TURKEY

Specific legal issues to look out for in Turkey

In Turkey, there is a large amount (around 60% according to reports in the Turkish national press) of property with ‘bad title’. You will need to be sure your developer is building with the correct planning permission and is signing off the correct paperwork to give you full ownership rights.

There are often legal restrictions on the right to own property. We normally carry out checks to find out what they are and how they might affect you.

Developers often offer inadequate building specifications and/or unrealistic promises of rental income. Experience has taught us how to handle these types of situations.

In most of the countries we deal with, it’s common for sellers to ask you to ‘under declare’ the property value in the title deed. In Turkey, the proposed under declarations are often huge and, if agreed to, may have far-reaching consequences. Again, we can advise on this.

And don’t always expect the legal and administrative systems to run smoothly in Turkey. But with the right local contacts, it’s surprising what can be achieved!

You should also be aware of the issue of military permission. A legitimate solution is often to sidestep the military permission requirement by forming a Turkish company. But this decision should only be taken after taking independent advice on the expenses, the tax issues involved, as well as the issues regarding potential saleability of the property when buying this way.

This issue is even more crucial if you’re buying land with a view to developing. Tax issues you need to consider are: control, ‘benefit in kind’ and treatment of dividends.

If you wish to buy a property forming part of a co-operative there are even more issues to consider. But again, talking to Phillips International Lawyers will help you make an informed choice.