Selling a Turkish property

[dad]

Has anybody sold a property in Turkey, if so, how did you do it. Through Remax, another agent or privately(daft or Buyandsell). Any recommendations as to what we should do ?

I would be much obliged if you could private mail me any details that you would be willing to share. I ask for pm in case this contravenes AAM policy.

 

[auto320]

If you bought as part of the marketing hype over the last few years, your best bet is to try to find another foreigner to offload the property onto. It is most likely that the original agency won't want to sell it, or will recommend that you keep it for the gains that they will assure you are on the way.

A lot of buyers were reasured by selling agencies that their purchases had appreciated by 50 or 100 percent since they bought, these would be worth a try if you are selling. Go back to whoever you bought the property from and try them first anyway, it will give you an idea of the state of the market.

 

[dad]

I have gone back to original agency. Just looking at all options to increase the chances of selling.I could use Remax but they charge 10%.

Circumstances have changed,hence the need to sell.

I am interested in seeing how any others have sold.

Thks.

 

[auto320]

.I could use Remax but they charge 10%.

Thks.

You will have to pay 10% or more to sell an apartment in Turkey if you want to have any hope of shifting it. Simple reason, the new-build is all giving at least 10% commission, so the agents have no incentive to market a resale at a lower rate of commission.

Best bet might be to offer an even higher rate, maybe 15%, to get up there with the higher commissions on some of the new-build stuff. Its a lot better than being stuck with an unsellable property if you need to get out.

 

[auto320]

Please note that besides the 10% plus commission (outrageous) you are also going to get caught on the CGT. You will be liable for 20% in Ireland and also as much as 35% in Turkey. If however, you have owned the property for more than 4 years CGT in Turkey is exempt, therefore you are only liable for the 20% in Ireland.
.

If you bought one of the mass-marketed properties in Turkey in the last three years, CGT is unlikely to be an issue (its a tax on GAINS as the name implies!), unless of course you under-declared the purchase price, in which case you deserve to have a tax bill!

 

[fred1112]

Last time I checked with the revenue office, you can get tax credits from the Irish Revenue so you can write off the CGT paid in Turkey against the CGT payable in Ireland if selling within 4 years of purchase. The developer I bought from, wanted 6% commission not 10% as quoted above but a lot depends on the effort required by the agent to shift it (if you bought in the 'wrong' area). I would postpone the decision to sell for as long as possible as Turkey's GDP outstripped China and India last year. The current market includes wealthy Turks and foreigners.....hope this helps

 

[room305]

I would postpone the decision to sell for as long as possible as Turkey's GDP outstripped China and India last year.

I take it you mean "per-capita" rather than "nominal" GDP otherwise this statement is false. On a per-capita GDP basis, China is ranked 108 (number 4 nominal) and Turkey is ranked number 68 (number 17 in a nominal list). Ireland comes in at number 5 (number 30 in a nominal list).

Perhaps you could enlighten us as to why any of the above facts are relevant to deciding whether or not to sell property in Turkey?

 

[dad]

CGT is exempt after 4 years,taxed as Income if sold before that on a scaled basis.first 10k TRY is at 0%,ranges from 15-35% depending on profit amount.We did not underdeclare purchase price.Paid the inflated price (Irish price) which should reduce my tax bill and my profit!!! This tax should eliminate my Irish CGT liability if its allowed as a tax deduction rather than an expense. You must return details to the Turkish revenue within 15 days as a non resident.

 

[asdfg]

This tax should eliminate my Irish CGT liability

There is no DTA between turkey and Ireland yet. CGT is due in Ireland even if no tax due/paid in turkey.