Property in Turkey is freehold and investing in a Turkish property is a straightforward process when buying with Spot Blue. Turkish law is based on the Swiss constitution and law. Under a bi-lateral agreement between the UK and Turkey, changes in Turkish law allow British citizens to buy property in designated areas which we cover. Over the years, many other nationalities can now buy property in Turkey too. The payments on your purchase contract usually fall into four sections, and although they can vary from builder to builder, we will help you whatever it is.
The initial non-refundable reservation deposit is usually a 10% deposit.
First stage payment.
Second stage payment depending on time scales.
Final payment when you receive your Title Deeds (TAPU).
Your passport details are required to purchase a Turkish property along with a local tax number. We will take you to the tax office to obtain a local tax number. Your tax number is also required to open your bank account in Turkey, we advise you to open a Turkish Lira (TL) account and a Great British Pounds (GBP) account. You will also need a minimum of two recent photographs (4cm x 6cm); you can get them in Turkey, but it may be useful to have them taken before you travel to Turkey.
Although it is not compulsory to use a real estate lawyer to buy a Turkish property, we strongly recommend you do. We have a panel of independent Turkish lawyers should you choose to use one based both in Turkey and the UK. A lawyer will typically charge from £550 plus (KDV) VAT for their services, to this you need to add the purchase tax 3% on the declared value of your property in Turkey (Increased from 3.3% to 4% in September 2012 & decreased from 4% to 3% in 2017), accommodation tax, water and electricity connections charges, notary fee and translation fees. Depending on the value of your property you should typically allow 8 to 10% for all these fees and costs. Ask for a quote from a lawyer before you use them.
Once you have signed the contract on the Turkish property you wish to buy, you can transfer the money into our HSBC clients account in the UK, or transfer the money directly from your own bank. If you are going to transfer the money directly from your own bank we recommended you use a specialist commercial foreign exchange company for the best exchange rates. Banks in the UK do not generally give you the best commercial rates. Please contact us, we will be happy to give you details. Transfer of monies generally go from the buyer to their lawyer. At completion it goes from the buyer’s lawyer to the seller’s lawyer or the seller, unless agreements are local.
Spot Blue sell property in Turkey at the price the builder/developer charges for new property, so no commission from the purchaser is payable to Spot Blue. However, in common with all property agents in Turkey, Spot Blue charges a sales commission of 3% of the purchase price for resale property. The Turkish General Directorate of Land Registry and Cadastre brought into force new rulings for foreign sellers and buyers of property in Turkey on 4th March 2019. A valuation is now required prior to the transfer of title deed being handed over in the Deed Offices, this applies to all sales new and resale’s where there is a foreign buyer.
This new ruling protects foreign buyers who do not know the Turkish housing market tax system. It also ensures that properties are not overpriced and it is a government expert that will value the property. The expert will put together a comprehensive report including pictures of the property, then gives a valuation for the stamp duty. The cost of this report is covered by the buyer along with the legal fees. The average fee for this is between 1500 -3000tl again, depending on location. This process takes around 3 to 4 days and the report is valid for 3 months. If you are buying a property off plan, the report cannot be carried out until the property is completed. The valuation figure on the report will be the declared price on the final Title Deed (Tapu).
First, your application goes to a regional Tapu (Title Deed) office, if a Military check is needed it takes just one day. If the property is a new build or you are the first foreigner to purchase in a block of apartments for example, the check may take a little longer. The Military check is needed to check the property is not in a restricted or Military Zone. This is really a formality and when everything is approved, it takes just one day to complete the property transfer.
Once approval has been granted you go to the Tapu office with a translator to sign your freehold ownership documents. A new law for non-residents came into force on 7 January 2006 to speed up the process. Once you have paid a significant part of the purchase price most builders will let you take possession. Key ready properties can take up to 4 weeks for completion, obviously it also depends on the buyers funds. We would always advise, if you are looking to buy a property, you have your funds already in place before viewings.
Once your application has been approved by the Government and the military, both the vendor and buyer must be represented at the Land Registry Office for entry of the Title Deed into the Land Registry. You can revisit Turkey to attend personally, although it is not necessary as you can appoint a Power of Attorney to attend in your place and the majority of buyers and sellers prefer this method. This can be your lawyer if you have used one, a husband/wife, partner, our office staff in Turkey or anyone else you trust. There are various forms that are required before completion, but they are quite straightforward and are normally dealt with by the lawyer.
You can pay all your household bills on your property in Turkey by standing order from your Turkish account, much the same as in the UK. However the living costs in Turkey are considerably less than the UK, typically £60 per week for a single person and £80 per week for a couple (for example council tax is from £100 per annum). The council tax is thus calculated: by per person on the Tapu, the sqm size of your property and the location.
Once your Turkish property is registered in your name, it is advisable to update your UK will referring to your new home. Our office will be happy to supply details of lawyers. We would advise you to make a will for your home in Turkey. They can be written locally and expect to pay from 150 Euro as a guideline.
At present, if you sell your Turkish Property within the first 5 years you may (the law changed from 4 to 5 years in Jan 2007) of your ownership there is a 15% sliding scale property capital gains tax due on any profit. After 5 years it is capital gains free. Any tax paid to the Turkish government will be offset in the UK due to the Reciprocal Taxation agreement between Turkey and the UK.
When you finally get your deeds it is advisable to insure your Turkish property (preferably by paying in Euros, as most of the big European insurers operate in Turkey) - our Turkish office will be pleased to help you to arrange it (or see details on our links page). It is a legal requirement to have DASK insurance on your Turkish home.
Mortgages in Turkey are available to all EU residents who wish to buy property in Turkey. Register now with Spot Blue for more information.
If you need a mortgage to buy a property in Turkey, the easiest and simplest way to raise the money is against your own property in the UK. Most of our clients go to their existing lenders who are normally happy to consider a loan against their UK property, especially if they have had a successful payment record with them. If you need independent advice we have a panel of authorised Independent Financial Advisers (IFA) who can usually help. From our years of experience we know it is absolutely essential to have your finances in place before you go to view property in Turkey. We have seen too many people return home unhappy, disappointed and frustrated having found their dream home and being unable to do anything about it, because they had failed to get their finance in place before going on a buyer's viewing trip. Remember your home is at risk if you raise money against it.
The rental income will depend on many different factors:
Whether you have an apartment or a villa?
How many bedrooms do you have?
How close the property is to the beach?
How close to the town?
Do you want to rent your property out for self-catering?
Do you want to rent your property out on a fully serviced basis - for example, do you want to offer a daily maid service?
Do you want to promote the renting of your property yourself to family and friends?
Do you want to use the property yourself during the summer high season? Do you want to rent your property out long term to a tour operator, for example 6 months at a time or short term over just the summer months?
Taking all this into consideration, it is not unreasonable to expect a Euro rental yield of between 6% and 10% per annum from your apartment or villa in Turkey.
There are many letting agencies who will help arrange to rent out your Turkish property, but beware, like all letting agents throughout the world, they can be very expensive. Most of our clients use web-based letting agencies which are very successful. In our opinion the most profitable way is to rent your property out to family, friends and work-mates (you will be surprised how many will want to know you). A simple advert in the local paper or a one page web site also works well. Always get a large deposit and arrange a flight as part of the rental package. If you buy through Spot Blue we will help you arrange it (or see the links page for further details)
Most European health insurances are accepted in Turkey, and many hospitals have very good interpreters. English is spoken in most doctors' surgeries, and if you need special medication you can check for availability at the pharmacy first. You will always need a Doctor’s prescription if you want antibiotics. The standard of medical and dental care is very high, and all regions have excellent hospitals. If you have a residency visa all under 65’s will need healthcare insurance which can be paid monthly or yearly. The policies work the same as in the UK, you must declare any previous and existing illnesses and your premiums will be calculated accordingly.
You can stay for a maximum of 90 days in Turkey with your 180 day multi entry tourist visa, however to replace this with a residents visa, you need to apply for this visa within 1 month of first entrance. You used to be able to buy your visa at the airport in Turkey when you arrived. This is no longer the case, you must apply online and print the tourist visa off to show at the airport. You will be turned away if you don’t have your tourist visa ready.
A resident's visa is issued for a period of 12 months before you need to renew it. After 12 months of having a residency visa you must apply again before it runs out. It’s advisable to put your application in around 3/4 weeks before the expiry date. If it’s your second time of applying for a residency visa you can apply for a 2 year residency visa. You will require a residents' permit should you want to have a phone or buy a car. Ensure you have plenty of passport-sized photographs before you start applying for one.
In the Ottoman Empire, the Tapu was a permanent lease of state-owned arable land to a peasant family. The family head acquired the usufruct of the land and was able to transmit this right to his male descendants upon his death. In return, he pledged to cultivate the land on a continuous basis and to meet a series of fiscal requirements and obligations to fulfill specific services to the state or to the Sipahis. The term was also used to indicate the title deed that certified Tapu rights.
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