If you have a property in Turkey that you wish to sell, there are a number of important considerations to take into account. For example, at which stages do you have to be present? Or, can you sell your property via proxy/power of attorney?
Once you have agreed on a price with the buyer and agreed on the terms and conditions of the sale, then you must arrange the documentation listed below if you wish to finalise the sale process in reasonable time with no stress.
First things first, you will have to have a copy of your property ownership document (TAPU) and your ID confirmation (Your Passport’s ID page notarized and translated) to be able to start the process.
Secondly, you will need to have your fiscal number, 2 passport size photos, your compulsory earthquake insurance, municipality value document and your property evaluation report (this report is obligatory) ready, before you make the official sale application at the land registry office.
At this stage, if you have not paid all your municipality property taxes in time since you purchased your property, you have to clear these payments at the relevant municipality offices before you make the application to sell your home in Turkey.
1. What are the main costs of selling property in Turkey?
- Notarization costs
- The sale tax (2% of the sale value)
- Earthquake insurance
- Real Estate Agent (property evaluation) costs and property survey report costs
2. Can the money exchange be handled outside Turkey? Can the buyer pay to my foreign bank account?
Yes, this is possible. However, you must be very careful before receiving the proceeds of selling a house in Turkey in your foreign account, do not sign the final sale document at the land registry office and do not instructions your attorney to finalise the sale account.
3. What does a lawyer do when selling property in Turkey on behalf of a foreign citizen?
A lawyer will organise all the relevant documentation and prepare the sale contracts. Not that the ability to agree on the appropriate terms and conditions for your property sale is a stressful and delicate process for foreign nationals and legal advice is crucial to avoid issues arising later. To make the sale process smooth and fast when selling property in Turkey, a lawyer will usually provide the services listed below:
- Initial consultation meetings and following up meetings
- Meetings with the property buyer and seller to agree the terms and conditions (as instructed by the client).
- Pay the municipality tax on behalf of the Client
- Obtain the official property value report from a registered property evaluator
- Translate the survey report to English
- Handle the total money exchange between the client and the seller(if requested)
- Make the sales tax payments to the government
- Arrange the sales contract on behalf of the client (both in English and Turkish)
- Represent the client at the closing procedure via Power Oof Attorney
- Alter the sale contract upon request
- Obtain DASK (obligatory earthquake insurance) for the subject property
- Finalise the sale at the land registry office
- Finalise the real estate agent’s payment and obtain a receipt for same (both in English and Turkish)
- Cancel electricity, water, or gas connections of the property
4. What are the risks?
When selling Turkish property, you will need to take into account potential capital gains tax liability, which exists in most countries. This tax will be calculated based on the difference (if any) between the sales value and the amount paid when you purchased the property.
However, if you sell property after 5 years of ownership, you will be exempt from the requirement to pay capital gains tax on the proceeds of your property sale.
