in Turkey - turkey property for sale
Back to Turkey property
Turkish legal system derives from European Civil Law
system and so it differs from UK Common Law system However;
property ownership in Turkey by Turkish or foreign nationals,
is a constitutionally recognised right. Furthermore,
the protocol under European Human Rights and the Main
Provisions Agreement guarantees these rights, but at
the same time accepts that individual ownership may
be restricted in accordance with the general principles
of the Law of Nations.
in other European countries, there are some implications
that are associated with property acquisition by foreign
nationals in Turkey. According to the Turkish Law the
property acquisitions by foreign nations are subject
to following provisions;
must be a reciprocity agreement between Turkey and the
buyer’s country of origin. There is a bilateral
agreement with the UK and the Republic of Ireland; therefore,
there are no restrictions applicable to British and
Irish citizens wishing to purchase properties in Turkey
in accordance with the Turkish legal system.
in the Military Forbidden Zones and Safety Regions cannot
be transferred, sold, or rented by foreign nationals.
As a formal practice, the Land Registry Office contacts
with the Army Headquarters for clearance once the application
is received from a seller intending to sell to a foreign
buyer. This is part of the Security Investigation process,
which takes between two and three months. According
to new law passed in July of last year the military
forbidden zones will be centralized. This aims to cut
to the security investigation process from two –
three months to two – three weeks.
There is a limit on the total area that a buyer from
overseas can purchase. Foreign nationals cannot acquire
larger than 30- hectare properties n Turkey.
A recent change in the law (it was passed in July of
last year) abolished restrictions on foreigners acquiring
properties in villages previously, properties purchased
by foreign nationals, had to be within specific municipality
new law is now fully implemented and buyers from abroad
can purchase properties in rural areas. This restriction
change is also in line with Turkey’s new Foreign
Direct Investment Law, where the differences between
foreign and local investors are minimised.
way to Purchase of Property in Turkey:
Property purchases can be conducted in the following
• Conducted in Tapu Dairesi (Land Registry Office);
• Performed in Noter (Notary Public).
practices are legitimate methods of sales. However,
a sale performed in the Land Registry Office is the
most common way of purchasing property in Turkey.
transaction is completed in the Land Registry Office
in front of a Land Registry official. The title deed
holder (owner) or their legal representative gives consent
for issuance of a new title deed with the buyer’s
details At this point, the money for the property exchanges
hands. The sale performed in the Notary Public gives
the purchaser a right to register the property at a
later stage in their name in the Land Registry Office.
either case, the seller must have the authority to sell
the property. Should the seller be acting on behalf
of the owner or the part owner, a power of attorney
clearly mentioning this authority is required.
Buying Process in Turkey
STEP 1- Finding a Property and Reservation Contract
First step is finding a Turkish property for sale that
you want to buy and agree a price with the seller and
sign a reservation contract, which reserves the property
generally 4 weeks until sign a full binding contract.
Reservation fees are variable, generally £ 2,000.00.
Please be aware of that the reservation fees are generally
2- Legal Searches and the Report
reservation period, we will do legal & local searches
and will send you a detailed report. It is important
to check followings before you make any commitment to
Property status - details of the property and whether
the property is in the restricted area or not (this
would be an opinion based on previous sales in the area).The
restriction may be a result of property being in a military
zone or a nature protection area.
• Property ownership - the property belongs to
the vendor and they have a legal authority from the
owner to sell it.
• Constraints - existence of pre-emption rights
or restrictive covenants, or debts over the property.
3 – Signing a Full Purchase Contract
you are happy with the search result, end of the reservation
period you sign a full purchase contract and to pay
a deposit (negotiable but normally around 10%).
The contract is particularly important because of the
aforementioned investigation process conducted at the
Army Headquarters. It must be established whether or
not the property is in a Military Forbidden Zone (a
process that, as said, may take a couple of months).
buyer cannot hold the title until the Land Registry
receives the clearance of the Security Investigation.
This time lapse creates some degree of difficulty for
the foreign purchasers on either method. Any payment
made towards the purchase must therefore be recorded
in a form of a contract.
contract should ideally be drawn up in Turkish and English
so that both sides understand its content. In addition,
should there be any dispute, it would be dealt with
in the Turkish court, and it is therefore important
that the contract be drawn up in Turkish.
3- Military Permission Application
As stated above foreign nationals are subjected to have
permission from Turkish Military Authority. It is common
practice to make a 10 per cent deposit payment to hold
the property and for the vendor to start the clearance
STEP 4 – Obtaining a Turkish Tax Number
order to transferring Turkish title deed into your name,
you must have a Turkish Tax Number.
6 – Completion
notification of the granted military permission, we
will arrange to transfer the title deed into your name.
We prepare a power of attorney to give power to one
of our associate lawyer to obtain the title deed for
you. We will also do final searches at the land registry
before transferring the title deed into your name.
7 – Insurance
Depending on the location, the buyer must take obligatory
earthquake insurance provided by the government. In
addition, the purchaser can arrange private insurance
for fire and other natural disasters.
8 – Fees
standard conveyancing fee is £250. This includes
our associate lawyer fees in Turkey.
The scale of the cost is fixed by law and generally
ranges from £100 to £250.
A small amount is required to pay for the registration
(about 50 per cent of the Notary Public fee) and compulsory
earthquake insurance depending on the area. However,
this amount will only be known once the value at the
Land Registry is discovered.
buyer and seller must each pay a three percent agents’
commission, which is the standard commission expected
by all Turkish estate agents.
STEP 9 – Taxes
There is no restriction in terms of repatriation of
sale proceeds or income from the property. As part of
the purchasing process, the new owner is allocated a
tax number from the Turkish tax authorities.
are other taxes are not part of the initial purchase
but will affect the budget. These include homeowner’s
tax, income tax charged on rental income and inheritance
tax. As the UK and Turkey have a bilateral agreement
regarding taxation, it is not necessary for UK citizens
to be taxed on assets in Turkey twice.
following are the main taxes and fees that will affect
Once the sale is complete, there is a transfer tax of
three per cent. The tax is based on the declared value
of the property. Usually, declared value is far lower
than the actual sales price. Depending on the agreement,
either buyer or seller can pay the amount, but the practice
is that both parties share it.
Annual property tax is approximately 0.3 per cent of
the registered value of the property. This tax is paid
in two instalments.
There is a 22-23 per cent income tax if an income is
received from the property
sales are not subject to any VAT.