Edgars Property Services - The premier choice for lettings and property management in Kingston and Surrey

FAQ's: Buying

Buying Property in Turkey
B1. Are properties freehold or leasehold? They are freehold unless stated otherwise. B2. What is the general buying process in Turkey? After paying the reservation fee, your lawyer should carry out the title checks. A contract will be drawn up between the seller and purchaser. This will give details of the completion date, payment schedule and terms and conditions. When all parties sign this, the deposit is paid. You then apply for a security clearance to allow you to own a property in Turkey this will often be applied for, on your behalf, by the developer. You can sign a Power of Attorney to conclude the necessary paperwork, if your circumstances require it.

B3. What documents are required?

Your passport(s), which will be copied and translated into Turkish, and passport, sized photographs. The notary’s office works in conjunction with the title deeds office and the Aegean Army. The translated documents will be checked by the army to ensure there is no record of criminal intent or activity against Turkey and that any property being purchased by a foreigner is not in the proximity of or is intended to be used for any military purposes. All paperwork pertaining to the purchase of a property is done through the local government offices.

B4. What additional costs are there in relation to the purchase?

You will pay stamp duty, legal fees and property purchase tax. The latter is just 3% but sometimes split 50/50 with the seller/developer, so that you pay 1.5% of the amount shown on the title deeds (the declared value). There will be agent’s fees (if you are using an agent who charges the buyer) and insurance for the property. As a rough guideline these additional costs usually work out at 3 to 5% of the purchase price. Registration of utilities is not included.

B5. What other kind of taxes will I need to pay?

Government tax-approx. £200. A Property tax-1% of property price. Community tax for local services-about £8 annually. New laws passed in August 2003 state that all persons purchasing property will have to pay Earthquake Insurance to the government. The amount depends on the property price and location, and is usually in the region of £100-£200 pa. The actual amount to be paid will only be determined once the Title Deeds have been authorised. Once the payment has been made for earthquake insurance, the government will issue clients with an earthquake policy. From then on, earthquake insurance will be paid annually.

B6. Do I have to use a solicitor to purchase property?

Technically no, but we at Edgars always recommend that a buyer takes independent legal advice to make sure everything is done correctly and to ensure peace of mind.

B7. Can all foreign nationals purchase property in Turkey?

Most foreign nationals can purchase property in Turkey. Agreements are usually reciprocal between governments. See the Turkish Economic organisation website for a list of countries with reciprocal agreement and all updates to the laws concerning property purchase.

B8. Can I borrow money in the UK to purchase my Turkish property?

Currently it is not possible to arrange a mortgage to be secured on a Turkish property from a UK lender. If you need to arrange finance then you will need to remortgage or extend a mortgage on a UK based property or other asset. Once you have purchased your Turkish property you will be able to raise finance on it through Turkish banking institutions. However, the interest rate linked to the Turkish Lira is higher than in the UK.

B9. Are transactions completed in Sterling or Turkish Lira?

Generally most property transactions in this region are completed in Sterling. If the property is advertised in Sterling then the contract and payment will also be in Sterling. Euro or Dollar is equally acceptable and the rate of the conversion will be agreed at the contract date.

B10. How long will it take to complete the purchase?

The main determining factor for completion is the arrival of the military permission for the purchaser. The application for the permission is made by the agent or lawyer through the local land registry office. Once the application is made, all parties have to sit and await its return. Currently it takes around 3 to 4 months.

B11. Do I have to return to Turkey for the completion?

Unless you have arranged for your power of attorney to be given to the agent/lawyer or friend then, yes. The transfer of the title deed of the property is a process completed face to face.

B12. How do I arrange power of attorney? Power of attorney (POA) is arranged through the Notary office. You will need to visit this office along with the person to whom you are giving the power of attorney and accompanied by an official translator. The Notary office is only open Monday to Friday so allow time for arranging this, if this is your preferred method of completion. You can give POA from the UK by finding a local Notary to prepare the documents which then have to be ratified/legalised by the Turkish Consulate. B13. Will I be able to rent out my property? Yes, but please be aware that in many areas the rental market is fairly new. The main season is from April to October but you will still be able to rent it out over the winter at lower rates. At the height of the summer, you can expect a more than reasonable return. You will also need to find reliable agents to manage your property locally. They will generally charge between 20 to 25 % for their services.

B14 Will I have to pay a tax on my rental income?

Foreigners who purchase property and subsequently rent it out are not taxed on this rental income. Turkey and the UK have a bilateral agreement to avoid double taxation.

B15. Are all properties surveyed before they are purchased?

A law was passed recently whereby all new properties had to be surveyed. Older properties will probably not have been surveyed. Surveys can be arranged and in general will cost around £250 to £500.

B16. Can I open a bank account in Turkey?

Yes. We recommend setting up a bank account as it is useful for paying utility bills via direct debit. You will need to take your passport with you to open an account. You can open a Turkish account in England with HSBC.


		B17. Notary who will take me there? Will they speak English? Will all documentations be translated into English? All clients will be accompanied to the Notary by English speaking staff and all procedures will be explained in full. All documents are in Turkish but a translation of the Power of Attorney is recommended. Any other translations can be arranged with a government-approved translator for a small fee. B18.What is a “Tapu”? Will all the papers be in my name? The Tapu is the Title Deeds for the property. The Tapu will be registered in either joint or single names at the purchaser’s request. (Please see our example of a Tapu).