Guide to buying your home here in Turkey
Buying a property in Turkey is a lot easier than in many other European countries. You can purchase land and property in your own name (or in several names if you are buying with a partner or friends), in towns or in rural areas as long as the area the property or land is in comes under a local council's jurisdiction.
In order to acquire the title of a property, an application has to be submitted to the local Land Registry Office within the town where the property is situated.
In Turkey it is legally compulsory for both sides (the seller and the buyer or their Power of Attorney*) to be present at the entry in the property register (at the Land Registry Office). During the transaction, the documents concerning the transfer of the property & purchase price are entered into the Land Registration Register and a purchase tax of 4% is collected. If the purchasers or sellers are not Turkish Speaking Citizens then they will be required to have a Government Registered Translator present or be represented by their solicitor or they may allocate a different Turkish speaking Citizen to act as their Power of Attorney.
A Power of Attorney - This is a legal document giving a person here in Turkey the official powers to act (sign) for you while you are not in the Country. This is normally completed at the outset after contracts are signed but if you decide to buy after you have returned to the UK, it is possible to arrange from the UK. UK noters do cost more than the ones here in Turkey and a UK Government Apostile of the document will be required - Please contact us for indepth information of arranging this from the UK.
Once you are Happy you have found the property for you, we will help with negotiating the price agreeing the payment terms and also the time suitable to complete the transaction.
We will consider logistics of whether the seller can come out to Turkey or whether a UK Power of Attorney is necessary – we will provide options to suit both buyers and sellers. Once we know the price, and timescale we can move on to the next steps which include the following:-
A nominal deposit can be collected to secure & remove the property from the market while in resort with the remainder of the 10% deposit payable on return to the UK - PLEASE NOTE DEPOSITS ARE NON REFUNDABLE IF YOU CHANGE YOUR MIND, HOWEVER ARE REFUNDABLE IF THE SELLER CHANGES THEIR MIND.
Once we have both Buyers and sellers copy passports, copy TAPU (Title Deeds) a contract is draw up. This is an agreement between the Seller & the buyer outlining the terms of the sale.
Once both the buyer and seller have agreed to the sale by signing the contract, the remainder of the 10% deposit is paid and it is at this point if either buyer or seller back out from the sale, compensation is paid via the liability clause.
After contracts are signed a survey is carried out on the property, this determines the legality of build and also provides the valuation for tax purposes.
Once the amount is known for Tax, we then organise the amounts to be paid, an estimate of costs will be given at your time of offer.
If you are not going to be in Turkey for the Completion (Tapu transfer date) then we will arrange a Power of Attorney to be done. This is where your passports will need to be officially translated by an independent Government translator, a document drawn up at the noters and then officiated at the Notary office and Power of Attorney signed – 2 x passport photos required.
A Power of Attorney can also be arranged from the UK, we send a document to a local notary office near to you, you attend a mutually agreed appointment taking in your passport and a photograph. You sign the document infront of the noter and he then sends to the UK Government legislation department for the required Apostile. Afterwhich the document is then sent to Turkey where it is translated and notorised and ready to use.
As from 21st of January 2022 under Article 13 of the circular of Movement of Capital, all property purchases must be made through the Turkish banking system in Lira, so the following must be adhered to:
Transfer the amount required from your home bank via swift transfer (IN GBP) to your bank account in Turkey. Please ensure you state the reason for the transfer as this can help protect your funds.
For part of the payment it must be in TL ( the declared value amount going to be shown on Tapu) Your bank will exchange this money amount with the central Bank of Turkey, however, only buyers, sellers or legal representatives can sign the exchange document, so if you are giving power of attorney to a person in Turkey you need to ensure that they have the rights in this document to carry out this role on your behalf.
You will then be issued with a Foreign Exchange Purchase Certificate; this document will be needed along with other documents listed below for the purchase process at the deed’s office.
This certificate confirms the name, surname, passport number or foreign identity number of the person on whose behalf the foreign currency was exchanged and the USD equivalent of the foreign currency purchased (tl equivalent is always included) and a statement stating that this transaction was carried out with the score of the circular on capital movements
We will be there to guide and assist you alongside your solicitor through this whole procedure and once all paperwork and finance is in order and clearance for the transaction to go ahead is received, the legal exchange of property title deeds at the land registry office can be completed in a short time.
This entails the Buyer and Seller or their representative (power of Attorney) attending the land registry office, whereby the title deeds are transferred once the owner confirms they have received the monies for the transaction and the buyer confirms their willingness to buy the property.
For newly built properties an additional form for ‘Living Permission’ is required before the deeds (TAPU) can be issued. The Building Company will apply for this and it is quite normal for an interim deed to be issued until the Living Permission is received. An interim deed will show ownership of the land only as until the Local Government office has granted living permission the property can not be shown. Once living permission has been obtained a final deed will be issued showing the Property.
It is a legal requirement that a translator must be present at the Notary & TAPU (Deeds) offices, as all the points of sale must be understood by the buyer and the seller alike before the transaction can be completed. Once the transaction is finalised, you will receive a TAPU (title deeds) in your name. All these details are also kept on file at the Land Registry Office.
Tax Numbers - In order to own in Turkey a Turkish Tax number is required which we obtain on-line from the Tax Office. Your tax number will be used for opening a bank account, paying property taxes when purchasing your property and for taxes due on an annual basis. Council charges also require you to have a tax number. We or your lawyer will assist you in this process of obtaining your tax numbers, which is very straightforward.
Bank Accounts - We strongly recommend that you set up a bank account before leaving Turkey as this is the best way to transfer funds both in and out of the country and is also necessary for arranging direct debits for utility services, insurances etc. We will assist you in opening a bank account during your stay in Turkey.
Again this is a straight forward process - you will need to bring your passport with you for identification purposes, proof of address and your Turkish tax number which we will obtain for you.
Bank accounts are opened in both Sterling & Turkish Lira (Euro & US Dollar accounts can be opened at the same time if required)
When transferring funds to purchase a property, funds should be identified as being for the purchase of a property and always transfer funds in GBP Sterling. Similarly if you sell your property in Turkey the law allows you to transfer the proceeds of the sale out of the country.
The precise purchase procedure varies from property to property and may be subject to local regulations but in general the procedure is quite simple and should not give cause for any anxiety on your behalf. The most common way for foreigners to purchase property in Turkey is to use a notary and give Power of Attorney to your solicitor to complete any formalities on their behalf if they are not in the Country.
Solicitor – It is not a legal requirement to use a solicitor for house purchase in Turkey as the actual transfer of ownership is done in Person at the TAPU (Deeds) office. However, for your own peace of mind we do recommend that you use one. We have a number of recommended English speaking solicitors in the Fethiye area that we can pass on details or introduce to you.
What your solicitor and/or Agent will do for you:
Search on property: (Searching at Deeds (Tapu) Office for any loan/debt on the property).
Preparing the contract. The contract legally binds the Purchaser & Seller in the property purchase agreement, especially for the money obligations. It also identifies the subjected property. The contract is not the final contract to have the legal ownership of the property. The legal ownership of the properties can only be transferred into the buyers names at the TAPU (Deeds) Office.
Payments to the Deeds Office and Notary
Provide Identity declarations for any Foreigner buying or Selling in Turkey
Final deeds transfer and related works
Organise the Power of Attorney if required
A sale in Turkey can take as little as 1 week but averages 10 days to 2 weeks from start to completion. But this does all depend on logistics, whether the buyers or sellers need to set up a Power of Attorney as this can take longer.
IMPORTANT NOTICE:-The particulars and information contained herein, whilst we believe them to be accurate are intended to give a fair description only and do not form part of any offer or contracts. The intending purchaser should not rely solely on the particulars contained herein.
We also recommend that you visit the British Embassy website for the latest developments and any updates in purchase law. A full guide to buying property can be viewed on their website at www.turkisheconomy.org.uk/buyingproperty
When purchasing a property in Turkey there are of course a number of fees involved and below is a summary of the costs you will incur and what you can expect to have to set aside on top of the purchase price for all relevant fees.
Many official costs are set in Turkish Lira and therefore the amount in your home currency
will change according to exchange rates at that time.
Initial Costs in Turkey:
- Translation of passport, approximately 1000tl per person
- Notary costs for drafting Power of Attorney, approximately 1500tl
- Official Translator fee, approximately 1200tl
(Please note that costs vary as it is costed on number of words/letters within the document and depends on how many clauses and restrictions are added)
For costs based on obtaining a Power of Attorney in the UK please contact us
Final Stage Costs:
- Purchase Tax (like Stamp Duty) is 4% of the declared amount **(please see footnote)
- Solicitors Fee, averages £750-1000
- Survey/Home Report (compulsory to determine tax valuation) from 3,332YTL from 1st January 2023 subject to location and size of property
- Duty Tax, approximately 2830tl
- Deed administration fee 750tl
- DASK (Compulsory Government Insurance), varies but approximately 450tl/1000ytl subject to size of property
- Estate Agent fee is 3% of the agreed purchase price
- Bank fees for sending and receiving money to Turkey, please note that from 21st January 2022 that the property must be paid in Lira via the Central Bank of Turkey - your agent or Legal advisor will complete this process for you in order to obtain the Foreign Exchange certificate required to complete the purchase. This could mean a fluctuation in the price being paid for which we suggest allow up to 1% of the purchase price.
*Footnote** The declared amount is generally lower than the true purchase price. Under declaration is common in Turkey and the value will be determined on the Home Report/Survey. Generally a reasonable declaration is around 75-85% of the true value and is normally deemed acceptable by the Local Council.
After Sale Costs:
- Private comprehensive house insurance (Buildings & Contents) is optional and price varies, approximately 1800tl +
- Costs associated with registering and connecting to Aydem electric, approx. 275tl-520tl
- Costs associated with registering and connecting to Muski water, approx. 135tl-200tl
Other Costs to Consider are Annual/Ongoing Payments:
Annual maintenance fee for pool and garden upkeep is compulsory if your property is part of a communal complex and prices vary depending on the complex size and onsite facilities (ie. onsite security guard)/ Typically this fee can be £500-750 annually for an apartment and £750-1000 for a communal villa. When you own a private villa with private pool and garden you are able to instruct your own property manager and maintenance company and the price depends on how many months you wish to run your pool, pool size and how landscaped your gardens are. Typically a private pool/garden maintenance is around £1200-1500 PA.
Council rates & property taxes are dependent upon property type, area & size of property and declared value on the Tapu/deed. It is paid annually at the local Post Office by presenting a copy of your TAPU (around April) and is usually less than £100 per year. It is around 0.1% per person of the declared property value.
DASK (compulsory earthquake insurance) is paid annually, but at the time of your property purchase your Solicitor will already have put a Policy in place. This can easily be renewed with your comprehensive house insurance annually and most Insurance Brokers in the area will accept credit card/online payments for easy renewal if you are not in country.
Electricity/gas & water utilities – Dependent on personal consumption and on individual meters. A deposit is required by the Utilities Companies when registering new ownership and once set up in your name, the bills can be paid by cash at the Post Office or by Direct Debit through your Bank.
Internet varies depending on provider and package. You can opt for the simple wifi mobile box with someone like Vodaphone for 50tl-100tl credit per month (8mg up to 12mg) being sufficient for holiday usage and easy to add credit locally as and when you arrive in resort, or you can pay for an annual installation which is around 90tl per month for unlimited, but these providers generally have an initial cost for set up and for the modem and satellite dish of around 1000tl
TV packages: Most people opt for NetFlix accounts, Amazon Prime and BBC IPlayer, but if you wanted to opt for a satellite package with a provider like DSmart they have options to suit all from 22tl per month for the basic package, up to 75tl per month for full HD sports and film packages.
Disclaimer: All of the above costs are for guidance purposes only and are subject to change. The legalities, processes and costs change regularly in Turkey, so although we use our best endeavours to ensure the information is correct, the figures quoted can change.
Please contact us for a quote based on your chosen property