Buying Property in Turkey | Essential Guide | Turkey
Property for sale in Turkey | Essential Turkish Property Buying Guide
Conveyancing and Purchase Costs in Turkey
Overall up front costs of purchase are approximately
5% of the purchase price. This is made up of: Property Tax at 1.5%,
Habitation Tax at 1.5%, Electricity and Water connection for approximately £250, Notary fee £65, Translator fee £45, Solicitor fees of between
£150 and £850, Contents /Building insurance of £150.
Taxes
There are some taxes that you have to pay
in Turkey. The first is buyer's property tax as described above and
is based upon the price written on the title deed certificate. Also
there is a community tax that is paid twice a year but this is very
minimal at around £30 a year.
Annual Costs
Ongoing costs are typically 0.5% of the property
value per year as a community charge, local service charge of £10 per
year (for bins to be emptied) electricity costs of about £20 per quarter
and yearly insurance of about £150. In addition, for properties within
‘maintained developments’, annual maintenance charges of about £500
(for 2005/2006) apply.
Do I have to pay any tax if I sell
my property in Turkey?
When selling a property there is capital
gains tax paid at 18% of profit made based on the deeds declaration,
which is often different to the actual price paid, (similar to the practice
in Spain).
Do I need a will / Who inherits
our property if one of us dies?
According to Turkish Civil Code, upon death,
the property automatically goes to the spouse and children unless the
owner had another notice added to the title deed certificate. However,
it is advisable that the owner has a will that includes their Turkish
property as this may help to mitigate any inheritance tax liabilities
in the U.K.
Can I get a mortgage in Turkey?
Loans are available from some Turkish banks
however these are generally restricted to a maximum term of 5 years.
During 2006, HSBC are expected to be offering Mortgages to people who
are resident in Turkey and where the property is completed.
Do I need to become a resident?
You may come to Turkey as much as you want
in a year; there is no limit to the number of visits. On entering the
country, you will pay ten pounds for a three-month visa.
If you wish to stay in Turkey for
more than 6 months you need to apply for a visa, particularly if you
wish to work. People retiring to the country have to apply for residency,
which takes between 6 and 9 months but they can stay in the country
whilst the application goes through.
How do I open a bank account in
Turkey?
The process is quite straightforward; you
first obtain a tax number by visiting the local tax office with a notary
certified copy of your passport (you don’t need an appointment). In
minutes they will enter you on their system and issue you with your
tax ID card and number. With this you can walk into any bank and open
an account there and then, they will issue you with a cash card for
withdrawals via any ATM in the world.
Can I take my pet with me?
Yes. Requirements are quickly becoming standardised
across Europe though you should check with your local DEFRA office close
to your intended travel date.
How do I know I have purchased
a property with good title?
Upon agreeing to buy a property for sale in Turkey you, or
your representative, together with your solicitor and the seller, go
to the local deeds office. There you declare you wish to buy and that
the seller is willing to sell. The deeds officer checks the records
for the registered owner and, providing this is the same as the seller,
will register you as the new owner and issue you with a document declaring
you the owner.
Prior to the sale being completed,
the deeds officer can confirm whether any mortgages or debts are registered
against the property. Your solicitor should ensure that any such liabilities
are not transferred to yourself as part of the sales process.