WHO CAN BUY?
Any resident of EU countries that have a reciprocal agreement with Turkey can buy property, the main exception being land that has been designated for military use. In other words, UK citizens are free to buy most types of property in Turkey.

OWNERSHIP
Almost all property in Turkey is full Freehold, the same as the UK.

LEGAL PROTECTION
We always advise that you use an independent English-speaking lawyer in regard to any property matter. European Villa Solutions will always provide introductions to reliable Turkish/English lawyers at the appropriate stage. The lawyer is responsible for making sure you are fully informed and your interests are protected at all stages.

The lawyer will prepare a contract that will identify your property, together with the price agreed, payment method and all other necessary terms, and will do a range of background checks on the property. It is very dangerous to miss out this work, just as it would be in the UK. This contract agreement is binding in Turkish Law. A translation will usually be provided in English. Both parties sign the contract and you will pay a deposit, normally 10% of the purchase price. In many cases, prior to this a ‘reservation contract’ can be signed that takes a property off the market for a few weeks, on payment of a £2,000 fee that is credited back when you proceed (or retained if you decide not to). You will also be asked to pay an amount on account with the lawyer, to cover their fees and some of the other administrative costs (detailed below). At the same time you should arrange for your lawyer to prepare a separate will covering the property in Turkey, this is almost always much simpler than trying to add it to a UK will.

At this point your details and the property details are sent to the military authorities, who check you are clear to purchase your intended property. This process is normally a formality, taking 8-12 weeks, although possibly longer in busy periods.

After clearance by the Turkish military you can proceed to finalise your purchase. This is conducted in the local Land Registry Office, where details of the transaction are recorded. If you cannot be present personally for this, then a power of attorney will enable your lawyer to do it for you, so this would need to have been arranged in advance (usually at the time you signed the contract). Your title deed (TAPU) will then be prepared and sent to you as soon as possible. All properties also require a habitation license from the local council. In the case of a resale this should already exist and part of the lawyer’s job is to check for it. In the case of a newly built property the lawyer will ensure the builder makes the appropriate arrangements.

MORTGAGE ADVICE
Currently there are no mortgages available for foreigners that are secured on the Turkish property. However, the Turkish authorities and banks are working hard to make mortgages available as soon as possible.

In the meantime, if you need to borrow to buy then the simplest way will usually be to borrow against property you own in the UK. If you already have a mortgage broker or financial advisor in the UK then by all means speak to them, if not we will happily arrange for an independent expert to get you the best quotes.

Paying for Turkish property in pounds is no problem, and given the attractive property prices available at the moment, covering repayments with rental income may be easier than you think. If you need a detailed projection of how this could work for you, we will be happy to help.

COSTS OF PURCHASE
Compared to many other popular countries, the one-off costs of buying in Turkey are very low, you should allow for the following:

  • 3% of the purchase price for the equivalent of ‘stamp duty’.
    This is often split between buyer and seller.
     
  • £800 to £1500 for legal fees, land registry fees and translations.
  • £150 per person for preparation of a will.
  • £100 for Public Notary fees (not always required).
  • £50 for transfer of water, electricity and telephone accounts.
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  • In summary, you should allow between 3% and 5% of the price of your property.

ON-GOING / ANNUAL COSTS

  • Rental income is taxed in Turkey at 20% to 25% in most cases.
  • Typical community fees for a complex with pool etc. are £20 to £50 a month.
  • Local taxes: the main local tax runs at 0.1% of the official valuation of the property.
  • Cleaning and maintenance costs, being mainly labour, are very reasonable.
  • Utilities etc. are about the same price as the UK, petrol is a bit cheaper.
  • Food, clothing, and other household goods and public transport are massively cheaper.

CAPITAL GAINS and INHERITANCE TAX
Currently there is no Capital Gains Tax on the profit between what you buy a property for and what you sell it for, provided it has been owned for more than 4 years. Less than that and your profit will probably be taxed as income, although your lawyer will advise you on how to minimise your tax bill.

Inheritance tax can be anything from zero to 30% and it is vital you take advice from your lawyer on how to minimise it. Inheritance in Turkey is quite different to the UK system and must be looked at by a professional.