Sale of a Property in Turkey
● Compared to the procedures for selling a property in Turkey by a Turkish native, selling a property by a foreigner is not a challenging process.
● People may perform their property research and listings on several different internet sites. Always bear in mind that the prices listed in other postings are the asking prices, whether you’re searching for a property to buy or sell.
● Advertised prices are generally a little higher, and dealers usually leave a little room for negotiating.
● Although most people prefer to manage the processes for selling their property in Turkey themselves, everything may be done with a third party’s signature by procuration if they have obtained power of attorney from a notary, consulate, or embassy.
Do you want to sell your property in Turkey? Plans change all the time, and you may need to sell your property in Turkey due to unforeseen circumstances. Turkey, which is recognized for its breathtaking views, offers significant opportunities for international investors and citizens. Selling your Turkish property does not have to be difficult if you display it effectively, hire a competent agent, price it competitively, and promote it to the appropriate people.
Cheat Sheet: Sale of a Property in Turkey
1. First, get the necessary paperwork in order.
2. You must be realistic with your price.
3. Fix the property if necessary, such as; damaged, etc.
4. Get rid of the mess or unnecessary stuff on the property.
5. Take great photos of your property.
6. Determine your property’s distinct best features.
7. Work with an experienced and competent property agent/agency.
How to Sell a Property in Turkey?
The sale of a property in Turkey by a foreigner is not a difficult task, compared to the procedures for the sale of a property by a Turkish native. Procedures are pretty simple, and most of them can be conducted online through a web portal, which is; “WebTapu.” You can select the language of the website when you access it.
Keeping up With The Market
There are several online platforms through which people can do their property research and listings. Whether you’re looking for a property to purchase or list your property for sale, always keep in mind that the prices given in other listings are the asking prices.
A proper real estate agent who is expertized on the region and type of your property will guide you better for the recent situation of the market.
Prices given in the adverts are usually a bit higher, and sellers usually give a little margin for bargaining. It’s safe to say that you can round the figures down with approximately 5% of the margin, but this isn’t a rule, and there can always be exceptions. That is why we strongly suggest working with a proper real estate agent in Turkey. This will not only save you considerable time and effort but also money.
If you’re also interested in buying land in Turkey, check out our other article about; “Land Purchase in Turkey” and learn detailed information.
Sale of a Property in Turkey via Signature by Procuration
Despite the fact that people usually prefer to handle the procedures of the sale of their property in Turkeythemselves, everything can also be handled with a third party’s signature by procuration as long as they have power of attorney through a notary, consulate, or embassy.
The most important issue with this power of attorney is to make sure if you are okay with receiving the payment by this third party or not and make everything very clear on the written document(s).
Taxes For The Sale of a Property in Turkey
Taxes of the properties in Turkey are calculated over the property’s value, which is formally registered in Title Deed Office’s and Municipality’s records.1 This value may or may not be the actual market price. Common practice is to register this value according to the minimum valuation declaration of the state, which is usually much cheaper than the actual market price.
If the property has been sold via bank loan before, this value should be equivalent to the loan’s amount, which can be expected to be between the state’s declaration and the actual market price. The full amount can also be registered, but this is usually seen in commercial or high-end residential properties owned by commercial entities such as companies or foundations.
Income tax is also to be calculated over the difference between the registered purchase price and the selling price to be registered. Income tax is 0% if the seller owns the property for more than five years, and commercial tax is 0% for companies if the property has been owned for over two years and is listed in its equities in this period. Of course, the company mustn’t have “gayrimenkul” or “insaat” in its title for benefiting from this advantage.
All taxes on the property to be sold, including property tax and municipal taxes such as environment and cleaning, shall be paid until the end of the year in which the property is sold. Even if you were selling your property in January 2012, all taxes should be paid until December 31st, 2012, to apply to the Title Deed Office.
Both seller and buyer parties are obligated to pay 2% buying and selling tax during the sales procedures. This amount is to be calculated according to the price registered in the sales procedures, which can be lower than the actual selling price.
This is a legal practice unless the selling itself doesn’t yield income tax to the seller. Make sure that you take proper advice from your real estate agent, lawyer, or accountant before making your decision on this.
One other minor tax to be paid for the sale of a property in Turkey is the circulating capital tax, a fixed amount to be declared by the state every year. It is a very nominal amount compared to other tax items.
Applying to Title Deed Office for The Sale of a Property in Turkey
The traditional way of sale application is done by the personal application of the seller in person with a wet signature. Then the seller and buyer would wait for an SMS informing about the tax amounts to be paid to come, which could take several hours, and tax amounts should be paid to a specific public bank’s branch within the same district with the property.
On the other hand, bureaucracy in Turkey has been digitalized in the last decade, and applications can be made through the online platform WebTapu very easily. All taxes can be paid via internet banking services or PTT, the governmental post office’s branches.
Following the payment of these taxes, Title Deed Office sends the parties an SMS for an appointment for signing the sale agreement and Title Deed transfer, which may even be on the same day. If the appointment’s time isn’t good for all parties, it can be delayed up to a month.
Payment and Title Deed Transfer
Payments are usually made in the Title Deed Office during the signature stage, using a blocked check to the seller’s name. Bank transfer or partial or total cash payments can also be seen as payment methods. The most important factor in choosing the payment method is whether the sales price is to be registered in full or not.
A blocked check is the most efficient and safe method for this type of payment if the price is registered in full. If not, the declared amount can be paid via blocked check, and the remaining balance amount can be paid in cash. The new Title Deed registered to the buyer’s name will be printed and delivered by the officers within minutes.
All practices and procedures apply the same to both foreigners and Turkish natives for the sale of a property in Turkey, and the bureaucracy is pretty simple. Having a proper local guide such as a lawyer or real estate agent on your side will make everything much smoother and simpler.
The most important factors are the price to be declared and the payment method, which can easily go as long as all parties are in good faith and have proper guidance.