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Buying Property in Turkey

It is true that you do not need a solicitor or estate agent to buy property in Turkey, however, our experience has shown that people have wasted a lot of time and ultimately a lot of money buying property on a whim, without any help from an agent or solicitior. As an independent company with personal experience of the Turkish property market, we aim to use our professional expertise to guide people through the buying process to ensure they achieve a successful property purchase

Budget

It is advisable to decide how much you plan to spend purchasing property before you arrive in Turkey, this ensures that your time is spent looking at suitable properties based on your requirements and budget

Travel To Turkey

We can help you find flights and accommodation, or you can make your own travel arrangements if you prefer. While you are in Turkey we will arrange to show you properties in the area where you want to buy, based on your requirements, so you can make an informed decision about your purchase in a relaxed atmosphere. Eden Property Consultants do not pressure anyone to buy anything, we pride ourselves on our integrity and apply due dilligence to all properties we select for our customers

Property Specification

It is important that you submit your property requirements to us, this enables us to select properties that meet your criteria, based on price, location and any oher contributing factors

Solicitor

We advise anyone buying property to engage a solicitor to deal with the property buying process in Turkey, we can recommend solicitors on request

The average cost for a solicitor is between £500 - £1000

Documents Required and Legal Process To Buy Property

  • Tax number is required from the local tax office for all parties wishing to own the property
  • Tax number is required to open your bank account in Turkey
  • Passport details for all parties to be listed as owner on Tapu
  • Recent photographs (passport size) approximately 8-10
  • All English documents need to be translated and notarized – small fee applies

Finance

It is essential to have your finance in place before you visit Turkey to view property, this prevents frustration and disappointment when you find a property to buy, but are unable to proceed with the purchase due to lack of funds

Costs Related To Property Purchase

Property Tax

A tax is levied on every property transfer in Turkey, at a rate of 4% of the value shown on the title deed. This is generally split equally (2% each) between the seller and the purchaser, however in the resort areas of Turkey there is a practice of shifting this entirely to the purchaser. This should be agreed in advance between the parties and stated in the contract

Service Charges

If you are purchasing a property on a complex you need to include service charge costs in your budget

Military Permission

As a foreigner you have to obtain military permission to be registered as a property owner in Turkey. It is the responsibility of the seller or the estate agent to apply for this on your behalf. The charges for this vary from region to region. We will obtain the cost of this in writing

Dask

Compulsory Earthquake Insurance is mandatory for all houses except for the buildings which belong to public establishments and the buildings constructed on village settlement areas

Insurance - House Contents and Building Insurance, Public Liability

These costs need to be factored into your annual costs

Taxation in Turkey

From the point of view of property ownership in Turkey, the tax system can have several effects. These notes are meant as a rough guide only. For detailed information you should consult a tax expert. As the potential owner of property, you should take note of the following:

Under-Declaration of Value

For the purpose of reducing tax liability the value of most properties are under-declared. This is a widespread practice and one that is tacitly accepted by the Turkish government. However, as Turkey moves closer to full membership of the EU, the Turkish authorities are tightening up on such practices. There is no restriction in the contract on under-declaration, but it is advisable to show the full value, in order to avoid problems with the Turkish tax authorities in the future.Under-declaring the property value also has repercussions if you decide to sell the property before five years, as you would have to pay tax on the profit made between the selling price and the price that was declared on the title deed

Capital Gains Tax

is payable to the Turkish government on any capital gains arising from the resale of Turkish real estate property. Such gains are taxable under Turkish income tax law, which means that the rate of tax to be applied to any capital gains tax will depend upon any other income you have made in Turkey as well.There is one exemption from capital gains arising from the resale of property. Profits made from the resale of a residential property which is identified as the owner's principal residence in Turkey and which has not been re-sold within five years of the original purchase, will not be taxed.Second properties, non-residential properties and properties sold within five years of the original purchase date are excluded from this exemption

Taxation of Rental Income

If you rent your property in Turkey, any rental income will be subject to Turkish income tax. This is the case whether you are resident in Turkey or not. Such income will be taxed by Turkish income tax, which is a progressive tax and increases the tax bands as the overall tax liability increases

Double Taxation Treaties

The UK has a double taxation agreement with Turkey which means that income earned in Turkey is taxed only in Turkey and not a second time in the UK. To date, the Republic of Ireland does not have such an agreement

Inheritance Tax

There is an inheritance tax in Turkey applied progressively in bands ranging from 1-10%. This also benefits from the double taxation agreement and is not taxed twice

Disclaimer

To our knowledge this information is correct however we would always advise you to employ your own independent solicitor before proceeding with the purchase of any land or property in Turkey.

It is also advisable to take advice from a Tax Consultant, regarding tax and inheritance matters

POA PW
4 Bed | Villa | Torba Bodrum Peninsula | 48400
POA
4 Bed | Villa | Torba Bodrum Peninsula | 48400