Real Estate Acquisition of Foreigners in Turkey 

Foreigners may purchase land and property in Turkey under their own names, and now a recent change in Turkish legislation (i.e. on 19 July 2003,) permits foreigners to buy a property outside the boundaries of a municipality, i.e. council district (Belediye) and within a village or rural area. However, it is still necessary to obtain permission from the Military, prior to purchase.

Increasingly, people and firms are interested in purchasing real property in Turkey. The reasons for doing so are very diverse. Turkey is one of the popular holiday destinations, not in the last place because of the country's immense coastline and the Mediterranean maritime climate of the Aegean and Mediterranean coastal regions.

A second important reason is that Turkey has a fast growing economy, making it a very interesting country to invest in. These investors are also confronted with the purchase of real estate in Turkey.

The Procedure

The following is the process that should be followed when buying property in Turkey. officially a lawyer/solicitor is not needed although it makes sense to consult one for your own peace of mind which costs 1% of the property value.

1. Once buyer has decided to purchase a property, an agreement is prepared setting out the terms and conditions of the purchase. A duly signed copy of that agreement and a copy of the title-deed of the property are given to buyer.

2. If all in order at District Land Registry Office and both parties are agreed on the price of the property and conditions, at this step Buyer will be required to pay a deposit. Buyer will be required to pay legal taxes and expenses. This will be around 2-3% of the purchase price for this expenditure. A full breakdown of these costs will be given to Buyer.Contract is then drawn up and authorised by the notary or a lawyer/solicitor.

3. Copy of the legal documents, together with a copy of buyer's passport will send to the Army Headquarters in Izmir for clearance. The checks are made to ensure that the land does not fall within any Military zone. This process can take up to 3 months.

4. During this waiting period buyer do not have to stay in turkey but before leaving the Country, it is advisable to get a tax number from the Tax Office (Vergi Dairesi) in Bodrum and open a bank account with a Turkish bank to transfer the remaining value.

5. When all the checks have been conducted and the documents returned to us, buyer will inform by the lawyer. At this stage buyer should inform the lawyer about return date to Bodrum to exchange deeds they in turn will notify the relevant parties. The funds for the property purchase should be transferred into the country through a Turkish bank at least a week before exchange deeds.

6. On the exchange day, buyer, seller will be at Title Deeds Office to complete all the legal issues (title deeds, land registry etc.) and financial issues, then title deed of the property will be registered under buyer's name. Registration fee at Deeds office is around 3% of the property price which is written on the property title. Final payment for the property usually takes place after the deeds have been exchanged but this depends on buyer's agreement with the seller. After purchased of the property buyer have to apply to the various department offices to get the utilities changes like electricity, water and phone subscriptions.

If you have any questions regarding the above, please do not hesitate to call us or send an e-mail.