Turkey has an immense coastline, balmy Mediterranean climate and a wealth of opportunities for outdoor activity. Its people are also one of the most hospitable in the world. Hence it is hardly surprising that buying property in Turkey is becoming a firm favourite, and this trend is on the rise. Prices have risen by about 25% on an average in the recent past.
Turkey is not only attracting people on the look out for a more varied lifestyle or those looking for a holiday home : large and serious property investors are also making an entry into Turkey’s booming property market. With property prices on par with Spain almost 20 years ago, it’s a natural choice for those looking for a long term investment judging by the amount of money that was made in that market.
Turkey is yet to become a member of the European Union; as a result, many investors are seeing a golden opportunity to acquire property right now. They think the propertyboom will soon move from the popular European markets to Turkey.
This is actually much simpler than in many European countries, and there is no difficulty in a foreigner buying property or even land in his own name. There are a few restrictions; you cannot purchase property in areas which are in the country side and are not under the control of a municipal town or borough. The same restriction applies to military zones.
Once you have found your dream Turkish property and made an offer, you have to sign a contract of reservation. This effectually takes off the property from the market for a short period of time, say, 30 days, and you pay a holding deposit, usually around 3,000 euros. At this point an agreement is drawn up and you are given a copy of the Title to the property. You should decide at this time whether or not to go in for a survey of the property, and open a bank account in Turkey.
Now your lawyer has to start making enquiries into the details of the property. He will do a title search, to make sure that the owner actually owns the property. He also hasto check whether the property is clear of debts; whether the construction is legally sound; whether the sale contract is in correct English. After the checks are completed, you have to sign a preliminary purchase contract and a deposit has to be paid.
There may be a few more things you have to look into; for example, military permission may be required if the property you are buying is a Turkish property, butthis rule may soon be abolished. A company may have to be set up if, as a foreigner,you are buying land above 300,000 sq. metres.
Notary fee costs approximately 1.3 per cent of the value of the property and Stamp duty is another 0.75 per cent. There is also real estate tax, which is calculated on theproperty valuation – at the rate of 0.1 % on residential property.
The property is transferred to the Buyer at the signature of the Deed of Conveyance before a Notary Public. The Notary Public receives from the Land Registry Office, information about the property and certifies this in the deed. They advise both parties on their rights and duties, especially on tax matters. The Deed of Conveyance must then be presented at the Land Registry for its registration, this process takes between 2-6 weeks.
The Tapu on the Property will be changed into your name and from that day forth the Property and Land stated is solely owned by you.
As part of any estate agents after sales service, they should make sure that all utilities are transferred into the new buyers name, help you with furnishings and fittings (if necessary), and do all they can to help you settle into your new property in Turkey.
Further information on Buying Property in Turkey can be obtained from the Turkish Embassy website.
We hope you found this article of interest and if we can offer any further help or advice, please let us know. We cover many areas along both the Mediterranean and Aegean, so if you are looking for a particular type of property.