HOW TO PURCHASE A PROPERTY IN TURKEY
HOW TO PURCHASE A PROPERTY IN TURKEY
Buying a property in Turkey is a straight forward process and often easier than most European countries.
1. Once you have found a property in Turkey that you would like to purchase, first you will need to provide a deposit to hold the property for you. This deposit is a small amount and usually payable by cash or credit card – Personal cheques are not accepted by banks in Turkey. An initial payment of 20-40% of the property purchase price is usually required within a few weeks.
2. The exact amounts will be confirmed individually with the property owner at the time of purchase. Upon payment of the deposit, a receipt is given and the amount paid is written into the contract of the developer.
3. You will off course need your passport as a form of ID. Photographs are also required; your consultant will be able to show you the nearest located photo studio.
4. Then you will have too visit a Solicitor who will prepare the purchase contract for you. Their priority is to help you. You are paying them for their services, so please use this time efficiently to ask any questions you have. Usually, when purchasing from a sales agency like ALTIN TURK REAL ESTATE COMPANY, the developer or the construction company, they offer a standard legal contract so there will be no need for a solicitor.
5. Should you for any reason not be present in Turkey for the actual purchase of your property, then you need to visit a Notary office with your agent from ALTIN TURKREAL ESTATE COMPANY, to set up and sign a Power of Attorney for your personal Agent in order to follow and finalize the property purchase transaction. This enables the agent to track and obtain the Title Deed in your absence.
The initial purchase stage has been completed and you do not need to be present for any other procedure. This process only takes a few hours. You will be given the original contract and a copy of the Power of Attorney to take back home with you.
The same day or the next day, your paperwork is forwarded to the Land Registry office in Izmir, This includes all the documentation relating to the purchase process. Here they will check everything and prepare the title deeds (TAPU) and re-issue them with the new owners details and send it back to the local Land Registration office. The Land Registration office will contact your agent, who will then contact you. This process usually takes between 6 to 8 weeks.
At this moment you will need to pay the final balance plus the 4% property Tax. Upon receipt of your payment, your agent will be able to sign and collect your TAPU (Title Deed) from the Land Registration office on your behalf and this will then be held in the office pending on your next visit.
Q: On top of the purchase price, are there any extra taxes or fees that need to be paid?
A: Yes, there are some extra costs like any other country:
• 4% of the property value to tax. This is a one-time payment and it is due for payment before the TAPU can be issued.
• Lawyer fee, for purchasing residential properties, this is about 800-1500 USD and usually required for the purchase or resale of (old) properties. However for Investments in New Apartment Projects or Off Plan Projects, YOU WILL BE BUYING DIRECTLY FROM A SALES AGENT (ALTIN TURK REAL ESTATE COMPANY) OR DEVELOPER, THEREFORE YOU WILL NOT NEED TO PAY THIS LAWYER FEE. This is due to the fact that every new project has a typical and standard form of contract that is supplied to all the buyers national and international. However, if you insist to hire a lawyer then you will be responsible for the lawyer fees.
• An approximate 140 USD Notary payment for giving us (ALTIN TURK REAL ESTATE COMPANY) the Power of Attorney to follow and handle the documents relating to your property purchase in your absence.
• 3% of the real estate purchase price is the agency fee that covers all agents’ commission and costs. This is usually paid at the time the contract is signed, together with the initial deposit payment on the property.
• It is compulsory to have earthquake insurance and we recommend you take out a full home and contents insurance coverage as soon as the property is registered on your name. (The cost of this varies depending on the value of the property and its location.) Approximately 210 USD/year.
• The connection of your utilities such as Water and Electricity bills need to be done.This does not apply to some properties. Small amounts need to be paid and deposits between 350 to 500TL
Approximate cost breakdown for the purchase of a property of 100,000 USD:
Property purchase price (*new construction) $100,000
Tax @ 4% $4000(only once)
Notary’s charge $140(only once)
Full insurance (incl. earthquake cover) $210 (yearly)
* A 3% commission fee does not apply to new constructed properties.
Once you have received your TAPU there are some other charges which need to be paid. We estimate the annual costs per property to be as follows:
Water / Sewage $70
Site maintenance $100
DigiTurk Satelite TV $15
Council tax $100 (yearly)
It is not necessary to hire someone to pay your bills. Utilities can be paid by pre-authorized bill payments once you have a Turkish bank account. Your council tax can be paid when you visit Turkey annually.
These cost estimates are correct at the time of writing, but are subject to change. Variations will occur due to value and location of your real estate and or other factors beyond the control of ALTIN TURK REAL ESTATE COMPANY. This is intended as a guide only. If you have any questions, please do not hesitate to contact us.