Buying Process

Buying a property in Turkey is a lot easier than in many other European countries. Foreigners may purchase land and property in Turkey in their own names provided that the properties are within a council districtand not inside military zones or within/on government land.

In order to acquire the title of a property, an application has to be submitted to the local Land Registry Office in which the property is situated. After carrying out the necessary searches and checks for the above mentioned requirements, the transfer requires both (the seller and the buyer) to be present at the entry in the property register. However, as this is often inconvenient for people who are residing abroad, a power of attorney can be granted to your lawyer for this transaction. 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. A purchase tax of three percent (3%) of the registered purchase price is collected from the purchaser during the transaction.

The acquired property may be resold and the proceeds may be transferred out of Turkey.

The process of buying is explained in the following:

Once you decide to buy a real estate property, the following checks will be made the ensure there is no problem with the property from buyer's perspective:

• Location: If the property is placed within a Military Security Zone. (Land Registry offices hold the number of parcels within the military zones in the area.) The property must be within a council boundary.
• Any charges on property: If there are any charges on the property. (All charges are filed in the Land Registry office.)
• Owner: The latest ownership status of the said property. (If the seller is the real owner)

We will help you in your purchase, step by step.

For Off-Plan sales:

• A non-refundable reservation fee of £2,000 is paid by the buyer to take the property out of the market.
• A private purchase contract is drawn up between the buyer (you) and the owner/builder. The contract should contain all details and conditions related to building specs, estimated time plan for completion, the milestones and terms and conditions for payment; buyer's and seller's responsibilities. You will be expected to pay a deposit in an agreed time to activate the contract. Two copies of contract are made so each party can keep one. During this period as the buyer, you can start preparing by making financial arrangements and checking-over the contract with your solicitor.
• Once the contract is signed by both parties the property is considered as sold. This protects you as the buyer from the owner. The owner after signing the contract cannot put the price up even if he receives a higher offer from a third party. On the other hand, the owner is also protected as the buyer will be expected to make payments according to milestones during the building process.
• After the contract is signed and the first installment is paid, the process of applying to military clearance begins. Foreigners are subject to receiving clearance from Ministry of Defense to buy the specified property. This process can take up to 4 months.
  The title cannot be transferred to a foreign purchaser before the clearance is received.
• While outcome of the military clearance application is being waited, construction continues and buyer makes his/her stage payments at each stage.
• After both the Military clearance is received and the construction of property is completed, you can have the deed registered in your name.
  To do this you will have to:

Register in the tax office and get a Turkish Tax Number.

Have the transfer of title made in the Land Registry Office.

Be registered as new owners of the propertyin the Municipality and prepare and submit your Real Estate Tax Statement.

Have all utilities (electricity, water and telephone bills) registered in your name after you take over the property.

For Re-Sales:

• A deposit is paid to the seller to fix the property. The amount of the deposit asked for re-sale properties varies from seller to seller.
• After the deposit is paid, the process of applying for military clearance begins. Foreigners are subject to receiving clearance from Ministry of Defense to buy a property. This process can take up to 4 months.
• The title cannot be transferred to a foreign purchaser before the clearance is received.
• After the Military clearance is received, the title can be transferred in your name.

To do this you will have to:

Register in the tax office and get a Turkish Tax Number.

Have the transfer of title made in the Land Registry Office

Be registered as new owners of the propertyin the Municipality and prepare and submit your Real Estate Tax Statement.

Have all utilities (electricity, water and telephone bills) registered in your name after you take over the property.

Costs incurred during the buying transaction:

• A Stamp Duty has to be paid both by the seller and the buyer during the transaction.
• Estate Agents comission is 3% of the purchase value.
• Property tax, paid annually to the local government at the rate of 0.3 % of the declared value of the property. Revaluation is conducted by the local government every five years.
• New properties are exempt from the annual property tax for five years.
• Property may be sold to Turkish, or foreign nationals without any restriction and the proceeds of the sale can be converted to any currency and transferrable to any country you have selected.
• Capital gains made from the sale of a property is taxable.
  However, individuals do not have to pay capital gains, provided that they have owned the property for more than 5 years.

Annual Tax

If you own a property you will pay 0.3% of the amount written on the title deeds. This can be paid annually or in two payments, one in May and the next payment in November. If you own land you will pay 0.3% of the amount written on the title deeds. There used to be a rubbish tax but this is now paid with the water bill which comes out every 2 months.