There are couple of important things to be aware of when you wish to sell your property in Turkey. Turkey property sale process is more straightforward compared to many European countries. It is simple, easy and not too complicated however, there are some important stages that you should remember.
Turkey Property Sale Process
First stage is choosing the right real estate agency for you. You may find 10s of estate agents near you but not many of them are offering a comprehensive property sales service. You need to find out agents reputation which is very easy nowadays. Check it on Google business, read other customers experiences with these companies.
Facebook is also good however, there are many purpose built groups who are so called independent property groups but they are engineered by others. Instead of visiting these groups, go and check the company’s own Facebook page and read their previous clients feedback. It is not possible to remove any negative feedback as Facebook settings are not allowing those companies for this. It is also very same for the Google Business pages. We strongly recommend to pick one agent only and give them at least 6 months for their marketing. Choosing multiple companies will not speed of your sale process, in fact this would make it even harder to sell your property.
- Receiving offers are quite common in Turkey, don’t expect anyone to pay your asking price.
- Once you accept an offer, then expect your agent or lawyer to draw a contract.
- Demand up to 10% deposit payment (please remember that the Turkish Law would not allow you to keep the whole deposit amount).
- Set a closing date and make sure that your contact is a detailed one for the belongings, furniture, etc.
- If the buyers or sellers are not Turkish then a Property Valuation and Home Report must be carried out by the Deed Registry Office. This amount is around 150 Euros and it has to be paid by the sellers or buyers which is depending on the person. For example, if the seller is Turkish and buyer is not, then you can negotiate it for 50/50 with the seller or wise-versa.
- Deed Transfer; sellers will not sign the deed over to the buyers until they receive the full amount. There are numbers of ways to secure both parties interests, for example, using the bank’s blockage on the property money until the deed transfer, or just use a lawyer, or leave it to the agent to handle it for you.
- Make sure that you are not due for the large capital gain tax.
CAPITAL GAINS TAX:
How long have you been the owner of the property? If you have owned it for 5 years or longer then you do not need to worry about Capital Gains Tax. If you have owned the property for less than 5 years than you need to do some calculations about how much tax you would need to pay. It is important to find out what the purchase price is on the title deed. It can a tricky subject as some of the property sellers advise us that they are selling the property for less than what they had paid for it.
However, there have been many local builders or estate agents who have sometimes not provided the correct advice during the purchase process. Turkish Property purchase tax is 4% (used to be 3% up until 2014) and local Authorities have to give a ‘Minimum Property Value Document’ which is generally much lower than the actual market value of the property. It’s a bit like a council tax valuation.
Please contact us for more information about this subject.
What to pay:
The tax amount payable will be calculated by subtracting the declared original purchase value of the property from the declared sales value of the property – the amount of profit made from the sale, is the amount which will be taxed.
If you send us a copy of your TAPU then we would be able to tell you more about your property in Turkey.
A Case Study:
You purchased an apartment in 2014 and paid 200,000 Turkish Lira for it. Now you found a buyer for 212,000 and your Capital Gain is 12,000 TL. You are now due to pay 25% tax based for the amount between 7,000 & 12,000 TL which is 5,000 TL x 25% = 1,250 TL. Please do not hesitate to contact us for further assistance.
MARKETING YOUR PROPERTY IN TURKEY:
It is important to appoint an agent who is registered with the correct professional bodies, regulated and official. In addition to this, make sure that they are proactive and know how to market a property in Turkey and outside of Turkey.
Keyholders International (KHI) is registered in the UK and works in Liaison with Keyholders Fethiye which is registered in Turkey, we are also members of the Turkish Estate Agency Authorities, TPO, National Associations of Estate Agents (UK), Trading Standards (UK & TR), Chambers of Commerce in Turkey and Estate Agencies Union in Turkey.
Turkey Property Sale Process
KHI Property Group advertise properties with two Keyholders owned Websites as well as these below platfroms;
- Rightmove Overseas,
- A Place in the Sun,
- Prime Location,
- Luxury Estates,
- James edition,
- Financial Times,
- UK Based Office and Local Offices in Istanbul, Fethiye, Oludeniz, Antalya, Didim and Bodrum.
- We also attend international property exhibitions and have partners in the UAE.
We provide an efficient and professional estate agency service including providing legal advice via our approved legal practitioners. In addition to this, we would handle your mortgage applications for the prospective buyers, surveying services for you. You just let us know if you wish to be picked at the airport and drop off at the end of your trip. Furthermore, we would do inspection trips, conveyancing service in Turkey, fully qualified and equipped sales consultants with English, Turkish, Russian and Arabic Languages. We do not charge VAT for the exclusive clients and properties.
We are registered under the Anti Money Laundering regulations and regulated in the UK, Portugal as well as in Turkey. Would you like to know more about Turkey property sale process and procedures please leave your details here.