Expenses of Property Purchase in Turkey
Buyers will be delighted to know that expenses when buying a property in Turkey are low compared to other countries. Still, knowing exactly how much extra you will pay, makes the process smoother, so we have listed the expected costs below. Prices are set in Turkish lira and are rough guidelines. When you ask about any particular property for sale, we prepare a detailed payment plan, so you know exactly what to pay and when.
Expenses when Buying Property in Turkey
Real Estate Appraisal Report Fee
Appraisal report citing the value of the property is mandatory before the title deed transfer in sales done to foreigners. The cost of the SPK-validated appraisal report is generally 5.500 TL - 11.729 TL for residential properties and 5.983 TL - 19.495 TL for commercial properties, depending on the size of the property. (SPK is Capital Market Board which means Sermaye Piyasası Kurulu in Turkish.) Buyers pay this cost directly to the Real Estate Appraisal Department of Land Registry and Cadastre. The completion time of the appraisal report lasts 2 - 3 days.
Title Deed
The Land Registry and Cadastre Directorate (Tapu ve Kadastro Genel Müdürlüğü) charges 4% of the property value at the time of signing for your title deed. In Turkey, declared property values adhere to local council price brackets and these are often less than the sales price. The Land Registry and Cadastre Directorate also charges one-time processing fees - Döner Sermaye Harcı and Tapu Kadastro Harcı of 5.000 TL - 6.000 TL.
Agent Fee
According to the regulation, the real estate agent fee is between 3% and 6% + 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.
When you check out properties for sale on our website, some properties show Estate Agency Fee is included, and some properties show a 2% Estate Agency Fee is demanded. It totally depends on the property seller's choice.
Translator and POA Fees
At the time of signing for your title deeds, you will need a certified and sworn translator. Translator and Power of Attorney fees vary depending on the language and length of the content. The sworn translator fee is an average of 1500 TL (Passport translation at Notary (1000 TL for each person)), Power of Attorney fee is an average of 6.500 TL.
Electricity, Water and Telephone Connections
The electricity and water subscription fees in Istanbul vary from district to district.
When you get a first-time electricity or water subscription, you pay the connection fee, deposit amount, stamp tax, and file fee. Their transfer fees are as much as the deposit amount and additional DASK amount if DASK's time has expired.
The total water and electricity subscription registry fee is approximately 6000-7000 TL.
Please note to get a landline, you need to have a Turkish residence permit.
Property Insurance (DASK)
By law, every home must have "DEPREM SİGORTASI" which is earthquake insurance. The amount of property insurance depends on the size of your property. An annual policy is between 295 TL and 1.145 TL, depending on the property size. Added but not legal insurance costs include fire, theft, damage, and contents.
Annual Property Tax
Every home must pay a yearly property tax which is 0,2% in metropolitan municipalities and 0,1% in non-metropolitan areas. Commercial properties pay 0,4% in urban districts and 0,2% in non-metropolitan areas. When signing for the title deeds, the seller must ensure there are no property tax debts.
This article details purchase expenses when buying a property in Turkey, but our article about the cost-of-livinglets you know how much to budget for monthly groceries and running costs. We are also available via email, phone, or by dropping into one of our offices if you want to speak to a local sales rep about investing in the Turkish real estate market.
Lawyer Fee
Istanbul Homes has professional sales contracts approved by our company lawyer. We are experts in title deed transfers with zero failure in real estate sales to foreigners. Our customers who prefer Istanbul Homes 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.
FAQ
Q: What is the cost of a real estate appraisal report and is it compulsory?
A:Real estate appraisal report is compulsory only if foreign property buyers aim to get a residency permit or Turkish citizenship. it costs around 5.500 TL - 7.000 TL and is prepared by authorized companies.
Q: What are the additional costs to be paid while buying a property in Turkey?
A: Real estate appraisal report, title deed conveyance taxes, and fees, title deed office circulating capital, notary and translation fees, real estate agent fee, DASK insurance, and utility connection expenses will be the costs when a foreigner buys a property in Turkey.
Q: What is the cost of title deed conveyance in Turkey?
A: The cost of buying a property depends on the property sales price since the title deed conveyance tax is calculated as 4% of the sales price. Other expenses of title deed transfer cost around 14.000 TL.
Q: What are the costs to be paid after the title deed conveyance?
A: After the title deed conveyance, the new owner must get a DASK insurance policy for the property, its cost depends on the area of the real estate and the number of floors. Also, electricity and water connections will cost between 6.000 and 7.000 TL. After these, a property owner will pay the monthly maintenance fee if the property is located in a complex with maintenance services.
Q: How much is the monthly maintenance service fee in Turkey?
A: It is variable. Monthly maintenance fees depend on the services and the number of properties in the compounds. Also, there are different maintenance price ranges for apartments and villas. The more services you get, the more you pay. Besides, as the number of the properties are higher in a compound, the less fee is paid by each resident, since the total cost is shared between the residents of the complex.
Q: How much is the real estate agent fee in Turkey?
A: According to the law, the real estate agent fee must not be more than 6% of the property sales price and VAT, this amount is paid by the buyer. When you buy with Istanbul Homes, you do not pay a real estate agent fee for the new properties. Most of our properties are newly constructed and construction companies pay the whole real estate agent fee to increase their chance to sell. We charge a 2% real estate agent fee for the resell properties.
Q: Are the property taxes high in Turkey?
A: Property taxes are relatively low in Turkey. Annual property tax is 0.01% of the purchase price for towns and 0.02% for the metropolises.
