The procedure for purchasing real estate in Turkey

Content

• Rights and obligations of foreign buyers
• Search for real estate in Turkey
• Conclusion of a purchase and sale agreement
• Preparation of documents for transaction registration
• Payment for real estate
• Transfer of ownership and tapu
• Preparation of contracts for utility services
• Additional costs when purchasing property in Turkey
• Mortgage in Turkey
• Summary: this is something to remember

Rights and obligations of foreign buyers

Citizens of which countries have the right to buy property in Turkey?

In 2012, Türkiye abolished the so-called “principle of reciprocity,” according to which only citizens of countries that provide similar opportunities to Turks could buy local real estate. Restrictions have been lifted for buyers from 129 countries. In particular, for people from Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, and Kyrgyzstan.

Citizens of Russia, Ukraine, and Belarus can also become full owners of real estate in Turkey. The transaction can be executed for both an individual and a legal entity registered in Turkey.

What objects are foreigners allowed to buy?

Some restrictions for foreign buyers continue to apply in Turkey. For example, the maximum area of ​​land owned should be 30 hectares (before 2012 it was 2.5 hectares).

Also, citizens of Russia and Ukraine are prohibited from purchasing real estate in border areas - this is the Black Sea coast (Samsun, Trabzon, Zonguldak and other cities). There are some prohibited zones for foreigners, which the Turkish authorities consider strategically important for the security of the country.

It is worth noting that Turkish Black Sea resorts have never been in demand among foreigners, whose interest is concentrated on the coasts of the Mediterranean and Aegean Seas, as well as in Istanbul. In these places, foreigners can buy any property - residential and commercial, including real estate under construction.

Rights of foreign property owners

Investments in the Turkish economy are sufficient grounds for obtaining a residence permit. Investments include, among other things, the purchase of real estate – both for personal purposes and for rental. Moreover, owners of objects of any value can obtain a residence permit. And buyers who invest $1 million or more in real estate have the right to immediately apply for Turkish citizenship.

Responsibilities of foreign property owners

There is an annual property tax in Turkey. All owners must pay it, regardless of their country of citizenship. Naturally, there will also be obligations to public utilities.

Search for real estate in Turkey

How to look for real estate in Turkey?

Before you start looking for an apartment or villa that suits you, we recommend that you learn more about the Turkish real estate market, local laws, current prices, popular resorts...

Then you can move on to searching for properties for sale. You can sort ads by parameters that are important to you, view ready-made collections of objects, and subscribe to updates.

Many companies organize property inspection tours. If you've already decided on a region, this is a good way to take a closer look at different sites. Such a tour does not oblige you to buy real estate, but in the event of a transaction, as a rule, the agency or developer fully reimburses the costs of the trip.

How to look for a realtor in Turkey?

Russians are among the top five most active foreigners in the local real estate market. Turkish companies know this and actively work in Russia - they often come to exhibitions, many have their own representatives in large cities, and almost all have at least one Russian-speaking employee.

Be careful when choosing a company. In resort regions and Istanbul, where foreigners are traditionally active, there are a lot of intermediaries, and not all of them provide high-quality services. Be sure to check the company's documents (tax registration, registration with the Chamber of Commerce and Industry in the real estate agency section, license to conduct real estate activities). Employees who will prepare documents must have certificates of completion of real estate courses. Check that the company has a legal address, read reviews about its work, pay attention to how long it has been on the market.

The realtor’s duty is not only to select suitable properties for you and organize viewings, but also to check the “cleanliness” of the property, draw up a purchase and sale agreement, and submit documents for obtaining a TAPU (certificate of ownership). Many companies also offer after-sales service - from connecting communications to the new owner to leasing.

Step-by-step procedure for a standard real estate transaction

Stage 1. Conclusion of a purchase and sale agreement

We sign the purchase and sale agreement

At the first stage, the seller and buyer enter into an agreement. It contains information about the parties to the transaction, the property (layout, construction features, dates of commissioning, etc.), terms and conditions of payment for the transaction, and the responsibilities of the parties.

When signing the contract, the buyer only needs a foreign passport. The document is in two copies and in several languages, for example, Turkish and Russian.

The agreement itself, even certified by a notary, does not have the force of a document certifying the transfer of ownership. To do this you need to obtain a TAPU (certificate of ownership).

In Turkey, there is a title system for registering rights to real estate, that is, government bodies represented by the Cadastral Department draw up property documents, guaranteeing the purity and legality of transactions at the state level.

Notaries do not have the right to independently register purchase and sale transactions. A notary can only draw up a contract, the subject of which is the purchase and sale of real estate, as well as notarize the signatures on the contract.

We pay a deposit

When signing the contract, the buyer makes a deposit to reserve the property - 5-10% of the price of the property. It is advisable to indicate the amount of the deposit in the contract as a separate clause in the penalties applied to both parties.

If the buyer refuses the transaction, the deposit will not be returned to him. If the seller refuses the transaction, he returns the deposit in double amount.

Stage 2. Preparation of documents for registration of the transaction

To sign the agreement, an international passport is enough, but to finalize the ownership of the property and obtain a TAPU, you will need more documents.

We make a power of attorney for the realtor - optional

If the buyer cannot/does not want to personally prepare documents for registration of real estate ownership, he can make a notarized power of attorney for his representative in Turkey, who will carry out all the formalities on his behalf.

We get the TIN

The buyer, including a foreigner without a residence permit, must have an individual tax number in Turkey - this is a mandatory requirement for registering real estate, opening a bank account, and concluding contracts with utility services and telephone providers.

The procedure is simple and takes a few minutes. To obtain a TIN, you need to come to the district tax office (vergi dairesi), present your passport and write an application.

Opening a bank account – optional

Most often, a bank account is opened in Turkey to conduct a transaction. This is convenient because in the future you can pay utility bills from the same account. You will also need it if you are applying for a residence permit. Many Turkish banks have Russian-speaking staff and Internet banking, so there should not be any difficulties with account management.

To open an account you will need:

• international passport and its photocopy
• Turkish tax number (official document from the tax office)
• internal passport with a stamp of registration at the place of residence

A Turkish bank account can be opened in euros, US dollars or Turkish lira. You can open all three foreign currency accounts at the same time. The procedure takes a few minutes, and you can deposit money immediately. There is no minimum deposit amount - the account may even be empty when opening.

If you don’t want to open an account in Turkey, you can pay for the transaction by transfer from your country directly to the seller’s account.

We obtain permission from government agencies - if necessary

In some cases, it is necessary to obtain a certificate from the military department stating that the object is not located in a protected area. According to the new rules, there is no need to obtain permission if a similar request on the same site has been considered at least once since 2011. Therefore, in most cases, the procedure is formal and takes only a few days (and not 6-8 weeks, as was previously the case).

All formalities must be resolved by the realtor.

Stage 3. Payment for real estate

You can pay for real estate in Turkey in Turkish lira, euros, dollars, and British pounds. In Istanbul, prices are indicated mainly in dollars, on the coast - more often in euros. By personal agreement with the seller, you can choose a convenient currency by writing this clause in the contract. The payment schedule is also indicated there.

Most often, transactions are paid by bank transfer. To make a transfer from Russia, the bank may request documents confirming the purpose of the payment - a purchase and sale agreement. Part of the funds can be paid in cash. Some Turkish companies accept payments at their offices in Russia, Ukraine, and Kazakhstan.

By the time the TAPU is received, the property must be fully paid for. It is possible to buy an object in installments, but in this case, an encumbrance will be written into the certificate of ownership, which can be removed after full payment.

Stage 4. Transfer of ownership and TAPU

The seller (or a representative by proxy), the buyer (or a representative by proxy), realtors and a notary (state) translator meet at the Cadastral Office. When executing transactions involving foreigners who do not speak Turkish, a mandatory condition for the legitimacy of the contract is the signature of a state translator.

This is where the transfer of TAPU, the main document of ownership, takes place (by this time all taxes and other expenses associated with the transfer of TAPU must be paid).

The TAPU contains the following information:

1. Address of the site where the object is located;

2. Photo of the owner (when preparing documents you will need 2 photos);

3. Information on registration of the site in the Cadastre;

4. Condition of the site (information from the Cadastre);

5. The area of ​​the plot that belongs to the new owner (proportional to the size of the purchased housing);

6. Type of ownership of the object;

7. Property value;

8. Information about previous owners;

9. Information about new owners;

10. Date of purchase of the property by the previous owner;

11. TAPU registration number of the previous owner (changes upon transfer of ownership);

12. Registration data of the TAPU document;

13. Date of purchase of the property by the new owner;

14. Stamp of the cadastral department, signature of an authorized person.

The deadline for receiving TAPU is up to five days from the moment the seller submits an application to the Cadastral Office. After this, the buyer becomes the full owner of the property in Turkey.

Stage 5. Execution of contracts for utility services

The final stage of the transaction is the execution of contracts with utility providers (electricity, water, telephone, Internet) for the new owner of the property.

If you bought a new building, then the first thing you need to do is get an Iskan - a technical passport for the apartment.

To register for utility bills you will need:

• Property owner's passport (copy)
• TAPU for real estate (copy)
• Individual Iskan (copy)
• Insurance policy (mandatory earthquake insurance)
• Serial numbers of water meters
• Applications for connection of utilities
• A notarized power of attorney for a representative (if the owner is not involved in the registration of subscriptions himself).

Is it possible to conduct a real estate transaction remotely?

Yes, you can. To do this, the buyer signs a notarized power of attorney for his representative, who will collect documents in his place.

Additional costs when purchasing property in Turkey

Additional costs for purchasing property in Turkey will be lower than in most European countries. In most cases, they will not exceed 5-7% of the market price of the property.

Property purchase tax

The buyer must pay a property registration tax - 4% of the cadastral value of the property, which is usually lower than the market value.

State fees when registering TAPU

A cadastral fee is charged for issuing a certificate of ownership. You will also have to pay for the services of a government translator, whose presence is mandatory when dealing with foreigners. In total, these expenses will cost about €300.

Notarized power of attorney

If the transaction (or some parts of it) is carried out remotely, a notarized power of attorney is required for the buyer’s representative in Turkey. Its registration costs €100-150.

Realtor services

There is no fixed agency fee in Turkey. In practice, most often buyers pay 3% of the price of the property. This cost includes not only the selection, showings of real estate and negotiations with the seller, but also the preparation of documents and their submission to the necessary authorities.

The amount of the commission should be discussed with your agent in advance. If you do not require full support, but only need help at certain stages, you should be given a discount.

In the primary market, realtors often work for a commission from the developer, which means that their services are free for the buyer.

Obtaining Iskan (only for new buildings)

Registration of an individual technical passport for real estate (Ferdi Iskan) will cost €300-1000, depending on the characteristics of the property.

Compulsory insurance

All property owners in Turkey must take out earthquake and natural disaster insurance - DASK. Without it, it is impossible to conclude contracts with utility providers. The cost of the policy is €15-150, depending on the characteristics of the object and the desired coverage.

Registration of subscriptions for utilities

Connecting utilities to a new apartment will cost €200-300. Renewal of contracts to another owner will cost 30-50% less.

Mortgage in Turkey

The Mortgage Law was adopted in Turkey on March 6, 2007. Until this time, there was no mortgage lending for both Turkish citizens and foreigners. But a lot has changed in Turkey since then. Nowadays, a wide variety of loan products are available to buyers. You can even take out a mortgage in Russian rubles (from Deniz Bank, which has been part of the structure of Sberbank of the Russian Federation since 2012).

Typical loan conditions in Turkey for foreigners

Summary: this is something to remember

• Citizens of Russia, Ukraine, Belarus, and Kazakhstan have the right to buy apartments and villas in Turkey as full private property. In some cases, it is necessary to receive notification from the military department that the object is NOT located in a specially protected area.
• Owning an object of any value gives the right to obtain a residence permit in Turkey. Buyers who spend more than $1 million on real estate can immediately apply for citizenship.
• The main document certifying ownership of real estate is TAPU. A purchase and sale agreement, even signed by a notary, does not make the buyer the official owner of the property.