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Legal Info
Important: This
information is for reference only and does not constitute legal
advice.
Buying a property in Turkey is a lot easier than in many other
countries. Foreigners may purchase land and property in Turkey in
their own names provided that properties are located in towns not in
villages or rural areas and in military zones.
In order
to acquire the title deeds of a property;
1- An
application has to be submitted to the local Land Registry Office
2- The
Land Registry Office will ask the Military Office if the property is
in a Military Zone.
3- The
Land Registry Office will wait to receive the written confirmation
from the Military Office, which states that ‘‘Property is not in
military zone‘‘ (normally takes from 2 to 8 weeks)
After
carrying out the necessary checks for the previously mentioned
requirements, the transfer of the title is done by the Land Registry
Office.
In
Turkey, it is legally compulsory for both sides (the seller and
buyer) to be present at the entry into the property register.
Both
purchaser and vendor are liable for a 1,5 % property transfer tax,
based on the declared price of the property. There is also a
municipal property tax, at the rate of 0.1% on the declared value of
property annually.
Frequently Asked
Questions
Can foreigners purchase property in
Turkey?
Reciprocity principle; must apply between the country of the person
wishing to obtain acquisition of ownership. In other words, if a
Turkish citizen can become the owner of real estate in the UK, then
the same right applies to a UK citizen in Turkey.
Where foreigners cannot buy a
property?
Mainly there are no legal restrictions against foreign nationals
regarding the acquisition of property ownership. However, the
Village Act and the Military Prohibited and Security Areas play an
important role; Article 87 of the Village Act denies the right to
foreigners to ownership of property that is outside the centre of a
village in case the cadastral division of this area had not been
arranged yet or it may belong to the Ministry of Forest. Also, the
act regarding Military Prohibited and Security Areas can be an
impediment and therefore restrict the acquisition of property by
foreigner nationals if the property is located within a particular
distance of military sites or strategically important
Where foreigners can buy property?
a. Freehold property of land may be purchased by most foreign
nationals, from a Turkish national or another foreigner, provided
the property is in the local district Belediye
b. If
property or land is outside the Belediye long leases can be
arranged. The lease can subsequently be transferred to a third party
if he/she wishes without restriction.
Are there extra costs?
Yes, with some purchases from developers all costs (excluding
lawyer’s fees) are included, but with individual properties
and some small developers only the purchase price is shown. This is
always made clear on promotion material. The extra charges involved
for a freehold or leasehold purchase payable by the purchaser amount
to approximately 8% of the purchase price paid. These are broken
down as follows:
1,5%
purchase tax (stamp duty) on registration of freehold, (new
properties can be exempt from purchase tax). pound;200 legal fees
variable dependant on the amount of work, i.e. full investigations,
proxy, translations, there is no agency commission.
About ongoing costs?
Property tax, paid annually at a fixed percent of the declared
value, (on a new home a 25% reduction is given until the revaluation
conducted after the first five years). Building insurance is
compulsory for leases arranged through Yapi Kredi, the premium is
approximately 2 per mil. It is also mandatory to purchase State
earthquake insurance.
Gas is
normally used for cooking and can also be used for water heating.
Cylinder refills cost approximately £10.00 and lasts
approximately a month for water heating and two months for cooking
(a deposit is taken for each gas cylinder). Electricity is cheap
approximately 0.05p a kilowatt. Bills are payable monthly at a local
bank or directly at the Turkish Electricity Board.Water costs
approximately 0.40p per ton (1,000 litres on mains supply) or 3.00
per ton when bought from a bulk tanker.Site maintenance, groups of
houses, particularly developments will form a management service,
committee or company, to maintain common facilities, common gardens,
repainting, etc. The cost of this will vary from development to
development, but generally starts at around;150.00 per annum. Their
conduct is governed by Turkish law.
About my Tax situation?
Capital gains made from the sale of a property will be taxable in
Turkey if the owner is a Company. Individuals do not have to pay
capital gains, provided they have owned the property for one year.
In the UK capital gains may be taxable depending on the individuals
situation. Current tax conditions were originally agreed in a double
taxation treaty signed in 1986. These were amended in October 1988
and cover the reciprocal agreement relation to income tax and
corporation tax in Turkey and income, corporation and capital gains
taxes in the UK.
This also
includes a non discrimination clause ;Nationals of a contracting
state shall not be subjected in the other contracting state to any
taxation or requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to which
nationals of that other state in the same circumstances are or maybe
subjected. (Article 24). However, it is recommended that you consult
an accountant because each individual`s circumstances are different.
Can I rent my property?
Rental income is liable for tax assessment in either the UK or
Turkey and will be payable depending on the personal situation.
The selling costs?
Freehold resale costs are between 5% (comprising sales tax, local
documentation and legal fees). Property may be sold to Turkish, or
foreign nationals without restriction. Because of the change in law
(Decree 32 August 1989) the lira is now convertible so proceeds of
the sale of a property can be converted to whatever currency and
subsequently transferred to any country you choose. If the property
is subject to a Yapi Kredi lease then the transfer costs are just
over 1%.
Should I furnish my property in
Turkey?
Furniture is generally cheap, and can be custom made by local
craftsmen if required. It is possible to buy in most towns at very
competitive rates, with a wide range of goods. Electrical items are
less expensive than in England. Towels and linen are cheaper than
Europe; however, household goods are extremely cheap and can be
purchased at the local markets. Non-national residents can import
household goods providing they hold a suitable residency permit.
What about communications?
Telephones are either bought on the black market at up to £400 or
your name is put on a waiting list where you can wait for anything
from a week to three years, depending on availability in your area.
There is a small standing charge payable annually approximately
12.00. Lines are generally good and Internet access easy and well
serviced. There is a national daily newspaper printed in English,
the Turkish Daily News. A short-wave radio is useful to pick up the
BBC World service. Television reception is good and if you buy
Digiturk Satellite system you receive 52 channels including MGM,
Movie Max 2, BBC Prime, Discovery Channel, Euro sport, CNN world
news, etc.
There are
large European communities living in Turkey full time, plus many
transitory people living on boats in the harbours for months at a
time. During the winter months there are many social occasions
arranged such as book swaps, walks, BBQ`s, card evenings and inland
trips.
Residents
Visas If you wish to apply for a resident permit in Turkey, you
should apply to The Police Headquarters, Aliens Department in the
province where you reside. First time applicants may be granted up
to two years resident permit. Thereafter, it may be renewed for five
years. Resident permit applications will be processed and issued in
one day.
A man or
a woman married to a Turkish citizen will be issued with a resident
permit valid for three years on first application. Thereafter it may
be renewed for up to five years.
If a
working visa has been obtained from the Turkish Embassy abroad, on
first application in Turkey a two-year resident permit will be
issued. Thereafter three and five year resident permits may be
issued.
Pending
Applications: If you wish to leave the country and your application
has not been resolved the Aliens Department will endorse your
resident permit on one occasion only, giving right of residency for
15 days. Production of this endorsement upon departure from Turkey
to immigration police should avoid a fine being levied.
Do I need insurance?
There are numerous insurance companies offering comprehensive annual
cover. We advise clients to insure their properties and can
recommend good companies for buildings, contents and medical
insurance.Earthquake insurance is mandatory in Turkey.
Can I arrange finance in Turkey?
Mortgage companies do not generally exist in Turkey as most property
purchases are cash transactions. You should therefore arrange your
finance in your home country.
How do I import a vehicle/car into
Turkey?
If you are visiting Turkey as a tourist with your vehicle, you
should have full documents and insurance for your vehicle. Details
of your car will be registered in your passport on your arrival at
the border. A foreign plated vehicle is permitted to remain in
Turkey for a of maximum six months in any 12 month period.
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