Fees & Tax Information for Foreign Investors

You will need to allow for the following fees:

Solicitors’ fees – approximately £250

Aegean Army Clearance - £150

Translators fees - £80

Notary fees - £70
Power of attorney – approximately £120
Electricity connection - £125
Water connection - £190
Buyers tax – 1.5% of the purchase price
There will also be an annual maintenance fee on most developments. Normally this is between £350 and £450

From signing the contract you will normally be expected to pay the first payment of 25% within 30 days. Thereafter, on a new property, the balance will be in several instalments over the build period. The final payment falls due when the keys are handed to the buyer.TaxationYou will be expected to pay 20% tax on rental income in Turkey. If you hold the property for more than four years there will be no capital gains tax payable in Turkey. Should you decide to sell before four years you will pay 20% capital gains tax locally.

Process of purchasing in Turkey

We suggest the following process when purchasing in Turkey:

*Choose and reserve the property of your choice.

*You will visit the solicitor, along with the translator and the contracts will be drawn up, while you wait, in both Turkish and English.

*The translator will go through the Turkish contract with you. If you are then satisfied, the solicitor, translator, developer and yourself will sign the contract.

*The solicitor will then start the process of applying for Aegean Army clearance.
*You will then go before the notary, together with the legal translator.

*To save you having to travel back to Turkey to sign legal documents, a ‘power of attorney’ will be appointed.

Investing In Turkey Reported By Channel 4

A vast and diverse country that straddles Europe and Asia, Turkey is blessed with some of the best coastline in Europe, especially in the country’s southwestern corner where the Mediterranean and Aegean Seas meet. Popular towns in the area include Marmaris, Fetiyhe, Dalyan Kalkan and Altinkum. “Altinkum, when translated, means Golden Sand and it’s not difficult to see why,” says Michael Johns of The Right Move Abroad. “The main beaches at Altinkum are as the name says, and gently disappear into the calm Aegean Sea, making them ideal for swimmers and non-swimmers alike.”

The Right Move Abroad is selling properties priced from £32,990 at Mayfair 2 in Altinkum. The two- and three-bedroom apartments are finished to a high standard and have sun terraces. A children’s pool and communal gardens, with kids’ play area and 24-hour security gives parents added peace of mind in an area that is becoming increasingly popular with British house buyers.
Primarily because of the low property prices – Turkey’s has received favourable comparisons with the Spanish property market in the 1970s – the country is touted as one of the next hot spots by aficionados. Agents Knight Frank predict property prices will increase by 12.5% in 2007, placing Turkey in its top 10 best markets for this year.

The advent of low-cost airlines servicing the southwest (currently scheduled airlines only fly into the region, taking 4-5 hours from UK airports) would create a big up-lift in popularity and prices. Already, easyJet flies to Istanbul, the biggest city, which has become very fashionable in the last couple of years. Trendy Western-style bars and clubs have opened up alongside the more traditional Turkish cafés for which the city is best known. The fusion is an intoxicating blend, one that is becoming ever more attractive to foreign buyers because of recent changes to Turkish mortgage law.

The reforms – which were recently passed by the Turkish parliament and will come into effect on 1 January 2008 – will facilitate mortgages at affordable rates for the first time in the country. Consequently, it is estimated home ownership numbers will increase from the current 4.5% to 12% by 2015.
"The new legislation will dramatically impact on the property market and marks a major step towards improving access to the property market for the smaller number of overseas property investors interested in Turkey in 2008,”

With current demand already outstripping supply in some areas of the country, and its sizable population of 70million on the increase, the market is primed to see property price growth. Demand for affordable property is at its highest level ever, with an estimated need for seven million homes over the next 10 years