Turkey FAQ's
Who can buy property in Turkey?
According to the law passed in January 2006 on property purchases by foreigners in Turkey, foreign nationals are able to purchase property in Turkey in their own name as long as reciprocity exits between their home nation and Turkey, in the case of the United Kingdom this does exist. Foreign nationals may also buy property through a Turkish Company. With regard to Turkish laws governing property ownership, foreign nationals and Turkish citizens are treated equally.
Foreign nationals may also buy property through a Turkish Company. With regard to Turkish laws governing property ownership, foreign nationals and Turkish citizens are treated equally.
Should I Use a Solicitor?
The use of a solicitor is not compulsory, but you are perfectly entitled to seek separate legal advice for comfort if you wish. There are many very good English speaking lawyers in Turkey.
Does the property have clean and good legal title?
This is easy to check with the TAPU (Land Registry) office, all our land is thoroughly checked to ensure there is a clear and unencumbered title which can be passed on to each property owner.
Are properties Leasehold or Freehold?
Whilst this sort of distinction is not commonly used in Turkey, the type of ownership that is offered on our project is what most people would understand as ‘freehold’ - fully registered legal title in perpetuity.
Can I buy more than one property?
Yes, you can purchase up to a maximum of 2 Hectares in your own name.
How does the land registry work?
Not yet, however, this will almost definitely change with a new law likely to be passed by the end of 2006
Is military permission hard to get?
Not at all, it is an administrative process that takes around four months to complete and costs a few hundred pounds. If you purchase a property through a Turkish company you do not need military permission. We have never heard of this being denied.
What currency should I use?
All our properties are sold in Euros, but you will need to pay all the taxes in local currency, which is YTL (New Turkish Lira). Our payment partner HiFX will guide you through the foreign currency conversions.
Is it difficult to open a bank account?
Opening a bank account is quick and easy, the bank will open accounts for you in any currency you may need to use.
Do I need to go to Turkey to open a bank account?
No, you need to give your solicitor ‘power of attorney’ and they can open the bank accounts for you.
How much money can I take to Turkey?
There are no restrictions on the amount of money, in either local or foreign currency, that you can take to Turkey.
How much money can I take out of Turkey?
In cash any amount as long as you have declared it on the way in, if not a maximum of $5,000 or the equivalent foreign currency.Through a bank or financial institution there are no limits to the amount of money you can take out of Turkey.
What is my tax liability?
You may be liable for the following are the taxes:
• Property Purchase Tax
This is payable on receipt of your TAPU and is 3% of the value of the property.
• VAT
When buying real estate of less than 150m2, from a company there is VAT of 1%.
• Stamp Duty
This is not the same as UK stamp duty, this is a charge for the notarising of contracts and is a small administration fee.
• Real Estate Tax
This is an annual tax of 0.1% of the stated value of the property, subject to annual increases by the government.
• Personal Income Tax
You are liable for personal income tax on rental income and capital gains, however, capital gains tax can be avoided if the property is held for more than four years, and remembering that the capital gain is based on the stated value of the property. Personal income tax is currently on a sliding scale from 15%-35%.
• Inheritance Tax
This is dealt with under a reciprocity agreement, and is currently on a sliding scale from 1%-10%.
• Environmental Service Tax
This a local water and management charge by the local council, it is relatively inexpensive and is currently 0.13 YTL per m3 of water used.
How much of my property is available to mortgage?
For Horizon Sky purchasers, DenizBank offer 65% to non-Turkish citizens and 75 % to Turkish citizens.
When can I apply for the mortgage?
Horizon Sky customers can begin to apply for a mortgage in 12 months time. This will vary dependent upon construction, as a building framework must be complete before application granted.
How long will the approval process take?
On the condition that a full list of details required is received – approval for Horizon Sky owners should take no longer than 7-10 days.
If Turkish translations are required, DenizBank will then send the documents to an official translator, and will then take translation time + 7-10 days.
Will I need to travel to Turkey to acquire a mortgage?
Non-Turkish citizens will be required to go to Turkey around completion for the whole process to be approved and to sign the contract.
