Purchase Expenses
Understanding the Costs of Property Acquisition in Turkey
When it comes to buying property in Turkey, prospective homeowners are often pleasantly surprised by the comparatively low expenses involved. However, it’s crucial to be well-informed about additional costs associated with legal procedures, taxes, and service fees. Below is an overview of the expenses you can anticipate:
1. Appraisal Report Fee:
An appraisal report, validating the property’s value, is mandatory for title deed transfers to foreigners.
The cost of the SPK validated appraisal report is approximately 5900 TL, varying based on the city and property features.
Buyers pay this fee directly to the SPK validated expert, and the valuation report is typically completed in 2 – 3 days.
2. Title Deed (Tapu) Transfer Fees:
The General Directorate of Land Registry and Cadastre manages the conveyance procedure.
Both buyer and seller must be present for the final signature, unless Power of Attorney is granted.
4% of the declared property value is paid as conveyance tax to the title deed office.
Additional costs, approximately 6000 Turkish Lira, include foreign exchange purchase document fees, passport translation, address document translation, sworn translator fees, power of attorney (optional), obtaining a tax number, and photos.
3. Cadastre Tax (Tapu):
Real estate agent fees, regulated at 3% VAT of the sales price, are borne by the buyer.
Some sellers may cover the finder’s fee, making it invisible in many property listings.
4. Lawyer Expenses:
While Winners Group offers expertise in real estate sales and title deed transfers, engaging a lawyer is recommended for intricate processes like citizenship.
Average lawyer fees for this procedure are around 5,500 USD.
5. Property Tax:
An annual tax of 0.02% in metropolitan areas and 0.01% in non-metropolitan areas.
Commercial properties have a tax rate of 0.04% in urban districts and 0.02% in non-metropolitan areas.
6. Property and Earthquake Insurance:
Mandatory earthquake insurance (DASK) is calculated based on square meterage, covering risks from fire, explosion, tsunami, or landslide.
Property insurance protects against various risks and provides financial reimbursement to the owner.
7. Getting Connected: Electricity and Water:
Electricity and water abonnement fees vary by district, with additional costs for the first-time abonnement including registry, meter, and deposit fees.
8. Telephone and Internet:
Residency permit holders can obtain telephone and internet connections, with special packages available for new subscribers.
Installation fees are applicable.
9. Maintenance Fee (Aidat in Turkish):
Buyers of apartments in communal buildings must pay a monthly maintenance fee (Aidat) for shared facilities.
Being aware of these costs ensures a smoother property acquisition process in Turkey, allowing buyers to make informed financial decisions.
