PROPERTY PURCHASE PROCEDURE IN TURKEY
At Yalihan International we encourage a hands on buying process with our clients. Offering to introduce the vendor and buyer to ease our clients minds. This also emphasises our total honesty within the selling process. We advertise and sell properties with all legal aspects on the title deeds being verified. We will assist you throughout the process to ensure a safe and legal transaction.
The information below is provided as a guide during standard real estate purchase in Turkey:
1. Viewing. Consider your long term goals. Is the property an Investment opportunity or are you purchasing as a holiday or retirement home for the future?. Your search should then be defined to your chosen location. Consider your budget and then allow us to show a carefully chosen selection of properties tailored to your specific requirements. 3 day viewing trips can be organised by our company, including return flights and min 3 star hotel accomodation for 2 nights, the cost of which will be reimbursed on completion of a purchase sales contract. Further information is available upon request.
Documents required: Passport, 2 passport photographs 4 x 6 cm, proof of address (Driving licence or 2 utility bills)
2. Valuation report, reservation agreement and deposit. Once you have located your chosen property we will arrange an independent valuation from the municipality and supply a legally binding contract.
The Valuation Report will include photos of the property, location map, confirmation of the value, current debt situation and confirmation of acceptance with the land registry. This is new legislation as of 4th March 2019 and applicable to all foreigners purchasing property in Turkey.
A contract is then notarised and the charge on the property is then registered at The Land Registry Office to secure our clients assets and funds. This system replaces the Client Indemnity Protection which is not available in Turkey. A deposit is taken which secures the property in your name, at the agreed price and removes it from the market.
3. Appointing an independant lawyer: We highly recommend you appoint an independent English speaking lawyer to advise you. A list is available from your consulate or we may assist you with a choice locally.
4. Power of attorney (POA). If you are unable to attend in person for the legal process it is possible to appoint a legal power of attorney to act on your behalf. The POA is a standard document in a format specified by the Notary for the purchase of the property only within your name. It is then translated by an authorised translator. We recommend this process only if it is impossible for your personal attendance and advise caution in your choice of POA . Legal advice is recommended.
The POA will allow: Application for the purchase of property in Turkey (specific or general). Signing of purchase contracts. Opening bank accounts in Turkey. Obtaining tax number on your behalf. Obtaining deeds on your behalf. Connection and registration of Utilities (Water/Electric). Payment of taxes on your behalf.
The POA is executed whilst you are present in Turkey within normal business hours Monday to Friday and will require a notarised and translated copy of your passport which we can arrange.
5. Procedure of military clearance: Foreigners are restricted from purchasing properties within military zones in Turkey. Unless a clearance certificate is still valid from a previous foreigner you will be required to gain clearance. We will complete this simple transaction on your behalf. The process may take 2 - 4 weeks to complete and then the purchase may proceed.
6. Transfer and registration of title deeds: Following military clearance the final payment will be due. We will then arrange transfer of the title deeds at the Land Registry Department where a local translator will be required to assist you if you are completing the sale in person. At the same time the transfer of funds will be completed to the vendor. Both the buyer and the vendor (or legal POA) must be physically present for this process.
Property tax - 4% of the declared value of the property is payable to the government on completion of sale this is divided equally between the purchaser and the seller.
Agents fees - 2% of purchase price for both the buyer and seller.
Valuation report - Variable between 1000 to 2000 TL
Legal, Translation and Notary Fees - Minimal depending on POA. Approximately 500 Euros.
VAT of 18% (to be added on). For foreign nationals VAT rate has been reduced to 0% effective from January 2017.
Please be aware that some prices on our website are based on currencies other than Euros, eg. Turkish Lira or USD. This may alter the price quoted on our website when converting with current exchange rates.
Foreigners who purchase a property in Turkey are eligible to apply for a Turkish Residence Permit. Initially this is normally granted for a period of 2 years and re applications maybe available for longer. A residence permit is required if you wish to purchase a motor vehicle and import personal goods through Turkish Customs. Any person intending on staying longer than 90 days in a 180 day period will require a residence permit.
We can assist you in the process of this and further information is available upon request.
It is also possible under recent new legislation to obtain Turkish Citizenship. Foreigners who invest a minimum of $500,000 in Turkey or deposit a min of $500,000 in Turkish banks or buy real estate worth $250,000 or above acquire the right of lifetime citizenship. Foreigners who commit to keep their investments, deposits or real estates for at least three years earn the right for citizenship instantly. Further guidance and assistance in the application is available upon request.
Further information is available directly from our English speaking representatives at Yalihan International.