Courtesy of Doc Martin © Doc Martin 2017
Disclaimer: The information here is provided as a general guide. Whilst every effort is made to ensure that the information is up to date and accurate, information given here from the Turkish Government, DGMM, GOC, British Consulate & other official websites may be subject to change at any time.
Property Buying Process
The exact process may vary depending on the province.
Firstly you need to obtain a Tax Number (from your local Tax Office), get your Passport translated and Noterised and supply 2 recent photos (passport type).
You need to make sure the title deed of the property is free of any debt, you can appoint a lawyer to carry this out if you wish. It is important you find a competent lawyer whom you can trust.
You will often be asked for a small reservation fee for the property. Your representative will need to draw up a contract between the seller and purchaser, included will be details of the completion date, payment schedule and terms and conditions.
Your contract should state that the purchase price includes all certification/name change fees/usage bills and no further costs will be payable.
Get your contracts notarised if you wish to make it/them legal documents. This will ensure that the contract is officially accepted by Turkish law and that the terms within the contact are binding for all parties.
When the notarised contract is signed by all parties, the appropriate deposit is paid.
You may then need to apply for a security clearance, which is your military approval, this will entitle you to own a property in Turkey (military approval will often be applied for by your representative).
The check can take about 4-8 weeks.
As of mid 2018 Military clearance has been abolished in some provinces.
You can sign a Power of Attorney which will allow your representative to conclude any necessary paperwork on your behalf.
A one off fee for official Belediye/Tapu office paperwork is payable.
Main Fess Levied for Buyers and Sellers
If you buy or sell through an agent [emlak] an agents commision of 4% of the sales price will be asked for.
Capital Gains Tax
If you decide to sell your property any time in the first five years (four years if you acquired the property before 1st January 2007), you will have to pay 'Capital Gains Tax' in Turkey.
You will be exempt from this tax after the first 5 years.
The amount of the tax will be calculated as a percentage of the profit you make between the cost (what you declared when you first bought your property) and the sale price (what you declare at the Land Registry Office when you sell your property).
- The fees include a Belediye Sales title transfer fee of 4 %, plus some small additional administrative taxes. According to Turkish Law, the title deed transfer fee should be payable by both parties 2% from buyer, and 2% from seller, however in practice it is usually the buyers responsibility to pay the whole amount of 4%.
- Military clearance should it be needed
- Regional asset fee (figure may vary slightly depending on Province)
- Deed (Tapu) fee (figure may vary slightly depending on Province)
Main paperwork required
This will vary depending which province the application is made.
- Tapu of the property
- Belediye valuation statement
- Valid Dask policy for the property (supplied by the seller)
- Passport sized photos of seller and purchaser (4 of each person)
- Translated and Noterised passports from foreigners, Turkish I.D from Turkish Nationals
- Official court translator must be in attendance for any foreigners
Click here for an overview of Purchasing Real Estate in Turkey: Requirements for Foreign (non-Turkish) Buyers
New Tax and Property Valuation Laws
Starting from 1st January 2020.
Those who want to sell their property will now have private companies calculate the real market value of their property and 4% of the real value will be paid in tax on the resulting valuation/sale.
In addition, the valuation of the property by the appraisal specialist will be paid by the seller.
Agents, or sellers, will first apply to a valuation company to learn the true value of their property.
They will then present the document they receive from the valuation company to the land registry (Tapu office).
At present the deed administration will receive a total of 4% of the title deed, 2% from the buyer and 2% from the seller.
No more under valuing a property for tax purposes.
When getting a property value estimate, you should consider two main types of valuation.
Fair market value
Fair market value encompasses what your property looks like to prospective buyers looking at other homes in the area. Consider the sale price of a property that is similar to your own (same number of bedrooms and bathrooms, square footage or outdoor space, etc).
Be careful some real estate agents are offering lower prices so that they can earn extra.
While the appraised value of your home factors in comps, it differs from fair market value.
To calculate appraised value, a licensed appraiser considers the location, size and condition of your home, and any renovations you have completed.
The appraised value is what mortgage lenders look at when a borrower buys a home or refinances their mortgage.
Valuation reports hold the following information:
- All title deeds details
- Location of property on a map with coordinates
- Photos of the property
- Prices of equivalent properties
- Confirmation of the price
- Current debt condition of the property
- Confirmed acceptance with the land registry and cadastre general directorate.
Energy Identity Certificate (otherwise known as an E.K.B.)
Properties will by classified similar to fridges, washing machines etc and given an energy efficiency rating from A to G.
Characteristics and heating and/or documents that contains information about the efficiency of the cooling system.
Simply put, the energy performance ratings in white goods or air conditioners, such as refrigerators, washing machines, now also apply to buildings to include things like windows and building insulation cladding etc.
For this purpose, buildings that received building permits after January 1st 2011 are considered as 'new buildings' and the buildings that received building permits before this date are considered as 'existing buildings'.
Properties classified as 'new buildings' and buildings currently under construction should be designed and constructed in such a way that the energy identity certificate class has a rating of class C or above.
New buildings to be built or under construction which are lower than Class C are not legally entitled to a certificate.
Energy Identity Certificates (EKB) are valid for 10 years from the date of issue and after 10 years need to be re-applied for.
From what can be interpreted, properties classified as 'new buildings' must arrange a survey by Jan 1st 2020 and 'existing buildings' by May 2nd 2020.
It is stated that any property that is to be sold or rented must have an Energy Identity Certificate (EKB).
Any Engineers, architects or legal entities that possess such qualifications within their business are deemed as an Authorized Body to issue Energy Identity Certificates (EKB) to the new buildings. Energy Efficiency Consultancy (EVD) Companies authorized by the General Directorate of Renewable Energy, which includes an ECB Expert engineer or architect, are considered as the Authorized Entity to issue Energy Identity Certificates (EKB) to existing buildings.
General information regarding Energy Identity Certificates (EKB)
Click here for The Obligation of Energy Performance Certification in Turkey
Click here for the official site to make an Energy Identity Certificates (EKB) application (A translation service will be required as only available in Turkish).
How to Add/Remove Another Name on a TAPU
To add/remove a person or spouse to a Tapu (title deed) you will need to 'buy/sell a share' of the property to/from the person.
Please visit your local land registry office (Tapu Sicil Müdürlükleri) and inform them you want to sell a percentage of your property and add a new name to the tapu.
You will need to pay a sales transfer fee of 4%, plus some additional administrative taxes.
NOTE: You can not sell a percentage of your property for any amount. There is a minimum amount you can sell your share for and your local land registry office will instruct you about the this.
You will need to pay for a surveyor (expert report) and find out the valuation of the property.
You will need your passport ID and Turkish Tax Number (Vergi Numarası).
If the person who is transferring the deed and/or receiving the share is not available, they have to give a power of attorney to a 3rd party to do it.
You will need to go through the same procedure as stated in buying/selling above.
In new regulations which came into force on September 15th 2020 regarding title deed (Tapu) transactions, it will allow buyers and sellers to perform deed transactions without coming together. With the new regulation, the parties will be able to carry out the transfer transactions, even in the title deed offices in different cities, in the sales, donation and property exchange transactions.
Drawing attention to the fact that this application was trialled earlier and applied in 352 transactions in 26 title deed directorates before, Altın Real Estate General Manager Mustafa Hakan Özelmacıklı said, “With the application, the transactions of the parties located in different places can be done from the land registry directorates where they are located. As of September 15, 2020, services will be started in all land registry offices.
For more details contact your Lawyer or Tapu/Kadestro office.
Every property owner who owns a property on a complex has to pay a maintanence fee.
This is called Aidat.
First of all, there must be a management plan (this can be obtained from Tapu Office) then a meeting should be scheduled and owners must be called to attend or send a proxy on their behalf.
When deciding on property purchase on any complex, always ask about the Aidat amount.
it will be your monthly expense regardless of whether you live permanently in your Turkish apartment or stay there on an occasional basis.
What if you don't pay Aidat on time?
Under the Turkish Property Rights Act, if the payment is overdue, the management company is entitled to charge you extra fees and fines of 5% of the delayed amount.
What is your risk if you do not pay for a long time?
The common practice in Turkey is that in case you do not pay Aidat for three months, the management company or the manager has the right to take your case to court and start the legal process of debt recovery.
If you do not pay your debt by the judiciary decision, you may be obligated to sell your property by court order to cover your Aidat debts.
You can pay Aidat in two different ways.
The first option is that you can pay it in cash to the complex manager. Make sure the manager issues the receipt himself, and not the concierge or the gatekeeper. This will help you avoid unpleasant queries and situations in the future.
The second and most reliable option is to pay Aidat by money transfer to the bank account of the managing company. You can perform the payment in Turkish Lira to the account in Turkey, and in foreign currency from abroad, if the managing company has such an account.
When making the payment, identify the purpose of the payment (in Turkish or English) and do not forget to indicate the number of your apartment or villa, your name, and surname. This is of paramount importance if you delegate someone else to pay your Aidat.
NOTE: Do not make payments to the personal account of the complex manager or his acquaintances. All payments must be made to the bank account of the officially invited managing company.
If a complex has more than 40 apartments, one apartment is never sold and used for the needs of the complex. Usually, the concierge lives in such an apartment without paying for the rent, water, and electricity. In this case, the complex covers all the utility bills.
In some of the complexes, the concierge rents an apartment. The received income covers expenses on invited specialists who take care of the amenities.
Therefore, the Aidat amount directly depends on the residents’ requests and the quality/volume of service they want to get in their complex.
Types of Aidat in Turkey
These are the types of Aidat in Turkey
- Monthly Aidat
- A special target fee or Demirbas Aidati in Turkish
Demirbash Aidati is raised if you need to do some significant repairs, to buy new equipment or make major improvements to the complex area or building.
In this case, the owners’ meeting or the management company will determine the amount of this targeted fee.
You should know that either the owner or the tenant have to pay the monthly Aidat. While the target fees are paid by the owner only.
According to the law, there must be DIFFERENT bank accounts for the monthly and extra Aidat.
Question: Do you have to pay Aidat if you own a stand-alone Villa or a House?
Answer: No, in this case you do not have to pay Aidat, but obviously, all the care of your property rests entirely on your shoulders.
When deciding on property purchase, always ask about the Aidat amount. It will be your monthly expense regardless of whether you live permanently in your Turkish apartment or stay there on an occasional basis.
Alterations and Extentions to a Property
Altering a house in Turkey
In Turkey, the rules regarding development of (alterations to) your existing property are a little complicated but, in practice, particularly in rural areas, often ignored.
It is easiest to start by explaining what you can do without obtaining any form of permission.
This is pretty limited.
You may paint or decorate the inside of your property, unless there are specific restrictions
You may also paint or decorate the outside of the property. Note, however, that there are restrictions in many places. The aim of these restrictions is, generally, to maintain the cohesion of an area and protect your neighbours from you painting your house a vibrant purple (for example, in Bodrum, you are not allowed to paint the outside of any house in pink).
The rendering of any property must be either white or a natural sand colour.
In theory, anything else and certainly any extension to your property, however small the extension might be, is treated as development of that property and it requires permission from the municipality. This applies whether you want to add an extra bedroom or you want to build a pool or a terrace.
An application is made to the municipality.
This is fairly simple in most cases but the municipality may require architects’ and/or engineers’ drawings to support and explain the application. A fee, of course, is payable.
If your property is within a condominium, you will also need a licence from the condominium if you intend to do any external work on your property. Generally, all external parts of a condominium do not belong to the individual owner of the apartment concerned but are owned, collectively, by all of the owners.