After the new legislations took place, buying a property in Turkey for a foreigner is as simple as a Turkish citizen is buying. The whole process can be completed in a day time after you make your decision between the properties we will be offering you.
Firstly, we will arrange a viewing for you to see some projects in our wide portfolio depending on your requirements. You will need to put a reservation fee of %1 by cash or credit card if you would like to proceed with any of the properties seen.
After that in two weeks’ time, you will need to sign the contract and transfer the down payment to the developer’s account.
In case the property you have chosen is close to completion or completed, we might need another day to go the notary and provide Power of Attorney which we will need to follow up your title deed process. If the property is off plan/under construction, this is not obligatory to be done at this stage.
While purchasing a property in Turkey, there are taxes for the government and some expenses to be made before receiving the title.
%2 – %4 Purchasing tax: When a sale occurs between two parties, %4 of the sales price should be paid to the government. Usually this is divided as %2 for the buyer and %2 for the developer.
%1 – %18 VAT (Value Added Tax): For commercial units and properties over 150 m2 net area, VAT to be paid is %18. For properties under 150 m2 net area, %1 VAT will be paid.
≈ $1000 Utilities: For electricity, water, gas connections to your apartments and registrations, approximately $1000 expense should be made.
Other Expenses: Depending on the property you are buying and companies you deal with, there might be different expenses such as “stamp duty expense, notary expenses, legal support expenses”. E Propterty do not charge you for any extra service and guarantee you to minimize your costs by avoiding extra expenses.
In total, your closing costs will be %3,5 of the sales price roughly which will be all paid to the government directly when you buy a property in Turkey through CCT Investments.
In order to avoid fast buying and selling moves in the market, Turkish government is not requesting any capital-gains tax when you do not sell your property at least for 5 years after buying your property. In other words, the appreciation on the price will be your net profit.
When you sell your property within five years, the capital-gains tax to be paid will be calculated depending on your profit with progressive increases between %15 and %35 after the net present value of the buying price is calculated by adding the inflation for each year.
DASK (Compulsory Earthquake Insurance):
Having earthquake insurance for your apartment is a must in Turkey and it should be renewed yearly. The cost of the insurance will mainly depend on the location of the property and on the structure of the building. The amount to be paid will be approximately 70-80 USD yearly in Istanbul.
Residency Permit Applications
Once you receive your title deed, you have option to apply for residence permit in Turkey. All foreigners are allowed to get one year residence permit automatically when they buy a property in borders of Turkey. Foreigners should apply to Foreigners Section of the Provinces’ Police Headquarters of the city they want to live in with their title deed copy and DASK (earthquake insurance) document.
For more information, we advise you to first check “FREQUENTLY ASKED QUESTIONS” part of our website. Besides, you can also check the informative website of Turkish government for foreigners. www.invest.gov.tr.
Please do not hesitate to contact us by filling the contact form to get a prompt reply about any of your questions.