Published on: 12/Nov/2020
Turkey is a popular attraction point for many expats. It offers them a favorable climate, a unique culture, and great landscapes.
Many foreign people choose to buy property in mäklare huddinge. If you also wish to be one of them, there are certain issues you need to learn about beforehand.
In this article, you can find the process of buying property in Turkey. You can also learn about the fees and taxes included while buying real estate in Turkey as a foreigner.
Benefits of Buying Real Estate in Turkey
- You can buy real estate at a minimum amount of $250,000. As a result of your investment, you can become a Turkish citizen. For this, you can’t sell the property within the first three years of ownership
- Labour is cheaper in Turkey compared to the US or Europe. In this way, your operational costs will be less as a business person
- Properties in Turkey offer a potential of big profit no matter what kind of property it is
- You can also invest in natural resources when you buy property near forests or lakes
- The cost of living is quite low in Turkey, again compared to European and North American countries
- Buying a property in Turkish liras makes it more affordable than buying Euros or US dollars.
What To Know About Restrictions on Real Estate in Turkey
According to Article 35 of the Land Register Law, the following restrictions apply to foreign property investment:
- Foreign investors’ home country plays an important role. It must have the advantage of public interest and promoting international relations. Also, it must be confirmed by the Council of Ministers of Turkey
- Foreign buyers cannot buy more than 30 hectares of property.
- As a foreign buyer, you cannot buy land of which quantity is more than 10 percent of a town. It also cannot exceed 10 percent of the region’s total landmass.
How To Buy Property in Turkey
There are many factors that can affect the price of an st maarten condo such as location, size, age, and amenities.
You can find the steps of the process when you buy property in Turkey as a foreigner. It takes around four weeks to complete the purchase process.
- Make your research well: You can consult an agency when you try to choose the best property for you. It’s also advisable to make research about the regions of Turkey. In this way, you can compare the prices and other things you expect from a neighborhood
- Visit Turkey before your purchase: It’s best to visit the place you want to buy property in. In this way, you’ll get to know the area, and the transition process will be easier for you when you arrive the next time
- Visit properties with your agent: It’s advisable to visit many properties so that you have more options
- Negotiate the price: You can discuss the price when you finally decide on the property you’ll buy. You’ll also discuss your offer and the terms of the purchase
- Reserve the property: At this point, you need to pay around $1,300 to reserve your property. Later, it’ll be deducted as a deposit from the total purchase price
- Complete the purchase process: you can do it in two ways:
- You can get a foreign identification number, and hire a translator. They’ll help you in the purchase process
- Or, you can appoint a lawyer through a power of attorney, and they will finalize the process on your behalf. In this way, you won’t have to be in Turkey physically
- Obtain the title deed (TAPU): Now, you can register your Turkish title deed (TAPU). It’s possible only after other paperwork is completed. Finally, the property will be registered in your name.
Fees and Taxes of Real Estate Acquisition
Different taxes apply when you buy property in Turkey. The taxes also vary when you hold or sell your property as well. You can find their rates below.
Acquisition Of Property
- Title Deed Fee: It applies to both the buyer and seller. It makes up 2 percent of the total sale price
- VAT: Value added tax is charged when you sell any property. VAT is at 18 percent of the final sales price. For residential units being less than 150 square metre net area, the rate varies between 1 to 8 percent.
- Stamp Tax: The tax rate is 0.948 percent on the highest monetary value that is referred to in the purchase agreement. It’s applicable only to land acquisition and the sale of residential property.
Holding a Property
- Property Tax: The rate varies depending on the type and location of the property
- Surcharge for the Protection of Immovable Cultural Assets: Collected with your property tax, it is around 10 percent of the annual property tax collected from a property owner
- Compulsory Earthquake Insurance (DASK): It’s a must to own earthquake insurance in Turkey
- Subscription of utilities: As a property owner, you need to subscribe to utilities like water and electricity
- Rental Income Tax: In general, the rate is between 15 to 35 percent. It’s paid on all gross rental income you earn in a given year
- Withholding Tax: It applies to any gross rental income exceeding 30,000 Turkish liras.
Sale of Property
- Capital Gains Tax: The rate varies depending on the positive difference between the sales price and the cost of the property
- VAT: Calculated at 18% of the total sales price.
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