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Buying in Turkey Compared to many other countries the buying process in Turkey is relatively simple and very fast. Foreigners can buy property and land in their own name provided the properties are not in restricted areas. These areas include ‘military zones’ and small villages where there is no municipal office. Purchases within these particular areas can be made but certain procedures apply.
The sale procedure for foreigners is the same as for Turkish citizens except for a search for the above mentioned urban area and non-military zone restriction. Once a sale has been agreed with the owner, an application has to be made to the local Land Registry Office. The Land Registry Office then carries out a search for the above mentioned local restriction through correspondence with the municipality and military authorities in the area. As soon as the search is completed, the Land Registry Office then transfers the title and issues the new deed.
For property purchased on the Bodrum peninsula the title deeds, known locally as ‘Tapu’, have to be entered into a log book at the Deeds Office in Bodrum, where the purchaser and vendor have to be present to sign these documents. A nominated person can act on the purchaser’s behalf if required. All written work is done in Turkish however there is an official translator who will explain all documents to you and for an additional cost will provide you with a written translation. Once the sale of a property has been agreed, an application must be made to the Land Registry Office to acquire the title of the property. Update We feel obliged to clear up some misunderstandings regarding the latest news on property sales to foreigners in Turkey.
First of all, the recent event is not a “Ban” on property sales, but a stand-by until the relevant law is amended by the parliament in line with the Constitutional Court’s requests.
In April 2005, the opposition party objected to the law granting foreigners rights to purchase property in Turkey on grounds that some articles were conflicting with the constitution. The objection was not to second homes sales but rather to agrarian land sales and to articles relating to legal successors which according to the opposition party should be granted the right to own the property only if their country of origin abides with the reciprocity requirement.
- The Constitutional Court evaluated the objection and decided to nullify certain provisions of the law, asking the government to amend the relevant articles[1]. The Constitutional Court left the articles in effect for another 3 months to give the government enough time to amend the provisions.
The government in turn, drafted amendments and brought it to the parliamentary commission. The amended law is now in queue, waiting for a ratification from the parliament[2]. Unfortunately, the parliament closed for vacation before the new proposal could be evaluated and ratified. On July 26, 2005 the 3 month period elapsed and the Constitutional Court decision gained effect suspending freehold property sales to foreigners.
- The Constitutional Court objections do not lead the law maker to deadlocks, on the contrary, they are easily repairable provisions. We do not expect long discussions in the Parliament when the issue is taken in hand. It is only a matter of time.
- Neither the a.m. decision nor any other legislation suspends or stops sales of property to Turkish commercial companies founded by foreigners. Transfers are processed as usual.
- The memorandum to the deed offices regarding the new situation states that freehold and property transfer applications are not to be rejected but rather accepted and kept on hold until the situation is cleared out. The Bodrum title deed office, therefore is in the process of completing all steps except the last one: transfer of the title deed.
- In addition to the above mentioned law, another draft is awaiting for discussion for ratification in the Parliament, which draft aims to redefine military restricted zones and lifting restrictions from tourism and direct investment areas.
What are the costs of buying a property? Both purchaser and seller ar liable for a 1.5% property transfer tax, based upon the declared price of the property. The cost of an English speaking solicitor is 600GBP. Once you have bought your property there is also a municipal property tax again based on the declared value of the property at the rate of 0.1% for property and 0.3% for land annually. Newly built residential properties are exempt from this tax for the first 5 years. Are there any restrictions preventing me from selling or renting out my property? The answer is no! At the current time there are no restrictions preventing you from selling your property at any time and you are able to rent your property. Yoıu are also free to transfer funds into and from Turkey.
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