Frequently Asked Questions
Why Invest in Turkish Property?
Mortgages.
Buying Off-Plan.
Guaranteed Rental Income.
Why Rosemare?
What is the Buying Process?
Buying an overseas property is challenging but in Turkey it is definitely much easier than in many European countries. We will be there to help you throughout the whole process: before, during and after the purchase.
The Turkish legal system derives from various European models, - chiefly the French, Italian, and Swiss- and so differs radically from its British counterpart. However, property ownership in Turkey, either by locals or foreign nationals, is a constitutionally recognized right. In other words, there are certain restrictions on foreign national wishing to purchase property in Turkey, but thanks to a bilateral agreement with the United Kingdom and Ireland, it is certainly possible to buy a beautiful home in this fascinating country. Stage by stage buying process with every detail is clearly explained below.
Stage 1
Restrictions on foreign buyers
Turkey works on a reciprocal agreement and if Turkish citizens are permitted to buy a property in their country, citizens from that country are allowed to buy in Turkey provided that:
· The property is not in a military zone
· The property is not in designated rural or agricultural land.
Stage 2
Pre-purchase checks
Once you have decided to buy a property, we will have to make series of checks to ensure that your property interest are protected. As such, a photocopy of the deeds will have to be taken to the land registry (TAPU) office to check:
· If the property is located within a Military Security Zone
· If there are any charges on the property (All charges are filed in the land registry)
· Latest ownership status of the property, for example, if the seller is a real owner.
Stage 3
The Purchasing Process
The purchasing process is broken down into a series of stages- all of which must be completed before the title is transferred to your name. The process varies, depending on whether you are buying a new build or re-sale . Yet whatever kind of property you choose to buy, your solicitor will be help you through the whole process- from paying the deposit to completion. We can also recommend several British and Turkish solicitors specializing foreign property litigation both in the UK and in Turkey.
For off-plan purchases:
· The first step to buying a new property is for the buyer to pay a non-refundable reservation fee of 1%-2% (depending on the purchase price). By doing this we will take the property off the market for up to 30 days.
· The private purchase contract is drawn up between the buyer and the owner/developer. This should contain all the details and conditions related to building specifications, an estimated time plan for completion, the milestones and terms and conditions for payment, and the buyer’s and seller’s responsibilities. You will be expected to pay a deposit to start executing the contract.
· Once the contract has been signed by both parties, the property is considered sold. That means the owner cannot increase the asking price for the property, and the buyer will be expected to make payments at various intervals during the building process.
· After the contract has been signed and the first installment paid, the process of applying for military clearance begins. This might take 2-4 months
· While waiting for the outcome of the military clearance application, construction continues and you can make your at the agreed intervals. We make regular checks on the progress of the building work, even take photos of the site and email then to you or put them on the internet.
· After military clearance is granted , and the construction of the property is completed , the deed will be registered in the your name.
For Re-sales:
There is a simple procedure for purchasing a re-sale property:
· You pay a deposit to seller. The size of the deposit varies from seller to seller.
· One you’ve paid the deposit, the process of applying for military clearance can begin, as with off-plan property. Once the military clearance grant obtained, title of the property can be registered in your name.
Stage 4
Using power of attorney.
It will be very inconvenient if you make repeated visits to Turkey to sign every piece of paperwork required to complete the purchase process. This would be very time consuming and expensive. An alternative is to get someone else to complete all the legal niceties for you in your absence.
If you give authorization to your solicitors, they will be able to do everything from completing all the legal work required by the land registry office for your application and following up the construction and building work to ensure the initial contract agreements are met.
Your solicitor will pay all the taxes, to complete the transfer of the title, and to register all utilities (electricity, water, and telephone bills) in your name once you take ownership of the property.
Stage 5
Registering the property
Once you’ve received military clearance and the payments and contract details have been fulfilled, your property will need to be registered in your name. yet, before this can happen, the following conditions need to be met and executed by your solicitor in Turkey:
· You’ll have to be registered in the tax office and a secure Turkish tax number
· The title deeds will have to be transferred in the land registry office
· You must me registered as the new owner of the property in the municipality and you’ll have to prepare and submit a real estate tax statement
· You must ensure that all utilities (electricity, water and telephone bills) are registered in your name
Stage 6
Opening a bank account
You’ll have to make a number of payments in Turkey during- and following- the purchase process. Doing so will be much easier and quicker if you open a bank account in Turkey. Can’t speak Turkish? Don’t worry- most Turkish banks offer internet banking services in English, so you will be able to keep an eye on your account both at home and abroad.
Stage 7
Purchasing costs and taxes
Both buyer and seller have to pay 1.5% stamp duty during transaction. You will have to pay an annual property tax (council tax) at 0.3% of the declared value of the property. This may change, however, as local governments conducts a property tax review every five years.
But new properties are exempt from the annual property tax (council tax) for the first five years.
Individuals do not have to pay capital gain tax, provided that they have owned the property for more than 4 years. If the property is owned by a company then Capital gain tax will apply.
Solicitor fees are usually around £300. Notary charges £80-£120 and translators cost around £80.
You can sell your property to any Turkish, or Foreign nationals without any restriction, and that the proceeds of the sale can be converted to any currency and transferable to any country you select.
For more information you can call us free on: 0800 032 9828