Guide on buying property in Turkey – Procedures and laws for buying a property in Turkey
Guide on buying property in Turkey.. After you choose a specific property in Turkey and make the final decision to buy it, there are procedures and laws that you have to follow to complete the purchase Turkey. Therefore, in this article from Ebla Real Estate, we will provide you with a guide on buying property in Turkey.
Guide on buying property in Turkey:
Before you choose the appropriate property in Turkey, there are some considerations to keep in your mind, such as the location of the property, the view, the year of construction and others.
In addition, after you check all the details and information and choose the appropriate apartment,
there are some legal procedures to follow:
- Obtaining a Turkish Tax Number as you need to get a Turkish Tax Number. You can get it from the Tax Administration Office for buying a property in Turkey.
- Opening a bank account in Turkey in order to make money transfers, pay taxes and utilities.
- Moreover, the buyer must come to Turkey to sign the purchase contract, or his representative must attend an official agency certified by the notary public, or at one of the Turkish embassies abroad.
- Bring the buyer’s passport translated and attested, or his representative passport.
- Bring the real estate appraisal report, which is a report showing the real property value.
- Furthermore, after signing the contract, the buyer should pay a down payment that may vary depending on the seller or the state of the construction. In addition, the remaining payment of the property is paid as part of the take-over process.
- In addition, the taxes and duties owed by the seller and the buyer will be paid in the Real Estate Registration Directorate
- Undoubtedly, the last step in your real estate purchase in Turkey is getting your title deed. Tapu is an official document that shows your ownership over the property and is issued by The Land Registry Office.
- Thus, the new owner will obtain the title deed of his new property. That was a guide on buying property in Turkey.
Real estate purchase taxes in Turkey:
Title Deed Tax:
It is a one-time tax that is paid when the title deed is registered in the Real Estate Registry Department.
Moreover, this amount is usually divided into two and paid by the buyer and the seller. However, depending on the agreement between the two sides, you might be required to pay the whole fee as the buyer, or vice versa.
Value Added Tax (VAT):
Turkish tax law states that all commercial, industrial and professional transactions made in Turkey are subject to VAT or KDV in Turkish. It ranges from 1% to 18%.
However, under some circumstances, the property will be VAT exempt:
If the seller/owner of the property does not deal with any commercial activity
If the current owner of the property isn’t in the real estate trading business and has held the property for more than two years.
Amendments to the value-added tax law in Turkey
Stamp Duty:
When you’re making the sale agreement, you’ll also need to pay 0.948 percent stamp duty, calculated over the value defined on the agreement.
Annual Property Tax in Turkey:
The annual tax is the tax that property owners, whether Turkish or foreign, must pay annually in return for owning a property in a specific area in Turkey. This tax differs depending on the city and type of the property.
Thus, we provided a guide on buying property in Turkey.
Edited by: Ebla Group Real Estate
