How to Buy Property in Turkey?

Buying property in Turkey can be an excellent investment for those looking for a beautiful vacation home or a permanent residence in a stunning country.

It can be pretty daunting for those unfamiliar with the process. In this article, I will guide you through buying property in Turkey.

Buying Property in Turkey | Istanbul Homes ®

Why Invest in Property in Turkey?

Turkey is a beautiful country with an ideal climate, stunning landscapes, and a rich cultural heritage.

It is a popular holiday destination, attracting millions of tourists every year.

Moreover, Turkey has thriving real estate market has increased over the past few years.

The government has implemented several incentives to make it easier for foreigners to invest in Turkish property, such as granting citizenship to those who invest in real estate.

Is It Possible for Foreigners to Buy Property in Turkey?

Yes, foreigners can buy property in Turkey. The Turkish government has made it easy for foreigners to invest in the country’s real estate market.

There are some restrictions that foreign buyers need to be aware of. For instance, foreigners cannot buy property in certain military zones or areas close to the border.

The Process of Buying Property in Turkey

The process of buying property in Turkey is relatively straightforward. First, you must find a reputable real estate agent to help you find the right property.

Once you have found the property you want to buy, you must sign a purchase agreement and pay a deposit.

Finding the Right Property

Finding the right property in Turkey can be challenging, especially if you are unfamiliar with the local market.

Working with a reputable real estate agent with good knowledge of the local market is essential.

They can help you find the right property that meets your needs and budget.

Legal Procedures for Buying Property in Turkey

Once you have found the right property, you must follow the legal procedures for buying property in Turkey.

This involves obtaining a tax number, opening a bank account, and signing a purchase agreement.

You must also have a translator present while signing the purchase agreement.

Additional costs of buying a house in Turkey: taxes and fees

Here are the main additional costs of purchasing a home in Turkey:

Fees for legal and notary services – These fees range from 0.5% to 2% of the property value. These are paid to the lawyer and notary who prepare and finalize the sale contract and transfer documents.

Property transfer tax is 3% of the property value and is paid to the government. The buyer is responsible for paying this tax.

The title deed registration fee is 0.5% of the property value and is paid to register the buyer’s name on the title deed.

Municipality fees – There may be some small fees to the municipality for issuing a residency certificate and other documents related to the property.

Re-measurement fee – If the property area on the title deed does not match the actual size, a re-measurement by a licensed engineer may be required. This can cost around $200 – $500.

Utility bills – The buyer must pay any outstanding electricity, water, or other utility bills and arrange to register accounts in their name.

Maintenance fees – If it is an apartment, standard area maintenance and security fees must be paid.

So, the additional costs beyond the purchase price of a property in Turkey can quickly amount to 5-7% of the property value.

These fees and taxes are standard nationwide, although some municipalities may have additional local fees.

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Financing Options for Buying Property in Turkey

Several financing options are available for those who want to buy property in Turkey.

These include bank loans, mortgages, and developer financing. It is essential to explore all of your financing options before deciding.

Property Management in Turkey

If you are buying property in Turkey as an investment, it is essential to consider property management.

You must find a reputable property management company to take care of your property while away.

This includes finding tenants, managing rent payments, and handling maintenance and repairs.

Buying a house in Turkey: costs

Here are the main costs involved in buying a home in Turkey:

Property purchase price – This is the cost of the house itself, negotiated between you and the seller. Prices vary greatly depending on the property’s location, size, age, and condition.

Title deed fee – This is a government fee paid when transferring property ownership to you. It’s typically around 2-4% of the property value.

Notary fees – You must involve a notary public to register the property transfer officially. This costs around 0.5-1% of the property value.

Mortgage fees – If you take out a mortgage loan to finance the purchase, the bank will charge various fees for processing and administering the loan. This typically totals 2-3% of the loan amount.

Legal fees – You’ll likely involve a real estate lawyer to review and finalize the sales contract and transfer documents. Their prices can vary greatly.

Down payment – You’ll typically need to make a down payment of at least 20-25% of the property value, either in cash or through a mortgage.

Property tax – You’ll need to pay an annual property tax to the government, charged as a percentage of the property value (around 0.2-0.5%).

Those are the significant costs when budgeting for house purchases in Turkey. The process can be complicated, so involve a real estate agent, lawyer, and bank to guide you.

Buying a House in Turkey: How to Find and choose your property

Here are some tips for finding and selecting the right property in Turkey:

Use real estate websites and agents – The best way to find properties for sale is through real estate websites like Sahibinden.com or agents in the area you want to buy. Agents can show you a wide selection of options and help filter out unsuitable properties.

Determine your priority areas – Decide which parts of Turkey you want to live in based on considerations like access to amenities, lifestyle, and proximity to family/work. Narrowing down to certain provinces, districts, or neighborhoods helps focus your search.

Visit in person – Despite online listings and photos, nothing replaces visiting properties in person. See as many options as possible to get a feel for the area and compare properties side by side.

Consider location – Proximity to shops, schools, transport links, parks, and other amenities is crucial. Check out the neighborhood at different times of the day.

Scrutinize the condition – Check for issues like dampness, mold, electrical faults, plumbing leaks, etc. Bring a makeshift step ladder to inspect high places. Consider any necessary repairs or renovations.

Check legal documents – Ensure the ownership documents are in order and there are no disputes over the property. Involve your lawyer during this process.

Negotiate carefully – Research to determine a fair purchase price based on comparable properties. Then negotiate from a position of knowledge but be willing to compromise.

Get a structural survey – This is crucial to identify any defects or issues in the building before legally committing to buy. It could save you significant costs down the line.

Evaluate expenses – Consider costs of maintenance, utility bills, and property taxes to determine long-term affordability.

Buying property in Turkey: pitfalls

Here are some common pitfalls to avoid when buying property in Turkey:

Buying off-plan properties – Many new developments in Turkey are sold before they are built. There is a risk that projects are delayed, changed, or even abandoned, leaving you with nothing.

Unofficial (grey market) properties – Some properties are not officially registered and have issues with ownership documents. This can lead to legal disputes later.

Dark title deeds – Ensure the title deed is clear and appropriately transferred into your name. Otherwise, you may face challenges proving ownership.

Hidden defects – Undertake a thorough structural survey and property inspection. Many old buildings in Turkey have hidden defects like damp, cracked walls, leaky roofs, etc.

Inadequate utility connections – Check that the property has proper connections for utilities like water, sewage, electricity, and internet.

Extra land taxes – Ensure you understand any additional land and property taxes that may apply to foreigners buying property in Turkey.

Inadequate home insurance – Ensure comprehensive home insurance covers damages and liability. Policies for ex-pats can be expensive.

Language barriers – Without Turkish fluency, you may struggle to understand legal documents and contracts and deal with government bodies. Hire good translators.

Complex bureaucracy – Property purchases in Turkey require navigating a complex web of government departments, forms, and procedures. Hire experienced advisors.

Unfamiliar laws – Turkish property laws differ from many Western countries and can be complex. Work with specialists who understand the system.

With care and due diligence, these common pitfalls when buying Turkish property can be avoided. Do thorough research, get expert advice, translate all documents carefully and take your time with the decision.

FAQs

What are the restrictions on foreigners buying property in Turkey?

Foreigners cannot buy property in military zones or areas near the border.

Can foreigners get citizenship by investing in property in Turkey?

Yes, the Turkish government grants citizenship to those who invest in real estate.

What fees are involved in buying property in Turkey?

Fees involved in buying property in Turkey include property transfer tax, title deed fee, and VAT.

What financing options are available for buying property in Turkey?

Financing options for buying property in Turkey include bank loans, mortgages, and developer financing.

Is property management necessary for those buying property in Turkey as an investment?

Property management is necessary for those buying property in Turkey as an investment. A reputable property management company can take care of your property while you are away.