Buying in Turkey

PURCHASE PROCEDURE FOR PROPERTY IN TURKEY

From January 2006, new Laws have been issued regarding purchases by foreign investors. Only land and properties can be purchased within municipal boundaries. Companies are able to purchase anywhere within Turkey, but a maximum land area of 25,000m2 can be purchased at one time.

Our company always investigates the tapu (Title Deed) to ensure that the property can be sold and there are no debts applicable.

 The actual purchase process is very simple and easy in Turkey.

 The following procedure is used:

1. A contract is drawn up between the Vendor and purchaser using either a local lawyer or one chosen by the purchaser.

2. A deposit is paid which varies according to the property and wishes of the Vendor.

3. Permission to purchase must be obtained from the Turkish Military Authorities in Izmir, we do this on your behalf.

4. The buyer can give "Power Of Attorney" to our staff, authorizing them to carry out all the formalities for the purchase and to give the buyer post purchase services. Power of attorney usually includes authorization to buy/register the property in the name of the buyer, official registration of water and electricity meters, insurance for the property, registration of property in the municipality departments, payment of local taxes etc. We would not have Power of Attorney over any other legal or monetary aspects.

5. Legal fees including a translator and Notary costs are usually paid by the purchaser.

6. Our charges of 3% commission are paid at the time of transfer of ownership to the purchaser.

Costs Involved In Purchasing Your Property:

As a foreigner purchasing in Turkey you have to obtain permission from the Turkish military, this is only a formality and we have never heard of anyone being refused permission as a UK citizen. The costs for this involve a payment to the mapping department at the Dalaman Coucil offices for two maps to have your property pinpointed on a large scale and smaller scale map which is then sent with your application for military clearance.

 

The local council charge 15 TL per m2 of the property to be purchased.  The second smaller map is a flat rate charge of 250 TL. ( about 105 pounds)

 

150 YTL [about 65 pounds] has to be paid into Zirrat Bank (Government Bank). This is to pay the necessary taxes for the tapu [deeds] office.

 

80YTL[about 35 pounds] has to be paid to the local Noter and this covers your passport being translated.

 

300 GBP Lawyers fee-this amount varies depending on which lawyer you use, but this is an average price and the amount charged by a lawyer we often use. Again, this is optional but we recommend instigating the use of a lawyer in processing your house purchase.

 

The necessary Military permission takes approximately four-six months.

 

Once Military permission is granted the change over of tapu from vendor to you involves tax to be paid at the Land Registry Office. This is Stamp Duty of 3% which will vary from property to property dependant upon a valuation set by the council but for a typical 3 bed apartment this would be between 700 and 900 pounds. This is due to be paid at the time that the Tapu is transferred into your name.

 

Translator 100 YTL [42 pounds] for translation services at the Tapu office.

 

Water and Electric Utilities to change the name from vendor to purchaser this costs 600 YTL [about 260 pounds]

 

Agents commission of 3% of the purchase price.

 

NOTE. Capital Gains Tax: When a property has been owned for five years or more, no Capital Gains Tax will apply.