Can all foreign nationals purchase property in Turkey?
Prior to 2012, Turkey had a strict reciprocity law in place which restricted many nationals from buying property in Turkey unless a Turkish national could in return, buy a home in that respected country.
However in May 2012 a new law was implemented by the Turkish government which lifted a large amount of these restrictions and opened the Turkish property market to nationals of more than 129 different countries. Some rules still remain in place, such as real estate owned by a foreign national in a Turkish town can’t exceed 10% of the town’s land area and a foreign national can’t purchase more than 300,000m2 of land in Turkey without first acquiring approval from the ministry of interior in Turkey.
For a full list of nationalities which can purchase please click here!
Can I borrow money to purchase my Turkish property?
Finance can be arranged either through remortgage of your permanent home in your home country, or by arranging a Turkish mortgage on your property in Turkey. For further details please see Turkish Mortgages
How negotiable are the advertised asking prices?
Advertised prices like in all property markets are open to offers being made and we can advise you on what is a sensible level of offer. When making an offer all terms of the sale – not just the price – should be agreed upon.
How can I pay the deposit to secure my property?
Many sellers will accept a reservation deposit/reservation contract from you when you are in Kalkan. This would be around 3% of the purchase price, with the understanding that the sales contract be completed and the balance of the agreed deposit (minimum 10+%) will be paid within a given timeframe after your return home. A reservation deposit is usually non refundable except for the instance that your lawyer recommends you do not purchase the property for a legitimate legal reason.
There are several ways you can pay the reservation deposit money:
Cash or travellers cheques
Cash withdrawl at a Turkish ATM
Money transfer from your account at home to an account in Turkey
Money transfer from your account at home to our account in the UK
1. Is self explanatory but not always practical depending on the amount of cash you need to bring with you.
2. For this to work sucessfully the local banks must accept your card. As a general VISA and Mastercard are fine but MAESTRO is not accepted locally. You will need to tell you credit card company that you plan to make a large cash withdrawl otherwise they can stop the transaction for security checks. You may also need to go several days in a row to collect enough cash together as there is daily limit of around £200.
3. Not all UK money institutions will accept a fax or phone authorisation for a foreign transfer or provide this facility with their online banking. You must therefore check with your bank or building society before you come to ensure this is possible and if so what documentation they require or bring with you everything you need for online banking.
4. Up to 3% reservation deposits can also be paid to our UK account using your phone or internet banking service or via our Paypal account.
Can I open a Turkish bank account remotely from the UK? What documents do I need to open an account?
It is not possible to open an account at a Turkish bank remotely from the UK. You must be present at the bank to open the account and require the following:
A Turkish tax number (obtained from the Tax office in Kas)
Another form of identification e.g. drivers license
Proof of your home address (e.g. utility bill)
For some banks your UK national insurance number or tax payer number
You do not need to place funds in the account but most banks levy a small administration fee for setting up the account. Accounts can be opened in many currencies e.g. Sterling, Euro, Dollar and New Turkish Lira. They can also be opened in a sole name or joint name. We would recommend you open both a Sterling or Euro and a Lira account. We also recommend you try to arrange internet banking on the account if time allows. You will find this useful for the future. You may apply for a cash/ATM card but credit cards and cheque books are not generally given to foreign account holders.
Currently Turkish Banks available in Kalkan are Denizbank, Yapi Kredi Bank, Akbank, TEB Bank, Turkiye Işbank, Ziraatbank, Garanti Bank and Finanzbank. We do not have an HSBC branch.
Turkish tax numbers and bank accounts can be arranged for you remotely if you have covered this responsibility in a Turkish power of attorney to your lawyer or us the agent.
Are transactions completed in Sterling or Turkish Lira?
Generally most property transactions in this region are completed in Sterling. If the property is advertised in Sterling then the contract and payment will also be in Sterling. Euro or Dollar are equally acceptable and the rate of the conversion will be agreed at the reservation or contract date.
How long will it take to complete the purchase?
Without the need anymore for a military approval completion can be as quick as the parties can organise their finance and either travel to Kalkan or set up a Power of attorney to a representative.
Do I have to return to Turkey for the completion?
Unless you have arranged for a power of attorney to be given to the agent/lawyer then yes. The transfer of the title deed of the property is a process completed face to face either by the buyer and seller or their representatives at the local Land Registry Office in Kas.
How do I arrange power of attorney?
Power of attorney is arranged through the Notary office. Our nearest Notary is in Kas and we or your lawyer will oversee this process. Generally you will need to visit this office along with the person to whom you are giving the power of attorney. If you are arranging power of attorney to a local lawyer then they will be registered with the Notary and we can assist you with the power of attorney in their absence.
To complete a power of attorney you will need:
4 Colour Photos
A Turkish Tax Number
Your Turkish Bank Details (only if you are giving attorney for your pre arranged bank account)
Money for the Notary
Money for the Translator
The Notary office is open Monday to Friday only so factor these days into your stay if you are planning to complete in this way.
Is a UK power of attorney acceptable?
We are able to arrange a power of attorney from the UK without the need for you to travel here or to London. Please contact us for more information.
If later I sell my property can I take my funds out of Turkey?
Yes. There is no restriction on foreign currency i.e. Sterling, Euro or Dollar, movements into or out of the country.
Do I need to make a Turkish Will?
If you wish to have more discretion as to how your assets are distributed, then yes. Wills are made at the Notary and should be overseen by your lawyer, to who you can simultaneously give power of attorney to administer your estate including application for probate/ payment of taxes etc in the event of your death.