Turkey: Guide to Buying Costs and Procedures

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Total transaction costs are moderate in Turkey

How high are realtors’ and lawyers’ fees in Turkey? What about other property purchase costs?

How difficult is the property purchase process in Turkey?

Foreign ownership in Turkey is ruled by the reciprocity principle. Citizens of countries that allow Turkish citizens or legal entities to own property in their country are allowed to acquire property in Turkey. Citizens of most EU countries (except for Belgium, Cyprus, Czech Republic and Slovakia), the United States, Canada and other countries in Asia, Latin America and Africa can freely purchase properties in Turkey.

Foreign nationals also face restrictions on acquiring properties within municipal areas with less than 2000 registered inhabitants (article 87 of Village Act).Foreigners are also not allowed to purchase properties in the confines of military zones (Military Prohibited and Security Areas Act).

On 07 January 2006, a new law was enacted which put a limit to the amount of land that a foreigner can purchase. Foreigners are allowed to acquire a maximum of 30 hectares (74 acres) of real estate. Any piece of land exceeding 30 hectares requires a permit from the Turkish authorities.

A 10% to 25% deposit is needed during the initial stage of property acquisition, i.e., upon signing of the purchase contract. Permission for sale needs to be acquired by sending the deeds of property and passport translations of the buyer to the local Army Headquarters for approval. The permission for sale usually takes six to eight weeks to secure. Once the permission of sale is secured, the transfer of title of deed (“TAPU”) is done at the local Land Registry Office.

Having a solicitor to do the conveyancing is not a legal requirement, but it is highly recommended. Notarisation of all property sales to foreign nationals by a government-authorised interpreter is, however, a legal requirement. Moreover, both contracting parties (seller and buyer) are required to be present at the entry of title.

The whole process of registering property in Turkey takes nine days to finish. The Turkish government, in turn, takes three to nine months to process the application and release the title deeds for transfer.

Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.

Registration and notary fee:
Registration and notary fees are expected to add around 1% to the roundtrip transaction cost; including registration fees, solicitors fee, government-authorised interpreters fee, notary fees and various permits.

Stamp Duty:
Stamp duty of 0.75% is charged on the disposal of Turkish real estate provided that a sale and purchase agreement has been executed. Both parties to a transaction are jointly liable for the relevant stamp duty. However, in cases where one party is Turkish-resident and the other party is not, the Turkish resident usually declares and pays the stamp duty.

Title deed charge:
Title deed charge is paid to the Land Registry, 3% of property value, split between buyer and seller.

Agent's commission:
Real estate agent's commission is typically 6% of purchase price, split between buyer and seller. Other real estate agencies do not include VAT in their commission.

Turkey - more data and information

• How landlord-friendly is the law in Turkey?

Your Comments

posted by Sahereh Adib | 2007-07-21

secretary, Iran

posted by Sahereh Adib | 2007-07-25

secretary, Iran

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