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| Under-construction luxury apartments for sale in Kargi near Fethiye. Investment opportunity. |
| £ 65.000 |
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| Ayse Apartments, for sale Kargi |
| £ 65.000 |
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| Buying Property In Turkey |
Buying a property in Turkey is a straightforward process as all deeds are controlled and issued by the government and detailed records are kept in the district deed office. Foreigners may purchase land and property in Turkey in their own name provided that properties are not located in a military or government protected zone. As a matter of routine all sales to foreign citizens have to be approved by the army base in Izmir. This is the only lengthy part of the procedure, and takes 10-14 weeks to receive that approval.
Apart from this, the official procedure is a simple transfer of the title deed in the Land Registry Office. Although not essential we will recommend the use of a solicitor to carry out a detailed search of the title deed to ensure there are no irregularities and that the property purchase is stress free.
The stages of the purchase process are as follows
Kaya Estate draws up a contract with the purchaser and vendor detailing the agreed terms and conditions of the purchase. A solicitor and legal translator can be present during the signing of the contract if requested by the purchaser.
Title deeds to be double checked at land registry to ensure proposed property / land is legal, has necessary paperwork in place and has no debts attached. Kaya Estate or purchaser?s solicitor to carry out these final checks.
Kaya Estate then takes the purchaser?s passport(s) to the notary for translation. This is necessary for the security and property location verification mentioned above. If more than one name is to be entered on the title deed, both passports must be translated. After this, the passports are returned to the purchaser.
A deposit of 10- 30% of the sales price is collected. As many buyers do not have instant access to this amount of money a holding deposit is taken and the balance of the deposit sent on return home.
Our agency sends the passport translations and the title deeds to the relevant authorities.
Terms and conditions of sale agreement including payment plan to be followed by each party.
After 3 months when the approval is received from Izmir, each party to visit the land registry office and transfer the deeds to the purchaser?s name. It is compulsory for both purchaser and vendor to be present at the entry in the property register. If the purchaser is unable to return to Turkey at this time, it is possible on their first visit to give Kaya Estate or their solicitor power of attorney to act on their behalf in this transaction. The deed will still be transferred directly into the purchaser?s name(s).
During the transaction, a purchase tax of 1.5% is collected from the buyer and vendor, in addition to any outstanding payments, Government fees and Kaya Estate agency commission.
Purchase costs
The main cost is the agreed purchase price for the property in question. This is agreed between the vendor and purchaser, and outlined with the terms and conditions of the sale agreement. For a re-sale property, the purchase plan usually lasts the length of time required for the deeds to transfer, 3-4 months. For an off-plan property, the payment plan will cover the build time. Again the final payment is made when the deeds have been transferred. In addition to the cost of the property, the following additional (approximate) costs should be taken into account:
Passport translation costs & issuing papers £50 and the official translator costs £15
Power of attorney costs £60, which includes transferring deeds and utility connections, and £15 for the official translator
£430 for 1/5000 and 1/2500 map paid to local council
Purchase tax of 1.5% of value written on the deed
3% Commission to Kaya Estate
Title deed collection fee £40
Utility connection, water, electricity, refuse £120 approx
Annual land and property tax if property is older than 5 years. Approx 0.5% written on deed
Solicitors if required for purchase £400 - £600
Customer purchase costs for £100k (approx) property
| Purchase Tax |
£1,500 |
| Kaya Estate 3% commission |
£3,000 |
| Solicitor fee (If employed) |
£400 |
| 1/5000 Map from council |
£350 |
| 1/2500 Map from surveyor |
£80 |
| Title deeds fee |
£40 |
| Notary fee, passport translation & issuing papers |
£60 |
| Total |
£5,430 (5.4%) |
Example additional costs
| Management fee (pool, garden, communal areas etc) |
£35 p/m / £420 p/y |
| Council Tax |
£100 p.a |
| Electric connection |
£50 |
|
Water connection |
£50 |
| Insurance (inc Dask) |
£350 |
| Standard furnishing package
2 bed apart and garden furniture |
£4,000 |
| 3 bed villa and garden furniture |
£5,000 |
| Electric metered per unit |
50p |
| Water metered per unit 60p
Kaya Estate property Management (maintenance, rental assistance etc) |
£350 |
Property Cost Comparisons
Just to show you how Turkey compares with some of the other popular countries we have investigated the additional costs (Turkey additional costs approx 6%) involved with purchasing property so that you can see what a good investment Turkey is. Not only will you gain capital growth and rental yields on your investment, you will also be able to enjoy low purchase and running costs once you have bought.
Spain
When purchasing in Spain you will have to look at a further 10% of the purchase price to cover all the costs these include:
7% for VAT plus 1% legal document tax for a new build or 6% transfer tax if you are buying a re-sale property.
Notary Fees can be anything from ?320 to ?700 depending on the amount of pages in your legal document.
0.25% of the purchase price for Land Registry.
Your solicitors fees can be anything from 0.5 % to 1.5%
Connecting utilities will be approx ?300
For a property costing 100k GBP you will be looking of costs around 10k GBP
Portugal
Portugal is properly one of the most expensive counties to purchase property.
Fees can be anything from 10% - 15% of the purchase price plus you have to pay 2.5% for all your Notary and Registration fees.
This comes to approx 15k GBP for a property worth 100k GBP.
Cyprus
Cyprus 's cost can be quite confusing as it is on a step by step level based on the cost of the property.
Your Legal fees will be approx 1k GBP which you are required to pay up front.
Stamp Duty on properties is charged at 1.5 CYP on every 1k CYP upto 100k then 2 CYP for every 1k CYP over 100k.
Transfer costs are set at 3% on the first 50k CYP, 5% from 50,001 to 100k CYP & 8% over 100,001 CYP.
You will then be charged VAT at a rate of 10%
This means a property costing 100k GBP will have additional costs of approx 14k GBP
Bulgaria
Legal Fees 400 ? 700 GBP
Stamp Duty is charged at 2%
VAT if applicable is charged at 20%
So the additional costs on a property worth 100k GBP without VAT 2700 GBP, with VAT 22,700 GBP.
VAT is generally exempt in transactions involving land and lease of property for residential purposes. Check before you purchase whether this is the case on the property you are interested in.
If you compare these costs to purchasing a property in Turkey you will see there is a very real difference. We have used various sources of information to obtain these figures. We apologies if there are any discrepancies with the information supplied but to the best of our knowledge the above figures where correct at time of posting. For further information please refer to http://www.turkisheconomy.org.uk/buying_property.html which includes; Turkish tax law, residing in Turkey, explanation of title deeds, working in Turkey and English speaking solicitors.
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