Overview of Buying

Buying property in Turkey is similar to buying in most other European nations with one key exception that there is a requirement for foreigners to obtain permission from the Turkish military. Non-nationals are only permitted to buy within designated areas where there is an established Local Council.

Once you have found the right property and made an offer, you should appoint a solicitor who will draw up a pre-contract between you and the seller. Most lawyers in this field speak English and they can take you through the process explaining the steps as you go. At this stage a deposit of generally about 10% is required to secure the property and to ensure that both parties are serious about the undertaking.

Once the deposit is paid, the solicitor will undertake a check to ensure that there are no debts outstanding on the property – which would pass with the sale to the new owner. Once satisfied that everything is in order with the property title both the buyer and seller are required to be present at the Land Registry office to transfer the title deed. It is possible to appoint a power of attorney (usually your solicitor) to sign on your behalf.

Solicitor’s fees vary and are usually negotiable, but allow 4-5% of the purchase price to cover fees, insurances and registration charges.

Should you wish to sell your property in future, Capital Gains Tax may be payable before 5 years of ownership.

Steps to Buying

Restrictions on international buyers

Non-citizens may purchase freehold land and property in Turkey in their own names provided that:

Key points to bear in mind when buying property in Turkey:

Pre Purchase Checks

Once you have decided to buy a property your solicitor will make a series of checks to ensure that there are no problems with the property and that your interests are protected. A photocopy of the deeds will have to be taken to the land registry office to check:

The Purchase

The purchasing process is broken down into a series of stages - all of which must be completed before the title is transferred into your name. The process varies, depending on whether you are buying a new build or a re-sale. Your solicitor will be able to help you through the entire process - from paying the deposit to completion.

Buying a property off plan

Off plan properties are those which are purchased prior to, or during construction. The first step is for the buyer to pay a reservation fee of between 1% and 2%. This will take the property off the market for up to 30 days. A private purchase agreement is drawn up. This should contain all the details and conditions related to the building specifications, an estimated time plan for completion, the milestones and the terms and conditions for payment, and the buyers and sellers responsibilities. You will be expected to pay a deposit in an agreed time to activate the contract. During the following 30 day period (while the property is reserved for you), you can speed up the process by making financial arrangements and checking over the contract with your solicitor.

Once the purchase agreement has been signed by both parties, the property is considered sold. This protects the buyer because after signing the contract, the owner cannot increase the asking price for the property, even if he receives a higher offer from a third party. On the other hand the seller is also protected, as the buyer will be required under the terms of the agreement to make payments at specified intervals during the building process.

After the contract has been signed and the first instalment paid, the process of applying for military clearance begins. This can take several months and the property title cannot be transferred to a foreign purchaser before the clearance is received. After military clearance is granted and the construction of the property is completed, the deed will then be registered in your name.

Buying a re-sale property

A re-sale property is any property that is not purchased new from the developer. The term covers anything from the sale of a new property by the first owner to the sale of old stone cottages of some age. The first step is to give a deposit to the seller, the size of the deposit varies. Once you have paid the deposit, the process of applying for military clearance can begin through your solicitor or representative. The date for full and final payment will be agreed through your estate agent. As with off plan property, foreigners must receive clearance from the Turkish Ministry of Defence and, until process is complete, the title of the property cannot be transferred to your name.

Using Power of Attorney

The chances are you won’t want to make repeated visits to Turkey to sign every piece of paperwork required to complete the purchase process. After all, this could prove time consuming and expensive. An alternative is to get someone else you can trust to complete all the legal niceties for you in your absence. All that is required is to grant them power of attorney. This is a simple process undertaken at the offices of the Notary Public. You will not be allowed to sign without the presence of a certified translator and until the Notary is satisfied that you understand all the terms. If you give authorisation to your solicitor 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 any construction and building work to ensuring the initial contract agreements are met. Your lawyer will also be able to pay all the taxes to complete the transfer of the title and to register all the utilities (electricity, water and telephone bills) in your name once you take ownership of the property.

Documents required by the Notary Public to give Power of Attorney for each owner

You will have to pay approximately £150 for the right to grant PoA (Power of Attorney) - £30 of this is for the translator and £120 for the notary. However, you may wish to obtain the PoA documents in your country and send it to your Turkish Lawyer to have translated.

Registering your title to the Property

Once you have 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:

Purchasing Costs and Taxes

Both buyer and seller are required to pay stamp duty of 1.5% of the property value during the transaction. You will also have to pay an annual property tax of approximately 0.3% of the declared value of the property. However, this may change as local government conducts a property tax review each year.

Capital gains made from the sale of  property are taxable. However, individuals do not have to pay capital gains tax, provided that they have owned the property for more than five years.

It is worth noting that property may be re-sold to Turkish, or foreign nationals without any restriction, and that the proceeds of the sale can be converted to any currency and are transferable to any country you select.

Key Facts