Holiday home insurance specialists, Intasure have put together some key considerations when buying a property Turkey, below.
Foreign buyers looking for a permanent year-round home often come to Turkey because the cost of living is cheaper than in their home countries. Did you know there are over 34,000 Britons living permanently in the country?
Last summer (2018) the Turkish Lira suffered a plunge in value, a disaster for the country – and for those Britons who bought a Turkish property in recent years – but it made Turkey even more interesting for property investors looking for a bargain on the Mediterranean coast, especially for those using U.S. dollars, pounds, or euros.
Doubts about the post-Brexit scenario and future relationship with other European countries is also likely to have led some British investors to look for alternative options for a property, and Turkey can offer more affordable holiday homes than other countries (Spain, France, or Portugal).
According to the Turkish Statistical Institute, around 40,000 foreign investors bought Turkish property last year, the highest number on record and almost double that of 2017. After all, the cost of living in Turkey is 47% lower than in the United Kingdom, and average rent in Turkey is 74% lower than in the United Kingdom. British communities have formed in regions such as Fethiye, Kalkan, Kas, Bodrum, and Antalya with thousands of British citizens having settled in these places.
Do UK citizens need a visa for Turkey?
Britons need to apply for a visa when they visit Turkey – with the exception of cruise visitors who are not going to stay in the country for more than 72 hours. You can request an e-Visa online up to 3 months in advance of your travel through the official Republic of Turkey e-Visa website. Turkish visit visas are valid for multiple stays up to a maximum of 90 days in a 180 day period. But once the 90 days are up, some people can pay a one-year residence permit (short-term residence permits are issued for a maximum of two years), or a permanent residence once you have lived in Turkey for at least eight years.
Can British citizens buy property in Turkey?
British citizens can buy property in Turkey as long as they are entitled to and present all the required documents and register with respective authorities for full transfer of ownership. The UK Government warns that Turkish procedures and legislation covering the purchase of a holiday home in Turkey might differ from those in the United Kingdom and that those safeguards might not exist in Turkey.
Furthermore, Britons don’t need to have a residence permit in order to be able to acquire real estate in Turkey; however, they do require military permission before being able to purchase a property. It is recommended you use the services of an independent lawyer before committing to purchase a property or paying a deposit.
What are the common expenses when buying property in Turkey?
Before buying a Turkish property it’s wise to know the expenses involved that can arise from legal procedures, as well as tax and service fees. There is an agreement (DTA) between the UK and the Republic of Turkey for the avoidance of double taxation and to prevent fiscal evasion with respect to taxes on income and capital gains.
These are some common expenses you could incur when buying a holiday home in Turkey:
- Title Deed (Tapu) Transfer Fees
- Real Estate Agent Fee
- Lawyer Expenses
- Notary fees
- Military checks
- Property Tax (Emlak Vergisi)
- Electricity, water, telephone, and internet
- Maintenance Fee (Aidat in Turkish)
- Translation fee
- DASK Insurance and property insurance
What is DASK insurance?
DASK stands for Dogal Afet Sigortalari Kurumu (compulsory earthquake insurance), which is provided by The Turkish Catastrophe Insurance Pool (TCIP). This cover is compulsory for all homeowners in Turkey and provided by the Turkish Government, who calculate the DASK insurance premium for your home. You can obtain DASK insurance via authorised agents.
Why is DASK insurance compulsory in Turkey?
The combination of cheap properties, white beaches and lovely sea views have lead to a surge of development as Turkey becomes a popular country to obtain a second home. However, its unique location between three different continents means Turkey is a hot point for seismic activity.
When an earthquake occurs, certainly if your Turkish property is damaged by seismic activity, the cost of repairs might be beyond your budget.
What does DASK insurance cover?
DASK insurance covers your property against earthquakes and fires, explosions, tsunami, and landslide that are caused directly by the earthquake. However it might not provide full cover in the event of an earthquake, so you should consider arranging additional insurance such as buildings insurance cover.
Insurers might require DASK insurance to be in force prior to offering you additional cover for your property, and some of them can even help you to arrange and renew DASK insurance from the UK. However not all insurance companies include earthquake insurance as standard on top of the compulsory DASK insurance. So when considering buying holiday home insurance for a property in Turkey, finding a British provider who specialise in overseas holiday home insurance might be a good option.
