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The Purchase Process in Turkey
Buying property in Turkey is no more difficult than buying a property in any other EU country, provided that you have appointed a recommended English speaking lawyer to act on your behalf from the start, this will help you the purchaser and should ensure that the buying process proceeds smoothly.
Depsit/Reservation
It is normal for a deposit or reservation fee to be taken at the start, we do not expect purchasers to carry large sums of money with them, therefore, after an initial payment to hold the property by taking it off the market or freeze the price, the remaining monies are normally due within 30days.
Appointing an independent lawyer
Ask around the local area, meet people who have purchased a property and used a lawyer happy with the conduct, take the contact details, if the purchaser is not happy to find a lawyer we of course will recommend one.
Power of Attorney and lawyers
You the purchaser decide how much power of attorney you wish to give to a lawyer. Some purchasers prefer to be in Turkey for the whole process, however, we understand that many have committments back home in the UK and will therefore need the lawyer to complete all the transactions on their behalf.
-Signing the private purchase contract
-Opening a bank account (however, we at Turkey Property Gems can do this for you).
- Registration for water and electric.
-Transferring the title deeds of the property into the purchasers name(s).
Power of attorney is given at the Turkish Notary Public Office, the cost varies from district to district approx £100-£200 (depending on district and number of names purchasing a property).
Passports will be translated into Turkish and then the power of attorney is completed.
The power of attorney is always in Turkish, and includes an official Oath, a sworn translator needs to be present to translate this to the purchaser in English.
Should the purchaser not be present in Turkey and they need to organise the power of attorney, we TPG or the lawyer can send the document by post. The purchaser will need to go with this power fo attorney to a solicitor or notary in their own country of origin and sign the document. The power of attorney must then be stamped at the Commonwealth Office, The power of attorney is then posted back to Turkey, translated into Turkish at the Notary office and sworn oath by a translator.
Title Deed/Building License to be made.
Your lawyer will ensure the necessary checks are made.
-Title deed of plot is free of debts and other charges.
-Title deed of Property is free of debts and other charges.
-The property is freehold and can be purchased by a foreigner.
-The current ownership of the property at the land registry office.
-The builder has all the necessary planning permissions, building licences and habitation certificates.
Purchase contract
Should all the paperwork, title Deeds (above, title deeds in Turkey known as Tapu) be in order, then your lawyer will draw a contract between the buyer and vendor/builder. This contract details the property, from delivery date to technical specification, payment terms and any special adjustments to be made to the property.
The draft is usually made in both Turkish and English. Any amendments can be made at this stage. Once the terms have been agreed the lawyer confirms approval for signing of the contract.
Payment or installments
If the purchaser has chosen to use the services of a lawyer all payments can be made to the lawyer client bank account, or if the purchaser chooses to use their own bank account then the lawyer will need to have power of attorney to access the bank account. From here, the money is transferred to the vendor/builder on the day of contract signing.
All other staged payments through to completion can be made in the above same manner.
Military approval
Your lawyer will send detail of the property and you (the purchasers) to the Turkish Government Military for approval. This is to check that the property is not located in a restricted zone for foreign purchase etc..
The council of Ministers is authorised to determined specific zones to be preserved such as lands which have strategic importance in terms of agriculture, energy, history, mining, cultural, flora and fauna and national security. Foreign nationals and foreign companies will not be able to purchase in these specially preserved zones.
Transfer of Title Deed (Tapu)
Once military approval has been granted and the last payment or full amount has been paid to the vendor/builder, the title deed transfer takes place at the land registry offices.
The buying process should complete in approximately 3-6months.
Buying Costs and Legal process.
Approximately 5% of the total value of the property is made up of:
-Purchase tax up to 3% of the slae agreement price (price stated on Tapu).
-Property tax 0.5% of the sale agreement price.
-Legal fees between 1%-1.25% of actual agreed price (approximately £1000).
-Government tax (Dependent on location and resort)
-Water and electric connection registrations £250
-Notary charges approximately £100-£250.
Turkey Taxation
Income tax ranges from 15% to 40%
Capital Gains tax rate on Turkish property can range between 15%-40%. However, if you own your property for more than 4 years you are then exempt from capital gains tax liability, until the forth year of ownership the taxation is based on a sliding scale.
Real estate tax - annuyal payment of 0.1% of the value of the property.
Corporation tax rate of 30%.
Please note, The charges for purchasing can differ from region to region. it is therefore difficult to give a detailed and complete picture of the final cost involved, this is why we strongly recommend the use of a English speaking lawyer.
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