Turkey works on a reciprocal agreement and if Turkish citizens are permitted to buy a property in their country, citizens from that country are allowed to buy in Turkey. With Turkey set to join the EU in 2007 this has opened its doors to allow citizens from many different countries to buy a property in Turkey in line with EU law.

Foreigners are allowed to buy property or land in their own names in towns but not in villages or rural areas.

 

In general properties are Freehold in Turkey, check with you estate agents again before purchasing a property.

 

Turkey is a highly sought after holiday destination and this factor is a strong contributing factor to the property investment success the country is currently undergoing. 25 million tourist flock to its coastal resorts each year (up from 14 million in 2004) and this, combined with an excellent sunny climate, indicates the success that Turkey is today.

Turkey’s current status as a strong candidate for EU membership has added to the overwhelming international interest in property iin Turkey. Returns on property investment are high and last year alone, property prices rose by around 50% in some areas. An increase in demand is set to drastically push prices upwards and create an environment that is ripe for buy-to-let investments.

The stunning natural beauty, warm climate and vibrant culture in Turkey continue to attract tourists and retirees each year.

Turkey’s appeal also lies in comparatively low cost of living and stable economic situation, further enticing visitors to the country. The government has tax incentives in place which favour property transactions, such as exemption from annual property tax in for the first five years of ownership, no capital gains tax for individuals who have owned a property for more than one year and easy repatriation of funds.

 

Turkey is a dynamic and emerging market equipped with a well-developed infrastructure and a globally competitive work force. Turkey is also home to a thriving tourist industry and rapidly growing property market, attracting huge international interest.

The Turkish property market currently offers excellent quality and value for money. This, combined with the outstanding expected growth (25-40% per annum), offers property investors a unique opportunity.

Turkey is currently at the very start of the long road to possible EU inclusion. There are many factors yet to be discussed and Turkey issues to be corrected before inclusion will be seriously considered. When Turkey does get accepted into the EU, it can expect the price of property to rise substantially and tourism to improve even further. Many investors are purchasing in Turkey with EU inclusion as a major driving force for this investment, while they look to take advantage of the current low property prices and a growing rental market.

Turkish economy is very strong with 5.6% GDP growth in 2005 and Turkey now has the 22nd largest economy in the world.

Turkey’s system of government is democratic and it is a full member of NATO. The president, currently running the Justice & Development Party (AK), has broad powers of appointment and supervision, and is chosen by Parliament using proportional representation for a term of 7 years.

The stringent entry conditions imposed by the EU require human rights to play an instrumental role in the progress of a struggle between Turkey's policy makers. This will ensure a fully democratic system, in line with European standards, which is already well developed in such areas as allowing women a political vote and an allowance for complete freedom to worship any religious faith.

 

In line with the boom in tourism, low cost airlines such as Turkish Airlines are already planning new routes, lower fares and increased services to cater for the increased numbers of visitors. As accessibility increases, Turkish property will become even more sought after and investors will inevitably see encouraging capital appreciation.

For Altinkum the main points of entry for investors in Turkey are Izmir, Bodrum, or Dalaman  with bookings from Turkish Airlines, British Airways, Thomas Cook and Excel.

In winter, daily flights to Bodrum are available from Heathrow with transfer in Istanbul to Bodrum. However in summer, you can fly to Bodrum direct from most UK airports.

 

Flight time is only approximately 3 ½ hours from the UK.

 

Entering Turkey is simple and visitors from many EU countries and New Zealand are free to enter Turkey without the need for a visa.  However they need to purchase a visa, which is a sticker obtained at the point of entry into Turkey and is valid for 3 months:  For UK citizens the cost is £10.

 

 A solicitor is not compulsory, however in most cases your contract will be set up by a solicitor. In Altinkum your contract (pre sales agreement)  will be translated by a legal translator in order for it to be understandable for you in English or any other language of your choice.

 

If you do not have the means to finance your property from savings, you can re-mortgage your property in England. We recommend you to check with your financial advisor, before you come to Turkey. This way you will know what will be the most suitable property for you.

 

 A contract is not compulsory according to the current laws, a mutual declaration of Seller and Buyer is enough to the Tapu registration office is enough to transfer ownership. However to protect you from potential risks, we set up a pre sales agreement for you.

This should include:

- A detailed description of your property

- Price to be paid by the buyer to the seller

- Payment terms and conditions

- Fees and commissions to be paid to the agents

- Force majeur conditions (what will happen if any legal obstacles occur)

- Are there debts on the property, if so, how will these be handled

- Rights and responsibilities of the parties signing to contract

 

 Usually a deposit of 5-10% is asked for reservation of any property, the other payments are stated in your contract. Also a 10% payment is normally reserved until the transfer of the title deeds, to make sure your are satisfied with the property.

 

Translated it means title deeds, this means with this document you prove that you own a particular property or land.

 

To finalize the sale we take you to the Tapu registry office. You need the title deeds (which will be provided by us), your passport, 2 recent passport size photo`s.

 

Once you purchase a property in Turkey there are several taxes you will have to pay:

1.Real Estate Acquisition

Paid one time only at purchase of a property

Total of 3% based on the declared value of a property, this should be paid prior to the transfer of ownership at the Tapu Office.

In case of a new building constructed on a land, there is a total of 1.5% to be payed.

2.Council Tax

This is to be paid annually, in the province of Aydin the following taxes are applied:

Cultivated Land                                    0.1% of declared value

Uncultivated Building Land                   0.3% of declared value

Non Residence Purpose Buildings       0.2% of declared value

Residential Buildings                             0.1% of declared value

3.Personal Income Tax

To be paid if you recieve gains from your property

Situation  A: Gains from renting out your property

                B: Rise in market value when you sell your property within 4 years of

                    purchase

4. Environmental Services Tax (EST)

This is collected through your water utility bills and is 0.12YTL (£0.05) per m3 of water

5. Earthquake insurance

Compulsory to be insured against earthquake risks

 

 

You can freely have your pension transferred to a Turkish bank account because you have already paid tax on it in the UK.

 

It is possible to buy a car in Turkey, you will get a special license plate because you are foreign though. Please keep in mind that cars are usually more expensive than most European Countries as the UK, Germany, Belgium and Holland.    You are required to get traffic insurance and you will have to pay motor vehicle tax.