Frequently Asked Questions / Buyers Guide

"When I first considered buying abroad a myriad of questions filled my head. The following are a few Frequently Asked Questions that you might find helpful"

Buying property here is a relatively straightforward process and we have detailed below information covering the most frequently asked questions. We would be delighted to answer personally any other questions that may arise, please contact us at info@pegasusemlak.com

1. Who can own property in Turkey?
2. How do I buy a property in Turkey?
3. What is the legal process for buying?
4. What is the process if the property is not yet built?
5. What costs are involved?
6. How long does the process take?
7. Do I need to provide a Power of Attorney?
8. Is a Residents’ Permit required before I buy here?
9. Am I able to sell my property without restrictions?
10. What are the inheritance rules in Turkey?
11. What taxes are applicable?
12. Do I need insurance?
13. What is a TAPU?
14. Real Pegasus Emlak ‘Top Tips’ when buying.

1. Who can own property in Turkey?

Turkey has reciprocal agreements with many countries regarding purchase of land and property, with certain restrictions applying within ‘military’ zones. Those eligible countries are: United Kingdom, Australia, Austria, Belgium, Canada, France, Greece, Germany, Holland, Ireland, Italy, Luxemburg, Norway, Spain, plus some South American & African countries. Therefore foreign nationals from these countries may purchase land and property in Turkey in their own names, and when the time comes to sell, the proceeds of the sale may be transferred out of Turkey.
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2. How do I buy a property in Turkey?

Once you have found a property you want to buy, we will contact the seller and negotiate on your behalf until agreement is reached on purchase price and the amount of a deposit. Most sellers are currently looking for a 10% - 20% deposit with the balance payable at completion. At this stage you will pay deposit monies and sign a contract which will detail the property, buyer(s), purchase price, deposit amount and the timing and conditions for the payment of the balance. If, as is likely, you do not have the full deposit immediately available then most sellers will accept a nominal amount as a ‘holding deposit’ and agree for the balance of the deposit to be transferred within a set period of time. If this is the case, these details will also be included in the contract that is signed.
The four basic steps are:

• Agree a price for the property, sign a contract and pay the deposit
• Documents sent to TAPU office for clearance
• At this stage the remaining balance is paid
• Property registered in your name at the Land Registry and title deeds provided.

(see below for full details of the legal process)
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3. What is the legal process for buying?

The system of property ownership in Turkey is based on the title of the property being registered at the Land Registry in the owner’s name. Once you have found a property and had your offer accepted the process is as follows:

1. A copy of the existing TAPU (Title Deeds) of the property needs to be sent to the TAPU office together with: Passport copy of the Buyer(s); 6 passport sized photographs of the Buyer(s)
2. The TAPU office undertakes a search to ensure the property is suitable for purchase by a foreign national (i.e. not in a designated ‘military’ zone). This process should take 6-12 weeks, although recently has been taking as much as 4 months or more. However, a new law has now been enacted which should streamline this process and significantly shorten the length of time this takes.
3. Checks are also carried out to ensure:
1. The TAPU provided relates to the property being purchased
2. That the property is owned by the seller
3. That if owned jointly, that all parties comply with the sale
4. No annotations exist to prohibit sale or purchase of the property
5. The building complies with regulations
6. The current owner owes no overdue taxes to the Tax Office
7. The current owner owes no debts to utility companies
4. Upon receipt of the military clearance and TAPU from the TAPU office, the buyer and seller apply in person to the local Land Registry office for the transfer of title to take place.

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4. What is the process if the property is not yet built?

For properties that are under construction there will normally be a stage payment schedule for specific amounts (% of the total purchase price) for the deposit and additional stage payments at specific stages of the build. These amounts and the stages will be detailed in the contract. As these are set by each developer they will vary from project to project but will be fully explained to you before you sign the contract.
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5. What costs are involved?

The costs involved in purchase of a property are:

• An agency fee of 3% is charged by us and is not included in the purchase price you will pay for the property. This includes our commission and all the purchase services.
• A ‘Land Registry’ fee or tax is payable by you once the TAPU has been received, in order to register you as the owner of the property. It is 3% of the taxable value of the land and/or property.
• Solicitors fees vary dependant on the price of the property, but start at approximately £250.00. This covers meeting with him, preparation and signing of contracts, together with his advice and services throughout the purchase process.
• Notary fees (if required) again vary but will be in the region of £50.00.
• It is now compulsory to take out earthquake insurance on all property here in Turkey, this again varies dependant on the value of your home but will start at around £50.00. We would also recommend that you take out a full house and contents insurance, however this is optional.

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6. How long does the process take?

From the time you pay your deposit until the Title Deeds are registered in your name, should be approximately 6-12 weeks. The majority of this time is awaiting the TAPU clearance, and although recently this has been taking longer, a new law is due to be enacted which should streamline the process and significantly shorten the waiting time.
We can in fact complete the all the purchase documentation, the signing of the contracts and the obtaining of the Power of Attorney, within a couple of hours of you deciding on a property that you wish to purchase.
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7. Do I need to provide a Power of Attorney?

If (as is likely) you are not able to be in Turkey throughout the period of the purchase process, when you are signing the purchase contract we can also arrange for you to sign a Power of Attorney, which delegates authority to us for the limited use of the property purchase and registration – this would include dealing with the TAPU and, most importantly, ensuring that the property is registered in your name. This POA form would be executed with a Notary (similar to a Notary public in the UK).
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8. Is a Residents’ Permit required before I buy here?

You do not require a residency visa in order to purchase a property in Turkey. Tourist visa’s are issued at the airport upon arrival in the country at a cost of £10.00 and are valid for multiple entries within a 90 day period from the date of issue. These visas will be sufficient for stays of less than 3 months. If you are looking to reside here for longer periods you will need to apply for a Residents Permit once you are here. Information on what documentation you will need to provide for this should be obtained from the Turkish Embassy in London before you depart. A Residents Permit is a necessity if you wish to clear any personal goods through Turkish customs.
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9. Am I able to sell my property without restrictions?

Once you are the registered owner of a property, the sale of this is unrestricted and the proceeds of the sale can be taken out of Turkey.
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10. What are the inheritance rules in Turkey?

As a European you can dispose of your property in whatever way wish (within the laws of you home country), but you must make a Turkish will to ensure that this happens with your Turkish estate. Again, we can assist you in this process.
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11. What taxes are applicable?

Capital gains made from the sale of a property will be taxable in Turkey if the owner is a Company. Individuals do not have to pay Capital Gains Tax, provided they have owned the property for more than 4 years. In the UK capital gains may be taxable depending on the individual’s situation.
There is also an Annual Real Estate Tax, similar to the Council Tax in the UK, based on the declared value of the property and is payable every 6 months to the local municipality (council).
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12. Do I need insurance?

It is now compulsory to take out earthquake insurance on all property in Turkey, the cost of this varies dependant on the value of your home but there is a uniform national tariff with costs starting at around £50.00. We would also recommend that you take out a full house and contents insurance, however this is optional.
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13. What is a TAPU?

A TAPU is an official document which shows you have ownership rights over the real estate. The owner's full name and photograph, and detailed information on the asset appear on this document. Click here to see a TAPU.
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14. Pegasus Emlak ‘Top Tips’ when buying
• Avoid ‘free’ or subsidised inspection trips – just as there is no such thing as a free lunch, the costs will be included in the cost of your property if you buy (or someone else’s if you don’t).
• Don’t automatically offer the asking price, there may be scope for negotiation.
• Always ensure that you fully understand what you are signing (contracts in English and the content clearly explained).
• View as many properties in your price range as possible, that way you will gain a greater insight into the value of location and additional amenities.
• Everyone in Koycegiz (from the restaurant waiter to the leather salesman) will know someone who could sell you a property – always make sure you are completely happy that you are dealing with a professional, licensed and trustworthy agent.

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