Buying a property in Turkey
There were over 32mn visitors to Turkey in 2012 with this number expected to increase over the coming years. Turkey is continues to invest in its infrastructure & tourism projects. New marina developments, golf courses are emerging along the Mediterranean coastline. The World Championship of Golf was recently held in Antalya. Turkey is now healthcare destination place with world class hospitals and medical care.
Turkey’s population of 75mn and growing has an average age of just 28 and GDP economic growth ranks amongst the highest in the world. Turkey is also a very accessible place to live (see Turkish residence permit section). Europeans can draw their pensions in Turkey.
Property inspection trip
We have a simple approach to inspection trips. You book your flight and we will take care of the rest.
We will meet you at Dalaman airport and provide accommodation for you during your inspection trip (maximum 5 nights). Prior to your visit we will have discussed your requirements and budget with you. We want to be as well prepared as possible for your arrival. Your inspection trip time needs to be spent on quality viewings and exploring the area.
We recommend 5 or 6 viewings per day. All information relating to the properties will be given to you prior to the viewings. You will have our iPad property information system at hand when visiting each property location.
We will also spend time introducing you to a solicitor and preparing all the necessary documentation for your property purchase (see ‘property purchase process’ section below).
Then back to the airport for your flight home.
Property purchase process
Below is an outline of the main steps of the buying process:1. Property search
First thing to do is discuss your requirements and budget with you. We will then get together a number of suitable properties and arrange the viewings. We want this part of the process to be enjoyable, informative and ultimately satisfying.
2. Property reservation
Once you have decided on your ideal property, we will then make an appointment for you to meet with our recommended solicitors. We will assist you with opening your Turkish bank account, obtaining your Turkish tax ID number and also giving power of attorney to your chosen solicitor. A small reservation deposit is required to secure the property (normally £1,000). When the reservation deposit is paid, a receipt is given and this amount gets written into the sales contract.
3. Sales contract
Your solicitor will draw up the sales contract between yourself and the seller. This will include information such as any deposit monies paid, agreed sale price, date of transfer and snagging list, if any. Prior to signing the contract, the solicitor will conduct a full background check to make sure that the person who is selling the property actually owns it, there are no charges on the property and all the necessary building and living permissions have been obtained. We will require two passport size photographs and passport photocopy of the person whose name will be on the property deeds.
4. Power of attorney
Should you not be present in Turkey on the actual property exchange/ completion day, you will need to go to the Notary’s office and sign a document giving power of attorney to your agent or solicitor to conduct the property purchase process/ obtain the title deeds on your behalf.
5. Military approval
Military Approval is a standard registration and approval from the local authorities. Details of the property and you, the buyer is sent to the land registry office. An official transfer application is made and all documentation is sent to the Izmir Aegean Army for approval. This is to check that the property is not located in a restricted zone for foreign nationals. Military approval currently takes about 4 weeks but soon this information will be available at the Notary and mean that the whole property purchase will take just a few days to complete (as is the case for Turkish nationals).
6. Title deed (TAPU) transfer
Once military approval has been granted, the title deeds are re-issued in the new owner’s name and sent back to the local land registration office. Any outstanding monies are then paid to the seller and new title deeds are given to the new owner. Your agent or solicitor can pick up your title deeds on your behalf if you have given them power of attorney. Your title deed can then be kept in a safe place pending your next visit.
We are able to source highly competitive mortgages in EUROS and GBP from the international banks. 60% loan to value, 25 year mortgages are typically available.
What are the costs of buying a property in Turkey?
Example £100,000 purchase price:
· Purchase tax (4%) 4,000
· Solicitors fee 750
· Notary fee 250
· Utilities registration 300
· Military application 500
What are the costs of maintaining a property in Turkey?
· Government property tax (0.3% land, 0.1% house)
· Compulsory government building insurance (DASK) £40 per year depending on property size
· Home and contents insurance (optional) @ £150 per year
· Communal charges (applicable if you own an apartment in a complex), includes pool/ garden maintenance, security, building insurance, normally @£900 per year
Turkish residence permit
Foreign nationals are currently issued with a 90 day tourist visa on arrival for every 180 days. If you wish to stay for longer then you need to apply for a Turkish residence permit.
A Turkish residence permit is normally granted for 2 years on initial application (maximum permit is 5 years). After a residence permit expires it can be renewed up to four times, by applying to your local police station within 15 days of expiry. If you wish to stay in Turkey long term then you will need to apply for permanent residency or Turkish citizenship.
To apply for a Turkish residence permit, take the following to your local police station:
· A completed application form
· A valid passport with photocopies of the last entry stamp/tourist visa page
· 6 passport-sized photographs
· Application fee and administration fee
· A Turkish bank statement showing proof of funds
You may also be asked for your property title deeds or employment details (if employed in Turkey).
Please note that your Turkish residency permit does not give you the right to employment or self-employment in Turkey. In order to work in Turkey, you will need to apply for a work permit or a permit to set up a business in Turkey.