The Procedure For Buying Property

The procedure for buying property in Turkey is one of the most often asked issues by our consumers. We as Westates Property Turkey therefore made the decision to take the time to outline the procedure from step 1 to completion.

  1. Viewing & Reservation Process

There are hundreds of properties available on the Westates Turkey website. The sales representatives at Westates Turkey will assist you in purchasing the ideal property in Turkey considering  your needs with regard to lifestyle, family size, finances, and closeness to amenities, to name a few. You will select a specific unit and pay a reservation fee to the builder of about $1,000 USD or 1% of the purchase price once we have located the ideal development (this could take 3–4 days). The majority of developers accept major credit cards; this reservation fee is also refundable for up to 14 days under Turkish law.

  1. Acquiring a Tax ID

The first steps of continuing with your purchase will then be finished. We will first assist you in obtaining a Turkish Tax ID. (This method is quick and easy. Only a passport, home address, a phone number in another country, and the names of your parents are required to finish)

  1. Opening a Bank Account

We’ll then take you to a bank of your choosing to open a local account in your name. (Side Note: Our services for the procedure solely include transportation and translation. No account details or information are ever provided to us. Your monthly utilities will be automatically withdrawn from this account to make the switchover less complicated to handle. Should you be buying as an investor, the rental income will likewise be put into this account.

  1. Compliance

It would be advisable to ask any queries you may have about the procedure at this point, gather the fees and payment schedule, and show any difficulties in your way. We will meet with the attorney of your choosing if the purchase is for the Turkish Citizenship by Investment program. We will set up a meeting with one of our partner attorneys to go over the process and timing if you haven’t already hired an attorney before our meeting. The lawyer will go over your criteria and the steps from making the reservation to making the final payment while you’re there. (Our Required Documents List is available under the Citizenship by Investment tab.)

  1. Power of Attorney

The issuance of a Power of Attorney (POA) is the next stage (1 day). If you do not intend to stay in Turkey throughout the purchasing process, this is a very crucial stage. This POA enables your attorney to represent you during the pertinent purchase and immigration transactions (I.E. Purchase Agreement Signatory, Title Deed Registration, and lastly, to submit the residency and citizenship application on behalf of you and any included family members.) Please be aware that in order for the lawyer to file the immigration application on your spouse’s behalf if you are submitting a family application, they will need to show a separate POA. Both Turkish notaries public offices and Turkish embassies across the world can issue the POA.

  1. Evaluation Report

The lawyer will request an Evaluation Report for your records after the POA is finished and the agreements have been reviewed and signed. This normally costs 1,250 TL and takes 3–4 days. The Evaluation Report shall be ordered after examination and execution of the Agreements. The entire procedure costs 1,250 TL and takes around 3–4 days to complete. Please bear in mind that Prime Property Turkey is not involved in these evaluations, and we have no control over the actions that follow. This report will provide you with information on regional comparisons, market value, permission, and build information, as well as any deficiencies discovered during the process.

You can travel home to wire the remaining balance from your local bank after completing these steps, and only after these processes have been finished.

(Note: For applicants for citizenship through investment, it’s crucial that the account be in your name alone. As any additional account holders will be regarded as shareholders on the property, the required investment for citizenship will increase.)

7. ONE-TIME Expenses for Purchasing Real Estate in Turkey

The 4% title deed transfer tax known as stamp duty is often divided between the buyer and the developer, though this isn’t always the case. This is to be paid once the unit is finished and in the owner’s possession, but some units do request it right away in order to expedite the issue of the title deed if applying for Turkish Citizenship by Investment.

A 1% VAT (value-added tax, sometimes known as a sales tax), which is a distinct fixed cost, is typically included in the purchase price.

Establishing a natural disaster insurance policy, or in Turkish, DASK – Limit of 3,000 TL. accounting for gas, electricity, and water utilities. The servicing utility companies must receive deposits, and there are upfront setup costs. This sum is typically little more than 3,500 TL. When the property is sold, rented to a renter, and utilities are set up in their name, these deposits will be reimbursed.

ANNUAL & MONTHLY COSTS of buying property in turkey:

How much is property tax in Turkey?

  • All properties in Turkey are subject to an annual property tax.
  • Depending on where you own the property and the type of property, this tax ranges from 0.1% to 0.6%.
  • For instance, if you own an apartment in Istanbul, you’ll pay a higher city tax of.2% based on the property’s valuation.
  • The municipal council determines the value using a notional value as a basis.
  • Typically, the market value is higher than the nominal value.

Every four years, property tax returns are submitted. The facilities on the property and the plot’s square footage are used to determine how much tax to charge. For a property in a major city like Istanbul, the charges are doubled. Each year, property tax is paid in two installments directly to the local governments. While the second installment is due in November, it can also be paid in one lump amount along with the first installment. The first installment is due between March and May. Payments can be done in cash at the neighborhood municipality, by cheque, online, or at banks.

The property owner must pay a penalty of roughly 2.5 percent of the tax each month if it is not paid on time.

Owners are legally compelled to pay a property transfer tax on the basis of the actual sale or purchase price of the property whenever it is sold. Both parties must pay the equivalent of 1.5 percent of the real estate’s worth upon the transaction’s Land Registry registration. Every step of the journey, Prime Property Turkey is here to assist.

Property maintenance Fees:

Property maintenance varies from development to development, but on average costs between 4-6 TL/m2 – (If rented, the tenant will assume the payment of these fees). Please see our blog post on projected annual costs of property maintenance for additional details on annual costs.

Income tax on Turkish homes:

In Turkey, income taxes are imposed on all homeowners. It is taken out of your take-home pay. Either the actual deduction method or the lump sum method can be used to calculate rental revenue. The actual deduction technique is when costs from the rental income are subtracted, such as those for lighting, water, insurance, and depreciation. The lump-sum approach requires taxpayers to subtract 25% of their gross income in order to calculate their taxable income.

Capital gains tax on Turkish real estate:

This is the price you pay for an asset’s growth while you possess it. When you sell your home in Turkey during the first five years of buying it, you must pay capital gain tax; but, if you sell it five years later, you are free from paying it. This sum is determined as a percentage of the difference in your property’s reported worth at the time you first purchased it and the sale price you declare to the Land Registry when you sell.

Compare listings

Compare