scritura (deed) - the title document which specifies the name of the owner and includes a detailed description of the property. Impuesto actos jurídicos documentados, AJD (Transfer Tax) This tax is payable on sales transactions subject to VAT and mortgage loans, at a rate of 0.5%-1,5% on total coverage of the mortgage or on the deed amount in the case of sales subject to VAT.
Impuesto sobre el valor añadido, IVA (Value Added Tax, VAT ) The Spanish equivalent of VAT. It is paid instead of ITP when you buy from a developer rather than the private individual. It is charged at the rate of 7% on the construction of a house and any associated buildings. It is also charged at the rate of 7% on both the plot and the house if you buy both at the same time.
Impuesto sobre transmisiones patrimoniales, ITP (Capital Transfer Tax) This tax is payable instead of the VAT when the property is not newly built. In this case, the standard rate of 7% is independent of the assigned use of the property, but there are regional differences.
N.I.E. (Numero Identificacion Extranjero) - Tax registration number for foreign residents and property owners.
Nota Simple - Land Registry Office document setting out the property registration details; current owners, whether there is a mortgage or other charges against the property
Notario (Notary) - A public official who is responsible for recording the sale on the public record stipulating the title deed has been signed in his presence and understood by the parties concerned.
Plusvalia - A tax set by the local authorities and based on the increase of the value of the land from the date the owner acquired the Spanish property to the time of the present sale. By Law, the seller pays the plusvalía tax however this shall depend on the terms of the sale
Compromis de Ventede Vente - Once you have found a property and wish to proceed with the purchase a contract is drawn up by the Notary or Real Estate Agent. This is signed by both parties (Buyer and Seller) and is known as Compromis de Vente. At this point you would be required to pay a deposit and any additional costs. This is held in a special account of which is held by the Notary. On signing this contract you are legally bound to purchase the property, it also secures the property from other offers from third parties by being taken off the market; normally this contact will have a mortgage clause.
Acte de Vente - This is the final contract that is drawn up on completion of the sale. It is signed at the Notary¡¯s office and the deed is then passed to the buyer and the land is registered. You would then be required to pay the balance of the purchase price to the Notary who then pays the seller/Vendor. At this point you would need to provide the Notary with a copy of your Birth Certificate and marriage Certificate if applicable.
The Notary - The Notary is a Government Official who would usually act on behalf of both parties (buyer and seller). The Notary will conduct various searches but does not give independent advice. It is up to you to do you to enact your own lawyer to conduct investigations on general planning proposals for the area and to protect your interests and Conveyance of Property Title. These costs would be in addition to the Notary who is mandatory for Property Transactions.
Prenotazione - This is the revervation agreement, your agent (Mediatore/Agente) will normally require this to be signed and deposit of up to 30%. This is normally held in an account by the lawyer or agent.
Compromesso di Vendita - The Preiminary contract is signed at the local Notary Office (Notaio ) by the vendor and purchaser, This document means the vendor and purchasor are bound and the terms of the sale/purchase will be laid down.
Rogito - This is the Purchase Deed, the final contract, it also takes place in the presence of the Notaio. They have a duty to ensure proper execution, registration and payment of all taxes.
Contrato Promessa de Compra e Venda - The Promissory Contract is a binding contract which is legalised at the Notary Office by the vendor/purchaser. This is normally done when you pay a deposit (normally 10%). This sets out the terms and conditions of the purchase.
Escritura Publica de Compra e Venda - The Deed of Purchase and Sale, is the final contract signed at a Notary. The Notary will also check that the payment of SISA TAX (Transfer Tax) has been paid and to ensure completion. Your lawyer will then pass the certified copy of the Escritura to the onserato Registo Predial (Land Registry Department), to ensure you are registered as the new owner.
Emlak vergisi (Property tax): Emlak vergisi is the property tax payable by the buyer upon the transfer of the property in the Office of Land registry (Tapu). The property tax is 0.1% of the value entered in the property register.
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 Turkish legislations. It is strongly recommended that independent advice is obtained on these matters before entering into the loan.
Approval by Ministry of Defence:
Foreigners require approval from the Ministry of Defence to purchase property in Turkey. This should be applied for at the Office of Land registry where the property is located. The buyer is responsible for obtaining this approval.
Application for a tax/social security number in Turkey:
To perform legal acts, including buying property, you will need to have a Turkish tax/ social security number, for which you can submit an application to the tax authorities in Turkey.
International Mortgage Management is a registered trading name, that complies with data protection and holds a consumer credit license. Your property may be re-possessed if you do not keep up repayments on your mortgage. The exact fee for our service will depend on your circumstances and the location of the property. The Financial Services Authority (FSA) is the UK's mortgage regulator however it does not regulate international mortgages. We are not tax advisor's, and do not offer any advice or recommendation on tax or legal issues. All comments and figures are for illustrative purposes only; we strongly recommend that you see an independent tax advisor and lawyer. All mortgages are subject to status and offer and will not be binding unless stated otherwise. Flag images are provided by www.3DFlags.com.
