With the amendment to the Land Register Law in May 2012, purchase of property by foreigners was made much easier.
Pursuant to the this Law, citizens from 181 countries can now freely purchase property and land (up to a mass of 30 hectares) in Turkey.
Foreign citizens are free to sell their Turkish real estate assets, either to another foreigner or a Turkish citizen (or alternatively, bequeath to any heirs as they wish).
Foreign national real persons can purchase residences (apartments, houses and villas) and land up to a maximum area of 30 hectares. If land is purchased for construction purposes, construction plans should be submitted to the Ministry within 2 years of purchase. The Ministry will determine a specific start-up date for the project.
Foreign-capitalized companies which have legal personalities in Turkey (by establishing a company in accordance with Turkish laws) can purchase properties such as the real persons.
Foreign Legal Persons (Companies): It is required to have permission from the Cabinet Office in order for foreign legal persons to purchase a property in Turkey. Such permission is received for the foreign investors who will start business, open factory in Turkey.
Foreign national citizens who have property in Turkey can obtain residence permit for 6 months in a year from Turkish Police Departments. Approximate cost is €100 - 150. Those who request permission for longer periods can obtain long term visas from the Turkish Consulates abroad. Such transaction is reqired for only once and thereafter the visa is extended from the Turkish Police Departments.
There is one absolute proof of claim to property ownership in Turkey - the 'Tapu' or title deed; this system is administered by the Title Deed Directorate.
The “Title Deed” which contains all relevant property location and subject information is transferred to the new Owner is the presence of the title deed registrar. This deed is for informative purposes and any loss or damage thereof does not bear any risk. The principal records are recorded at the Directorate of the Land Registry at the time of Tapu transfer and this record will be archived until such time as the property is resold (or bequeathed).
Turkish public notaries are not entitled to carry out these procedures and have no access to sale and purchase records or property registration records. The public notary can only certify a transfer (sales) contract that includes the determined prices and payment conditions of a property.
The purchased property may be sold at any time at any price and the revenue obtained from the sale may be transferred abroad.
If the property is sold 5 years after initial purchase, capital gains tax is not paid on the revenue obtained from the sale. If the property is sold within 5 years of purchase (and a gain has been made), then capital gains tax is applied only to the amount of gain (the difference between the original purchase price as written on the title deed and the new sale price.
The title deed transfer procedures that will emanate from inheritance sharing as a result of a death can be completed through the mediation of a certified translator at the Title Deed Registrar's Directorate with the will.
1. Sales contract: This contract is signed between the purchaser and the seller and also the agent who is mediating the sale. The contract will be arranged in two languages:The native language of the purchaser and Turkish (in compliance with consumer protection law and the Turkish civil code).
The contract will contain the following information:
2. Registering a Tax Number: A tax number, easily issued in the local Tax Office Directorate, will be required (along with a copy of passport) for title deed registration application as well as for opening a bank account and in order to apply for utility (water and electricity) subscriptions.
3. Opening a Bank Account: An account in any local bank is opened in the name of the purchaser; this enables monies to be transferred to facilitate payment for the property. It will also allow for additional payments (maintenance fees, utilities and property taxes) to be made. A utility bill showing the buyers home addres in his native country should be provided.
4. Power of Attorney: It is normal practice (though not obligatory) for the purchaser to grant power of attorney to his or her mediating agent or an alternative trustee. This allows that trustee to carry out all transactions relating to the purchase of the property as well as applying for utility, public services and telephone subscriptions in the name and on behalf of the purchaser and in the absence of the purchaser.
5. Title Deed Application: A 'permission to purchase' request is made to the local Title Deed Directorate and also the relevant military authorities (compulsory procedure in Turkish property law) within the provincial borders of the location of the property. The application made to the military authorities is a formality to ensure that the property is outside of a restricted or military zone – this takes around 10 days before approval is received.
6. Title Deed Transfer: After the permissions for the title deed transfer are granted from the official bodies, the seller completes the title deed transfer to the purchaser at the Title Deed Directorate through the medium of a certified interpreter. This transaction can also be carried out by the appointed trustee on behalf of the purchaser
7.Key Delivery: The key delivery date should appear on the sales contract. Prior to the physical hand-over, the buyer and seller (or seller's agent) will inspect the property and sign a delivery document to confirm that the property is being delivered in compliance with the sales contract. Your Elite representative will be in attendance at this inspection.
Title Deed Transfer Tax: Ad-Hoc 4 % tax on the declared title deed value.
2. Certified Translator Services: Approximately 100 € for official procedures at theTitle Deed Directory (and the same for procedures at the Office of the Public Notary if relevant).
3. Power of attorney Approximately 150 €.
4. Obtaining the residence permit: approximately 500 € for 2 years.
5. Opening a Bank Account: Setting up a bank account is free and is not deposit dependent. In the case of a requisition of a residence permit the minimum account balance (at the time of requisition) must be $500 dollars for every month of residency. So, for an initial permit with a validity term of 2 years, the account balance should be $12.000 (and proof of this forms part of the required application documentation). This balance can be withdrawn as soon as the residency application (and all supporting documentation) has been submitted.
Electricity Subscription: Together with the 100 € subscription cost for the recently completed property, 120 € of gauge deposit
Water Subscription: Approximately 60 € for the recently completed property
Telephone Subscription: Set Up Fee of approximately 5 € (Only those with a residency permit are allowed a telephone land-line connection).
Property Tax: Is paid to the local municipality in 2 equal instalments (usually May and November) every year.
Property tax rates are applied in accordance with the property value that appears on the Title Deed. Housing 0.2% of value, Other Buildings 0,4%, Land 0,2%. Unclaimed land (however reserved for construction) 0.6%
Environment Tax: Approximately 50 € paid once a year (the value is determined by the local municipality).
Contribution to be paid to the building administration (Maintenance Fee): Monthly maintenance cost of around 40 - 175 € - this contributes to caretaker salary, security, cleaning of external and internal communal areas, garden maintenance, pool care and maintenance, elevator maintenance, generator operating costs and other monthly maintenance costs. The monthly fee is determined according to the type of the property, site facilities and the building's service volume.
Electricity Between 0.03 and 0.13 € per KW used (depending on the hour of the day).
Water: Between 0.3 and 1.5 € per m3 used (depending on operating facility). There are water and electricity gauges in all residential units.