Property in Turkey is increasingly becoming a top choice for overseas buyers since a new law was passed to allow more countries to invest in the country's market. Turkey's strong economy and sunny climate, coupled with stunning coastlines along resorts such as Alanya and Altinkum, make it ideal for both lifestyle buyers and investors alike.
Average selling prices
The Selling Process
Marketing your property
Once you have decided it’s the right time to sell and are confident your property is in a condition which will appeal to prospective buyers, you are ready to go to market. The normal means of marketing a property in Turkey is via an estate agent, who can also value your property.
If you used an agent to buy your Turkey home, it could make sense to use the same one to sell it (provided you were happy with their level of competence and service, of course), as they will already know the property. Before you take on their services, you should check carefully what they will and will not do in terms of marketing and what they will charge as commission – make sure you shop around to get the best service.
However, it’s increasingly easy these days to sell without using an agent. There are an increasing number of specialist websites and magazines advertising property for sale in Turkey. The key advantage here is avoiding the high estate agents’ fees. However, you will need to do your research to get the price right. Just looking at the adverts will not be enough. You will need to get out and see comparable properties in your area and check out their facilities.
When you come to sell your property there are two main avenues open to you, each with their own nuances. The first option is only available for purchasers of off-plan property...
Selling before completion
This option incurs the lowest legal fees and also the lowest level of costs in general. This is because, if you are successful in selling your property before completion, you do not need to take ownership of the property in the eyes of the land registry.
As such, any buyer purchasing from you before you complete will be liable for the final completion payment on the property and also any associated taxes and legal fees due on completion. The expenses you are likely to occur are legal fees, which, depending on the method employed for the transaction, should come in around £500. You may not be liable for any income tax or CGT in Turkey, but you’ll still incur a UK liability.
It is important to note, however, that selling under these circumstances does also have disadvantages. By selling before construction has been completed, you are still effectively selling an off-plan property, which commonly will not attract the same value as its completed equivalent. Secondly, you are potentially narrowing your audience, as buying off-plan is often perceived as a higher risk.
Selling after completion
This option means that you will need to complete on your property, making your final payment for the construction and also the associated costs and taxes involved in completion. Although selling after completion will incur the full level of purchase and legal costs, it has several advantages. Firstly, a completed property is likely to attract a higher value than a property sold off-plan. Secondly, a completed property is likely to attract a wider audience, including people who do not have the confidence to purchase off-plan. Finally, completing on your property gives you the option to hold on to the property if you wish.
Selling Costs Checklist
Once you have met these costs, you have paid to sell your home
Deed Fee (Tapu Harcý) - payable by both the seller and buyer assessed at 1.5% of the transaction amount Income tax - levied on the difference between the purchase cost and sale amount, unless owned for more than four years Legal fees - likely to be £1,000 to £1,500 Legal fees - likely to be £1,000 to £1,500 Agent fees - depending on the agent, around 3% of property price Legal fees - likely to be £1,000 to £1,500 CGT - in general, this is aded to Income Tax Legal fees - likely to be £1,000 to £1,500
Disclaimer: All information contained within this guide is provided in good faith. Every effort has been taken to ensure that it remains up to date. However, some inaccuracies may occur. Before carrying out any property transaction overseas, we recommend seeking legal advice.