Buying Property in Turkey

In June 2003 Turkey liberalized the legislation relating to foreign ownership of property in a bid to begin aligning its real estate laws and regulations with those of the EU member states.  As a result of this liberalization there exists a rule known as the “reciprocity principle” that allows foreign citizens to purchase freehold land and property in Turkey if Turkish citizens are allowed to buy freehold land and property in the country from which the foreign citizen heralds.

This means that citizens of the UK, US and European Union countries can purchase property in Turkey for example and this article is a guide to buying property in Turkey for qualifying foreign purchasers.

The first step in the process is of course to locate a suitable property to buy.  Certain restrictions apply relating to the areas in which foreign buyers can purchase land or property and a simple guideline is that if a property is close to Turkish military land or bases permission will be denied.  The owners of all new build developments targeting overseas buyers can usually provide proof that apartments and villas for sale qualify for sale to foreign buyers and if in doubt make sure your solicitor checks out any property you’re interested in before you sign a contract to buy.

Regarding solicitors, lawyers and legal representation it is quite simply essential that you appoint an independent local lawyer who speaks English to represent you.  There are many checks and searches that need to be conducted on the title of a property etc., and these must be done by a professional lawyer otherwise you run the risk of encountering problems either with the purchase or later resale of the property.  It’s unlikely you’d buy a house in your home country without seeking the assistance of a lawyer so don’t be tempted to proceed in Turkey without the aid of legal representation.

Once you’ve found a property, made an offer and had that offer accepted verbally your lawyer will draw up a preliminary contract to purchase and upon signing this contract a deposit of between 4 and 10% will be required.  This deposit is non-refundable if you withdraw from the sale, it is refundable if the vendor withdraws and it is refundable if a problem is discovered during the next stage.  The next stage is when your lawyer begins his checks into the title of the property and conducts land registry searches.  Your lawyer will be checking whether the vendor has the right to sell, whether the title is free of debts and outstanding claims and making sure that everything you’ve been told about the property is basically correct.

If all searches are satisfactorily completed you will move to the final stages of the buying process where both you (or your lawyer if you’ve given him power of attorney) and the vendor meet at the nearest Land Registry Office in Turkey to sign the final contract.  The new title deeds are then applied for in your name and this process can take a few months.  To receive them you or your lawyer must attend a public notary’s office and sign for them.  When you get the deeds you have to pay all your taxes and charges.  These can come to around 10% of the purchase price.

When buying property in Turkey you should factor in the following extra costs and fees (please note the following figures are an approximation only and are offered as a guide upon which you can base your final budget; for up to date figures speak to your real estate agent and solicitor) : -

Solicitor’s fees - GBP 150
Translation costs - GBP 40
Public notary’s fees - GBP 60

Initial purchase tax - 1.5% of the (declared) purchase price
Annual purchase tax - Approx 0.5% of the (declared) purchase price
Government tax - Approx. GBP 100
Community tax - Approx. GBP 8 annually

Utilities connection charges - GBP 250
Earthquake insurance - price depends on the property and its location but this insurance is compulsory in many areas
Maintenance charges - these apply to properties that share communal facilities and can vary from as little as GBP 80 - GBP 500 annually

Buying a property in Turkey is no more or less complicated than purchasing a property in your home country.  Care simply needs to be taken relating to the property’s location with regard to military land and you should appoint a qualified and experienced local lawyer who speaks English very early on in the process to assist you and fully represent your best interests throughout.

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