Required Document	Employed	Self-employed	Retired
Official tax statement of the most recent year in the home country	*	*	*
Copy of the Tapu of the object that will be bought (“Kat mulkiyet tapusu” or “Kat irtifak tapusu + yapi kullanim izin belgesi”)	*	*	*
Copies of passports made and signed by the branch or notary	*	*	*
Income statement of employers signed by the employer	*		*
Official document/declaration from a public notary/cadastre that the person who signed the income statement is allowed to sign	*		*
Bank statements declaring the income (not older than 3 months)	*		*
Annual report of the holding company for the last two years together with a copy from the shareholder register		*
Documents proving monthly financial obligations (rent, house loan installments, alimentation)	*	*	*
Overview of private assets proven by official statements	*	*	*
Overview of private debts proven by official statements	*	*	*
Signed application form	*	*	*

50,000 USD
Term (Month)	Annual Interest Rate	Monthly Installment
120	7,80%	582,60
180	8,04%	478,98
240	8,04%	419,46
300	8,04%	387,23
50,000 EUR
Term (Month)	Annual Interest Rate	Monthly Installment
120	7,08%	582,60
180	7,80 %	472,07
240	7,80 %	412,01
300	7,80 %	379,30
Please note that above figures are for indication purposes, No rights can be derived from this information, owing to the fact that this is subject to change. Please contact us for the current rates.

Can I buy a house or land in Turkey?

Yes. In Turkey foreigners can own land and houses. So you don’t have to worry about dubious time share constructions or multiple owners. The moment you’ve received the proof of property (Tapu) and signed it, you’re the official owner of the property.
Foreigners can purchase property/land in the municipality area; however this cannot be larger than 10.000 m2 Foreigners cannot purchase property/land outside the municipality areas.
Foreigners wanting to purchase property/land larger than 10.000 m2 need to get permission from the Counsel of Ministry.

Foreigners who own property/land through testamentary disposition larger than 10.000 m2 will need the permission of the Council of Minister to keep them. If they can not obtain this permission, the property/land will be sold off.

Foreigners who own property/land through testamentary disposition, smaller than 10.000 m2 and reside in a country with which there is no reciprocity agreement about property purchase, between Turkey and that country, will have to sell that property.

Can I buy a house or land in Turkey?

Once you and Fortis Bank have agreed on a sale, an application has to be made to the local Land Registry Office (Tapu office). The Land Registry Office performs a search for any restrictions through correspondence with the military authorities in the area. The moment the search is completed, the Land Registry Office transfers the title and issues the new deed.

What is the term of the mortgage?

The term of the mortgage loan will be depending on your preference, at least 1 year and maximum 25 years, and must be repaid before you reach the age of 75

What is the interest rate?

Call your Fortis branch in Turkey or call Fortis Second Residence Services for the current interest rates. The announced interest rates can change. Only the rates offered at the Offer Letter are binding and final.

How much Can I borrow?

Whether and how much you will be able to borrow will of course depend on your financial situation and financial capacity. In addition, the conditions applied by Fortis will have to be complied with.

The mortgage amount for a property is capped at 75% of the execution value of the property. The minimum amount of the mortgage loan is € 25.000.- (or equivalent in other major currencies).

How do I apply for a mortgage?

You can fill in the application form by clicking on the link and mail, fax or email to the following address:

Fortis Second Residence Services
Benelux, Spain, France,
Italy, Portugal, UK & Turkey

Passeig de Gràcia, 56 – 5º
SP - 08007 BARCELONA

Tel. +34 93 467 81 86
Fax +34 93 487 13 00
Mail: infosecondresidence@fortis.com

Once we receive your application, Fortis shall access the credit report information system of your country. The assessment relates to existing loans and loans already deemed. In case of a positive assessment you shall receive an offer from Fortis.

What are the steps in the application and assessment procedures?

Application and acceptance:

a. You complete the application form for a Mortgage Loan. You easily print the application form from www.fortis.com.tr or phone Fortis Second Residence Services.

b. After your application has been recorded, Fortis Second Residence Services will inform you whether you are eligible for a Mortgage and whether your application has therefore led to a pre-acceptance or a rejection. This involves only a limited assessment on the basis of the information you provided on the application form. A rejection, if any, will be informed to you in writing or verbally. No rights can be derived from a pre-acceptance. If your application has been provisionally accepted, we will be asking you for documents such as:

• I. Copy of the “Tapu” (Title deed);
• II. Copy of the “iskan Ruhsati” (Certificate of Permission for Building Using).
For both applicants:
• III. Certified copy valid passport;
• IV. Past two years tax statements statements;
• V. Three months most current original salary slips;
• VI. Pension award letter (applicable if retired);
• VII. Three years signed personal tax returns (applicable if self-employed);
• VIII. Last three years corporate returns as well as year-to-date profit and loss statement and balance sheet (applicable if selfemployed);
• IX. Copy business registration from the Chamber of Commerce (applicable if self-employed);
• X. Employer’s reference letter not older than three months;
• XI. Fully executed divorce decree (if applicable);
• XII. Life insurance policy (if existing);
• XIII. Preliminary purchase agreement;
• XV. Two months most current bank statements (all pages) showing:
• Name and address information;
• (Monthly) salary payment;
• Rent or mortgage payment for the past month;
• If applicable, the life insurance premium linked to your mortgage of the past month;
• XVI. Statement of accounts for any other existing loans.

c. If all documents are satisfactory we will request you to transfer an amount of EUR 400 to the account of Fortis Bank Turkey for the survey of the property.

d. Following receipt of the payment, the survey of the property will be carried out in due course and the survey report will be sent to Fortis Bank Turkey.

e. Following receipt of the survey report Fortis Bank Turkey will re-assess your application on the basis of the survey and other information relating to the property and if justified prepare a proposal.

f. You are required to return the signed proposal within three weeks.

g. The proposal is valid for two months following the date of agreement.

h. You are required to carry out the following actions and obtain the following documents within those four months:

• Approval by the Savunma Bakanligi (Ministry of Defence);
• Turkish tax/social security number;
• The compulsory insurances;
• Set a date on which all parties will be present at the “Tapu” (Office of Land registry) for the actual transfer and the establishment and registration of the mortgage in the Office of Land registry. You are required to inform Fortis Bank Turkey thereof no later than 7 days before this planned date.
  
  

  The actual transfer of the property and the establishment and registration of the mortgage are not performed in the presence of a civil law notary. The documents require to be signed by the parties in the presence of a locally competent official, after which this official will prepare the mortgage deed and perform the registration in the Office of Land registry. After registration, the mortgage deed and the mortgage covenant will be issued to Fortis Bank Turkey.

  To prevent unexpected obstacles delaying or even preventing the transaction, you can ask the seller to arrange the Office of Land registry to fill in a document referred to as “Takyidat Belgesi”. The completed document contains a range of relevant information relating to the property. Completion of this document will not only significantly expedite the application procedure but also aid timely identification of any problems. Completion of a “Takyidat Belgesi” is voluntary however and can in no way be enforced, nor can the possibility be excluded that the Office of Land registry will not cooperate with the seller. If possible we would like to receive this document as early as possible, preferably when you return the signed proposal to us.

  As no civil-law notary is involved in Turkey before or during the transfer and registration at the Office of Land registry, you are required to safeguard your own interests. While Fortis can, partly to protect its own interests, perform checks as well, it accepts no liability whatsoever in respect of the purchase agreement entered into by you or any (latent) defects of the property. Fortis recommends that if possible you arrange to have the purchase agreement endorsed/drawn up by a civil law notary in Turkey. At the transfer and registration process, the local civil employee of the Office of Land registry may ask that you employ a translator to ensure that you understand all the details. The mortgage deed will be signed in Turkish. The English translation will be provided to you as an enclosure together with the Offer Letter.

Which financial conditions apply to the product?

a. Set-up fee: This amounts to 1,5% of the mortgage loan with a minimum of € 1.000.- and is added to the net mortgage loan.

b. Appraisal Costs: An expertise company appointed by Fortis Turkey will carry out the appraisal of the property. The costs of the appraisal are borne by the customer and are set at a fixed amount of € 400.- To enable Fortis to submit a mortgage, customer is required to remit these costs in advance. This means this cost is to be paid regardless of whether a proposal is subsequently made to the customer by Fortis or regardless of whether the financing is eventually provided.

c. Transfer-Tax: This non-recurring tax of 3% relates to the value and location of the property as recorded in the “Tapu”. The property and transfer taxes are subject to change according to the Turkish legislations.

d. Early Repayment Fee: In the event that you wish to terminate the contract with Fortis, you are required to pay the outstanding amount in whole. In this case, Fortis is entitled to charge a fee of 2% of the loan amount.

e. Insurance costs: The costs, including premiums payable, for the term life insurance, (optional) DASK insurance, building insurance. The term life insurance may be included in the financing if it is a single-premium policy.

f. Interest rate on the mortgage: The interest rates are subject to change, only rates are offered at the offer letter are binding and legal. The term chosen is fixed for the entire term of the contract.

How to pay?

In the case of a newly built house, the usual way is to pay in instalments. The seller often provides no security for this, which may lead to disappointment if the seller or contractor fails to perform.

A big misconception

Many people think that the term "Tapu" is the same as right of ownership. In fact, the title deed called "Tapu senedi" is not legally binding. It is merely evidence of who became the owner on the day the property was transferred. The "Tapu senedi" also contains the Public Registry Office information, the price and the location of the property. If you lose the original title deed, it does not mean that you have lost the right of ownership. You can find the owner of a property (such as a house) listed in the local Public Registry Office.

Permission from the military authorities

Non-Turkish citizens often need permission from the military authorities before they buy a property. This is a formality. The application takes at least 3 months.

In Turkey, you are not obliged to employ a notary to handle the transfer of ownership. However, if the purchase agreement is drawn up by a notary and the deed is registered with the Public Registry Office, this entitles the buyer to make a legal claim against the seller in the event of a dispute.

This is the only time when a notary has to be employed.

There are many differences between estate agents in Turkey and in EU in terms of professional skill and the way they do business.

As a buyer, you should pay special attention to the following points at least. We should warn you that this list of recommendations is by no means comprehensive and should be used as an indication only.

Check-list:

• Does the seller actually own the property? How is this registered with the Public Registry Office and when did the seller become the legal owner?
• Check the current legal status of the property with the Public Registry Office.
• Check the identity of the seller based on valid identification documents (passport or driving licence or European and/or Turkish identity card, or a copy of the entry in the Registry of Companies if that applies).
• Make sure there are no strings attached. In other words, check the Public Registry Office for any outstanding mortgages and/or attachments or pledges to third parties.
• Check the local zoning plan.
• Find out whether it is actually possible for a non-Turkish citizen to own the property. It may be that Turkish law imposes strict conditions on this or even forbids it entirely.
• Check the building permit, including the construction documents and drawings.
• Find out whether the property is insured.
• Find out the conditions of the guarantee that was issued for the products and materials used to construct the building(s).
• Find out how long the shell of the building is guaranteed.
• Check whether an "Iskan ruhsatı" or an "Yapı Kullanma Izni" (a sort of habitation permit) has been issued by the municipality. This is issued following a check on whether the new building matches the building permit and whether tax and social security contributions have been paid for the construction workers.
• Inquire about an inventory of fixtures made at the time of the actual handover.
• Check on the stated purchase price at the transfer of ownership.
• Find out about local taxes.
• Find out about service costs.
• You may wish to provide a power of attorney for the sale and/or purchase if you unable to be present at the transfer of ownership. This must satisfy Turkish legislation and regulations.

However, it is probably wiser to get expert assistance.
Fortis can refer you to an expert.

For legal assistance, you can contact Sepers Advocaten, The Dutch legal firm has an exclusive agreement for customers of Fortis.
Website: www.advocatenkantoorsepers.nl e-mail: .

• Transfer Tax is 3% of the value noted by the municipal tax department (property tax).

Before May 2007, the amount on which Transfer Tax was paid was fairly arbitrary. It's preferable to pay tax on the amount actually paid.

• If you sell the property at a profit within 5 years, you need to pay capital gains tax on this.
• VAT is charged on newly built properties if the residential floor area is more than 150 m2.
• If you lease property and use it for commercial purposes, you will have to pay "stopaj", which is a withholding tax payment.
• You will have to pay income tax on any income from renting out your house in Turkey. The rate varies from 5% to 35%.
• There is also inheritance tax in Turkish law. In the event of death, the heirs should submit an application to the Turkish court (the district court) which decides who is entitled to whatever part of the inheritance is in Turkey ("veraset ilamı").

Inheritance tax is now 1% to 10%.

• There is a treaty between the Republic of Turkey and many EU states to avoid double taxation.
• EU pensions are not taxed in Turkey and that can be freely transferred to Turkey.