Low costs of property ownership in Turkey, compared to Spain or France, makes real estate investment an appealing incentive. However, in Turkey, there are several one-off expenditures (7-8 percent of the purchase price). A property dealt for 250.000$ would suggest an additional purchase cost of approximately 15.000$. Stamp Duty (for further information see “Stamp Duty” under Taxation and Real Estate in Turkey); Solicitor/Legal fees (generally amounts to 1,200-1,800, but might change due to the complexities within the process) - Agency fee (standard 3% fee) - Additional Paperwork (around 500$)
Options to finance your investment
1.Home Country: Purchasing a home in Turkey is generally a fraction of the cost of doing so in other more industrialized nations. Expats who desire to live here typically cash out their house and able to purchase a property in Turkey. It’s more reasonable to take a look at your options in your own nation before seeking financing from Turkey.
2.Turkish Bank: Banks will lend up to 70% of the property’s worth. Repayments are spread out over a maximum of 20 years and can’t exceed a third of your monthly income. However, due to the high interest rates in Turkey international purchasers avoid taking out loans from Turkish banks.
3.Property Developer: Turkish developers present a financing option with a long-term payment (up to five years). In most cases, a deposit of 30 to 35 percent is required, with the remainder paid in monthly installments. The following financing conditions are generally favorable because some provide 0% interest. The homes are either off-plan or new construction, and they have a lot of promise for real estate investors since they may take advantage of lower off-plan costs.
Details on Turkish Title Deed (TAPU)
This is a crucial document that identifies land ownership which amounts to 4% of the purchase price. The information on the property and the owner may be found in the deeds. Please look for the guidance of a lawyer to assist you with all of the essential checks involved in the process, especially if you’re buying a Turkish home with the intention of getting citizenship. We are in contact with a variety of property solicitors in Turkey and can provide help for you. Blue TAPU and Red TAPU are the two types of Turkish title deed. (Pictures of both will be here)
1.Blue TAPU: Refers to land ownership (just land, no dwellings) or shared ownership (your share of the overall property)
To obtain a title deed necessary steps are: (1) set up a meeting with the title deed office in your district; (2) declare the purchase price to set forth the cost of title deed; (3) use wire transfer; (4) the seller confirms the purchase; (5) sign the title deed; (6) claim the new TAPU with your name on it.
Obtaining Citizenship Through Investment
A Turkish passport is now on the table for anyone with a minimum of $250,000 intending to invest in Turkish property. A charge is put on the title deed, blocking the official sale for three years, when a property buyer applies for Turkish Citizenship by Investment in this situation. With that in mind, all citizenship investors should make sure they're purchasing a title that’s free of any charges.
Hiring a solicitor
A solicitor can guarantee that your real estate transaction proceeds smoothly. The solicitor will look into any outstanding claims against the property, and if the existing owner is running a fair business. To sum up, the solicitor will make sure that the property is safely passed into your ownership. In Turkey, a solicitor’s services cost on average 1,200€, yet their contribution is immense. You might hire a solicitor just to hand them the duty to run the process and finalize the title deed application, or you might bestow them with the enlarged power of attorney in Turkey, allowing them to sign for deeds on your behalf. This is beneficial for international purchasers who are unable to go to Turkey on short notice. With our experience and contacts, we are able to find the right and trustworthy solicitor to represent you along the process.
The Authority of Attorney
Before you give a solicitor power of attorney, a document will be prepared that spells out exactly what the solicitor may and cannot do on your behalf. You can give the solicitor as much or as little power as you wish. General power suggests a broad authority and full legal responsibility for the solicitor, but sure, some transactions will require your personal approval. Specific power denotes a specific right passed to the solicitor for a specific transaction.
You will need to complete various legal paperwork that must be notarized in order to be utilized lawfully in Turkey in order to provide power of attorney. This can be done in the Turkish consulate in your own country or in Turkey. You always preserve the right to cancel the power of attorney.
Inspection Trips
Additional Costs While Purchasing a Property
Low costs of property ownership in Turkey, compared to Spain or France, makes real estate investment an appealing incentive. However, in Turkey, there are several one-off expenditures (7-8 percent of the purchase price). A property dealt for 250.000$ would suggest an additional purchase cost of approximately 15.000$. Stamp Duty (for further information see “Stamp Duty” under Taxation and Real Estate in Turkey); Solicitor/Legal fees (generally amounts to 1,200-1,800, but might change due to the complexities within the process) - Agency fee (standard 3% fee) - Additional Paperwork (around 500$)
Options to finance your investment
1.Home Country: Purchasing a home in Turkey is generally a fraction of the cost of doing so in other more industrialized nations. Expats who desire to live here typically cash out their house and able to purchase a property in Turkey. It’s more reasonable to take a look at your options in your own nation before seeking financing from Turkey.
2.Turkish Bank: Banks will lend up to 70% of the property’s worth. Repayments are spread out over a maximum of 20 years and can’t exceed a third of your monthly income. However, due to the high interest rates in Turkey international purchasers avoid taking out loans from Turkish banks.
3.Property Developer: Turkish developers present a financing option with a long-term payment (up to five years). In most cases, a deposit of 30 to 35 percent is required, with the remainder paid in monthly installments. The following financing conditions are generally favorable because some provide 0% interest. The homes are either off-plan or new construction, and they have a lot of promise for real estate investors since they may take advantage of lower off-plan costs.
Details on Turkish Title Deed (TAPU)
This is a crucial document that identifies land ownership which amounts to 4% of the purchase price. The information on the property and the owner may be found in the deeds. Please look for the guidance of a lawyer to assist you with all of the essential checks involved in the process, especially if you’re buying a Turkish home with the intention of getting citizenship. We are in contact with a variety of property solicitors in Turkey and can provide help for you. Blue TAPU and Red TAPU are the two types of Turkish title deed. (Pictures of both will be here)
1.Blue TAPU: Refers to land ownership (just land, no dwellings) or shared ownership (your share of the overall property)
2.Red TAPU: Documents individual ownership (either “kat irtifakı”/residential or “kat mülkiyeti”/commercial)
To obtain a title deed necessary steps are: (1) set up a meeting with the title deed office in your district; (2) declare the purchase price to set forth the cost of title deed; (3) use wire transfer; (4) the seller confirms the purchase; (5) sign the title deed; (6) claim the new TAPU with your name on it.
Obtaining Citizenship Through Investment
A Turkish passport is now on the table for anyone with a minimum of $250,000 intending to invest in Turkish property. A charge is put on the title deed, blocking the official sale for three years, when a property buyer applies for Turkish Citizenship by Investment in this situation. With that in mind, all citizenship investors should make sure they're purchasing a title that’s free of any charges.
Hiring a solicitor
A solicitor can guarantee that your real estate transaction proceeds smoothly. The solicitor will look into any outstanding claims against the property, and if the existing owner is running a fair business. To sum up, the solicitor will make sure that the property is safely passed into your ownership. In Turkey, a solicitor’s services cost on average 1,200€, yet their contribution is immense. You might hire a solicitor just to hand them the duty to run the process and finalize the title deed application, or you might bestow them with the enlarged power of attorney in Turkey, allowing them to sign for deeds on your behalf. This is beneficial for international purchasers who are unable to go to Turkey on short notice. With our experience and contacts, we are able to find the right and trustworthy solicitor to represent you along the process.
The Authority of Attorney
Before you give a solicitor power of attorney, a document will be prepared that spells out exactly what the solicitor may and cannot do on your behalf. You can give the solicitor as much or as little power as you wish. General power suggests a broad authority and full legal responsibility for the solicitor, but sure, some transactions will require your personal approval. Specific power denotes a specific right passed to the solicitor for a specific transaction.
You will need to complete various legal paperwork that must be notarized in order to be utilized lawfully in Turkey in order to provide power of attorney. This can be done in the Turkish consulate in your own country or in Turkey. You always preserve the right to cancel the power of attorney.