Following law changes made by the government in 2012, most foreign buyers are permitted to purchase real estate here in Kalkan, including the following nationalities:
There are some restrictions in place for buyers from certain countries (e.g China, India).
Please contact us for more information.
It’s generally best to raise finance in your own country to purchase a property here (the most common way being to re-mortgage against your own property or to take a loan out).
Foreign buyers can arrange finance through some Turkish banks, however interest rates here are high, and mortgages can only be arranged on a repayment only basis, normally with a maximum term of 15 years. Loan to value for foreigners is normally a maximum of 50%. Some properties here will not qualify for a mortgage from the bank – for example those without an iskan (habitation permission) or a property which has an existing charge/debt on it.
If you need more information about financing your property purchase in Kalkan, please contact us.
Whilst it is not obligatory to use a lawyer to purchase a property here, many foreign nationals prefer to use a legal professional as part of the process. We are happy to recommend a highly trustworthy and reputable lawyer should you decide to use one.
It’s common practise for foreigners purchasing property to set up a Power of Attorney (POA) to allow a trusted party (normally either a lawyer, or your estate agent) to complete your purchase on your behalf. This can be set up here while you are in Kalkan, or alternatively, you can set it up in your own country, have it legalised, and send this to us here.
POA’s are commonly used in Turkey, and the type of document used for purchasing is a restricted Power of Attorney – meaning that your appointed person is only given rights to deal with matters associated with the purchase of your property.
For more information about setting up a POA, please contact us
Most property transactions here are very quick (certainly in comparison to the UK) An average time period is 4 – 6 weeks. The processes here related to purchasing are very simple and straightforward and you only need minimal documentation as a buyer (a valid passport, and a tax number -the latter can be obtained easily either whilst you are out here, or your POA can apply for this on your behalf).
Please bear these timescales in mind – it’s best to be fully ready to purchase before you start to look in earnest/view properties, including most importantly having your finances in place. This will put you in the best position to make an offer on a property, and to complete your purchase quickly.
We recommend allowing 5 – 6% on top of the cost of your property for purchase costs. These include:
To purchase property here you need to provide:
Yes. You can either open this in person whilst you are here in Kalkan, or this can be opened on your behalf by your appointed POA. The bank will require:
It’s advisable to open two current accounts – one in sterling (or other foreign currency of your choice – e.g dollars/euros) and the other in Turkish Lira. This will give you the option of sending monies to your account either in your home country currency, or alternatively in TL, depending on which option works best for you (exchange rates can make a difference here, for example).
We recommend also setting up online banking. All the main Turkish banks offer an internet banking service, which makes managing your monies in Kalkan a straightforward process.
We have provided a summary below of the main taxes payable by property owners in Turkey. Please contact us if you require more information about these.
Taxes on rental income
New regulations were rolled out in Turkey in 2018, requiring ownesr renting out their property to have a business licence (Vergi Levhasi) and therefore pay business tax and VAT (called KDV in Turkey) on rental income. This is a relatively straightforward process, as you are required to appoint a local accountant to deal with your tax work. You management/maintenance provider can also help you with this.
Annual property tax
As a property owner in Turkey you are required to pay annual taxes on your property/land. These are quite low (they normally range from 0.1% to 0.6% on the value of your property) certainly in comparison to similar taxes in Europe.
Capital gains tax
If you sell your property under 5 years from your purchase date, you will be liable to pay capital gains tax on the difference between the value at the original purchase price, and the sale price (i.e the profit you have made) This tax is based on a sliding scale. Certain costs associated with the property incurred during your ownership can sometimes be used to offset any profit made.
Managing and Maintaining your new home
As a full-service agency, we can offer new owners a comprehensive and bespoke service to manage and maintain your property. Please click here for more information.
Renting out your property
If you decide to rent out your property post purchase, we are here to help. With many years of rental experience, and our own successful rental arm (we currently have a portfolio of close to 100 properties) we have in depth knowledge of the local rental market, and can advise on the best marketing plan to maximise rentals.
Click here to take a look at our Rentals Website