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The Buying Process overview Finding your ideal property should be a pleasant experience. Providing the real estate professional one chooses is respectful of and knowledgeable with the rules and regulations, purchasing property in Turkey is relatively simple, safe and without risk. We will then provide you with a list of properties for your consideration. Once you have chosen your selection, it is advisable to plan an inspection visit where we can walk through all of the properties, familiarize you with the surrounding areas and consult together which best fits your needs and lifestyle When you have decided to buy a property and have negotiated a purchase and sales agreement, you may consider opening a bank account with a local bank to help you transfer funds. We can provide you assistance if necessary. A standard 10 - 60% (it modify up construction company) deposit is required to secure your property, with the remaining balance to be paid according to your purchase and sales agreement. In most cases the property owner and the buyer sign the Purchase and Sales Agreement before a Notary Public. This is an official document stating all the personal data of the seller and the buyer as well as the property in question. The price of the property, details of the payment and the time of conveyance at the Land Registry Office are all entered in this document. This document is signed by both parties in the presence of a certified translator appointed by the Notary Public. The sworn translator translates the contract to the foreign party. A power of attorney is assigned to the real estate professional representing the buyer, authorizing him or her to carry out all the formalities and necessary legal procedures regarding the pre and post purchase services. Power of attorney usually includes authorization to buy/register the property in the name of the buyer, to obtain a completion report for the property, official registration of water and electricity meters for the property, registration of the property in the municipality department, payment of local taxes, etc... Application to the Land Registry Office to start procedures for military permission is necessary (a formality to ensure property does not encumber on military land). Application of the title deed on the buyers behalf will be done to secure property until actual title deed assignment (6 - 8 weeks). Once a receipt of military permission has been completed and all documentation has been approved and returned to us, we will immediately contact you to arrange a suitable date to complete the purchase and sales transaction, transfer of remaining funds, payment of all associated taxes and assignment of the title deed TAPU. The assignment of the title deed TAPU will take place at the Municipality Land Registry Office. The buyer or their legal representative is required to be present at the Land Registry Office for conveyance. A certified translator is also required when one of the parties is a foreign national. Conveyance is executed in the Land Registry Office, which is a State Department. No other department, authority or person has the power to transfer title deed to your name. The new owner of a property receives a title deed (TAPU). TAPU is the official document proving ownership of a property.
Costs Buying real estate in Turkey involves many regulations. Not only must formal regulations be taken into account, but foreign nationals must also heed the various legal exceptions to acquire real estate. Zoning schemes, antecedents of the selling party and legal restrictions imposed by Turkish property legislation are some important aspects that must be approached objectively, reliably and professionally. Buying property in Turkey for Private Use Buying property in Turkey is not as complicated as you might imagine. The procedure is often far simpler than in most other European countries. Foreign nationals may purchase land and property in Turkey in their own names provided that properties are located in towns (i.e. the property must be situated within the boundaries of a city, town, or borough that has a local government), and not in villages or rural areas and must be 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 the area 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. Sometimes this process can take a few weeks, unless the owner of the property is already a foreign national, then the checks and searches have previously been carried out and the whole procedure can be done very quickly. 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. Purchase Tax A 1.5% duty for both the purchaser and seller is due and collected during the transaction. Annual Property Tax The annual property tax in Turkey is collected by the local government, at the rate of 0.1% for private buildings. Newly built properties are exempt from this annual property tax for 5 years. All properties are subject to revaluation every five years for tax purposes. The acquired property may be resold or rented out and the proceeds may be transferred out of Turkey. Different regulations apply when a property is purchased for business related purposes. Turkish Property Legislation Ownership is defined in article 35 of the Turkish Constitution. This article stipulates that anyone is entitled to property ownership and that these rights can only be restricted by other legal stipulations. The restrictions may consist, for instance, of zoning schemes, restrictions applicable to foreign nationals, etc. The ownership regulations are elaborated in the Turkish Civil Code, article 633. This mainly explains how ownership is acquired. For the purchase of property by a foreign national, the registration of the land is especially important. In Turkey there are regional directorates of the Land Registry Department, which are subdivided in provincial or district offices and they are all controlled by the state. Property Registration and Delivery 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. The public notary is also responsible for the delivery, which often takes place in the form of a 'deed of transfer' and the entry in the property register. In contrast to this, the entry in the property register in Turkey is not performed by a public notary, but by an official of the Land Registry Department. 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 notorial 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 the entry and delivery the property register issues a proof of ownership, which is called TAPU. The ownership is only obtained at the moment that the building(s), if under construction, has been completed and the full amount has been paid. Mainly there are no legal restrictions against foreigner nationals regarding the acquisition of property ownership. However, the Village Act and the Military Prohibited and Security Areas play an important role; Article 87 of the Village Act denies the right to foreigners to ownership of property that is outside the center of a village in case the cadastral division of this area had not been arranged yet or it may belong to the Ministry of Forest. Also, the act regarding Military Prohibited and Security Areas can be an impediment and therefore restrict the acquisition of property by foreigner nationals if the property is located within a particular distance of military sites or strategically important areas. The major legal restrictions mentioned above may in turn change or even be (partly) canceled by more recent legislation which is closely related to the promotion of the economic position of Turkey or the adjustment of regulations and laws to EU or tourism promotions for foreigner nationals etc. Rental Income Rental income is liable for tax assessment in either the home country or Turkey and will be payable depending on the personal situation. Selling Costs Freehold resale costs are around 5% (comprising sales tax, local documentation and legal fees). Property may be sold to Turkish, or foreign nationals without restriction. Because of the change in law (Decree 32 August 1989) the lira is now convertible so proceeds of the sale of a property can be converted to whatever currency and subsequently transferred to any country you choose. Capital Gains Tax 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 one year. In the home country capital gains may be taxable depending on the individuals situation. We would always recommend you consult an accountant because each individual's circumstances are different. Costs
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