Turkey

About Turkey

Whether you are an art and history buff, or an archaeology nut or a nature lover, enjoy browsing through markets or going diving, the different regions of Turkey offer endless possibilities all year round.  Each area has its own personality, history, landscape and even cuisine. With so much on offer to visitors its not surprising that one trip to Turkey is never enough. Surrounded by four different seas, Turkey is a beach paradise with over 8000 km’s of sunny strips of sand. It also has an abundance of plant and wildlife species that can be enjoyed while camping or trekking in the many national parks which are dotted around the country.

Bridging Asia and Europe, Turkey is a vast and fascinating country, with spectacular rugged scenery and glorious coastlines. Home to more than 20 different civilizations, Turkey has a 10,000 year old heritage, much of which is still being uncovered. Its rich history is very much part of the present, with temples, ancient theatres, churches, mosques, tombs, statues of gods, palaces and fortresses, and of course the many detailed and fascinating museums which bring the past to life. In cities like Istanbul, there is a modern, lively ambience of contemporary society living alongside tradition and history, where art and music can be enjoyed whether it belongs to today or yesteryear. Whats more Turkish people have an unrivalled reputation for hospitality, the cuisine is to die for, and the coastline is a dream. .

Reasons to Invest in Turkey

The property market in Turkey is considered to be good value with prices rising as it becomes more popular and the benefit of a low cost of living being a distinct advantage if planning to live there. Turkey has a strong tourist industry and much to see and do, which potentially bodes well in terms of rental income, subject to area and property type of course.

Property prices are competitive compared to other Mediterranean European destinations and the expectation of price rises in the future centre around Turkey joining the EU and high demand for holiday accommodation. Buying property in Turkey is quite straightforward and Foreigners may purchase land and property under their own name as a freehold title.

Turkey is an emerging property market and experts agree that it is a rewarding place to invest. In the last 5 years Turkey has seen unprecedented levels of interest in Turkish property from foreign buyers.

Turkey offers you;

• Strong economic  growth with the lowest level of inflation for more than 35 years. Turkey is the 15th largest economy in the world and the 6th largest economy as compared to the EU countries in 2008. (IMF-WEO).
• Value for money property at significantly lower prices than more established property markets.  Capital growth is not unusual at levels of 15 – 20%.
• Better than ever tourism and transport infrastructure owing to Turkey’s drive to join the EU which has  channeled Government investment, transforming coastal areas in particular.
• Mortgages are available on completion of a property, enabling access for many more buyers (subject to status).
• A long summer season and growing tourism is making it easy for you to rent out your property and profit from your investment.
• A major tourist destination, Rapid development of summer and winter  resorts means that you can enjoy beach holidays in the spring and summer and ski in the winter.
• Golf has seen a huge surge in popularity particularly in Belek, close to Antalya, where there are currently 11 championship golf courses.  New signature golf courses are under construction throughout the tourist regions of Turkey.

View our selection of available property or contact us to search relative to your specific requirements.

The Buying Process

Foreigners are eligible to buy property in Turkey on conditions of reciprocity. Foreigners may buy property and land within zoned municipal areas which means all cities, towns, the coastal resorts and large areas around them.

Before buying a property in Turkey, you should first decide on some crucial criteria in your property search. The best way is to research on our website to identify the location you are interested in. If you are not sure about the location speak to one of our agents and we can advise you on suitable areas based on your requirements and assist you in planning a viewing trip.

Our team of agents can help you to identify your needs before taking you to show any property and we ensure that;

-          You choose within a good selection from our portfolio

-          We pre-approve builders and projects

-          The planning regulations are met

-          Building permissions are obtained

-          Architectural plans are approved

-          Sellers pre-checked to have the authority to sell the property

Signing the Contract

The buying process is very smooth in Turkey; once you have found your property and agreed on the selling price, the sales and construction agreement (purchase contract) can often be drawn up within the same day both in Turkish and English.

Both buyer and seller sign the contract setting out the agreed sale price, payment Schedule, the names of buyers and sellers, full property details, obligations of both parties, the completion date, all terms and conditions applies to completion and ensure that the property is free from restrictions. When the contract is signed, ussually a non-refundable deposit is due.

In order to make sure the legal side of the process is taken care of, it is advisable to have an independent bilingual legal Advisor/Solictor who is experienced in Turkish Property Law.

Power of Attorney

There is a Notary Public in every town in Turkey. It is normal practice to issue a Power of Attorney to the solicitor, to enable them to follow and complete the purchase process on your behalf without the need for you to be present until a convenient time.

The following documents are required by the Notary Public when giving POA for each owner:

• Your passport
• Your parents’ full names
• Your contact number(s) and address(es)
• Two photos of each person who will be named on the title deeds

A POA can be issued abroad as well; usually Solictors abroad have the authority to notarize the documents. The notarized POA should then be apostilled at the local Commonwealth Office or should be certified by the Turkish Consulate in order to be recognized as valid. Please note that a POA obtained from abroad and written in languages other than Turkish should be translated into Turkish language and the legal translation approved by the notary in Turkey as well. Or you can directly contact the Turkish Consulate in order to prepare a legal POA.

Obtaining a Tax Number

All buyers will need to obtain a tax identification number from the local authorities (tax Office)_to open a bank account (for the transfer of the funds), sign up to the utilities or obtain the title deeds of the property in your name. It is a very easy process;  a 10-digit number is obtained once you present a copy of your passport to the tax Office. Alternatively the tax number can be obtained by your solicitor if you have issued a POA.

Military Permission

The builder/seller must apply for military permission.This procedure is standard for all foreign purchasers in Turkey. The checks are to ensure that the land on which your property is built is not in a military, strategic or security zone. Once you  have clearance, than the title deed transfer process shall start. It is important to note that the military search period may take up to 3 months and in some cases 6 months.

Title Deed Transaction

The title deeds (known as ‘TAPU’ in Turkish), will be signed at the Land Registry Office, and then the buyers should pay all costs and taxes related to the transfer of title deeds.

Mortgages

After deciding on a property, you will have to fill out a mortgage application form at a bank in Turkey, preferably a branch close to the designated property. The bank will provide you with the payment options, current interest rates and the best payment plan to suit your needs. After pre-evaluation the bank will notify you about about whether you are eligible for a mortgage.

After the application has been accepted then you will need to deposit an amount to the bank to cover the appraisal report and loan evaluation feeds. The bank will then appraise the property and once the value of the property is set, the final loan evaluation and loan amount will be decided accordingly.

It is possible to have a mortgage in Turkish Lira, Euro, British Sterling, US dolar and Swiss francs. Adjustable rate mortgages are available in Turkish Lira denominated mortgages only, as a result of the Mortgage Legislation in Turkey. Fixed rate mortgages are available in Turkish Lira, Euro, British Sterling, US Dollar and Swiss Francs.

The maximum loan-to-value ratio for EU member countries, Norway and Switzerland citizens is 65% of the appraised value of the property. For other countries, the maximum loan-to-value is 50%. This can change according to the bank.  There is no minimum loan amount limit for a mortgage and the maximum loan amount limit is approximately 500,000 Turkish Lira or its equivalent in the other available currencies.

The minimum and maxium loan terms for mortgages is 3  – 240 (20 years) respectively. Consumers between the ages of 18-65 can apply for a mortgage and all countries citizens can apply for a mortgage loan in Turkey. The maximum debt-to-income ratio is 40%.

Taxes

Real Estate Taxes

Real Estate tax is 3.3% of the real estate value and is payable only once at the point of transfer of title deeds. There is also a compulsory contribution to be paid to the Title Deeds Office (the amount changes every year depending on the geographical location).

Annual Property Tax

Real Estate property tax is annually levied by the relevant local municipality. It is paid in two installments during the year (end of May/November) at the following rates;

-          Buildings used for housing: 0.1% (0.2% for those located in greater municipalities)

-          Other buildings (i.e those used as factory, Office): 0.2% (0.4% for those located in greater municipalities)

-          Land (‘Arazi’) 0.1% (0.2% for those located in greater municipalities)

-          Plots of Land (‘Arsa’) 0.3% (0.6% for those located in greater municipalities)

These rates are applied twice as much if the relevent real estate is located within the boundaries of large cities like Istanbul, Ankara, Izmir etc..

*There is a draft law (i.e Law of revenue of municipalities) in Parliment that proposes to increase the current rates.

Municipality Taxes

Municipality tax for environmental cleaning;

This is levied for the purpose of environment cleaning if the buildings are used for housing, as a place of business, as well as other purposes. Tax is levied at certain fixed amounts which change every year based on certain defined categories.

Compulsory contribution for Protection of Immovable Cultural Monuments;

10% of the annually accrued real estate tax (paid to the municipality together with the real estate tax)

Capital Gains Tax

You don’t have to pay capital gains tax after you’ve owned a Property in Turkey for five years.

Visa Requirements

Citizens of one of the following countries, who have a valid passport can enter Turkey by obtaining a visa at borders and stay up to;

3 Months

Austria, Belgium, Brazil, Hong Kong (Only BNO passport holders), Ireland, Italy, The Netherlands, Portugal, Spain, Uk, USA.

*UK – a mulitiple entry visa is issued at the airport when you land and costs 10 pounds and lasts 3 months.

1 Month

Armenia, Azerbaijan, Belarus, Czech Republic, Estonia, Hungary, Jordan, Letonia, Lithuania, Moldavia, Poland, Russia, Slovakia, Tadjikistan, Turkmenistan, Ukraine, Uzbekistan, Federal Republic of Yugoslavia.

15 days

Albania, Georgia

No Visa Required

Regular passport holders and citizens of one of the following countries can enter Turkey without a visa and stay up to;

3 Months

Argentina, Austrailia, Bahamas, Bahrain, Barbados, Belize, Canada, Chile, Denmark, Ecuador, Federal Republic of Germany, Fiji, Finland, France, Greee, Grenada, Hong Kong (Hong Kong Special Administrative Region Passport holders only), Iceland, Iran, Israel, Jamaica, Japan, Kenya, Kuwait, Liechtenstein, Luxemborg, Malaysia, Malta, Mauritius, Monaco, Morocco, New Zealand, Norway, Oman, Qatar, Saint Lucia, San Marino, Saudi Arabia, Seychelles, Singapore, South Korea, Sweden, Switzerland, Trinidad and Tobago, Tunisia, Turkish Republic of Northern Cyprus, UAE, Uraguay, Vatican,

2 Months

Bosnia-Herzegovina, Croatia, Indonesia, Macedonia, Romania, Slovenia

1 Month

Bolivia, Kazakhistan, Kirghizia, Maldives, Republic of South Africa,

*these visa requirements may change anytime. For latest updates please visit www.mfa.gov.tr Republic of Turkey, Ministry of Foreign Affairs.