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Purchase Process in Turkey

The standard purchase process in Turkey includes the following stages:

• Once you have found your chosen property, you will be asked to pay a reservation deposit of around €3,000, which will take your property off the market and effectively freeze the price of the property.
• At this stage your lawyer will need to carry out checks into the title deeds, building license checks and all associated planning permission checks.
• Once the checks by the lawyer have been satisfied, a private purchase contract is drawn up.
• The title deed transfer takes place at the Property Register Department. The buyer and the vendor need to be present at this transfer.

Costs of a standard property purchase in Turkey include the following:

• 1.5% stamp duty tax has to be paid by both the vendor and the buyer during the transaction.
• An average of 3% of the purchase value is payable for the estate agent's commission.
• VAT is payable on Turkish real estate at 18%, and is payable on the sale of buildings under 150 square metres at 1%.
• 1.5% of the purchase value is payable when transferring the title deeds.
• Personal income tax is based on capital gains and rental income, and stands at 20% for companies and 15% to 30% for individuals. If the property is sold within five years of ownership, the personal income tax will apply on the difference between the price of acquisition (adjusted for inflation) and the selling price. After five years of ownership, personal income tax is not charged on the gains.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.

Read more about tax, mortgage and the purchase process for real estate in Turkey.