Expenses When Buying Property in Turkey
Unlike other countries, expenses when buying a property in Turkey are low, and foreigners will be pleasantly surprised at how much money they can keep in their pocket. As always though, it is wise to know before you start the process of the additional expenses that will arise from legal procedures, as well as tax and service fees. The following is what you can expect to pay.
Appraisal Report Appraisal Report Fee
An appraisal report showing the value of the property is obligatory before the title deed transfer in sales done to foreigners. The cost of the SPK validated appraisal report is approximately 5900 TL depending on the city and features of the property. Buyers pay this fee directly to the SPK validated expert. Completion of the valuation report lasts 2 – 3 days.
Title Deed (Tapu) Transfer Fees
The General Directorate of Land Registry and Cadastre carries out the conveyance procedure. Both the buyer and seller must be present unless either side has given Power of Attorney for the final signature.
4% of the declared value of the property must be paid to the title deed office, as conveyance tax. Buyer pays Title Deed Conveyance tax as customs. There are several costs and taxes roughly 6000 Turkish Lira which are;
* The amount you have to pay to the bank within the scope of the foreign exchange purchase document requirement will be around 1500 euros.
- Passport translation at Notary (800 TL for each person additionally)
- Address document translation at Notary for opening a bank account
- Sworn translator
- Power of attorney (optional)
- Obtaining a tax number
- Cadastre Tax (Tapu Kadastro Harcı)
Real Estate Agent Fee
According to the regulation the real estate agent fee is 3% VAT of the sales price and this rate is charged to the buyer. Since some sellers assume the finder’s fee to make their portfolios more attractive, the buyer commission does not appear in many of our properties.
Winners Group has sales agreements prepared by our company lawyers. We are experts in real estate sales to foreigners and title deed transfer. Your money is under Winners Group expertise guarantee and experience. Our customers who prefer us do not need a lawyer.
However, since the citizenship process is more intricate, we recommend that you complete your process with a lawyer. We provide a list of several independent English speaking lawyers for you to choose from. The lawyer fee for this procedure is an average of 5.500 USD.
Property Tax (Emlak Vergisi)
Property Tax is paid every year and is 0,02% in metropolitan municipalities and 0,01% in non-metropolitan areas. The tax rate of commercial properties is 0,04% in urban districts and 0,02% in non-metropolitan areas.
The tax is used by the government to fund water and sewer improvements, provide law enforcement and fire service and other items deemed necessary.
Property and Earthquake Insurance
Earthquake insurance (DASK) is compulsory in Turkey and is calculated on a square meterage basis. Risks that may arise from fire, explosion, tsunami or landslide during and after an earthquake are under Mandatory Earthquake Insurance. The fee varies between 150 TL to 450 TL (depends on m2).
Property insurance provides protection against most risks to property, such as fire, theft and some weather damages. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance or boiler insurance. Property insurance provides financial reimbursement to the owner of the structure in such cases.
Getting Connected: Electricity and Water
Electricity Abonnement The electricity and water abonnement fees vary from district to district.
Electricity abonnement fees;
If you get the first-time abonnement, you pay between 100 TL and 500 TL in total for the abonnement registry, electricity meter and additional deposit fees. The transfer fee is as much as the deposit amount and additional DASK amount if DASK has expired.
Water abonnement fees;
If you get the first-time abonnement, you have to pay 1280 TL in total for the abonnement registry fee and additional deposit fee.
Telephone and Internet
If you have a residency permit, you can get a telephone and internet connection. Turk telecom and TTNET are countrywide, and they hold a majority of the market.
For new subscribers, special packages are available, if you sign a two-year contract. Examples include telephone calls, broadband internet and TV satellite packages for 130 Turkish Lira a month. All companies will charge an installation fee.
Maintenance Fee (Aidat in Turkish)
Anyone buying an apartment in communal buildings will also need to pay a monthly maintenance fee (Aidat) that goes towards communal facilities such as stairwell electricity, swimming pools, garden maintenance or security. Read more articles about maintenance fees in Turkey.