One of the most asked questions by our clients is the process to buy. So, we here at Leb estates decided to take the time to list the process from step 1 to completion. We will include the amount of time necessary to spend with us during your search and the time with the attorney’s and notary public.
Viewing & Reservation Process
Once we find the right development (this can take 3-4 days), you will choose a specific unit and pay a reservation fee to the builder approximately 1,000 USD or 1% of the purchase price – most developers will take a major credit card (This is also refundable up to 14 days by Turkish law) – At this point, depending on the developer, you will be given either a sales contract or a reservation form. Each developer is different, so please understand this is not a standardized procedure here in Turkey.
From there, the initial steps of moving forward with your purchase will be completed. First, we will help you obtain a Turkish Tax ID. (This process is quick and simple. Only a passport, home address, telephone number abroad, and mother and father’s name are needed to complete)
Once completed, we will take you to a bank of your choice and nationality to open a local account in your name. (Side Note: We only provide the transportation and translation for the process. We by no means are given any account information or details). From this account, your monthly utilities will be deducted via an auto-draft system to make the transition easier to manage. Additionally, your rental income will also be deposited into this account should you be purchasing for investment purposes.
If purchasing for the Turkish Citizenship by Investment program, we will meet with an attorney of your choice. If you have not arranged an attorney prior to our meeting, we will arrange a meeting with one of our partner attorneys to discuss the procedure and timeline. While there, the attorney will explain the steps of reservation to payment in full, as well as what your requirements are. (You can visit our Required Documents List on our Citizenship by Investment tab.) During this time, it would be wise to ask any questions you may have regarding the process, collect the fees and payment schedule, and present any challenges in your record or family status that may have an adverse effect on your successful immigration application.
The next step will be to issue a Power of Attorney (POA) (1 day). This is a particularly important step if you do not plan to be in Turkey throughout the process of the purchase. This POA allows your attorney to represent you for the relevant transactions of purchase and immigration (I.E. Purchase Agreement Signatory, Title Deed Registration, and lastly, to submit the residency and citizenship application on behalf of you and any included family members.) Please know that if you are submitting a family application, your spouse must also present a separate POA for the attorney to issue the immigration application on their behalf. The POA can be issued at notary public offices in Turkey as well as in Turkish embassies around the world.
After the POA has been completed and agreements have been reviewed and signed, the attorney will order an Evaluation Report for your records. This typically takes 3-4 days and has a cost of 1,250 TL. After the agreements have been reviewed and signed, the Evaluation Report will be ordered at this time. The whole process takes around 3-4 days to receive and costs 1,250 TL. Please keep in mind that these evaluations are independent of Prime Property Turkey and we have no influence over the final steps. This report will give you local comparisons, market value, permission and build info, as well as any deficiencies found throughout the process.
Once these steps have been completed, and only after these steps have been completed, you can travel home to pay the remaining balance from your local bank via wire transfer.
(Note: For Citizenship by Investment Applicant’s — It is important that the account is in your name only. As any other account holders will be considered shareholders on the property and increase the amount needing to be invested for citizenship.)
ONE-TIME PURCHASE COSTS:
Stamp Duty (title deed transfer tax) 4% of purchase price, this is traditionally split between you and the developer, though not always. This is to be paid upon completion and possession of the unit, however some units do ask for it immediately for early issuance of the title deed if seeking Turkish Citizenship by Investment.
VAT (value added tax, like a sales tax) of 1%, usually included in the purchase price, but is a separate fixed cost.
Setup of natural disaster insurance or in Turkish DASK – Maximum 3,000 TL
Set-up of utility accounts — water, electricity, and gas. Deposits are given to the servicing utilities companies and initial set-up fees are required. This amount is no more than 3,500 TL on average. These deposits will be returned when property is sold, or you have leased to tenant and utilities have been obtained in their name.ANNUAL & MONTHLY COSTS:
Annual Property Tax/Municipality Tax 0.6 – 1% of the purchase price.
Maintenance/condo fees/Aidat – This varies development to development, but average is about 4-6 TL/ m2 — (If being rented, the tenant will assume the payment of these fees)