PROPERTY PURCHASE PROCEDURE
IN TURKEY
Buying a property in Turkey is a lot
easier than in many other European countries. Foreigners
may purchase land and property in Turkey in their own
names provided that properties are located in towns (i.e.
there must be municipality in the area where the property
is located and the property must be situated within the
boundaries of that municipality or borough), not in
villages or rural areas and outside of military zones. In
order to acquire the title of a property, an application
has to be submitted to the local Land Registry Office in
which the property is situated.
After carrying out necessary searches and checks for the above mentioned requirements, the transfer of the title is done by the Land Registry Office. In Turkey, it is legally compulsary for both sides (the seller and the buyer) to be present at the entry in the property register. During the transaction, the proofs or the documents concerning the transfer of the full purchase price into Turkey must be presented to the Land Registry Office. A purchase tax of 3% is collected from the purchaser during the transaction.An annual property tax is collected by the municipalities (i.e. local governments) at the rate of 0.3% for land and 0.1% for a house in the Kalkan area. In the big cities these figures are doubled. All properties are subject to revaluation every year for tax purposes.
On newly built properties, within 3 months of construction finishing, the buyer must complete an affidavit and submit it to the municipality for these tax purposes. Tashan Construction Co. is happy to guide customers through this process for the first time.The acquired property may be resold or rented out and the proceeds may be transferred out of Turkey. Please note: Different regulations apply when a property is purchased for business related purposes.
Can all foreign nationals purchase property in Turkey?
Most foreign nationals can purchase property in Turkey. Agreements are usually reciprocal between governments. For a full list of nationalities which can purchase please click here
Can I borrow money in the UK to purchase my Turkish property?
From September 2006 it is now possible to mortgage in the UK against a Turkish property. Some restrictions apply as to the where in Turkey and what type of property. Rates are from approximately 6.9% in Sterling and 5.9% in Euros
Mortgages are available for Turkish residential property located on the Turkish Riveria and İstanbul only for the purposes of property purchase, refinance, and home improvements.
Main Points:
- The mortgage will be secured on your Turkish property
- Lending amounts from 40.000 to 200.000 Euros (larger amounts may be considered on a case by case basis)
- Up to 80% of the purchase price or property valuation whichever is the lower value
- Maximum term 20 years
- Maximum borrowing age 75
- Proof of income is required (see below)
- Repayments must not exceed more than 45% of nett monthly income together with any exisiting liabilities i.e. mortgage/rent repayments, personal or banks loans etc.
- For off plan purchases the funds will not be made available untill the property is registered in the buyers name.
- Mortgages are not available for the renovation of property which is currently uninhabitable
- If the property is rented the Interest Rate is increased by 0.6% throughout the mortgage term
Further İnformation
All applicants need to provide a minimum proof of income:
Employed applicants
- Copies of the your last three months pay slips
- Copy of your latest P60
- Employers reference
- Copies of your last three months personal bank statements
For Self Employed applicants or Directors of Limited Companies (wıth a share holding of 20% or more)
- Copies of the last 3 years Audited accounts
- Copies of your Personal Tax Returns fort he last 2 years
- Copies of your last 3 Personal Bank Statements
What will be my buying costs on top of the purchase price?
The costs ontop of the purchase price will be:
- Purchase tax
- Legal fees
- Re registration of the utilities at completion
- Insurance for the property at completion
As a rough guide lines these usually work out as a 4 to 5% on top of the purchase price.
How can I pay the deposit to secure my property?
There are several ways you can pay the deposit money:
1. Cash or travellers cheques
2. Cash withdrawl on a credit card over the counter in a bank
3. Money transfer from your account in the UK to an account in Turkey
1. Is self explanatory but not always practical depending on the amount of cash you need to bring with you.
2. For this to work sucessfully the local banks must accept your card. As a general visa is fine but maestro is not accepted locally. You will need to tell you credit card company that you plan to make a large cash withdrawl otherwise they can stop the transaction for security checks.
3. Not all UK money institutions will accept a fax or phone authorisation for a foreign transfer. You must check with your bank or building society before you come to ensure this is possible and if so what documentation they require.
Like many other sellers around Klalkan, we will accept a goodwill deposit from you when you are here. This would be around £1,000 to £2,000 pounds with the understanding the balance of the 10% will be transferred to Turkey within 10 days of your return to the UK. A good will deposit is non refundable.
Can I open a Turkish bank account from the
UK?
What documents do I need to open an account?
It is not generally possible to open an account at a Turkish bank from the UK. You must be present at the bank to open the account and require your passport plus one other form of identification. You do not need to place funds in the account but most banks levy a small administration fee for setting up the account.
Are transactions completed in Sterling or Turkish Lira?
Generally most property transactions in this region are completed in Sterling. If the property is advertised in Sterling then the contract and payment will also be in Sterling. Euro or Dollar are equally acceptable and the rate of the conversion will be agreed at the contract date.
How long will it take to complete the purchase?
The main determining factor for completion is the arrival of the military permission for the purchaser. Once the application is made all parties have to sit and await its return. Currently the time taken is around 10 to 16 weeks.
Do I have to return to Turkey for the completion?
Unless you have arranged for your power of attorney to be given to a lawyer or friend then yes. The transfer of the title deed of the property is a process completed face to face.
How do I arrange power of attorney?
Power of attorney is arranged through the Notars office. You will need to visit this office along wth the person to whom you are giving the power of attorney and accompanied by an official translator. The Notars office is open Monday to Friday only, so allow time for arranging this, if this is your preferred method of completion.
If later I sell my property can I take my funds out of Turkey?
Yes. There is no restriction on foreign money movements into or out of the country.
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