Buyer’s Guide for Purchasing Property in Bodrum

Purchasing property in Bodrum, Turkey, is an exciting yet intricate process. Whether you are looking for a vacation home, a long-term investment, or planning to obtain Turkish Citizenship by Investment, EV Bodrum is here to guide you through every step, ensuring a smooth and transparent experience. Here’s a detailed outline of the process from start to finish.

VIEWING & RESERVATION PROCESS

EV Bodrum offers a wide range of luxury properties throughout the Bodrum Peninsula. Our dedicated sales specialists take your lifestyle preferences, family size, financial situation, and proximity to amenities into account when helping you find the perfect home.

ACQUIRING A TAX ID

To proceed with your property purchase, we will assist you in obtaining a Turkish Tax ID. This process is simple and straightforward, requiring only your passport, home address, a foreign phone number, and your parents’ names.

OPENING A BANK ACCOUNT

Next, we’ll guide you to a Turkish bank where you can open a local bank account. (Note: Our role is limited to providing transportation and translation services. We do not have access to your account details.) This account will facilitate the payment of utilities, as well as rental income if you are purchasing the property for investment purposes.

COMPLIANCE & LEGAL DOCUMENTATION

At this stage, it’s essential to review the costs and payment plan and ensure you have all necessary documents for the transaction. If you’re purchasing under the Turkish Citizenship by Investment program, we will introduce you to an attorney of your choice or one of our trusted legal partners.

During this meeting, the attorney will explain the process, the necessary documentation, and provide a timeline for your purchase. We’ll also review the paperwork required for the Citizenship by Investment program.

POWER OF ATTORNEY (POA)

If you prefer not to stay in Turkey throughout the purchase process, we’ll help you obtain a Power of Attorney (POA). This legal document allows your attorney to act on your behalf during key transactions, including signing purchase agreements, registering title deeds, and submitting your citizenship application (if applicable). The POA can be processed through Turkish embassies or public notaries worldwide.

EVALUATION REPORT

Once the POA is issued and the agreements are signed, your attorney will order an Evaluation Report. This report, typically completed within 3–4 days at a cost of 1,250 TL, provides an assessment of the property’s value, market conditions, and any potential issues such as permits or construction details. The entire process typically costs around 10,000 TL.

Please note that EV Bodrum does not influence the outcome of the report, but it’s an important step to ensure that you are fully informed about the property’s status.

FINAL STEPS: PAYMENT & TITLE DEED TRANSFER

After the Evaluation Report is finalized, and once the property purchase agreements are signed, you can return home and wire the remaining balance from your local bank account. If you are applying for Turkish Citizenship by Investment, please ensure that the account is in your name only. Additional account holders will be considered co-owners, which will impact your eligibility for citizenship.

ONE-TIME EXPENSES FOR PURCHASING PROPERTY IN TURKEY

Several costs may arise during the purchase of property in Bodrum:

1. Title Deed Transfer Tax: Typically, this tax is split between the buyer and the developer (4% of the property price), to be paid once the property is ready for possession. For citizenship applications, this may be due upfront.
   
   
2. VAT: The VAT for properties in Turkey ranges from 1% to 20%, depending on the property.
   
   
3. Natural Disaster Insurance (DASK): This mandatory insurance protects against natural disasters and is generally capped at 10,000 TL.
   
   
4. Utility Setup Fees: When setting up services like water, electricity, and gas, there will be upfront costs and deposits for utility companies.
   
   

ANNUAL & MONTHLY COSTS OF BUYING PROPERTY IN TURKEY

1. Property Tax: Property tax in Turkey ranges from 0.1% to 0.6% annually, depending on the type and location of the property. For properties in large cities like Bodrum, the tax may be higher, particularly for luxury properties. Tax is assessed every four years, and payments are made in two installments each year (March–May for the first installment).
   
   
   • Penalty: A late payment penalty of 2.5% per month applies if the tax is not paid on time.
     
     
2. Property Maintenance Fees: These fees vary by development but generally cover services like cleaning, gardening, and general upkeep. If the property is rented out, the tenant typically pays these fees.
   
   
3. Income Tax on Rental Properties: Rental income is subject to taxation in Turkey. You can choose between the lump-sum method (where 25% of your gross income is deducted) or the actual deduction method (where expenses like utilities, insurance, and depreciation are subtracted from the rental income).
   
   
4. Capital Gains Tax: If you sell the property within the first five years of ownership, you are subject to capital gains tax. However, if you hold the property for more than five years, you will be exempt from this tax.
   
   

EV Bodrum provides end-to-end assistance in navigating the Turkish property market, from your first inquiry to finalizing your purchase and managing the property thereafter. With our in-depth knowledge of the Bodrum real estate market, we ensure you receive the best possible guidance, whether you’re purchasing a villa for personal use or investing in a lucrative rental property.