How to pay for a property in Turkey

Turkey is a beautiful sunny country, attracting foreigners with a favourable climate and rapid economic growth. Every year the number of foreign citizens seeking to purchase property in the resort is growing. The Turkish real estate market offers a wide range of apartments and commercial premises at the best prices.

Purchasing real estate in Turkey is a huge investment opportunity for the owner. When planning to buy real estate in a resort area, many people are worried about the methods of payment for the real estate purchase. Is it worth transferring money to a Turkish account, or is it better to bring cash with you?

To choose the best option for yourself, consider them in more detail.

Methods of payment for a buy-sale agreement in Turkey

Purchasing property in Turkey with cash

The method is popular among those who prefer to pay with real money or cannot, for any reason, use another payment scheme. In this case, there are two options.

• Carry the entire amount with you. If you are carrying more than $10,000, you will need to fill out a declaration at customs. In addition, you should have documents about the source of your capital with you. If the amount is less than $10,000, no declaration is required.
• Cash out your card at any ATM in Turkey. Inquire about the amount of the bank's commission in advance and the most profitable currency for withdrawing not to lose money on conversion. Do not forget about the limit and the supply of several days.

By choosing this method, you can make payment for a real estate buy-sale agreement with the assistance of the real estate company New Time Investment. Specialists will meet you at the airport, help you open a bank account, or use a safe deposit box.

Transfer to the seller's bank account

You can pay for the purchase of housing in Turkey both remotely and on the spot through a bank transfer. It is an easy and safe way for foreigners to settle with Turkish sellers.

It is crucial to transfer the required amount on the day of re-issuing documents for obtaining TAPU, a certificate of ownership. Not to miss this day, you should ask your bank branch how long it takes to send money in advance.

Since the transfer by the bank provides for a commission of 0.5% of the amount, it is advisable to have a small reserve of money and discuss the terms of the transfer with bank employees.

To conduct a financial transaction, your bank may require documents to prove your source of income, citizenship, taxpayer identification, and a buy-sale agreement. When planning to pay for real estate in Turkey, it is worth considering that every country has its conditions.

Opening your account in Turkey for transferring funds

Striving for a comfortable life in luxurious apartments on the Mediterranean coast, foreign citizens consider purchasing holiday real estate and opening a Turkish bank account. You can buy real estate in good condition and prepare a set of documents with the help of a licensed agency.

Opening a bank account in Turkey is considered a quick and easy financial operation. To do this, Europeans and citizens of other countries will need to issue a Turkish tax number, Ikamet (residence permit), and provide a passport or its copy.

Bank transfer from a legal entity

Legal entities can pay for the purchase via a money transfer from the personal or current company bank account. When conducting a financial transaction, a link to the buy-sale agreement for the real estate is attached. There are no transfer limits for legal entities in Turkey, so you can withdraw or transfer any amount.

Payment via bank card

Paying for the purchase of Turkish real estate via non-contact payment is a common way to send money to Turkey. When crossing the border, you can cash part of the amount you need and keep the rest on the card. It saves time on declaring the transported cash and providing the documents regarding the income.

If a foreigner has a card linked to a foreign currency account, he can withdraw cash at any ATM in Turkey. Since banking institutions may impose restrictions on limits, you should have several days in reserve for interest-free cash withdrawals. Depending on the status of the client and his card, the number of unlimited withdrawals is determined. Therefore, it is worth clarifying information about restrictions at a banking institution before traveling to a foreign country.

Mortgage for the purchase of property in Turkey

Registration of a mortgage in a Turkish bank is the best solution for those who do not have the required amount when purchasing real estate. The loan is given by a Turkish banking institution and secured by the real estate purchased.

Foreign buyers apply for a mortgage with a private or public bank. Only completed real estate can participate in the program. The interest rate depends on the amount and term of the loan and constitutes approximately 6-8% euros per year.

The highest threshold for the body of the loan is 70% of the cadastral value of the real estate. The mortgage amount is determined by a bank employee who travels personally to the facility before reviewing the documents.

The loan is issued in Turkish liras, euros, and dollars for up to 10 years with the opportunity of early repayment. In case of early repayment of the mortgage, the bank charges a penalty of 2%. At the same time, the number of monthly mortgage payments should not exceed ⅓ of the borrower's income.

Purchasing property with bitcoins

The widespread use of cryptocurrencies has also affected the Turkish real estate market. Now you can pay for real estate with bitcoins. Analysts note that this method is growing in popularity due to the autonomous system, independent of any government organisation around the world. It is one of the popular ways to pay for Turkish property without commission.

Paying with cryptocurrencies has its advantages:

• preserved anonymity of the owner;
• no commission for funds transfer;
• fast transaction;
• you can make purchases in different countries.

When paying for Turkish real estate with bitcoins, a down payment is made in cash, and an agreement is signed to transfer the rest of the amount with cryptocurrency.

Payment in instalments when purchasing real estate in Turkey

Many developers in Turkey offer foreigners to take advantage of interest-free instalments with a down payment for Turkish housing of only 30%. It is a great alternative to a mortgage and the most profitable investment in the real estate market. Why? Firstly, investing in real estate at the pit stage allows you to save 20-30% of the market value of an apartment or house. Secondly, payment schedules with the developer are discussed individually. It is not necessary to make payments monthly, they can be made quarterly or once every six months.

Having the support of specialists from the real estate company New Time Investment, you can find a bargain and choose the best way to pay for real estate.