Turkey » The Purchase Process

British citizens may purchase property in Turkey, subject to the following conditions: 

The property can be paid for in either Turkish lira or foreign currency. There are also no restrictions about the transfer of foreign currency or Turkish Lira from a Turkish or foreign bank.

Applications should be made to the District Land Registry office (Tapu Kadastro Mudurlugu), when a suitable property for purchase is found. A recent change in Turkish legislation (i.e. on 19 July 2003) now permits foreigners to buy a property outside the boundaries of a municipality, i.e. council district (Belediye) and within a village or rural area. However, it is still necessary to obtain permission from the Military, prior to purchase.

Guide to Buying Property in Turkey

Citizens of countries who have a reciprocity agreement with Turkey can purchase a property, which includes all countries within the EU. The only restriction is that the property cannot be on military designated land.

Tenure of Property

Almost all property in Turkey is "Freehold".

Legal Documents

We would always advise that you use a lawyer to complete your purchase and we can provide the names of several Turkish/English lawyers in Turkey/U.K. on request, although each of our Associates has access to lawyers. Our Associates will prepare a Contract that will detail your property, type, etc together with the price agreed, payment method and any extras or alterations you may require. This Contract Agreement is binding in Turkish Law and will be in both English and Turkish.

A copy of your passport is then sent to the local military authority that runs a background check to verify you are able to purchase your intended property. This process normally takes 8-12 weeks. Please note that due to the high number of foreigners purchasing property in Turkey we have experienced occasions when this is taking longer. After clearance by the Turkish military you can proceed to purchase your property. This is conducted in the local Land Registry Office, where both the buyer and seller enter the details into the Registry Book. If you cannot be present for this you are able to sign power of attorney to your solicitor to act on your behalf. The property tapu will then be made out into your name.

Tapu

The tapu is the Turkish property deed. In the case of a new build you will receive two tapus. The first tapu is the ARSA, which means land. This is issued first and will show the new property owners name. According to Turkish law as long as the owners name is on the arsa tapu then they own whatever is on the land. An application must be made to the local council offices for a living license (the second tapu - OTURMA IZNI). This is done by the property vendor (i.e. the builder), and is only issued once the building has been inspected to comply with the building application.

Costs of a Standard Property Purchase in Turkey include the following:

• 1.5% stamp duty tax has to be paid by both the vendor and the buyer during the transaction.
• An average of 3% of the purchase value is payable for the estate agents commission.
• Vat is payable on Turkish real estate on 18%, and is payable on the sale of building under 150 metres square at 1%.
• 1.5% of the purchase value is payable when transferring the title deeds.
• Personal income tax is based on capital gains and rental income, and stands at 20% for companies and 15-30% for individuals.