Comprehensive Guide to Buying Property in Turkey:
Purchasing property in Turkey, whether for personal use, investment, or holiday purposes, can be a highly rewarding venture. This guide will provide you with a detailed overview of the buying process, financing options, and key considerations, specifically tailored to the unique characteristics of the Turkish real estate market.
Initial Steps:
1. Start Searching for Properties:
Begin your search online through real estate websites and listings. Hiring a local real estate agent with expertise in the Turkish market can provide valuable insights and assist in finding properties that meet your criteria and budget.
2. Find the Right Real Estate Agent:
Choosing an experienced agent is crucial. They should have in-depth knowledge of the local market, be able to communicate in your language if necessary, and have a proven track record with foreign buyers. Spotblue.com can assist you in finding your ideal property in Turkey.
3. Make an Offer:
After identifying a suitable property, make an offer through the selling agent. It’s important to consult with your agent on a reasonable offer, as low offers can be poorly received in Turkey.
4. Sign the Sales Contract:
Once your offer is accepted, you will sign the sales contract, which outlines the terms of the purchase. This contract may include conditions that allow you to withdraw if certain criteria, such as securing a mortgage, are not met.
5. Secure Financing:
If financing is needed, obtain a mortgage offer from a Turkish bank or lender familiar with the local market. Ensure all necessary documents are prepared and you meet the eligibility criteria. As of June 2024, mortgage rates in Turkey range from 10% to 15% (Alpine Property Investments).
6. Open a Turkish Bank Account:
Opening a Turkish bank account can simplify the transaction process and regular payments, such as utility bills and insurance premiums. Most banks require proof of a Turkish address and various forms of identification.
7. Pay the Deposit:
After signing the sales contract, you must pay a deposit, typically 10% of the purchase price, to secure the property.
8. Conduct Building and Diagnostic Surveys:
It is advisable to conduct surveys on the property to check for issues like structural integrity and compliance with local building regulations. These surveys ensure the property’s condition is as expected.
9. Transfer the Payment and Sign the Title Deed:
Before the final purchase, ensure the remaining balance is transferred. The final step involves signing the title deed (Tapu) at the Land Registry Office. This action finalizes the purchase and transfers ownership.
10. Pay Taxes and Fees:
Understand the associated taxes and fees:
VAT for new properties: up to 20% depending on the size and price of the property
Notary fees: Around 1-2% of the purchase price
Transfer/Purchase tax: 4% of the property’s value
Land Registry and Legal fees: Often included in notary fees, around 1% of the purchase price
Post-Purchase Considerations:
11. Inheritance Provisions:
Turkish inheritance laws can be complex, so seek legal advice to manage your property’s inheritance provisions effectively. This can impact your family in the future.
12. Connecting Utilities and Insurance:
Having a Turkish bank account is necessary for setting up direct debits for utilities and home insurance, which is mandatory in Turkey.
13. Planning for Future Costs:
Be aware of ongoing costs such as local property taxes, which are due annually, and other maintenance expenses.
Property Types and Buying Options:
Freehold vs Leasehold:
Freehold: You own the property outright and have full control over its use. This option provides more flexibility but typically comes with higher initial costs and maintenance responsibilities.
Leasehold: You lease the property for a set period, which can be renewed. This option often comes with lower initial costs but less flexibility in property usage.
Types of Properties:
Apartments: Common in urban areas, offering convenience and often access to shared amenities like pools and gyms.
Villas: Provide a more private and luxurious option, often with more space and private gardens.
Popular Areas in Turkey:
Istanbul: Known for its rich history and vibrant culture, Istanbul is a popular destination for both personal and investment properties.
Antalya: Famous for its stunning beaches and Mediterranean climate, Antalya is a favourite among holiday home buyers.
Bodrum: Offering a mix of luxury and traditional Turkish charm, Bodrum is well-loved by international buyers for its picturesque scenery and modern amenities.
Frequently Asked Questions:
Can I buy property in Turkey if I am a non-Turkish citizen?
Yes, non-Turkish citizens can buy property in Turkey. Specific financial and legal considerations must be taken into account, so consulting with a local expert is recommended.
What are the steps for securing a mortgage in Turkey?
Mortgages in Turkey are available to non-residents. You can borrow up to 70% of the property value, depending on your financial status. It’s important to gather all necessary documentation and meet the eligibility criteria set by the lender.
How do I rent out my property in Turkey?
To rent out your property, you must inform the local municipality and obtain the necessary licence permits. You can then work with a reputable agent to market the property and find tenants. Rental income is subject to taxes, which must be paid annually. Note that you can only rent your property out short term under the licence laws (up to 100 days is classed as under licence), and more than 100 days comes under long term rental, which means a license is not required, however contracts must be legally provided and signed.
What are the costs of maintaining a property in Turkey?
Maintenance costs include property taxes, insurance, and utilities. Additionally, service charges for communal areas in apartment buildings and regular upkeep can add to the costs.
Are there tax advantages to buying new properties?
Yes, new properties often come with tax advantages such as reduced VAT rates and the ability to reclaim VAT if the property is rented out.
What is the role of a notary in the buying process?
A notary is responsible for preparing the necessary documents, confirming the seller’s title to the property, ensuring there are no existing mortgages, and registering the final conveyance. They act impartially and ensure the legality of the transaction.
How do I manage international money transfers for the purchase?
Using a specialist foreign exchange company can help secure better exchange rates than regular banks. Ensure that funds are transferred in plenty of time to meet payment deadlines.
What should I know about property surveys in Turkey?
Compulsory surveys, known as the İskan, include checks for structural integrity and compliance with local regulations. Additional surveys can be conducted for a more comprehensive assessment of the property’s condition.
What are the inheritance laws in Turkey?
Turkish inheritance laws dictate that a portion of your estate must go to your children, regardless of your will. It’s important to plan your inheritance provisions carefully to ensure they align with Turkish laws and your wishes.
How do I apply for a residency visa in Turkey?
If you plan to stay in Turkey for more than 90 days, you will need to apply for a long-term visa. After residing in Turkey for five years, you may be eligible to apply for permanent residency.
What is the healthcare system like in Turkey for property owners?
Turkey has a robust healthcare system. If you become a resident, you will be required to have health insurance, either through the state system or a private provider.
Can I purchase property in a company name?
Yes, you can purchase property in Turkey through a company. This can offer tax advantages and facilitate the transfer of ownership.
Conclusion:
Purchasing property in Turkey involves several steps and considerations, from selecting the right property and securing financing to understanding legal and tax implications. By following this comprehensive guide, you can navigate the Turkish property market with confidence and make a sound investment. For further assistance, consult with local experts, real estate agents, and legal advisors to ensure a smooth buying process.
Apartments for sale in Turkey
Villas for sale in Turkey
Property for sale in Turkey
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