F.A.Q.
The following are just some of the many questions that we
have been asked over the years. We have made great effort to
give the most up to date and accurate replies. The
information contained herein is meant for general guidance
purposes only and due to the ever-changing legislation etc.
The MODA PROPERTY & CONSTRUCTION cannot be held liable for
any inaccuracies contained herein and do strongly advise
intending purchasers to make further enquiries in relation
to all aspect of investment in Turkey.
What is the form of Government in Turkey
Turkey has a secular democratic government with a Prime
Minister, political parties both left and right and a
President. It is a member of NATO, OECD and an associate
member of the E.U.
What is the currency of Turkey ?
The currency is the new Turkish Lira. The rate of exchange
varies around 1.7TL to €1.00. The Euro is accepted in most
large cities and tourist areas, as is the US Dollar and the
Pound Sterling.
What can I purchase in Turkey ?
An Irish/British citizen can purchase any property, site or
land and can sell at any time to a Turkish national or
foreigner. Permission may be required for the purchase of
extensive tracts of land.
What are the requirements for purchasing property using The
MODA PROPERTY & CONSTRUCTION?
In order to purchase a property, we will require a completed
booking form, 4 passport photographs, a copy of your
passport, proof of residence, some family details and a
booking deposit.
Must I travel to Turkey in order to purchase ?
No-you can purchase a property in Turkey and have it
registered in your name if you wish without ever going to
Turkey. Most of our clients so far have purchased from
information supplied but intend to travel to Turkey when the
property is completed and there after pick up their deeds in
person.
What about Power of Attorney ?
You can give full or limited Power of Attorney to another
person to act on your behalf in doing most things concerning
buying and selling property in Turkey. We can explain the
procedure and pros/cons when requested. We now also have
procedures in place whereby Power of Attorney can be given
without the necessity to travel out
What are the buying costs ?
All purchasing and associated costs e.g. contracts costs,
commissions/fees etc are normally included in prices quoted
by The MODA PROPERTY & CONSTRUCTION. (Stamp Duty currently
1.5% of declared value, POA approx €100, living
certificates, residency permits and some utility contract
charges may be payable additionally.) These will vary with
each development and from area to area.
Do I need a Lawyer ?
No-it is not legally necessary to employ a Lawyer though
doing so would as elsewhere be highly recommended. The MODA
PROPERTY & CONSTRUCTION do, for your own protection from now
on insist that you use the services of a Turkish lawyer in
relation to properties purchased using our company. If you
wish The MODA PROPERTY & CONSTRUCTION can put you in contact
with an English-speaking Lawyer in Turkey. The charge will
vary usually between €500 and €1,000.
Is there any reciprocal agreement between Ireland and Turkey
?
Turkey has a reciprocal agreement for the purchase of lands
and properties with most European countries. Irish and
British citizens can therefore purchase and sell lands and
property in Turkey with very few restrictions. All taxes and
duties paid in Turkey are taken fully into account for tax
purposes. Ireland and Turkey are currently negotiating a tax
treaty.
Is there stamp duty payable and if so how much ?
Stamp duty is payable at 3% of sale price. Usually 1.5%
payable by the buyer and 1.5% payable by the seller. This is
payable on the acquisition of title deeds (TAPU) and is
based on the valuation agreed by the local authority.
Is there Capital Gains Tax payable ?
There is no Capital Gains Tax payable for private purchasers
providing that you do not sell within one year of purchasing.
However, this may change as Turkey prepares for EU
membership. Rates are in line with income tax bands. For
companies, there is CGT at variable rates
Is there a community charge ?
If your property is part of a larger development then your
residents association will decide on the level of community
charges. Currently the annual charge is €400-€600 depending
on location, property size and the level of service
provided.
Local Government charge ?
Local Government taxes/charges vary greatly from region to
region. There is a compulsory tax for education and
earthquake relief to pay of approx. €40 per annum. There is
usually no other tax on new properties. After 5 years a fee
of 0.1% of the declared value is charged annually for
council services – approximately €30-€60 per annum.
When can I sell ?
You can sell at any time either privately or through The
MODA PROPERTY & CONSTRUCTION or any other company. You can
do so in person in Turkey or by Power of Attorney without
the need to travel out.
Can I take the money to Ireland/UK from proceeds of sale ?
You have the legal right to take the proceeds of the sale
back with you. There are no restrictions and no questions
should be asked. However, any profits declared may be
subject to tax in your home country.
What do we need in order to travel ?
You will require a visa purchased at the point of entry at a
cost of €10/£10 for 3 months stay and unlimited entry.
Travel insurance is optional but is highly recommended and a
valid passport (this must be valid for a minimum of 3 months
after your planned return from Turkey.
How long are inspection trips for ?
From 3-7 days normally during off season and one week during
the summer season of April to October but we will usually be
able to arrange trips to suit all requirements.
When will we get a refund of our travel costs ?
A refund of up to €500.00 towards your travel costs will be
credited to you if you purchase through Turkish Real Estate.
This credit will appear on your property booking form and
will be deducted from your final payment due.
Can I get a mortgage ?
Depending on your financial circumstances it will usually be
possible for you to obtain a mortgage in Ireland/UK secured
on a property owned by you. Our banker can advise you on the
terms and conditions.
Who can arrange the mortgage for me ?
The MODA PROPERTY & CONSTRUCTION can help arrange this for
you and with the minimum of formalities and put you in
contact with somebody who is familiar with procedures and
the market in Turkey and has assisted many of our clients.
Can I get a mortgage in Turkey ?
Mortgages in Turkey are usually not possible at this present
time. We are currently working with an International Banking
Group in this regard and hope to be able to provide this
service in the near future. Turkish mortgages will be made
available to Turkish residents from 2006 and possibly also
for non-residents. In Cyprus we do have some developments
where mortgage facilities are available locally.
Can we arrange stage payments ?
Yes-all properties that we sell which are under construction
will usually be on a stage payment basis. At our discretion
this can sometimes be extended to fully finished property.
Will the mortgage company take Turkish property into account
?
For income assessment we can provide a certificate of
expected rental income, which they may take into account in
assessing your ability to repay. They cannot however take
the deeds of your Turkish property as security or
collateral.
What about a bank loan ?
We have a good working relationship with a number of banks
and have helped in securing loans for several of our clients
and can make representation on your behalf at your request.
What is included in the price ?
Normally site and building costs, communal facilities such
as pools, lifts, parking, gardens etc, interior and exterior
finishes of properties, conveyancing where carried out by
our associates and all commissions.
What is not included ?
Furnishings are not normally included. Also purchasers stamp
duty, currently at 1.5% of the declared value, Power of
Attorney fee of approx €100.00, residency type permits or
registrations and utility connection fees which will vary
each property and development and normally cost €200-€300.
Is there a minimum age to purchase ?
The minimum age that you must be to purchase is 18 years of
age. Property can be registered in the name of a minor
jointly with an adult.
What guarantees/promises are there ?
All new developments are constructed to the highest
standards and will have government engineering reports and
completion certificates. All are certified to withstand 8.5
on the Richter scale. In addition all property will have
been thoroughly inspected by a representative from Turkish
Real Estate with many years construction experience. Some
additional guarantees may apply to specific projects all of
which will be detailed on your contract.
1) What can I buy ?
Most of nationalities can purchase a property in Turkey,from
a Turkish National or another foreigner, provided the
property is in the local district of MUNICIPALITY (BELEDIYE).
The MODA PROPERTY & CONSTRUCTION holds a full list of these
countries who have reciprocal agreements regarding property
purchase with Turkey.
By fiting these conditions you can buy any kind of property
in Turkey (apartment flat,villa,land or hotel)
2) How to pay ?
It's advised that funds for the purchase can be transferred
into the country by a Turkish or International Bank and
specifically identified for that purpose. The MODA PROPERTY
& CONSTRUCTION is using a leasing facility designed by
largest five banks of Turkey, HSBC BANK INTERNATIONAL -
FINANSBANK - DENIZBANK – AKBANK- ZIRAATBANK.
Most of the time we also use international telephone banking.
You should keep all receipts which you take from your bank
to prove the original purchase to enable easy repatriation.
We will furnish all interested parties with details needed
for transfer. For more information please contact us...
3) Any extra cost ?
YES... All the fees involved for a freehold purchase payable
by the purchaser amount to approximately 10 % of the
property price.
These are;
- 4 % purchase tax (stamp duty) on registration of freehold
(new properties can be exempt from purchase tax)
- A minimum of £ 500 - € 780 or 1 % of the sale price sworn
translator,notary,full investigations,i.e, power of attorney
etc...
The prices you see in our web site are included all these
extra costs.So you don't have to calculate all the time
about the extra fees.We give all the time all inclusive
prices to our customers.
IMPORTANT NOTICE: We charge 3 % agency commission from buyer and 3 % agency
commission from seller. We receive this commission 3 % from
buyer and 3 % from seller of the total sale price.
4) How long to wait for the deeds ?
Usually depends on your nationality however for E.U citizens
not more than
12 weeks.
The times to get the deeds for some countries are broken
down as:
UK ( 4-6 WEEKS )
IRELAND ( 4-6 WEEKS )
GERMANY-FRANCE ( 6-8 WEEKS )
HOLLAND-BELGIUM ( 7-8 WEEKS )
U.S.A. ( 8-10 WEEKS )
FINLAND-NORWAY ( 8-10 WEEKS )
AUSTRALIA-NEW ZELAND ( 10-12 WEEKS)
SWITZERLAND ( 4-8 WEEKS )
JAPAN ( 8-14 WEEKS )
SWEDEN ( 6-9 WEEKS )
RUSSIA ( 10-12 WEEKS )
CANADA ( 8-10 WEEKS )
NEW MEMBER COUNTRIES OF E.U (10-12 WEEKS ) (EXCEPT GREEK
ADMINISTRATION OF SOUTH CYPRUS.THERE IS NO ANY AGREEMENT
BETWEEN TURKEY AND SOUTH CYPRUS REPUBLIC)
5) Annual and monthly costs :
Running costs are considerably cheaper than Europe and
U.S.A.
The investors pay every year a local tax for the property
vary according to size and the location of the property a
minimum of € 30 but not more than € 350 per year.
If the property is in a complex the owner have to pay a
community charge depends on the complex.
Earthquake insurance costs a minimum of € 35 per year (This
is required)
Estimated charge for water 30 € cent per 1000 LT. (£ 0.40p)
(inc. rubbish tax)
Estimated charge for electricity 10 € cent per kilowatt (£
0.05p)
Gas: Gas is normally used for cooking but can be used also
for water heating. Cylinder refills cost approximately €
14.5 - £ 10 and lasts about a month for water heating and
about 2 months for cooking. (A deposit is taken for each gas
cylinder)
6) VISAS to Turkey :
When you own a property in Turkey and get the deeds you can
appply for a Turkish passport after 3 months of
purchase.This passport's validity time is going to be 5
years. By this way you will have the same rights with
Turkish citizens and you will not have to buy a visa for
your each visit to Turkey.
(This passport is only for foreigners and not the same one
with Turkish citizens get. And it doesn't give you a
citizenship but gives you all the same rights with Turkish
citizens and makes all your goverment works easier)
7) Flights in the country and out :
There are many flight companies all over Turkey. The biggest
company is TURKISH AIRLINES. But also there are many
companies which have everyday charter or timetable flights
all over Europe and U.S.A. So your flights in country or to
your country will never be a problem in TURKEY.
8) Petrol :
If you think to buy a car also or to bring your car from
your country you must know the cost of petrol also.
In Turkey only the unleaded petrol is being used for the
cars and costs: € 1.08 - £ 0.70p per liter and diesel costs:
€ 0.80 - £ 0.50p per liter
9) Communacition :
Telephones are applied to TURK TELEKOM and connected next
day depending on availability in your area.The lines are
very good and internet access easy and well serviced.There
is a small line rental payable annually about £ 12 - € 18.As
well as the mopst U.K and European newspapers arrive the
next day.
Also you can get a national daily newspaper printed in
English. Television reception is good and if you subscribe
Satellite System you receive over 52 channels including:
BBC,Discovery,MGM and most Europe channels. Also you can
watch all Europe Football Leagues in Turkey.And there are 3
G.S.M operators all over country.The strongest one is
Turkcell and can be reached all over the country. The cost
for mobile communication depends on your GSM operator
between 0.08 € cent (£ 0.05p) to 0.20 € cent (£ 0.11p).
10) How to furnish ?
All the furnitures and electronical items (T.V,Washing
machine,Dishes machine etc...) are cheap in Turkey.Furnitures
can be custom made by local craftsmen if required.Towels,curtens
and linen are more cheaper than Europe.
Food and beverage is much more cheaper than Europe and U.K.
and can be purchased at the local markets.
And if you have any other questions please don't hesitate to
contact us. We are happy to help and ready to serve you with
our goverment approved staff with all our experience.
If
you stil have question , please feel free to contact us
