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The Purchase Process
The following information is intended to help you understand the process of buying a property in Turkey and to give you an indication of the obligations of overseas home ownership.
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Once you have decided on the property you would like to purchase;
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A payment plan will be drawn up and will be given to the client along with receipts for monies paid.
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The deposit (1000 Sterling / 1500 Euro) and legal costs will need to be paid at this stage
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Please note: (Deposit and legal costs are non refundable)
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We will take you to the solicitors' office where the sale agreement will be drawn up. The solicitor will make sure that the title of the property is checked; that the person who is selling the property actually owns it; whether there are any charges on the property; where applicable that building licences and permissions are in order; and that the terms and conditions stipulated by the seller are checked for fairness. The sale agreement will be translated from Turkish into English by the legal translator. The solicitor, legal translator, buyer and seller will sign the sale agreements, and each party will get a copy of the sale agreement in both Turkish and English, this will also be given to The Turkish Property Centre for our records.
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If you would like to give the solicitor in Turkey Power of Attorney to sign for the release of your title deeds from the title deeds office once they have been authorised, we can take you to the Notary office to have this done (only during week days). Please note that giving the solicitor Power of Attorney does not give us or the solicitor any claim over your property, it will be your name and picture on the title deeds.
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The solicitor will then arrange for the paper work to be sent to the title deeds office for the transfer of the title deeds into your name, in order to do this the title deeds office will send your passport copies and title deeds to the Aegean Army Base in Izmir for the military check. This military check is only to determine that the area the property is in, is not within a certain kilometer radius of a Turkish military base (this could take approximately 6 months).
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Once the title deeds have been authorised, we will inform you. At this time you will have to pay the balance due for your property, the buyers tax, earthquake insurance and the water and electricity connection fee. We will inform you of all payments that need to be made at this time (as reflected on your payment plan).
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The release of the title deeds from the title deeds office is signed in the presence of the notary by the buyer and the seller. You can either attend the signing in person or appoint someone as power of attorney to attend on your behalf (for example the solicitor) – if you do not attend in person we will email / post a copy of your title deeds to you for your records, the original will be kept at our office and you can collect it when you next come to Turkey.
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The solicitor will then arrange for the new title of the property to be registered with the local council office for property tax purposes.
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A guide to the legal costs involved
The solicitor's fees The legal translator's costs
Altinkum £390 / € 578 Altinkum £80 / € 118
Bodrum £ 600 / € 888 Bodrum £75 / € 111
Kusadasi £475 / € 703 Kusadasi £75 / € 111
Notary charges approximately £80 to £ 120 / € 118 up to € 178 for power of attorney.
Other Costs
The Turkish Property Shop : 3% of total property price.
Buyers tax : Approximately 1.5% to 3% of the title deeds value of property price depending on location.
Military clearance fee : Approximately £180 - £500 / € 267 - € 740 depending on location.
Property tax : Approximately 0.5% to 0.6% of property price, paid yearly, depending on type of property and location.
Water & electricity connection fee : Between £200 - £400 / € 296- € 592 depending on the type of the property and the location.
Earthquake Insurance : Depending on the property size and location. (required by law)
Property on a complex: There is an annual maintenance charge of approximately £ 170 / € 252 - £ 750 / € 1,110
Can the proceeds of a sale be taken out of the country?
Yes, the proceeds of a sale in Turkey can be taken out of the country. Regarding any tax liabilities make sure you get all the relevant information from a lawyer/accountant.
How is capital gains tax handled in Turkey?
Capital Gains Tax is only levied on the sale of property owned for less than 4 years. Capital gains tax is calculated using rates published by the Ministry of Finance. The net capital gain is calculated using a revaluation method which theoretically takes into account any increase in the value of your property and is inflation-adjusted. As an individual, after you have owned a property in Turkey for four years, you will be exempt from any capital gains tax. Please also note the information on the site of the T urkish Embassy in London regarding under declaring your property!