Question - Answer
How much rent can be earned from a Turkish property?
Gross profits in Turkey are moderate to high. Properties in central Calis beach Ovacik and Hisarönü offer return of 6% to 7.6%, while properties in coastal areas are high at 13% to 16%.
At Estates Turkey, we do have a selection of properties offering up to 7% guaranteed net rental returns along with free home insurance for up to tree years and some of them are fully furnished. This income would be sufficient to cover all of your running costs.
What is the buying process?
A 10% to 25% deposit is needed during the initial stage of property acquisition, i.e., upon signing of the purchase contract. Permission for sale needs to be acquired by sending the deeds of property and passport translations of the buyer to the local Army Headquarters for approval. The permission for sale usually takes six to eight weeks to secure. Once the permission of sale is secured, the transfer of title of deed (“TAPU”) is done at the local Land Registry Office.
Having a solicitor to do the convincing is not a legal requirement, but it is highly recommended. Notarisation of all property sales to foreign nationals by a government-authorised interpreter is, however, a legal requirement. Moreover, both contracting parties (seller and buyer) are required to be present at the entry of title.
The whole process of registering property in Turkey takes nine days to finish.
What are the property purchase costs?
The costs of buying a property in Turkey are lower than in the UK. Total purchasing costs including stamp duty, land registry fees, earthquake insurance, solicitor and agent fee are about 5-7% of the purchase price.
Can I finance my property purchase with mortgage?
Yes, through our established mortgage partnersmortgages for key ready properties, remortgage/equity release & “OFF PLAN” are available. As Estates Turkey we can introduce you with them so you can find out more about the process and their mortgage offerings.
What are the taxes?
Residential premises and land are taxed at 0.1% of their declared value. This tax rate is doubled if the property is in a metropolitan area. This annual tax is collected by the local government in two instalments in March and November.
Collected by the local authority, this annual tax is based on the amount of water used, but is usually no more than £100.
Net rental income is taxed as ordinary taxable income. However, if the net rental income from property let out as a residence does not exceed YTL 2,200 (€1,095), the said income is not subject to declaration. The net rental income is not liable to VAT.
Income tax rates vary from 15% to 40%.
Capital Gains Tax
Capital gains from the sale of immovable property (land and buildings) are exempt from income tax provided that the holding period is longer than four years. For properties owned less than four years, normal income tax rates apply. Taxable gains are computed by deducting the acquisition cost from the selling price.
A double taxation agreement between the two countries means that any income taxed in Turkey is exempt from UK taxes.
A 22% withholding tax is levied on rent payments for non residents who only earn rental income in Turkey. The taxpayer wouldn’t have to file tax return on income from his Turkish property.
No VAT is chargeable on the sale of real estate by individuals who are not estate agents, except in the case of houses with a total surface area above 150 sq. mt., which are subject to 1% VAT.
What is the rate of inheritance tax?
Inheritance tax is levied on the individual receiving the inheritance. The rates vary depending on the taxable inheritance and on the relationship between the donor and recipient. The inheritance rates are as follows:
Spouse and children of the deceased are allowed to deduct YTL 89,623 (€50,215) each from the taxable base. If only the spouse is the heir, YTL 179,352 (€100,489) is deductible.
Gifts (land, building) received within one’s lifetime are taxable at 10% to 30% depending on the value of the property. Gifts to spouse and children are exempted up to YTL 2,068 (€1,159) each.
Do I need a visa?
A 3 month tourist visa which costs £10 for British citizens is issued on arrival in Turkey. During this time you can come and go as often as you like. If you plan to stay in the country for long periods you can apply for a residence permit. For further information on residence permit please visit: www.turkishconsulate.org.uk/en/visa.htm
What do I need to bring my car to Turkey?
- Valid passport
- International driving licence or photo-card
- Vehicle registration documents
- International green card-insurance
What is the climate like in Turkey?
It is commonly said that you can experience each of the four seasons on the same day in some part of Turkey. During the spring months early tourists bask in the Mediterranean sunshine of the south while on the lofty mountain tops above people are skiing. The Mediterranean region, to the joy of the millions of sun worshipers who visit it annually, experiences the hot, dry summers typical of southern Greece and Italy, and its mild winters last only from December to March. The climate of the Aegean is similar though with lower temperatures. The climate of the Marmara Sea and Istanbul, influenced by the Balkan Peninsula, is less appealing. Warm, humid summers are followed by cool, rainy winters but not much snow. The Northern slopes of the Black Sea ranges and the narrow strip of land bordering the ‘Pontus Euxine’ are misted over with rain year-round and are known for the resulting luxuriant green vegetation. The summers of the Central Anatolian plateau are hot and dry and the winters cold but fairly dry.
Can I bring my pet with me?
You can bring your pets to Turkey as long as carry the live animals’ health /vaccination certificates with you. Veterinary health certificate must be issued not more than 10 days before departure. None of the documents need to be legalised by either Foreign or Commonwealth Office Legalisation Department of Turkish Consulate General, provided that you accompany your pets. However, there is a legal limitation on the number of pets to be brought to Turkey. A person can bring 1 cat or 1 dog or 1 bird or 10 aquarium fishes at the most. If you like to bring more pets, then you are advised to have somebody to accompany you during your travel to Turkey.
For more information on pet passports contact DEFRA Pets Helpline on +44 (0)870 241 1710 (Monday to Friday 8:30am - 5pm).
What are the health services like in Turkey?
If you fall ill in Turkey, private hospitals and clinics offer very high standards of treatment and care. An increasing number of medical tourists are actually travelling from Europe to take advantage of the excellent medical treatment available in Turkey. The cost of treatment is far lower than in the UK, but you should check with your insurance company before starting any treatment.
Private health insurance for people living abroad is available from variety of UK based companies. Medical insurance schemes are also offered by Turkish insurance companies.
Can I claim my pension?
Moving abroad does not affect your state pension payments, but you will need to organize for the money to be transferred into your Turkish bank account. A British pension can support a comfortable lifestyle in Turkey due to the lower cost of living.
If you haven’t yet reached retirement age you should consider continuing to make National Insurance contributions after you move to Turkey. This will ensure you are entitled to receive a full state pension when you are eligible.