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Turkey has reciprocal agreements with a number of countries which allow their citizens to legally own real estate in Turkey, having almost the same right as Turkish citizens. These countries currently include Australia, Austria, Belgium, Canada, France, Germany, Greece (providing that some restrictions are reserved), Holland, UK, Ireland, Italy, Norway, the Turkish Republic of Northern Cyprus, Luxembourg, Spain and the USA. It is probable that in the future, other countries will be added to the list.
Foreigners are permitted to buy property in their own name in most of Turkey’s tourist destinations.
However, a recent change to the Title Deed Law article 5444 means that foreigners can not now own property that is outside the centre of a municipality city plan boundary, only land or property that lies within the marked boundaries of the municipality city plan can be purchased providing there is a valid tapu (or title deed).
Property which remains out of bounds to foreign buyers includes that which is farmland, in any location or located within a particular distance of military sites or strategically important areas (according to the Military Prohibited and Security Areas Act).
if you wish to obtain property in areas such as Village areas, you may need to do so through forming a limited company in Turkey . In these areas, much of the land is officially owned by the Turkish government or forestry ministry and it is only possible to obtain use of the land, not outright ownership – thus any purchase involves an element of risk.
Most Turks complete their property purchase in an hour or so at the local Property Registry Office (tapu office). There is no need for a solicitor (avukat) or notary to oversee the process. However, it’s vital to ensure that all legal restrictions are adhered to and that there are no problems (eg debts, mortgages or encumbrances) on the vendor’s side. Professional advice is essential. We have plenty of experience in the property business and we are happy to undertake a through investigation of any prospective purchase. For extra peace of mind, we can put you in touch with a local English-speaking lawyer, to conduct the necessary legal searches and guide you through the buying process. Unless you can prove you are fluent in Turkish, you will also need the services of an official translator.
You need to ensure that any building (including your own project-in-waiting) complies with local planning laws. These dictate how much of each plot can be built upon – 30%, 20%, 10% and so on. The only exceptions are houses built before the imar plan was imposed on an area. You also need to check whether there are any roads or other plans which may affect the property in the future. This can all be checked by visiting the Belediye and local planning offices, who will need to know the parsel (plot) number and see a copy of the tapu or deed. Staff in local government offices rarely speak English so you will need a translator.
We can assist with all of this - please note that we fully check the tapu for every property we market to the best of our ability, although we cannot be held responsible for unforseen problems and recommend that you use the services of a lawyer.
Turkish law allows you to rent out your home and profit from it, although commercially let properties need to be registered with the appropriate authorities, and rental income is liable for tax assessment in either the UK or Turkey and will be payable depending on the personal situation.
There’s nothing to stop you selling up and moving on. However, it's IMPORTANT that when you buy, you transfer your purchase funds into Turkey through a Turkish bank account, identifying the purpose (eg. transfer purpose for the purchase of Turtle House, Tapu No. 1234) and ensuring you have enough to cover both the purchase and any related expenses. Keep all receipts so that you will have no problem should you later wish to sell up and take the money out of Turkey. You are free to sell to Turks or foreign buyers.
A legal change (Decree 32 August 1989) has made the Turkish lira convertible so proceeds of the sale of a property can be converted to whatever currency and subsequently transferred to any country you choose.
Freehold resale costs (tax, local documentation and legal fees, plus agent’s fees) work out at around 6% of the selling price.
The UK and Turkey signed a double taxation treaty in 1986 (amended in October 1988) which covers the reciprocal agreement regarding income tax and corporation tax in Turkey and income, corporation and capital gains taxes in the UK. So you won’t end up paying tax in both countries but you will have to pay it in one! As an individual, you should not have to pay capital gains tax in Turkey, provided you’ve owned the property for four years. However, the UK tax position depends on individual circumstances and we recommend you consult an accountant and/or talk to the Inland Revenue direct
If you’re serious about buying one of our properties, we will supply you with a list of the relevant charges and taxes you should expect to pay on top of the purchase price, plus an estimate of the running costs. Something like this… (all costs are approximate)
* Plan of your plot from the surveyors' office and local authority plus military search fees -
£1,200 approx
* Notary’s charges – the notary charges to authorize a passport translation and also to authorise a power of attorney allowing a lawyer or proxy to act on your behalf – total costs should be no more than £100
* Translation fees – from £10 for a passport translation - as official translators, we offer
this service free to our buyers
* Purchase tax - 3% of (declared) purchase price, to be paid on completion
* Agent's fee - 3% of purchase price; half to be paid on contract signing and the balance on
completion
* Administration costs (payments to tapu/deeds office) – around £150
* Lawyer’s fee (optional but highly recommended) – £700
* Beyanname (declaration to the Belediye/local council that you are new owner, which
generally involves a 'donation' to the school, football team etc, plus any local taxes which
are due at the time of purchase), plus mains water supply registration – £700
* Electricity 'abonman' (ie. having service put into your name, plus a deposit against
non-payment of bills!) - £200
* Earthquake insurance, which is mandatory - £60 per annum
* Household contents and buildings insurance - £300 per annum (depends on property type)
As a rule of thumb you should allow around 10% of the property’s price to cover purchase costs, so the costs involved in a straightforward purchase of a villa priced at £80,000 will be around £8000. Different costs will apply if you are undertaking a building or renovation project and we suggest you contact us for more information.
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