Seller legal requirements in Turkey
I am looking to sell my property in Akbuk. I have been given an acceptable offer- straight to my UK bank. I want everything to be above board so that I comply with Turkish legal requirements. Would welcome advice as to what is required of me . Thank you.
 

Mushroom

Member
Top Poster Of Month
Seller legal requirements in Turkey
Is your buyer British/Turkish/Other? Is it cash/Bank Transfer?
 

Mushroom

Member
Top Poster Of Month
Seller legal requirements in Turkey
I've been looking back at how we did it.
Things might have changed and I'm sure someone will add their ideas.
Our first sale was an apartment to a Turk.
The first thing we did was sign a contract as provided by our friend, who was an Emlak in both English and Turkish, to agree to the sale and the sale price in Sterling.
We then took a non returnable deposit which was paid into our Turkish bank sterling account.
That to me confirmed that the buyer was serious.
I was present at the time in Turkey for the sale.
We (buyer and seller) attended at the main council building one morning and received written confirmation that there were no outstanding council tax debts, then onto the Tapu office. We had to take a ticket and wait until we were called by text later that day (now can be booked online).
At the agreed time, we went back in, I produced the existing Tapu, a new one was prepared for the buyer.
The statutory translator attended and I confirmed with my passport, tax number, who I was.
Within 10 minutes of signing a sale document, the new Tapu was produced and given to my buyer.
We then walked over to the bank, where he transferred the outstanding balance into our account and we went for a beer or two.
Just to add - as my wife was joint owner but was back in the UK, she had signed a POA in Turkey before she left and it was executed by our friend the Emlak.
We also visited the electricity and water company after the sale and were refunded deposits that we had paid years earlier.
The sale was completed within the day.
 
Seller legal requirements in Turkey
I've been looking back at how we did it.
Things might have changed and I'm sure someone will add their ideas.
Our first sale was an apartment to a Turk.
The first thing we did was sign a contract as provided by our friend, who was an Emlak in both English and Turkish, to agree to the sale and the sale price in Sterling.
We then took a non returnable deposit which was paid into our Turkish bank sterling account.
That to me confirmed that the buyer was serious.
I was present at the time in Turkey for the sale.
We (buyer and seller) attended at the main council building one morning and received written confirmation that there were no outstanding council tax debts, then onto the Tapu office. We had to take a ticket and wait until we were called by text later that day (now can be booked online).
At the agreed time, we went back in, I produced the existing Tapu, a new one was prepared for the buyer.
The statutory translator attended and I confirmed with my passport, tax number, who I was.
Within 10 minutes of signing a sale document, the new Tapu was produced and given to my buyer.
We then walked over to the bank, where he transferred the outstanding balance into our account and we went for a beer or two.
Just to add - as my wife was joint owner but was back in the UK, she had signed a POA in Turkey before she left and it was executed by our friend the Emlak.
We also visited the electricity and water company after the sale and were refunded deposits that we had paid years earlier.
The sale was completed within the day.
Thanks very much for that. I was also wondering about the tax issues- whether it was better to have the money transferred into a Turkish bank account or whether there are tax implications there as well. I had also heard that now one is required to get an official valuation of the property being sold. I am also trying to find out about this . Thanks once again for your helpful reply.
 

Kanga

Member
Seller legal requirements in Turkey
From the tax perspective; there may be capital gains tax (CGT) to pay in Turkey if you have owned the property less than (I think) 6 years. If you are a UK taxpayer and the property has not been your main residence you will be required to pay CGT on the difference between your purchase price and the sale price, minus any allowable expenditure. This can include improvements (with proper receipts), the costs of legals, flights, interpreters and tapu/emlak office fees where due.

If you sell a second/holiday home or other property, HMRC will demand CGT payment in 30 days of completion of sale.
You need to get all the declaration information ready and preferably use an accountant for safety. There are fines for late payments.

CGT is calculated on property at 18% and 28%. The gain is added to your existing taxable income and a lower rate is charged up to the higher income tax band when 28% is applied.

You have a CGT taxfree allowance of £12,300 this tax year, so if you own the house with someone else you can both claim the £12,300, making £24,600 tax free gain.
 

yalimart

The Carnwath Massive
Seller legal requirements in Turkey
Thanks very much for that. I was also wondering about the tax issues- whether it was better to have the money transferred into a Turkish bank account or whether there are tax implications there as well. I had also heard that now one is required to get an official valuation of the property being sold. I am also trying to find out about this . Thanks once again for your helpful reply.
We did pretty much the same as Mushroom but also had to pay the sales tax at a nominated bank prior to the transaction being signed over at the Tapu office, our buyer willingly paid that. He chose to pay the tax based upon the actual selling price and not some made up price as he didn't want the tax man breathing down his neck.
We got the cheque in our HSBC account prior to signing over the tapu, it was called a blok cheque, he couldn't cancel it and we couldn't cash it without going back with evidence the transaction had taken place, that felt a little strange but the money was in our HSBC UK account next morning, however HSBC Turkey had paid it into a No 2 account and not the one we asked for, we soon sorted that, we transferred the money to a Barclays account who put a hold on it whilst money laundering investigations took place.
Never looked back but had a stressful few days as we had placed a charge on the property when we bought it to protect ourselves, forgetting we had to remove it first, that added a day on to the process

All the best with your sale
 
Seller legal requirements in Turkey
From the tax perspective; there may be capital gains tax (CGT) to pay in Turkey if you have owned the property less than (I think) 6 years. If you are a UK taxpayer and the property has not been your main residence you will be required to pay CGT on the difference between your purchase price and the sale price, minus any allowable expenditure. This can include improvements (with proper receipts), the costs of legals, flights, interpreters and tapu/emlak office fees where due.

If you sell a second/holiday home or other property, HMRC will demand CGT payment in 30 days of completion of sale.
You need to get all the declaration information ready and preferably use an accountant for safety. There are fines for late payments.

CGT is calculated on property at 18% and 28%. The gain is added to your existing taxable income and a lower rate is charged up to the higher income tax band when 28% is applied.

You have a CGT taxfree allowance of £12,300 this tax year, so if you own the house with someone else you can both claim the £12,300, making £24,600 tax free gain.
Many thanks for your helpful reply. The selling price is considerably less than what we paid 10 years ago. And the figure on the tapu is considerably less than what we paid to the developer. We were very naive re developer/ emlak practices at time of purchase. Much more savvy now but too late lol.
 

Mushroom

Member
Top Poster Of Month
Seller legal requirements in Turkey
Many thanks for your helpful reply. The selling price is considerably less than what we paid 10 years ago. And the figure on the tapu is considerably less than what we paid to the developer. We were very naive re developer/ emlak practices at time of purchase. Much more savvy now but too late lol.
You are in good company on that one.
CGT was never an issue on either of our two sales but good info from Kanga.
From a sales perspective, and for ease of calculating what we would walk away with, we simply stated what we wanted as a final price from the sale after any deductions.
That way you don't get caught out with a price for a sale then have to take into account any other deductions.
 

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