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Frequently Asked Questions ( Page 1 ) 1) What can I buy? Freehold property of land may
be purchased by most foreign nationals, from a Turkish national or another
foreigner, provided the property is in the local district "Belediye".
ABC Real Estate - Kusadasi Turkey holds a full list of those countries who have reciprocal
agreements regarding property purchase with Turkey. We can also show the
exact locations of these municipality areas. 2) How do I pay for it? It is advised that funds for the purchase should be transferred into the country through a Turkish bank and specifically identified for that purpose. The foreign currency should be sufficient to cover both the purchase cost plus other costs incidental to the purchase. You should keep all receipts to prove the original purchase to enable easy repatriation. A recent decree aimed at aligning Turkey's currency laws with the EU states that importation of foreign currency is free, it cannot be subject to any legislation and it's origins cannot be questioned. Decree 32, August 1989 Article 4.0. 3) Are there extra costs? Yes, with some purchases from developers all costs (excluding lawyers fees) are included, but with individual properties and some small developers only the purchase price is shown. This is always made clear on promotion material. The extra charges involved for a freehold or leasehold purchase payable by the purchaser amount to approximately 10% of the purchase price paid. 4) About ongoing costs? Property tax, paid annually at a fixed percent of the declared value, (on a new home a 25% reduction is given until the revaluation conducted after the first five years). Building insurance is compulsory for leases arranged through Yapi Kredi, the premium is approximately 2 per mil. It is also mandatory to purchase State earthquake insurance. Gas is normally used for cooking and can also be used for water heating. Cylinder refills cost approximately £10.00 and lasts approximately a month for water heating and two months for cooking (a deposit is taken for each gas cylinder). Electricity is cheap approximately £0.05p a kilowatt. Bills are payable monthly at a local bank or directly at the Turkish Electricity Board. Water costs approximately £0.40p per ton (1,000 litres on mains supply) or £3.00 per ton when bought from a bulk tanker. Site maintenance, groups of houses, particularly developments will form a management service, committee or company, to maintain common facilities, common gardens, repainting, etc. The cost of this will vary from development to development, but generally starts at around £150.00 per annum. Their conduct is governed by Turkish law. 5) About my Tax situation? Capital gains made from the sale of a property will be taxable in Turkey if the owner is a Company. Individuals do not have to pay capital gains, provided they have owned the property for one year. In the UK capital gains may be taxable depending on the individuals situation. Current tax conditions were originally agreed in a double taxation treaty signed in 1986. These were amended in October 1988 and cover the reciprocal agreement relation to income tax and corporation tax in Turkey and income, corporation and capital gains taxes in the UK. This also includes a non discrimination clause "Nationals of a contracting state shall not be subjected in the other contracting state to any taxation or requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other state in the same circumstances are or maybe subjected". (Article 24). However, we would always recommend you consult an accountant because each individual's circumstances are different. 6) Can I rent my property? Rental income is liable for tax assessment in either the UK or Turkey and will be payable depending on the personal situation. 7) The selling costs of property? Freehold resale costs are between 5% (comprising sales tax, local documentation and legal fees). Property may be sold to Turkish, or foreign nationals without restriction. Because of the change in law (Decree 32 August 1989) the lira is now convertible so proceeds of the sale of a property can be converted to whatever currency and subsequently transferred to any country you choose. If the property is subject to a Yapi Kredi lease then the transfer costs are just over 1%. 8) Should I furnish my property in Turkey? Furniture is generally cheap, and can be custom made by local craftsmen if required. It is possible to buy in most towns at very competitive rates, with a wide range of goods. Electrical items are less expensive than in England. Towels and linen are cheaper than Europe, however, household goods are extremely cheap and can be purchased at the local markets. For non national residents it is possible to import household goods providing they hold a suitable residency permit. 9) What about communications? Telephones are applied for at the Turk Telekom and connected the next day, depending on availability in your area. There is a small line rental payable annually approximately £12.00. Lines are generally good and Internet access easy and well serviced. Television reception is good and if you subscribe to Digiturk Satellite system you receive 52 channels including MGM, Movie Max 1&2, BBC Prime, Discovery Channel, Euro sport, CNN world news, etc. There are large European communities living in Turkey full time, plus many transitory people living on boats in the harbours for months at a time. During the winter months there are many social occasions arranged such as book swaps, walks, BBQ's |
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