The Buying Process

How to buy in Turkey

The Buying Process

Buying a property in Turkey is a lot easier than in the UK, since all deeds are controlled and issued by the government and detailed records are kept in the district deed office. Foreigners may purchase land and property in Turkey in their own name provided that properties are not located in a military zone. Though we would not attempt to sell a property that fell into this category, as a matter of routine all sales to foreign citizens have to be approved by the army base in Izmir. This is the only lengthy part of the procedure, as it takes 8-12 weeks to receive that approval. Apart from this, the official procedure is a straightforward transfer of the title deed in the Land Registry Office. There is no need for a solicitor to carry out a search as the procedures at the deed office include a check on the property, which would uncover any irregularities or outstanding loans secured against it.

Buying property in Turkey is a straight forward process, and often easier than in other European countries.

1. Once you have seen a property in Turkey that you would like to purchase you will need to find the deposit. This is payable by cash or credit card – Personal cheques are not accepted by banks here in Turkey. An initial payment of 10-20% of the property price is usually required. The exact figure will be confirmed individually with the house owner at the time of purchase. When this is paid a receipt is given.the amound received is written into the contract. A deposit can also be paid once you are back home via electronic funds transfer.

2. You will need to have your passport with you. Photographs are also required; your agent will be able to show you where the nearest place to get these done is. (approx £4 for 8 photos).

3. A purchase contract will then be prepared. Should you wish an english speaking solicitor can also be provided .

4. Should you not be present in Turkey for the actual purchase of your property, you then need to go (your agent will accompany you) to the Notary's office (similar to Notary public in the UK) to sign a document giving your agent power of Attorney for the property, not for money. This enables the agent to continue with obtaining the Title Deeds in your absence. Usually then you will return to the solicitors office, where the sale contract showing the property address and payment details will have been drawn up and be signed by you the purchaser(s) and your agent.

The initial stage has been completed and you do not need to be present for any more of the property purchase transaction. This process only takes a few hours.

You will be given the original contract and copy of the power of Attorney to take back home with you.

The same day or the next day your papers are forwarded to the Land Registry office for all documentation relating to the purchase is then forwarded to the Land Registration office in Izmir. Here everything is checked and then the title deeds ( TAPU ) are re-issued in the new owners name and forwarded back to the local Land Registration office who, in turn contact your agent. This process usually takes 6-8 weeks.

Your agent will advise you of this when it happens. At this time you will need to pay the final balance plus the 3% property tax.
Upon receipt of this we can then sign for and collect your TAPU from the Land Registration office on your behalf and this will then be held in the office pending your next visit and collection.

On top of the purchase price, are there any extra taxes or fees payable?

Yes, There are some extra costs.

• A 3% of the property value tax. This is a once off payment and it is due for payment once the TAPU is received.

• The solicitor's fee (should you require one). Prices start from about £200.00 pounds and will vary depending on which solicitor you choose to use.

• An approximate £100 Notaries Charge for giving us the Power of Attorney to handle the documents relating to the property in your absence.

• A 3% agency fee that covers all agents commision and charges. This is usually payable at the time that the contract is made, together with the initial deposit payment on the property but may be able to be negotiated in certain circumstances.

• It is compulsory to have earthquake insurance and we recommend you take out Full insurance home and contents cover as soon as the house is registered in your name.(the cost of this varies depending on the value of the property, it's contents for the number of months it will be occupied.) Approximately £150

• The connection of Water and Electricity into your name so the bills will come directly to your house. Does not apply to some properties.

This is an idea of costs for the purchase of a property of £50,000

	Property price	£50,000
	Tax @ 3%	£1,500
	Solicitor	£500
	Notary's fee	£100
	Agency Fee @ 3%	£1,500
	Full insurance (incl. earthquake cover)	£150
	Utility Connections	£180

	TOTAL	£53,930

Once you have received your TAPU there are some other charges, which need to be paid. We estimate annual costs per property to be as follows:

	Electricity	£120
	Water / Sewage	£50
	Gas	£25
	Rubbish removal	£10
	Site maintenance	£200
	DigiTurk Satelite TV	£150
	Council tax	£15

	TOTAL	£570

It is not necessary to pay anyone to pay bills. Electric can be paid by automatic standing order once you have a bank account.
Water bills are intermittent and likewise your council tax can be paid when you visit annually.

Please note: The costs are correct at time of writing but are always subject to change. Variations will always occur due to location of purchase and other factors beyond the control of Dreamsofturkey.co.uk. This is intended as a guide only.

Taxes

An annual property tax is collected by the municipalities (i.e. local governments) at the rate of 0.3% for land and 0.1% for a house in the Fethiye area. All properties are subject to revaluation every year for tax purposes in line with inflation. The buyer must complete an affidavit and submit it to the municipality for these tax purposes, and we are happy to guide our customers through this process for the first time.

In addition to the property tax, all owners are liable for a refuse tax which is also payable at the municipality office.

Insurance

It is compulsory to have Government Earthquake insurance. As an example, for a 100sqm house compulsory earthquake insurance (‘Dask’) currently costs 62 million TL (approx 25pounds). However the payout on it is also very low.

Additional buildings insurance, including extra cover for earthquakes as well as cover for fire and flood can be purchased from a broker. At present, Commercial Union buildings insurance for a value of £75,000 costs around 565 million TL (225 pounds) a year, though exact prices vary according to factors such as whether the property is lived in all-year-round.

Utilities

When you purchase a new property, the developer will usually register the electricity and water in your name. With resales, the property owner will usually need to apply to transfer the registrations with both the electric and water companies. The exception to this is large sites where the site may be registered as the user and individual properties billed by the site.

Registration is not difficult, but can be time consuming! It involves visits to the electricity board, the municipality building and the water board, with a number of documents prepared in a file. We are happy to help you for a small fee to cover expenses.

To register with the electricity company you will need to come to us with a photocopy of your passport, your deed and your electricity registration number (written on the meter) – or, in the case of a new registration, your nearest neighbour’s registration number (read it from their metre!). To register as a water user, bring the same documents (obviously reading the number on the WATER metre – written on a metal plaque attached to the pipe) and we will take you first to the municipality building where you will pay any outstanding taxes and take a paper to say the property has no debts, then to the water board. Following this, metres are read on a regular basis – usually every two months and can be paid at the relevant utility office, in the municipality building (water only) in certain banks or by direct debit.

Entering Turkey

Anyone can enter Turkey, so long as they hold a legal passport (with at least 6 months until expiry). Unless you have a visa, you will be required to get a tourist visa on arrival at Dalaman.The cost of this is £10 for British passport holders.

Residence Permit Application

Residence permits are available from 6 months to 5 years. You will not be able to apply for a longer permit than the duration of your passport – if in doubt they can help you at the passport Office. You must also decide if you want a family visa or an individual visa; if you are planning to work, you will need an individual visa. Once you have decided these things, the procedure is as follows:

1. Pay the fee at the tax Office. The relevant prices for 2005 are as follows:

6 months 216.50YTL

1 year 416.30YTL

2 years 815.90YTL

3 years 1215.50YTL

4 years 1615.10YTL

5 years 2014.70YTL

2. Complete the application form and get it signed at the local administrative office

3. Give all documentation to the passport Office, along with a further fee of 66YTL. The following are required here:

Passport

Receipt of payment from tax Office

Copy of a title deed of property owned, or a rental agreement

8 photographs

retirement papers (if applicable)

bank account details

for children under 18 – copy of birth certificate

The application is then sent to the Mugla (regional government) Office, and takes 6-8 weeks to process. Your passport is away for this time, but you will be given an authorised photocopy in its place.

When your residence permit expires, you have 15 days grace period in which to renew it. If you lose it or change your address, you must notify the passport Office immediately. You must also let them know any change in marital status or occupation.

Work Permits

There are 3 types of work permit:

Standard 1 year permit, which your employer must apply for. If you are still in the same job after one year, you can then take a 3-year permit.

Permanent – you must have lived in Turkey for at least 8 years, or worked here legally for at least 6 years to apply for this.

Independent work permit – you can apply for this yourself, but only after you have been resident here for 5 years.

: What are the banks like?

What are the banks like?

A: You will need to open a bank account when you buy a house. You need only your passport and a minimum sum of money to open a current account. After that you can open an interest account and the bank will juggle your money between the two. You can obtain a cash card, but cheques are not in general use in Turkey.

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Q: What is the cost of living like in Fethiye, Marmaris and Bodrum?

A: The cost of living is significantly less than in the UK but varies by product. Petrol is not much cheaper, and electrical goods may even be more expensive. However, basic products like food and clothes are much cheaper as is eating and drinking out.

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Q: What about healthcare?

A: There are two private hospitals and a state hospital in Fethiye. The standard of healthcare is high and many doctors speak English. Care can be paid for when necessary or private health insurance can be obtained, with various levels of cover. There are also many dentists working in Fethiye and their charges are generally much less than in the UK.

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Q: What are the schools like?

A: There are both state schools and private schools in Fethiye. The standard is high but all teaching is in Turkish (there are no international schools). The private schools are better able to cope with foreign students and to give them extra Turkish lessons to speed their learning. Costs are currently around £1500-2000 for the year.

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Q: Can I claim my UK pension and benefits if I live here?

A: It is still possible to claim UK state pension while living in Turkey, and even to have it paid directly into your UK bank account. It is, however, illegal to claim UK benefits while living abroad.

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Q: Can I get work in Turkey?

A: In theory it is easy to find work as many places are looking for foreign staff. Foreigners working in Turkey must have a work permit and it is the responsibility of your employer to get this. However as it is expensive they may be reluctant to do this unless they are sure you will stay for the year. Be prepared for low wages compared to the UK!

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Q: Can I import my car from the UK?

A: It is not advisable to bring your car unless you plan to take it out of the country again. UK- registered vehicles can only be kept in Turkey for 6 months, and re-registering a vehicle is expensive. Once you have a residents’ permit, you can buy a Turkish-registered car.

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Q: Can I import my belongings from the UK?

A: Once you have a residents’ permit, you can import furniture and other personal possessions. There are a few companies in the UK specialising in shipping things abroad. The closest port is Izmir (about 4 hours drive away). You will be charged import tax on your things; beware – the charge for electrical goods can be quite high!

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Q: How do I gain my residents’ permit?

A: If you are based mainly in Turkey, it is easy to obtain a residents’ permit. As with much official business here, it involves a bit of paperwork which we are happy to guide you through. A five-year permit currently costs about £750 and takes about 6 weeks to come through.