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Holiday homes to rent
• Villas and apartments in Turkey in stunning locations and coming soon, luxurious cottages in Bath.
Invest in Turkey for Major growth
• So says Global Property Guide's Property Recommendations. It says gross rental yields are currently at 5.48% with 'significajt potential for growth' Overseas Mortgage Finder also says Turkey is the 3rd largest source of enquiries for mortgages (June figures)
Tax rebate for holiday home owners
• Are you a UK resident for tax purposes?  Do you own a property available for holiday let in Europe?  Do you make that property available for let?  Did you purchase the property for more than £150,000? If you can answer yes to all of these questions, you may be eligible for a Capital Allowance Tax refund of around £10-15,000.    We have teamed up with International Property Success who have arranged a no upfront fees scheme with a tax expert.  The scheme is fully HMRC approved. The amount you can claim will vary according to the rate of tax you pay and the specifics of the property. Claims are administered swiftly.  You will receive a report on your rebate, showing how much you can reclaim, in most instances within 8 weeks.  International Property Success are advisers that specialise in the capital allowance field.  They do not charge upfront fees - you only pay once your case has been approved by your accountant.    Experience shows that unless an investor has access to the appropriate level of expertise it is rare for all available tax allowances to be identified which means that the majority of Investors are not claiming all the tax allowances they are entitled to.  If you would like to find out if you are eligible for this tax break, please contact us immediately.  Tax rules change frequently and can be withdrawn at any time.  This rule will be reviewed in April.
Hot deal from Pegasus
• Pegasus Airlines, Turkey's low cost carrier, are offering 5000 seats to Istanbul at £39.99 one way, for flights taken between November 2009 to November 2010.  The flights can be booked now and fares include all taxes and charges but are subject to availabitily.  Pegasus offer connecting flights to 11 cities in Turkey including Bodrum, Izmir, Ankara, Dalaman and Antalya.
Global property prices on the up?
• With interest rates around the world at an all time low, many countries are reporting signs of improvement in their property markets.
Fractional ownership increases its appeal
• More developers are looking at increasing the appeal of fractional ownership to mass markets.
Costa bargains reignite interest
• According to Rightmove.co.uk's overseas division, interest in the Spanish market is crawling up again.  Spain accounted for 21% of overseas searches on the website in June 2009, an increase of 0.3% on May.  France followed hot on Spain's heels with 17%, although the percentage of hits had decreased by 8.2%.  Half of the regions that featured in the top climbers list were Spanish, with Tenerife experiencing an 9.1% increase in searches followed by the Costa del Sol with an 8.7% increase.  Another high achiever was Turkey, whose market share rose by 13%, taking it into the top 10 countries searched.   The Bodrum Peninsula proved particularly popular. The biggest loser was Dubai with a year on year decrease in searches of 60%.
Investing for the long term - Villa Park
• People often say to us, “is now a good time to invest?” and the truth is nobody knows.
Eurozone recession deepens as house prices drop
• Data compiled by the Financial Times on house prices in the 16 countries of the Eurozone shows a 4.8% drop in prices in the final 3 months of 2008, compared to the same quarter of the previous year.
Wealthy French property owners warned of tax inconsistencies
• Despite President Sarkozy’s significant increases in the 'abattement', or level at which a beneficiary has to pay inheritance tax in France, wealthy property owners should still be wary of inconsistencies between the French and British laws that govern inheritance tax.
 
 
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Turkish property - costs of ownership
View or download the full version of our 'Costs of ownership guide'.

Click below to view online:

 Costs of Ownership		   Left click icon to download as a

PDF document:
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Essential costs
Annual Real Estate Tax (ARET)

This tax, which will be levied at c.0.1% of the declared value of your property, will be due annually. Normally, the seller of your property will have paid the ARET for your year of purchase.

Environment Tax

This tax will be collected through your water bills at a rate of c.0.13 YTL/m3 for residential property.

Communal Maintenance

This figure will be in line with the estimate included in your specific contract. As an example, £55-80 for a 2-bedroom apartment is normal, depending on facilities.

Insurance and DASK

Although the rebuild value of your apartment will need to be agreed, buildings insurance, including glass cover and contents cover and the legally required DASK earthquake insurance will be c. £200 per annum, for an average 2 bedroom apartment, depending on the levels of cover you require.

Utilities

Although it’s impossible to quantify the ongoing cost of your utilities, as they are charged on a meter basis, Edison Ford has been advised that c. £40-50 per month is average for a couple living full time in a property. This figure is an average, in order to reflect the differences between summer and winter usage.

 
Recommended costs

Individual Property Maintenance

If you wish to have your property cleaned and inspected regularly during the year, above and beyond any standard rental package services, this will be available from either a developer direct, or many third party sources. Quotes in the region of £200-250 per annum are normal, depending on the level of service you require. If you have any problems with your property, which are not covered by the building and manufacturers guarantees, then you will of course be liable to cover these maintenance costs.

Rental Packages

This will depend on your choice of company and there tariff. Packages can either be on a one-off fee basis (c.£200 per annum), or a small annual charge (c.£50 per annum), followed by a percentage of your return.

 
Sale costs
When you come to sell your property there are two main avenues open to you, each with their own nuances. The first option is only available for purchasers of off plan property.

Selling Before Completion

This option incurs the lowest legal fees and also the lowest level of costs in general. If you are successful in selling your property before completion, you do not need to take ownership of the property in the eyes of the land registry. As such, any buyer buying from you before you complete will be liable for your final completion payment for the property and also any associated taxes and legal fees due on completion. The expenses you are likely to occur are legal fees, which depending on the method employed for the transaction could vary around the level of £500. You may not be liable for any income tax / CGT in Turkey; however, your UK liability will remain.

It is important to note however, that this method does also have several disadvantages. If you do not complete on the property in terms of both payment and title, you are still effectively selling an off plan property, which commonly will not attract the same value as it’s completed equivalent. Secondly, it is possible that choosing to sell your contract can narrow your audience, as buying off plan is perceived as a higher risk.

Selling After Completion

This option means that you will need to complete on your property, which will involve making your final payment for the property and also the associated costs and taxes involved in completion. For more information on the costs associated with completion, please refer to Edison Ford’s completion document.

Although selling after completion will incur the full level of purchase and legal costs, it has several advantages. Firstly, a completed property is likely to attract a higher value than that of a property sold off plan. Secondly, a completed property is likely to attract a wider audience, including people who do not have the confidence to purchase off plan. Finally, completing on your property gives you the option to hold the property and prospect for further growth.

The costs involved in selling a property registered in your name are as follows:

- Any costs associated with ownership such as ARET for the year of sale.

- Transfer tax at the rate of 1.5% - As the normal 3% figure will commonly be split with your buyer.

- Land Registry fees of c. £50.

- Full legal fees, which are likely to be £1,000 - 1,400.

- Minimal Military Permission fees, as the seller commonly starts a buyers application.

- Capital Gains Tax/Income Tax in Turkey.

Whether or not you decide to sell your property before or after completion, you will have to pay agents fees for the marketing of your property. Edison Ford is pleased to announce it’s standard rate is only 3% for the sale of your Turkish property.

 
Tax Overview
The following table highlights the current rates of Turkish Income and Capital Gains Tax. The Turkish system treats any capital gain realised as additional income for that tax year. It is important to note, that after 4 years of ownership of a residential property your liability to Capital Gains Tax in Turkey diminishes.

Although this table will give you an insight into your potential tax liability, there is a system in place, which adjusts the purchase price of your property in line with inflation, to ensure you are not over taxed. Calculating CGT is therefore not as straightforward as deducting the purchase price from the sale price.

0-7,000.00 YTL 15%
18,000.00 YTL for the first 7,000 a fixed 1,050 YTL, then 20%
40,000.00 YTL for the first 18,000 a fixed 3,250, then 27%
40,000.00 - over 40,000 YTL for the first 40,000 a fixed 9,190, then 35%

It is also important to note that there is a double taxation agreement between Turkey and the UK, which ensures you will not be taxed on the same gain twice. The figures and suggestions made in this document are not guaranteed to be accurate, as the tax system is inherently complicated. Therefore if you would like specific information or advice relating to your tax situation please consult a specialist tax adviser. If you do not have such an individual in place, please contact Richard Greenhalf on richard@edisonfordifa.co.uk who will provide you with the appropriate contact details.

For details of our current Turkish offerings, please use our comprehensive property search, which can be found on any page of the EFIP website - selecting Turkey in the country field.

Having said this, it always pays to contact us as some of our recommendations will sell out almost instantly as they usually come with very lucrative discounts.

The above information and estimates are prepared to the best of our knowledge. Edison Ford accepts no liability for errors or omissions.