for the issuance of habitation certificates. Once this is completed the property will then be registered as 'Kat Mülkiyet' (or 'freehold') at the land registry offices. -
8. Move into your new home - you'll never look back!
Remember, we're with you every step of the way....
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ADDITIONAL INFORMATION
We have used our experiences of living and working both in Turkey and in the UK to compile this quick and easy information guide for you via the links below. Lots of information on how to get there, which newspaper, which bank, how to get a mortgage, differing viewpoints on Turkey and lots of other essential information. We hope it proves useful. If any of the information has changed, without our knowledge, or you have information that might benefit others, please email info@worldabodes.com and let us know so we can update this page.
Airlines
From the UK
Cyprus Turkish Airlines -Direct flights all year to Antalya and Izmir from London Stansted, summer months to Bodrum from Stansted. Flights also from London Heathrow.
EasyJet -Direct flights to Istanbul from London Luton and to Dalaman and Bodrum from London Gatwick
First Choice -First Choice Flights to Antalya, Dalaman, Bodrum & Izmir
Fly Thomas Cook -Cheap Seats to Turkey from the UK
Flyglobespan.com -Scotland to Dalaman flights
Jet2 -New route to Dalaman, Turkey in April 2009 from Leeds with Jet2
Pegasus Airlines -London , Germany, Austria and Switzerland to Istanbul, Izmir and other Turkish destination.
Sun Express -Budget Airline from Germany to Antalya and Izmir
Thomson -Summer flights to Turkey
Turkish Airlines -Turkey's National Airline for daily scheduled flights to Turkey, worldwide
Budget Airlines listing from UK - To Dalaman
Budget Airlines listing from UK -To Bodrum
Budget Airlines listing from UK - To Antalya
From Europe
Norwegian Air - direct flights from Oslo Gardermoen to Antalya and to Istanbul: Sabiha Gokcen connecting flights to the Dalaman and Bodrum
Austrian Airlines - flights to Istanbul, Antalya, Bodrum and Dalaman
Swiss International Airlines - Flights from Stockholm to Istanbul
Budget Airlines listing from Europe - To Dalaman
Budget Airlines listing from Europe - To Bodrum
Budget airlines listing from Europe - To Antalya
From the Middle East
Emirates -Flights to Istanbul, connecting flights to the coast
Gulf Air - to Istanbul four times a week
From Russia
Rossiya Airlines - direct flights from Moscow and St Petersburgh to Antalya
Aeroflot - Flights to Antalya
Kyiv to Antalya
From the USA
American Airlines - Flights to Istanbul
Transportation
Pamukkale Coaches - large national coach company, offices in tourist areas have English speaking staff
Bodrum Ferryboat - Information on Ferries to Kos, Turgutreis, Kalymnos. Site loads with Music.
Mortgages and Banking
Is Bank London
Garanti Bank
About Turkey
Turkish Tourist Board
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Embassy of Republic of Turkey Turkish Embassy, London (Office of the First Economic Counsellor) - Advice on buying property in Turkey Turkish Consulate Consular services Foreign and Commonwealth Office Country information on Turkey BBC Country Profile - Turkey |
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The world Factbook Turkey Information provided from the CIA. The World Bank World Bank's Mission in Turkey Turkish Tax System The website of the Turkish Inland Revenue in English to answer any specific questions. |
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UK Department for Work and Pensions The International Pension Centre deal with queries about United Kingdom benefits payable if you live in Turkey. |
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UK Electoral Commission To vote in UK elections your name must appear on the electoral register. Once registered as an overseas elector, you will be able to vote in Parliamentary elections and European elections, but not local elections. |
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UK HM revenue & Customs National Insurance Contributions, Retirement Pension Forecasts and advice for those abroad. |
Weather http://www.turkeyforecast.com
Approved Member of: AIPP
Turkey News
Sabah
Cornucopia - "Opens the door on Turkish living" - The Evening Standard, UK
Turkey Forum
Turkish Living
Health Insurance in Turkey
Bupa International