Arzuoğlu

A. The following are some of the countries with which Turkey has a reciprocal agreement for the purchase of land and properties: England, Ireland, Germany, Holland, Norway, Sweden, Denmark, Austria, Switzerland, Belgium, USA, Spain, Italy, Canada, Luxembourg, Australia, France, Greece, Portugal, Poland, Croatia, Israel, Finland, Estonia, Hungary, and some African and South American states.

Q2. How long does it all take and how does it work?

A. It generally takes between one and two months to receive the final Tapu (Title Deed), After signing the contract, copies of the buyer’s passport are supplied to the local Land Registry Office, who forward these copies, together with the official papers showing the location of the property, to the Military Headquarters in Izmir, who will check that the property in question is not in a Military Zone. Once approval has been granted, Arzuoglu Property Development & Construction can arrange to pay on your behalf the necessary fees and taxes to the authorised bank and to the tax office in Manavgat. The receipts for these taxes and fees will be submitted during the transaction in the Land registry office. Finally, the buyer and seller will sign the Land Registry record under the supervision of an official interpreter.

Q3. Do I have to be a resident, or to have a resident’s visa to purchase?

A. No, to buy a property you do not require a Resident’s visa. This is only required if you wish to stay longer than three consecutive months, or wish to have a landline phone registered in your name, or to purchase a car.

Q4. What specific matters need to be checked before purchasing?

A. Check that there are no outstanding rental agreements or mortgages, that the seller has the legal right to sell the property and that he has a Tapu (Title Deed) for it (not necessary when you are purchasing a new property from a developer). If you are purchasing through a real estate agent, ensure that you are aware how much commission is payable. N.B. the use of a real estate agent is NOT recommended, as commission rates are usually very high where sales to European nationals are involved.

Q5. Do I have any Taxes or Fees to pay when purchasing?

A. The following Fees and Taxes are applicable:

3% of the declared value of the property,
Education and earthquake tax (approximately £30)
All formal documentation and copies (approximately £180)
Water: Connection fee for new homes (approximately £55)
Electric: Connection fee for new homes (approximately £80)

Q6. If I sell my property can I take the proceeds back to the U.K.?

A. Yes, you have the legal right to take the proceeds back to the U.K.

Q7. Can I will my property to my beneficiaries?

A. Provided you make a Turkish Will, you can leave your property to your chosen beneficiaries. However if you do not make a valid Turkish will, the property will pass to your next of kin.

Q8. Can I import my belongings/furniture and car into Turkey?

A. You can, but both transportation and Duty can be expensive, so it is generally advisable to purchase your furniture in Turkey.

Q9. What can I buy?

A. (a) Freehold property or land may be purchased by most foreign nationals, from either a Turkish national or another foreigner, provided the property is in the local district ("Belediye").
(b) If property or land is outside the Belediye, long leases can be arranged. The lease can subsequently be transferred to a third party without restriction if he/she wishes.

Q10. How do I pay for it?

A. A recent decree aimed at aligning Turkey's currency laws with the EU states that importation of foreign currency is free, cannot be subject to any legislation and its origins cannot be questioned. (Decree 32, August 1989, Article 4.0). Whilst, technically, it is possible to bring money for the purchase into Turkey in cash, quite apart from the serious risk of loss or theft, if discovered in England, recent legislation aimed at preventing money laundering could make for a very difficult couple of hours questioning by H.M. Customs and Excise, with the possibility of missing your flight. Similarly, notwithstanding the provisions of the a above-mentioned Decree, if stopped by representatives of the Turkish Customs at your arrival airport, the onus would be on you to prove that the money was legally yours and not obtained as a result of criminal activities.

It is strongly advised, therefore, that funds for the purchase should be transferred into the country through a Turkish bank (into an account specially opened in that currency) and should be identified specifically for that purpose, e.g. “transfer purpose: for the purchase of Villa Park, Title Deed No. 9980”. The foreign currency should be sufficient to cover both the purchase cost and other costs incidental to the purchase. You should keep all receipts to prove the original purchase to enable easy repatriation of funds. It is recommended that funds transfer should be effected using “SWIFT”. For this you will require the following details:

(a) The Swift Code of your Turkish Bank;
(b) The Bank Branch reference (usually a number followed by the name of the town);
(c) Your Account Number.
(d) Your Account Name as it appears on your Pass Book.

Q11. Are there any extra costs?

A. We, as Arzuoglu Property development & Construction recommend our customers to include all costs in the purchase price. This is always made clear in the Contract and in any sales literature.

Q12. Do I need to be in Turkey to buy or conclude the sale of property?

A. We suggest that you are. However, should this prove impossible, we can conclude the sale of the property on your behalf with a Power of Attorney authorised by the local Notary.

Q13. What about ongoing costs?

A. (a) Property tax, which is paid annually as a fixed percentage of the declared value (on a new home a 25% reduction is given until the revaluation conducted after the first five years).
(b) It is adviced to have insurance for the contents of your property.
(c) Gas is normally used for cooking and can also be used for water heating. Cylinder refills cost approximately £10.00 and last about one month for water heating and two months for cooking (a deposit is taken for each gas cylinder).
(d) Electricity is approximately £0.07p a kilowatt/hour. Bills are sent out monthly and can be paid at a local bank, or directly at the local office of the Turkish Electricity Board.
(e) Water costs approximately £0.40p per ton (1,000 litres on mains supply) (f) For the purpose of site maintenance, groups of houses, particularly developments, will form a management service, committee or company, to maintain common facilities, gardens, repainting, etc. The cost of this will vary from development to development, but generally starts at around £150 per annum. Their conduct is governed by Turkish law.

Q14. What about my Tax situation?

A. Capital gains made from the sale of a property are taxable in Turkey if the owner is a Company. Individuals do not have to pay capital gains, provided they have owned the property for five years. Capital gains may also be taxable in the UK, depending upon the individual’s situation. Current tax conditions were originally agreed in a double taxation treaty signed in 1986. These were amended in October 1988 and cover the reciprocal agreement in relation to income tax and corporation tax in Turkey: and income, corporation and capital gains taxes in the UK.This also includes the following non-discrimination clause "Nationals of a contracting state shall not be subjected in the other contracting state to any taxation or requirement connected therewith which is other, or more burdensome, than the taxation and connected requirements to which nationals of that other state in the same circumstances are, or may be, subjected" (Article 24).However, we would always recommend you consult an accountant, because each individual's circumstances are likely to be different.

Q15. Can I rent out my property?

A. Rental income is liable for tax assessment in either the UK or Turkey and will be payable depending on your personal situation.

Q16. How much does it cost to sell property in Turkey?

A. Freehold resale costs are about 5% of the sale price (comprising sales tax, local documentation and legal fees). Property may be sold to Turkish, or foreign, nationals without restriction. Because of the change in law (Decree 32 August 1989) the Turkish lira is now convertible, so proceeds of the sale of a property can be converted to any currency and subsequently transferred to any country you choose.

Q17. Should I furnish my property in Turkey?

A. Furniture is generally cheap, and can be custom made by local craftsmen if required. A wide choice is available in most towns at very competitive rates. Electrical items are generally less expensive than in England. Towels and linen are cheaper than Europe and household disposables are extremely cheap and can be purchased at the local markets. For non national residents it is possible to import household goods providing they hold a suitable residency permit.

Q18. What about communications?

A. (a) Depending upon availability in your area, telephone lines are usually supplied within a week. There is a small standing charge payable annually of approximately £12.00. Lines are generally good and Internet access easy and well serviced.
(b) There is a national daily newspaper printed in English, the Turkish Daily News.
(c) A short-wave radio is useful to pick up the BBC World Service.
(d) Television reception is good. If you rent the Digiturk Satellite system, you will receive about 52 channels, including MGM, Movie Max 1&2, BBC Prime, Discovery Channel, Eurosport, CNN world news, etc.
(e) There are large European communities permanently living in Turkey; and also large numbers of transitory people living on boats in the harbours for months at a time. During the winter months there are many social occasions arranged, such as book swaps, walks, BBQs, card evenings and inland trips.