Legal Considerations, Solicitors & Letting Agents?

[HDPete]

Hi all,

Just about to pay a deposit on property in the Bodrum peninsula.

I have never visited Turkey before and this is a long term buy to let investment for me. I have a 6% rental guarantee for 24 months, but after that, I'd be looking for a letting agent.

Has anyone put together a list of legal considerations that they would be willing to share, to help others avoid any pitfalls in the Turkish system?

For example:
Foreign property conveyance solicitors?
Stamp Duty / Other taxes on purchase?
Capital Gains tax (if any?)
Getting the title deeds on completion, not 3 years on, like Spain?
Likely Council Tax (or equivalent)?
Local Letting Agents?

Any other advice gratefully received!

Thanks in advance.
Pete

 

[Sunnyshores]

Hi Pete

I've just brought in Bodrum and can give you my costs etc, some of which presumably vary according to the area.

Solicitor: I used a company in Istanbul that specialise in property purchase by foreigners and obviously speak English. I was recommended them by an English Agent - I wouldnt necessarily recommend them, but an indication of their costs may help you :
Legal fees £615 inc VAT at 18%

She also dealt with fees for :
Stamp tax 1.50% of purchase price
habitation licence £481
notary £206
title application £69
courier translation £62
electricity set up £172
water set up £172
earthquake insurance £69

Other purchase costs :
VAT is payable on new builds. For buildings under 150m2 its only 1%, but over that it is a whopping 18%.

Capital Gains
I'm no expert, but I believe if you're a UK resident then you pay normal 40% CGT on ALL gains made anywhere in the world. there is an agreement with certain countries (Turkey included) that you dont pay it twice - so you pay Turkey theirs first (less than UK, none after 4 years),then you pay the UK the remainder of the 40%.
Tax in general - you (or your solicitor) will need to get you a tax code so you can register at the tax office, get title, open a bank account.

Title Deeds
I've been told 3-4 months. You need to provide certified copies of passports etc and a UK notary charges about £40 a signature.

Council Tax
0.1% of property value per year

Local letting Agents
good luck - I have found this to be very difficult, due to language and a completly different market to the UK. No advice ehre I'm afraid, just do what you can on the internet and get out there and sit in offices asking questions!

Mortgages
You cant mortgage it until you have title. There are a few UK companies now sourcing turkish mortgages but they are expensive and the set up fees very expensive. Better refinancing your UK property.

Furniture
Readily available in Bodrum, an Ikea in Iclemer. But was much the same as UK prices. But I know someone who furnished in Dalaman and she reports it was about 2/3rds of the UK price.

Hope this helps some, all the best!

 

[TH4S]

Sunnyshores,
Title Deeds,UK notary charges about £40 a signature.
electricity set up £172/water set up £172,Furniture,But was much the same as UK prices,

Sunnyshores,
I am trying to understand why you used a UK notary office,!
Your water and electricity connection's also seem rather high,! is your property isolated or away from the mains supply,!

Have you actually bought,or have you just signed contracts,and you are awaiting, military clearence,!

You dont mention cost regarding making a will.or House/contents insurance,very important issues,

HDPete,Just about to pay a deposit on property in the Bodrum peninsula.I have never visited Turkey before

HDPete,
İ suggest you visit Turkiye and talk to someone who has no problem with the Turkish language,

A tax number is needed, its very easy to obtain,you will need it also to open a bank account,again very easy,

Costs.can vary,some agents will say its included in the price, as will some devolpers,again varys from area to area,

There are many solicitor's in Turkiye,that specialise in property sales to foreigners and they can speak english,One solicitor in one area may charge.£350, another.£700.ask for a quote's.,try getting some one to reccomend you one,

It is advisable to update your UK will to include your Turkish property,(also get it translated to turkish)

Turkish property/contents insurance,available in the UK,

Furniture costs,aproximatly,£3.500 for a 3 bedroom apartment/house should cover the full cost.that is including curtains carpets white goods etc,etc,far cheaper than the UK,

There are many management/ agencie's in Bodrum,who can help you to rent out your property.you will obviously need them for general cleaning etc,

Here is a pdf guide for the rental income's declaration for non-resident foreigners in Turkiye,This guide is prepared according to legal provisions of Turkish law in force.www.gib.gov.tr/fileadmin/beyannamerehberi/rental_income.pdf

Pete,Good luck,

 

[Sunnyshores]

TH4S
I'm not sure why the electricity and water costs are so high, these were estimates and I have not yet seen the actual invoices as the property is only just finished. I am currently awaiting completion of the snag list items,then signing for the property,then military clearance and title and then paying my final 20%.

I needed the UK notary to legalise a copy of my birth certificate and my passport to give my Turkish solicititor power of attorney and for military clearance etc.I was not suprised by this as I also needed the same for a purchase in Brazil. I was however suprised by the charges!!

Building and contenst insurance - I have quotes of about £300.

Wills - you're correct, very important, must do it!

Also - complex, maintenance fees. Vary considerably depending on facilities, staff employed (reception, gardeners, maintenance men etc). Ours will be approx £1000pa.

 

[Sunny Days]

Pete,

Where in Bodrum is your property?
Are you thinking of holiday letting or long term renting?

Sunny Days

 

[Sunnyshores]

Its in Turkbuku and I am selling it straight on.

 

[richard]

Happy to help anyone looking to rent their property, we specialised in this in the first instance
Regards
Richard

 

[Rit]

Rentals

Hi Richard, not sure if you are still dealing with rentals in Turkey. I am in the process of buying a property in Regnum Bargylia - 20 mins outside Bodrum. im trying to sort out the mortage first etc but would like to know if you can help with rentals or any suggestions you may have. Its a 2 bed and will be fully furnished. Can sleep4/6
Given there will be a sofa bed in the living room as well.

thanks

Happy to help anyone looking to rent their property, we specialised in this in the first instance
Regards
Richard

 

[steve brentano]

looking for insurance in Bodrum area

Happy to help anyone looking to rent their property, we specialised in this in the first instance
Regards
Richard

Hi Richard can you recommend a company to get contents and earthquake insurance I have a 1 bed apartment in Bitez and a converted farm house near Tuzla lake ????
many thanks
keep smiling Steve B