Information Centre

Travelling and Residence in Turkey - Top

Residence Visa and Permit
If you wish to be resident in Turkey for longer than the normal period allowed to tourists, you will need a residence visa.

You should contact the Turkish Consulate in the UK to learn which documents are currently required to obtain a residence visa. These must be submitted to the Turkish Consulate General at least eight weeks before the intended date of departure (Nationals of European Union countries and those of Australia, Canada, Iceland, New Zealand, Norway, Switzerland and the USA may be issued a one year residence visa within a week, in exceptional circumstances).

After obtaining the residence visa, you are required to register with the local police within a month of your arrival in Turkey, in order to obtain a residence permit. If you wish to extend your permit for a further period, you should apply to the same police headquarters before the permit expires.
Can you bring your car to Turkey?
If you are a tourist visa holder, then you can bring your car into Turkey for a maximum period of 6 months. If you are a residence visa holder and wish to bring your car, then you are treated as importing a car and have to pay customs tax.
How much money can you bring to Turkey?
As a foreign national, you can bring in up to 5000 US dollars in cash or the equivalent amount in any other foreign currency. Furthermore, if you declare the amount to customs authorities just prior to your entry into Turkey, you are allowed to take cash up to the declared amount out on your return.

You are also free to transfer any amount of Turkish Lira or foreign currency abroad through banks in Turkey.
How much jewellery can you bring in and out of Turkey?
Travellers can bring in jewellery made from precious metals and gems up to the value of 15.000 US dollars or less, as long as it is for non-commercial purposes.

If you would like to bring in jewellery worth more than $15.000, you must declare it to the Turkish customs authorities just prior to your entry into Turkey. In this case, you are allowed to bring in jewellery worth up to the declared value.
You are allowed to take any amount of jewellery out of Turkey, regardless of its value, as long as you have certification to prove that it was purchased in Turkey.

Does your social insurance scheme cover your health expenditure in Turkey?
If you reside in Turkey, your social insurance scheme in the UK can cover your health insurance expenditure in Turkey. Please contact the relevant organisation in the UK for the details.

Working in Turkey - Top

Can you establish or buy a company in Turkey?
Under the Foreign Direct Investment Law, unless otherwise stipulated by international agreements or other specific laws:
*Foreign investors are free to make Foreign Direct Investments in Turkey,
*Foreign investors shall be subject to equal treatment with domestic investors.

The Law defines Foreign Direct Investments as either the establishment of a new company or branch of a foreign company; or share acquisitions, where the foreign investor owns 10 percent or more of the shares or voting power, by means of:

i) Assets acquired from abroad by the foreign investor: Capital in cash in the form of convertible currency bought and sold by the Central Bank of Turkey, stocks and bonds of foreign companies (excluding government bonds), machinery and equipment, industrial and intellectual property rights.

ii) Assets acquired from Turkey: Re-invested earnings, revenues, financial claims, or any other investment-related rights of financial value, commercial rights for the exploration and extraction of natural resources.

According to the Law, Foreign Direct Investments shall not be expropriated or nationalized, except for a public purpose and upon compensation in accordance with due process of law.

Foreign investors can freely transfer abroad the following: profits, dividends, proceeds from the sale or liquidation of all or any part of an investment, amounts arising from licence, management and similar agreements, and reimbursements and interest payments arising from foreign loans through banks or private financial institutions.

For the settlement of disputes arising from investment agreements subject to private law and disputes arising from conditions and contracts made with the administration and under which concessions concerning public services are granted, foreign investors can apply either to the authorized local courts, or to national or international arbitration or other means of dispute settlement, provided that the conditions in the related regulations are fulfilled and the parties agree thereon.
Legalities
Turkish Commerce Law No. 6762 determines the basic criteria for the establishment of companies and other commercial issues such as definition of company types, capital requirements, registry etc.

In addition, self-employed people and employees have to register with the relevant social insurance scheme. SSK Law No. 506 arranges social insurance issues regarding employees, whereas Law Nos. 1479 and 2926 make social insurance compulsory for the self-employed and farmers, respectively.

Labour market arrangements such as labour contracts, trial and notification periods, employment notices, awards, minimum wage, fringe benefits, net and gross wages, vacations, and other workers’ rights are governed by the Labour Law.

The Unemployment Insurance Scheme is covered by Law No. 4447.

Unions are established on an industrial basis in line with the Unions Act No. 2821. Being a member of any union is voluntary and there is no obligation to make a collective bargaining agreement for any business or work place.

Collective bargaining agreements are contained in the Collective Bargaining Agreements, Strikes, and Lock Outs Act No. 2822. These agreements can be signed between one or more authorized representatives who can be either an employee’s union representative or an employee not registered by any union. Only a worker who is a member of a union can be covered by collective bargaining agreements. A labour union can be authorized to negotiate a collective bargaining agreement if it covers at least half of the workers in a workplace and least 10 per cent of the workers employed in that sector are registered to this trade union.

Tax Procedures and Principals Act No. 213 and Law No. 6183 define the general tax principles applicable in Turkey. The former incorporates areas such as tax liability, types of taxation, bookkeeping and valuation methods, liabilities and contributions, etc. whereas the latter contains provisions relating to the payment of taxes, late payment penalties and interest to be charged.

Issues regarding the Tax Courts are covered by the Administrative Judiciary Procedures Act.

Finally, tax liabilities are determined with respect to the Corporate Tax Law, Income Tax Law, Stamp Tax Law, VAT (KDV) Tax Law and Special Consumption Tax Law.
How to establish a company
Establishing a company in Turkey takes only one day. Please call 020 7580 7272 for advice and help.
What type of companies can be established?
Incorporated companies (joint stock companies, limited companies, limited partnership companies, collective companies) and unincorporated companies (joint-venture, business associations, consortia) can be established in line with the Turkish Commerce Code.

Joint stock company
The company’s stock capital is divided into shares and the liability of the shareholders is proportionate to the capital subscribed and paid by the shareholder. At least 5 shareholders (real persons or legal entities) and minimum capital of YTL 50,000 (about £19,000) are necessary. A general assembly, board of directors and supervisory board must be formed within the company.

Limited company
This type of company is established by at least 2 and at most 50 real persons (or legal entities) and the liability of the shareholders is restricted only to the capital subscribed and paid by the shareholders. Minimum capital of YTL 5,000 (about £1,900) is required. No stock certificate is issued.

Limited Partnership (Commandite) company
This is a company established to operate a commercial enterprise under a trade name. The liability of some shareholders is restricted only to the capital subscribed and paid by the shareholder (commanditer), other shareholders are not restricted to the capital subscribed and paid by the shareholder. Only legal entities can be commanditers. No minimum capital is required. The relationship between the shareholders is designated in the articles of free association.

Collective company
This is a company established to operate a commercial enterprise under a trade name. The liability of none of shareholders is restricted only to the capital subscribed and paid by the shareholder. No minimum capital is required. It is mandatory that all the shareholders be real persons. The relationship between the shareholders is designated in the articles of free association.
Some companies subject to authorisation
However, some types of companies with special legislation such as

-banks
-private finance institutions
-insurance companies
-financial leasing companies
-factoring companies
-holding companies
-companies operating foreign currency exchange offices
-companies dealing with public warehousing
-publicly held companies subject to the Capital Markets Law
-companies that are founders and operators of free zones
-electricity, gas, petroleum generation, trading and distribution companies
-telecom companies

are subject to authorisation from the relevant authorities.
Are you allowed to work in Turkey?
You can work in Turkey provided that you obtain a work permit. Work permits for foreigners are issued by the Ministry of Labour and Social Security.

However, foreigners are prohibited from or subject to special permission for some occupations, according to current legislation.

The jobs defined in the following laws cannot be carried out by non-Turkish residents unless there is an exemption according to bilateral reciprocity agreements:
Law No. 815 (sailors), 2920 (aero-transportation within Turkish borders), 3213 (mining rights), 5680 (executive officer in periodicals companies), 2821 (establishing trade unions), 1618 (executive officer in travel agencies) , 4458 (customs counsellor or advisor), 1163 (initial member of board of a co-operative), 1219 (nurse, dentist, doctor), 6197 (pharmacist), 3958 (optician), 6343 (veterinary), 2219 (executive officer in private hospitals), 2802 (judge, attorney in the courts), 1136 (solicitor), 1512 (notary-public), 2495 (security guard).
Work permits with limited duration
According to Law 4817, when taking into account the current state of the labour market, the economic situation, the duration of the residence permit and the duration of the work contract, a work permit can be issued for a period up to 1 year. If the foreign national wishes to continue working in the same workplace, the permit can be extended for 2 more years. After a 3 year working period, the work permit can be extended up to 6 years at most.

If the children or spouse of the permit holder lives with them in Turkey for at least 5 years without a break, they can also be eligible for work permits.
Work permits with unlimited duration
If a foreigner has been resident in Turkey for at least 8 years continuously and has had a work permit for 6 years, then s/he is entitled to a work permit with no time limitation. The factors considered in issuing the work permit with limited duration are not taken into account at this point.

For further information, please contact the Office of the Labour Attaché on +44 20 7591 6918.
Is social insurance (SSK) coverage compulsory for foreigners?
Short-term risk coverage (maternity, health, occupational illnesses) by the associated scheme is compulsory for all foreign nationals working in Turkey. In addition, foreign citizens can voluntarily register with social insurance institutions for long-term risk coverage (invalidity, old-age, mortality).

However, citizens of countries with which reciprocity agreements in the power of law have been made, must be covered by the relevant social insurance scheme. These countries are: the UK, Germany, the Netherlands, Belgium, Austria, Switzerland, France, Sweden, Libya, Denmark, Norway, and the Turkish Republic of Northern Cyprus.

Construction of a building on land - Top

Can you have a building constructed on land you own?
To have a building constructed on your land, you have to get permission from the local authorities and the engineering blue-prints of the building must be in line with the official Construction Plan.

There are many Turkish companies which specialise in construction and contracting services. You can also use the services of architecture and civil engineering bureaux to construct your building.
All issues relating to the construction of buildings/building rights are covered by Construction Law No. 3194. In line with this law, you can have a building constructed on your own land provided that:

• It is in line with the official Construction Plans and current regulations.
• You obtain a “construction authorization” certificate from local government offices.
With regards to the authorization for building rights, if your land is within municipal borders, the relevant municipality authorizes the construction. If your land is outside the municipal borders, then the construction is authorised by the relevant Provincial Governor’s Office (Valilik in Turkish).
Please bear in mind that you cannot construct any kind of building on land which has been designated as a Common Place in the official Construction Plans, eg. roads, green fields and parks.
If you plan to buy land and to build a property on it, you are advised to find the appropriate official Construction Plans approved by local government and regulations, and to contact the relevant local government departments.
Hiring a good solicitor would be beneficial at this point.
It can be a slow and difficult process and you are advised to take sound local professional advice. Ask us for details of our services.

Costs, liabilities and utilities - Top

Foreign nationals and Turkish citizens are no different in terms of the taxes or levies charged.
What are the additional costs of buying a property?
In addition to the property purchase cost, you are charged a Real Estate Purchase-and-Acquisition Levy (3%) by the local Title Deeds Registry Office for the transaction to be made.
Solicitor costs are between £150 and £300.
Sworn Translator fee depends on the number of documents translated; it is generally less than £100.
The buyer and seller must each pay a 3% agent's commission. These are standard terms offered by all Turkish estate agents.
What are the liabilities of a home-owner?
A building owner is liable for any injury or damage which results from poor construction, negligence, or misuse. In order to reduce the frequency of such occurrences, it is obligatory for buildings to be constructed in line with earthquake-proofing and construction supervisory regulations. It is wise to check that this is the case with your property and to take out a home insurance policy.
If the property in question is a flat or a house in a building complex or estate, then the owner has responsibilities in accordance with the Flat Ownership Law (Kat Mülkiyeti Kanunu in Turkish). In line with this law, communal parts of buildings are managed by a Board whose members are elected for a certain period of time by the flat-owners in the building (or home-owners in the complex). A Board’s decisions on communal issues such as communal heating (if any) or having the communal parts of the building painted, refurbished or repaired; are binding for all flat/house owners and such costs are shared them. If you rent your property out, the tenant is to be responsible for her/his share of the communal heating costs.
Electricity, gas, water, telephone and heating
Electricity and natural gas are provided by local utility companies. Natural gas is not available in all cities.

Water is supplied by municipalities within the municipal borders. Water bills are charged on the basis of the amount of water used.

Electricity, natural gas, telephone and water utilities are billed monthly, quarterly or semi-annually depending on the supplier.

In cities where natural gas is supplied, gas central heating is the usual method of heating. In other cities, communal heating or electric heating is more frequent. In coastal cities, solar energy heating and hot water systems are widely in use.

All electricity, natural gas and telecom companies are regulated by the relevant Regulatory and Supervisory Authorities. Subscribers have the right to complain about their suppliers under the Consumer Protection Law and the Competition Law, which protect all consumers in the country.

It is suggested that you register with electricity, gas and water companies in your own name, as soon as you take over ownership. All such transfers can be completed in a day. If you rent out your property, make sure that your tenants register with the utility suppliers in their own name.
The total cost of the utilities described in this section will probably be somewhere between £50 and £200 per month, depending on the size of the property and the amount used.
What revenues can be made through property? Are these gains taxed?
A real estate property can enable you to make two kinds of income.

Firstly, you can rent it out and earn rental income, in which case, you pay a personal income tax. Please see the section regarding tax for more information.

Secondly, the market value of your asset is likely to rise and thus make a profit. If an individual sells a property within the four-year period following the acquisition date, they are subject to personal income tax based on the difference between the original acquisition price and the inflation-adjusted selling price.

For sales after the 4-year period following the purchase, however, no personal income tax is charged on the profit made.
Inherited real estate is not subject to any personal income tax.

Companies which are subject to corporate tax are exempt from any corporate tax relating to real estate-based gains, real estate sale-and-acquisition levy and VAT, if they sell a property which they have owned for at least two years.

Expenses - Top

A guide to the legal costs involved

The solicitor’s fees
Altinkum                                           £150 / € 222

The legal translator’s costs
Altinkum                                           £50 / € 74

Notary charges approximately            £60 / € 90 for power of attorney and translator. (This is only required if you are not coming to Turkey to complete the property for yourselves, this allows us to complete the property in your names on your behalves.)

Other Costs

The Property Centre Agency fee        %3 of total property price. (Our
                                                        developments are commission free)

Buyer’s tax:                                      Approximately 1.5 % of the sale
                                                        agreement price.

Government tax:                                Approximately £100 / € 148

Community tax:                                 £8 / € 12 paid yearly for local services.

Property tax:                                     Approximately %0.5 of property price,
                                                        paid yearly.

Water & electricity connection fee:     Approximately £350 / € 500

Earthquake Insurance:                        Depends on property price and location.
(required by law)                               Between £30 - £60 / € 45 - € 90

If property is bought in a complex:     There is an average maintenance charge
                                                        of £170 / 252 - £750 / € 1.109

When purchasing property, the buyer will be responsible for paying the water
and electricity connection fee.

Housing Cooperatives - Top

Housing Cooperatives are legal entities established in line with Law No. 1163, with the aim of providing their members with residential flats or houses, usually in a housing estate or complex.
This is one of the most popular methods of acquiring a property among Turkish citizens of middle income level.
Relatively cheap loans provided by State organizations and the facility to pay small amounts in instalments over a number of years make property ownership a possibility for those on a moderate income.
However, proper management of a cooperative is of vital importance. It is crucial that the Board of the Co-operative maintain a stable financial position and that they employ a reliable contractor to construct the complex. The Board should, of course, be composed of responsible, well-informed and efficient people; otherwise serious problems may arise, causing never-ending delays and even the failure of the enterprise.
Therefore, if you are planning to purchase a flat, house or villa on a complex, as a part of a cooperative, you are strongly advised to do your research thoroughly. You can hire a professional to do this on your behalf, but be sure that any Power of Attorney is sound.
The following is a briefly explanation of how cooperatives work:
A cooperative must have at least 7 members (also called partners, or participants). The Articles of Association (AA) have to be stamped by a notary public and to be registered with the Trade Registry. The following should be clearly stated in the AA:

• The name and address of the cooperative
• Purpose and activities of the cooperative
• The conditions under which participants will forfeit their partnership
• Shares of participants
• The extent of the rights and liabilities of participants
• How the cooperative will be represented
• Methods of recording revenue and expenditure
• Names and addresses of the founders
• How contributions will be made by the participants
• Other issues, where applicable.
Cooperatives have to arrange for ‘partnership notes’ to be written in the name of each member, these documents have to be signed by all participants and representatives of the cooperative. These notes are then held by each member as evidence that the note holder has a legal partnership in the cooperative.
The main decisions regarding a cooperative’s activities are made by the General Assembly, composed of the members. General Assembly meetings should be no more than 3 years apart. Participants are officially invited to General Assembly meetings by the cooperative's authorised representatives. These representatives are selected by the General Assembly.
Bringing the partnership to an end is allowable by Law. In some cases, there may be specific time restriction clauses in the AA, which may state, for example, that the partnership may not be brought to an end within a period of 5 years following initiation of the partnership. If any force majeure conditions are specified in the AA and a participant's situation falls into this category, then he is exempt from such a time restriction.
Partnership rights can be transferred to others or sold.
According to regulations, any partner is allowed to ask the Board of a Cooperative to provide him/her with information about the financial status of the cooperative.
A cooperative dissolves if:

• All work outlined by the AA is manifest and the properties have been registered in the names of the participants.
• The General Assembly decides that the cooperative will no longer continue.
• Bankruptcy is declared.
• Relevant Courts have made a decision to dissolve the cooperative.
• Another cooperative takes over or purchases it.
• The General Assembly meeting has not been held for at least 3 years.
• The relevant ministry finds out that the cooperative can no longer realize the designated targets.

How to buy in Turkey - Top

Here at Artemis Construction in Altinkum we pride ourselves on our customer service. We understand how much hard work is involved in buying property abroad and so we are with you every step of the way, all the way from deciding what type of property you want to putting up the curtains. These are the key steps:
Contact us and register
Email: info@artemisproperties.co.uk
Phone: +90 256 813 15 93 – if you aren’t sure what the international dialling code is from your country, check on this website: www.countrycallingcodes.com
Tell us what you’re looking for
Price range; number of bedrooms; whether buying as a holiday home, rental property, somewhere to live or investment
Property viewing *Our pledge*
We know your time and money are valuable, and your recommendation is important to us, so we pledge two things:
1. We commit to finding you your perfect property in one day
2. We pledge that the price we negotiate on your behalf is the very best possible - even if you decide to sell your property the very next day you will make a profit
Agreeing the contract
Once the purchase price is agreed with the seller, we will accompany you to the solicitors to have the sales contract drawn up
· Solicitor’s checks on ownership and restrictions (land or resale properties)
· Draw up contract: agree purchase price, deposit, fixtures and fittings to be included, payment schedule, completion date (off-plan purchases)
· Sign contract: buyer and seller in presence of solicitor, notary and government interpreter
Payment schedule
We can arrange a payment schedule within the contract to allow you to spread your payments evenly. Without a payment schedule, the basic process is this – it can all be managed by international bank transfer with the exception of paying the solicitor, notary & translator:
· Week 1: payment to solicitor, notary & translator - £250
· Week 3: payment of deposit and 3% agency fee
· Week 12-24: payment of balance, buying purchase tax (1.5% of the declared property value) and electric & water connection (approx £250-300, payable in Turkish Lira)
There is always a gap between payment of the deposit and payment of the balance because the Turkish government requires that a security check is carried out to clear the sale before the deeds (tapu) are released from the land registry – therefore the balance is never payable until the deeds are released
Buying unseen
You may choose to buy your property unseen. Artemis Construction give you our assurance that we will find you the property with the highest possible intrinsic value within the guidelines you give us.
We will negotiate your contract, to your specifications, on your behalf
You can choose to give either Artemis Construction, the solicitor, or a third party of your choice, Power of Attorney to sign the contract and deeds on your behalf
We can provide a full furnishing and installation package so your property is ready for use.
All you need to do is contact us - we will take care of the rest
Email: info@artemisproperties.co.uk
Telephone: +90 256 813 15 93

Other importent points when buying a property - Top

Overdue Real Estate Tax Debts
It is very important to check whether the current owner of the property owes any overdue Real Estate Tax to the tax authorities. Current regulations state that the new owner is also liable for overdue real estate tax debts; therefore, you are strongly advised to insert a special clause in the Sale Contract to avoid any undesirable situations which may arise. It is also a good idea to ask the vendor to provide you with copies of all tax receipts issued by the tax authorities.
Overdue debts for utility services
You are advised to ensure that a special clause stating that the vendor will be responsible for all utility bills incurred up to the date of sale is inserted into the sale agreement.
Current Tenants
If there is currently a tenant in the property you intend buy, you are advised to check the tenancy agreement. In some cases it will also be necessary to speak to the tenant. It is important to check that the vendor has given the tenant notice to quit and that the dates stated in the Sale Contract and the Notice correspond.
Double Checking the Registry Records
When you are offered a property, you should compare the Title Deeds and other documentation provided by the vendor with the records held by the local Title Deeds Registry Office. You should also check the Title Deeds belonging to the vendor to ascertain:

• That the actual address of the property and the address shown on the Title Deeds are the same

• That there are no special clauses in the Title Deeds which prevent the transfer of ownership due to a long-term debt owed to a bank.
• Whether there is more than one owner (if so, ensure that all joint-owners agree with the sale)
Building Approval
In accordance with current legislation, all buildings must conform to official policy on construction and earthquake-proofing, therefore you should verify that the property has been built in line with these regulations. You should ask the vendor to provide you with the Use of Building Permit (Yapi Kullanim Izni in Turkish) issued by the local authorities.
Buildings under construction
If you intend to buy a building which is still under construction, make sure that the contractor is financially viable. You are advised to insert special clauses regarding the date of completion, a list of the materials to be used, indemnities and so on, into your contract with the building contractor

Turkish Property Law - Top

Rules: Citizens and commercial corporate entities of countries with which reciprocity agreements have been signed and companies established in line with Foreign Direct Investment Law No. 4875 in Turkey, may purchase real estate in Turkey in their own names, provided that the property is not located in military and security zones.

The acquired property may be resold or rented out and the proceeds of the sale or the rental income may be transferred out of Turkey freely.

Procedure: The sale procedure for foreigners is the same as that for Turkish citizens, except for a search regarding the above mentioned military and security zones restriction. Once a sale is agreed with the owner, an application has to be made to the local Land Registry Office. The Land Registry Office then carries out a search to ascertain that the property is not in a restricted zone, through correspondence with the military authorities in the area. As soon as the search is completed, the Land Registry Office then transfers the title and issues the new deed.

Are Turkish citizens and foreigners treated differently?
According to the legal framework mentioned above, both Turkish citizens and foreign owners have equal property-ownership rights.

Purchase Procedure - Top

Purchase Procedure
Buying property in Turkey is a lot easier than in many other European countries. Foreigners may purchase land and properties in Turkey in their own names as long as they are located in towns all around Turkey.
The acquired property may be resold or rented and the proceeds may be taken out of Turkey.
What are the costs of buying a property?
In addition to the property purchase cost, you are charged a Real Estate Purchase-and-Acquisition Levy (3%) by the local Title Deeds Registry Office for the transaction to be made.
Solicitor costs are between £150 and £300.
Sworn Translator fee depends on the number of documents translated, it is generally less than £100.
The buyer and seller must each pay a 3% agent's commission. These are standard terms offered by all Turkish estate agents.
Step By Step
Your Decision
When you decide on a property to buy you will sign an agreement between yourselves and the estate agency where you will place a deposit to reserve the property.
Translation
We will need to copy your passports which will be translated into Turkish for legal purposes. This will be completed by a sworn translator.
Photos
4 Passport pictures are requirerd for the TAPU (Title Deed) and used for your utilities.
Notary Solicitors
This is where you autherise power of attorney, this is purely related to the purchace of the property to complete the paperwork, access your utilities, paying taxes and bills on your behalf. The notary also caries out security and property checks.
Government Approval
Depending on demand this takes aproximately 8 - 12 weeks, this is to get Government permission for you to buy.
Completion
After permission is granted and the deeds are recieved by the Deed Office we can, through the power of attorney, complete the paperwork and access your utilities. We will send you a copy of your TAPU (Title Deed) and hold your Title Deed until you are able to collect it in person.

Taxes and compulsory insurance - Top

Foreign nationals and Turkish citizens are no different in terms of the taxes or levies charged.

Tax rates are updated periodically. The rates as of January 1st 2005 are shown below. Updates and other relevant information can be found at at www.maliye.gov.tr .

i) Real Estate Tax: Annual Real Estate Tax rates for cultivated land, uncultivated (for building) land, non-residential buildings, and residential buildings are 0.1%, 0.3%, 0.2%, and 0.1%, respectively. Tax is calculated on the basis of the declared value of the asset, which cannot be less than the threshold determined by the tax authorities. Tax payments are made in two equal instalments during the periods of March-May and November each year and are collected by local government authorities (municipality). The tax base is updated annually by a coefficient determined by the Ministry of Finance, taking into account the inflation rate.

However, Real Estate Tax rates for properties in the following provinces (metropolitan areas) are twice the normal rates stated above.:

• Adana
• Ankara
• Antalya
• Bursa
• Diyarbakir
• Erzurum
• Eskisehir
• G.Antep
• Icel
• Istanbul
• Izmir
• Kayseri
• Kocaeli
• Konya
• Samsun

ii) Real Estate Sale-and-Acquisition Levy: Both buyer and seller have to pay a Real Estate Sale-and-Acquisition Levy of 1.5%, based on the declared value of the asset. This is collected by the Local Title Deeds Registry Office at the time of the selling/buying transaction.
For the registration of a new building constructed on land, a levy of 1.5% based on the reference value of the asset must be paid.
In the case of the acquisition of sea-side, river-side and lake-side properties which are subject to special permission, an acquisition levy of 126% must be paid.
iii) Inheritance and Succession Tax: The tax base is updated annually. There are some discounts for legacies to daughters, sons and spouses. In the case of spouse and children, YTL 75,719 is deducted from the tax base of each person. In the case of a spouse with no children, the deduction from the tax base is YTL 151,526. In the case of succession without reciprocity the amount deducted is YTL 1,748.
As of 1st January 2005 the applicable tax base and rates are as follows:

iv) Environmental Services Tax (EST): Local water suppliers charge an EST of 0.12 YTL per one m3 of water used to residences. It varies between 12 YTL and 1,400 YTL per year for other building classifications. The rates for metropolitan cities, however, are 25% higher than the normal rates. These figures are updated annually. The rate of EST will be reflected in your water bill.

v) Motor Vehicle Tax: Depending on the cylindrical volume of the engine and date of production of the vehicle, vehicle owners have to pay an annual tax ranging between YTL 22.00 and YTL 22,240.00 (For Automobiles, it is from YTL 22 to 667 but for aircraft, it is from YTL 2,668 to YTL 22,240)
vi) Corporate Tax: Corporate entities have to pay a tax of 30% of their previous year's profits.

vii) VAT: The general VAT rate is 18%. However, some specific goods and services are taxed at either 1% or 8%.

viii) Special Consumption Tax (SCT): Levied on luxury goods and those goods which have an effect on the environment, security or health, including:

• Fuels, industrial oils, petroleum products and petro-chemicals,
• Motor vehicles and sea vehicles,
• Beverages and products with tobacco
• A number of goods including caviar, perfumes, some make-up/cosmetic products, printed materials, some electrical and electronic devices


ix) Stamp Tax: There is a wide range of transactions on which a Stamp Tax is charged. Some important items and the corresponding rates are depicted below:

x) Personal Income Tax: The Personal Income Tax rate is updated by a Council of Ministers' Decree every year. The main taxable personal income items are commercial income, agricultural income, wages, self-employment revenues, rent, interest and other incomes. Personal income tax rates on wages for the year 2005 are shown in the table below.

However, Personal Income Tax on wages for each slice of the above tax base is 5 percentage points lower than the percentages shown in the above table.

xi) Minimum wage: In the year 2005, the minimum gross wage for 30 days is 488.7 YTL for employees aged 16 or more (The cost to the employer is YTL 593.77).The minimum wage is applied nation-wide and reviewed periodically.

xii) Social insurance: In accordance with Turkish social security laws, the self-employed and farmers, employees and civil servants have to register to Bag-Kur, SSK, and Emekli Sandigi, respectively. These are compulsory schemes.

Contribution rates for these schemes range between 35% and 40% of the contribution base. The main risks covered by these schemes are old-age, disability/invalidity, health, maternity, mortality, being orphaned or widowed, unemployment (for the employed).
The minimum retirement age for new entrants is 58/60 (F/M).

xiii) Earthquake Insurance: Property must be insured by the owner against earthquake risks. It is compulsory and a national uniform tariff is implemented.

xiv) Motorists Insurance: If you possess a car, you are obliged to obtain Motorists (traffic) Insurance. The cost of the policy depends on the cylindrical volume of the engine and the production date of the vehicle.

Why Turkey? - Top

Up until recently, British people looking for a home abroad have tended to buy property in other sunny Mediterranean countries such as Spain, France, Italy and Cyprus, but prices there have risen significantly due to congestion of the market. Many now choose to buy property in Turkey, having discovered the beautiful countryside, vibrant culture and hospitable people whilst holidaying in its coastal resorts. You too can buy a home in Turkey at a very affordable price, which you can use for regular family holidays (and also rent out), as the latest legislation now makes buying property much easier.

The main appeal of Turkey lies in its long warm summer, its historical sites and natural beauty and the hospitality of its citizens. Turkey is a stable country, with good infrastructure, modern cities and the expectation of accession to the EU. Its huge economic potential, young population and the increasing number of foreign tourists all add to the attraction. All these factors, together with expected future developments in the Turkish property market, mean that investments in real estate are highly likely to yield an excellent return.

Turkey is surrounded on three sides by sea (the Aegean, Mediterranean, Marmara and Black Seas) and has a wonderful coastline with large resort cities as well as many smaller seaside towns and villages. The country is self-sufficient and grows a huge range of high quality fruit and vegetables which are sold very cheaply in markets and even on street-corners. There is a large selection of restaurants and cafes where you can get delicious dishes at prices to suit every pocket. In fact, most things in Turkey are cheap and it's easy to attain a good standard of living on quite a small income. People in Turkey are warm, community-minded and hospitable to foreigners, so you will soon feel at home. In summer, of course, the sunny weather, superb beaches and exciting outdoor activities mean that you will never be at a loss for something to do, but there is also plenty to occupy you in winter, as there are mountain resorts for winter sports and mountaineering, large modern shopping malls, concerts and cinemas and still a wealth of historical places to visit.

So, whether you buy real estate for investment or for residential purposes, to live in yourself or to rent out, you will never regret your decision to buy in Turkey. Its climate is ideal for old and young and there are good opportunities for qualified people who wish to work or to establish their own business.