The following is our recommended guide to our clients wishing to purchase in Turkey (North Cyprus is very similar with differences underlined below).

• Prior to booking your inspection trip, and as a result of our numerous consultations with you, we would have short-listed a good selection of suitable properties for you to inspect whilst you are in Turkey.
• Following your final decision as to which property to purchase, we shall make an appointment for you to meet our English speaking solicitor.
• The solicitor will draw up the sales agreement ensuring maximum protection to both parties and in line with the terms, payment schedule and conditions agreed with the developer.
• The solicitor will make sure that the title of the property is checked; that the person who is selling the property actually owns it; whether there are any charges on the property; where applicable, that building licences and permissions are in order; and that the terms and conditions stipulated by the seller are checked for fairness.
• The sale agreement will be translated from Turkish into English by the legal translator. The solicitor, legal translator, buyer and seller will sign the sale agreements, and each party will obtain a signed copy of the agreement in Turkish and in English for their records. Property Republic will also maintain a signed copy. ? Your initial holding deposit (usually GBP 1,000) will be paid at this stage to reserve the property and freeze its price. This is essential due to the fact that prices are constantly increasing in Turkey.? Solicitor?s fee and Property Republic?s fee is payable following your return to the UK.

Please note: (The reservation deposit is non refundable.)

• The solicitor will then arrange for all the paper work to be sent to the title deeds office for the transfer of the title deeds into your name.
• The solicitor will also deal with the necessary military checks before which title can not be transferred to your name. The military check is only to determine that the area the property is situated in is not within a military zone where foreign ownership is not allowed. This could take approximately 3 months.
• In most cases, we advise our clients to give power of attorney to the solicitor in order to facilitate the procedure; military checks, release of title deeds from the title deeds office and registration of the title deed at the notary office. Please note that giving power of attorney to the solicitor avoids you having to travel to Turkey several times within a matter of several weeks/months. Please also note that giving a solicitor power of attorney does not give us or the solicitor any claim over your property, it will be your name and picture on the title deeds.
• A payment plan is usually drawn up at the time of the initial sales agreement as mentioned above. For off-plan developments your payments may be staggered over 6-10 months (usually 20-30% is paid upfront as the initial deposit) and for resale properties full payment is usually due within 3 months of the sales agreement date.
• Your solicitor will inform you once the title deeds have been authorized. This is usually when your final balance of payments is payable together with the buyer's tax (3% stamp duty) and the water and electricity connection fee.
• Your solicitor will then arrange for the new title of the property to be registered with the local council office (for property tax purposes).

NORTH CYPRUS

All the basic steps are the same as in Turkey except for the following differences:

• There is no fee payable to Property Republic, In Cyprus there is no buyer?s fee.
• There is no requirement for military clearance; however, converting the title deed onto your name may take up to 8 months. This is mainly due to a very high volume of applications currently being processed by one central office in Nicosia.

Cost of Purchasing Property in Turkey & North Cyprus

CASE STUDY:

Two villas bought in August 2005 in Turkey and North Cyprus, both for GBP 100,000 purchase price.

• In Turkey, total purchase price including purchase costs amounted to GBP 107,450, that is 7.5% on top of the purchase price. ? In North Cyprus, total purchase price including purchase costs amounted to GBP 109,100, that is 9.1% on top of the purchase price.

GBP	Turkey	North Cyprus
Purchase Tax	3,000	3,800
VAT		3,200
Buyer?s Fee	3,000
Solicitor?s Fee	750	1,000
Notary Fee	300	300
Gas & Electricity	200	400
Other	200	400
TOTAL	7,450	9,100

COST OF PURCHASING PROPERTY IN TURKEY

Purchase Tax

There is a 3% Purchase Tax (Stamp Duty). This is calculated on the declared value of the property.

Other Purchase Costs

• Solicitor's fee is on average GBP 750. Translator at the notary costs GBP 100 approximately, usually covered within the solicitor's fee.
• A 3% buyers fee is payable. This is standard throughout Turkey. Currently, some local councils are requiring an authorised high detailed map of the property location which typically costs GBP 150 - GBP 300
• In some cases there may be a charge of GBP 100 each to connect electricity and water meters.

Furnishing if Required
Quality furnishing can be budgeted at approximately 5% of the property value.

Other Ongiong Expenses

• 0.3% annual property tax GBP 60 annual council tax. This is usually paid in two instalments (May and November).
• GBP 250 annual property insurance (depending on size and location)

Communal Charges (if applicable)

May vary according to the size and value of the property you purchase. A guideline figure for 2/3 bedroom apartment would be between GBP 200 and GBP 400 per annum and would include:

• Pool maintenance (including chemicals) Garden maintenance including exterior repair and decoration
• Building insurance

COSTS OF PURCHASING A PROPERTY IN NORTH CYPRUS

The purchase tax (stamp duty) is at present 1.5% however if it is paid within 1 month of signing of contract the cost is reduced to 0.5%. The purchaser also has to pay 5% VAT. Stamp duty and VAT are based on the 'assessed' value of a property by the Tax Authorities.

The land registration fee is 6% and reduced to 3% if its your first purchase. You have the option to use this combination (if you are buying more than one) on any purchase.

If you wish to sell the property at any stage, the capital gains tax is 6% of the declared value, which works out about 10-15% less than your purchase price.