This guide is prepared for foreign nationals who would like to have a wide information about costs of buying a property in Turkey. Based on our experience, we usually recommend our buyers to consider adding a reasonable budget of 5% – 7% on top of the purchase price to cover all related purchase costs and additionals as indicated below.
For you to have a better understanding, we have categorized the costs in two different headlines. The first is one-time buying costs that you need to pay to be able to own a property in Turkey which you will NOT pay again. The second is the yearly ongoing costs to maintain your property after the ownership is officially exchanged on your name.
ONE-TIME COSTS OF BUYING A PROPERTY IN TURKEY
This is basically known as property buying tax in Turkey which is 4.4% being paid over the municipality value of the said real estate. This value comes around 60% of the purchase price. For instance, if the purchase price is 100.000$ , you pay 4.4 % tax over 60.000 $ municipality value which comes to 2640 $. The municipality does assess the property value variable according to the districts and size , so you should not worry about why you pay less tax. This is on buyer’s benefit and all process are legal.
Stamp duty is required to be paid during the registration of the property in your name in title deed offices. Therefore, if you are purchasing an off-plan property, you will pay the stamp duty at the completion of the property.
V.A.T ( Value Added Tax )
V.A.T at 1% for the development of which the building licenses were granted before 01.01.2013. For the projects permitted after this date, V.A.T is in the range between 1% and 18% depending on the area and other variables.
However, This amount is mostly payable if you are buying a property from an off-plan or ongoing project. If your property is already completed, V.A.T might probably be paid to the government before, so you do not need to cover this cost.
Please ask about this cost for a specific property, so that we can give you right information whether the v.a.t is paid for this property or not.
To be able to handle the legal process of transferring the title deed on your name, we or your solicitor will need a power of attorney granted by the notary public. the P.O.A is limited only to buy property and manage the official requirements on your behalf.
Also, your passport is required to be translated by a sworn translator and attested by the notary public.
The estimated cost for both transactions is around 750 TL.
Once the property is officially registered on your name in title deed office, you have some more responsibilities to manage. We will organize the required papers on your behalf to have your electricity and water ready to use. You need to pay the abonnement fees to said authorities around 800 TL as the security deposit . This amount is fully refundable once you finalize the subscriptions during vacating your property.
SOLICITOR’S REPRESENTATION FEE ( If required) : 2000 $
COMPULSORY EARTHQUAKE INSURANCE 200 TL (based on 100 m2 flat )
BROKERAGE FEE : 1 %
ONGOING COSTS AFTER YOU OWN THE PROPERTY
COMPULSORY EARTHQUAKE INSURANCE : 200 TL (based on 100 m2 flat )
UTILITIES : Based on your consumption.
MAINTENANCE FEE : This fixed fee is payable to your site management and paid on monthly basis. If you rent your property, it will be paid by tenant.