An average sized villa could expect to use per annum:

Electricity and Water                                                                 £450 approximately
Gas(bottled) cooking/hot water                                              £150.00
Pool Chemicals:                                                                       £200.00 depending on size of pool
Communal charges if on Complex:                                      £200.00 i.e. Communal Gardens and Pool
Buildings and Contents insurance:                                       £120.00 approx.
Council Tax                                                                                    £60
                                                                       Total  £1180 or just £23 per week ! 

Gas is normally used for cooking and can also be used for water heating. Cylinder refills cost approximately £10.00 and lasts approximately a month for water heating and two months for cooking (a deposit is taken for each gas cylinder).

Electricity is cheap approximately £0.05p a kilowatt. Bills are payable monthly at a local bank or directly at the Turkish Electricity Board. Water costs approximately £0.40p per ton (1,000 litres on mains supply) or £3.00 per ton when bought from a bulk tanker.

Annual fees and taxes will vary according to the size and value of the property you purchase.Currently Council tax is charged at about £60.00 per annum. This is usually paid in two instalments. One in May and the other in November. A small charge is also levied for refuse collection. 

Site maintenance, groups of houses, particularly developments will form a management service, committee or company, to maintain common facilities, common gardens, repainting, etc. The cost of this will vary from development to development, but generally starts at around £200.00 per annum. Their conduct is governed by Turkish law.

All the above amounts can only be used as a guideline as actual costs will vary dependant on property size and usage.

Costs of purchase will include the actual price - say £40,000, plus:-

Other  costs etc  approx 10%                                             £4,000

Because the basic purchase price is low, the associated costs are low too.

Furniture is generally cheap, and can be custom made by local craftsmen if required. It is possible to buy in most towns at very competitive rates, with a wide range of goods. Electrical items are less expensive than in England. Towels and linen are cheaper than Europe, however, household goods are extremely cheap and can be purchased at the local markets. For non national residents it is possible to import household goods providing they hold a suitable residency permit.

Furniture: www.kelebek.com/index2.htm 

Bedroom furniture and linens: www.yatas.com.tr

However - there are those precious things which you will want to take, and for these you may want the services if international removers. Please let us know if you would like the contact number. We can then arrange for an exact quote to be provided for you.

Every year, Harrow Green International takes care of hundreds of moves for individuals and families leaving the UK for life in a new country, providing high-quality moving and storage services anywhere in the world. Email via the link to receive more information.

SOCIAL SECURITY
For general details and information of the social security agreement between the UK and Turkey explaining national insurance contributions and benefits visit www.dwp.gov.uk (Dept. for Work and Pensions) or obtain explanatory leaflet SA22 from the Department of Health and Social Security.

UK PENSION
United Kingdom retirement pension is payable in Turkey at the rate which is payable as if you were in the United Kingdom.

The extra charges involved for a freehold or leasehold purchase payable by the purchaser amount to approximately 10% of the purchase price paid. These are broken down as follows:

Stamp Duty

Stamp duty also has to be paid which is calculated at 1.5% to 3% of the government valuation of the property.  

It is advised that funds for the purchase should be transferred into the country through a Turkish bank and specifically identified for that purpose, i.e. (transfer purpose for the purchase of Villa Safron Title Deed No. 9980). The foreign currency should be sufficient to cover both the purchase cost plus other costs incidental to the purchase. You should keep all receipts to prove the original purchase to enable easy repatriation. A recent decree aimed at aligning Turkey's currency laws with the EU states that importation of foreign currency is free, it cannot be subject to any legislation and it's origins cannot be questioned. Decree 32 August 1989 Article 4.0.

Property tax, paid annually at a fixed percent of the declared value, (on a new home a 25% reduction is given until the revaluation conducted after the first five years).

Building insurance is compulsory for leases arranged through Yapi Kredi, the premium is approximately 2 per mil. It is also mandatory to purchase State earthquake insurance.

4% purchase tax (stamp duty) on registration of freehold, (new properties can be exempt from purchase tax).

£750 legal fees variable dependant on the amount of work, i.e. full investigations, proxy, translations, etc. Try Turkish Attorneys Paralegals Online, Turkey's leading English speaking legal service on 00 90 533 513 5117 or by contact by email.

6% of the sale price property broker commission split 50/50 between buyer and seller.

Income from a property from letting would be subject to income tax. Main personal income items which are taxed are commercial income, agricultural income, wages, self-employment revenues, rent, interest and other incomes. Personal income tax rates for the year 2007 are shown in the table below. However, Turkish Income Tax Law exempts some amount of rental income from residential buildings for individuals annually. For the year 2007, the residential rental income up to YTL 2,300 (approximately GBP 800) is exempted from income tax. Please keep in mind that if you earn rental income more than exempted amount and do not declare to local tax office or under declare, exemption does not apply and you could face severe penalties. Therefore you must register with local tax office and declare your rental income. It must be declared between 1st and 15th of March and the income tax must be paid in March and July in two equal instalments. (Rental income earned in 2007 (If exceeds exempted amount) must be declared from 1st to 15th of March 2008)

Moreover, individuals (including foreigners) who earn only rental income in Turkey to declare will be able to send their tax returns through internet from 13 March 2007 to the tax offices offering online services. For further information please refer to the Guideline prepared by the Revenue Administration. 

The market value of your asset may rise and hence you can attain a gain. If you sell out your real property in the four-year-period following the acquisition date, you shall be subject to personal income tax based on the difference between the selling price and the inflation-adjusted acquisition price. Producer Price Index (PPI) is applied to acquisition price for Inflation adjustment excluding the months in which property is acquired and sold out if the inflation exceeds 10%. However, YTL 6,400 of the gain attained from sale is exempted from income tax starting from 1st January 2007. (YTL6,000 in 2006)

For sales by individuals after the 4-year-period following the purchase, no personal income tax is charged on the gains to be attained.

On the other hand, firms which are subject to corporate tax are exempt from any corporate tax relating to the real estate-based gains, real estate sale-and-acquisition levy, and VAT, if they sell a real estate that they have owned for at least two years and add the gaining to their capital.

However, we would always recommend you consult an accountant because each individual's circumstances are different, and tax laws are subject to frequent change.

When purchasing a property in a complex with other homes, the average annual charge for up-keep is £200-300. The charge depends on the complex and any work that has been carried out.

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