Turkey is one of the hottest overseas property destinations out there and it is easy to see why. Turkey is a popular tourist destination, which receives tens of millions of tourists from all over the world every year. Turkey is very popular with buyers from Britain, Russia, China, etc. who are looking for a second home.
As an overseas property destination, Turkey faces a lot of competition from Spain, but pretty much holds its own as most of the villas and apartments for sale in Turkey are attractively priced – at not more than £100,000. This is a perfect price for those looking for a second home in a beautiful country.
Turkey has a vast, largely unspoiled coastline to its south-west. It has a rich and vibrant culture and a history that goes back to thousands of years. If you are looking for a perfect Mediterranean weather, Turkey is the right place for you. The cost of living in Turkey is quite low, much cheaper than in other European countries, which is another reason for its attractiveness to overseas buyers.
The most popular areas in Turkey are Bodrum and Istanbul. They are a hit with non-EU buyers in particular – from China and Russia and the Middle East. Yalikavak on the Bodrum peninsula sees a lot of interest from those looking for luxury apartments or villas.British, Scandinavian and German buyers prefer to purchase apartments and villas in the scenic beach resorts of Fethiye, Kalkan and Altinkum.
Buying Property in Turkey – How It Works
Turkey as a reciprocity policy when it comes to foreign ownership of Turkish properties – which means a foreign buyer from say UK or China has the same right over property in Turkey that a Turkish national will have in their respective countries. Most foreign buyers should not have a problem with buying property in Turkey; however, it is important to obtain government approval for the same.
The property purchase tax or the Deeds Transfer Tax is charged at 3.3% of the purchase price and is paid at the Cadastral Office. It is usually shared between the buyer and the seller.
There is another Property tax called Emlak vergisi to be paid by the buyer after transfer of ownership of the house. This is charged at just 0.1% of the value of the property and should be paid at the Cadastral Office. The registration of the property title deed costs around £100.
The VAT or value added tax is charged at 18% of the cost of a new building - this only applies to new developments.
There are other minor costs such as the Notary Fees, Translation services, Bellediar Tax, Municipality Fee and Government Tax, which together cost a total of £1000 to £1500, depending on the size of your property.
The estate agent's commission is usually charged at 3% of the purchase price. Lawyer feels varies widely, but this should be in the range of £350 to £1000, depending on the reputation and experience of the lawyer hired by you.
It's always better to hire a lawyer when buying property in Turkey, as some of the regulations are too complex for foreign buyers to deal with on their own.
Turkey Property Market Outlook 2016
There had been a slight uncertainty over the political situation in Turkey over the last few years, but now things are back to normal again. Turkey has hosted and continues to attract millions of refugees fleeing the war in Syria. The refugee problem is a growing concern not just in Turkey, but across Europe in 2016. Overall, the housing market in Turkey is expected to witness a steady growth in 2016.