While buying a property in Turkey, you should first be aware of the extra taxes you will have to pay besides the property’s price. Having an idea about these fees will allow you to evaluate your budget and understand all the payments you are in charge of during the whole purchase procedure.
For example, for a 250,000 $ Property, which is the minimum worth that makes you eligible for Turkish Citizenship, you have to consider between 3 to 4% extra on top of the Property purchase price.
Here is a detailed explanation of all these fees.
Title Deed Transfer Tax in Turkey
To convey the title deed, both the buyer and the seller must be present at the General Directorate of Land Registry and Cadastre. If they are unable to be present, their legal representatives can replace them during this procedure.
The total tax of this procedure is 4%; both the buyer and the seller have to share the payment equally as 2% for each one.
Property Appraisal Report Fees in Turkey
It is a document that shows the property value, and it is compulsory before the title deed conveyance for sales done to foreigners. It is an amount varying between 100 to 250$ depending on the Property size and features.
The construction company applies to get this report online on the official website of the Land Registry and Cadastre Directorate.
VAT in Turkey
t means Value Added Tax, and it is compulsory on any transaction made in Turkey. It varies between 1 and 18% according to the Property features, and it’s calculated based on the net area of the property.
When the property is residential, and its net area is less than 150m2, the VAT is 1%.
But when the Property size is more than 150m2, the VAT is 8%. However, when the property is commercial or dual-use like home offices, the VAT is 18% of the purchase price.
The good news is that the buyer can get a VAT exemption on his purchased property in some situations. He has to fulfill the following conditions:
- When the buyer is a foreign national and is buying a property for the first time in Turkey.
- He mustn’t be a resident in Turkey.
- The payment must be in hard currency and transferred from abroad.
Property Tax in Turkey
It is an annual Tax or any Real estate Property between 0.1% and 0.6% according to the Property type and the area where it is situated. This tax rate is mentioned on the title deed, and it can be paid in 2 installments until the month of May of each year.
The tax rate is as the following:
- Residential units : 0.2% in metropolitan cities and 0.1% in other areas
- Commercial units: 0.4% in metropolitan cities and 0.2% in other areas
- Arable land: 0.6% in metropolitan cities and 0.3% in other areas
- Normal land: 0.2% in metropolitan cities and 0.1% in other areas.
Property Advisor Turkey Works with legal sales agreements prepared by our company’s law department. If you are about to collaborate with us, you can be sure that you are going through a safe transaction and don’t need any extra legal support. However, some clients still prefer to complete this process with a lawyer.
To ensure that you are dealing with trustworthy persons, Property Advisor Turkey can recommend you, if you wish, a list of independent lawyers speaking in different languages.
In this case, the lawyer fee is in charge of the customer since it is not mandatory.
Suppose, for specific reasons; you won’t be physically present to fulfill the purchase process personally. In that case, a solicitor of your choice can legally represent you after you grant him a Power of Attorney. This document costs between 40 to 80 $.
According to the standard regulation in Turkey, a Real estate agency’s fee is up to 3% of the property’s price depending on the provided services. This fee is only paid once the Purchase is made.
As Property Advisor Turkey, we don’t charge for the brand new properties on their first developer sales.
According to Turkish law, it is mandatory for each property to have insurance against earthquakes which will cover damage costs if a seism occurs. The insurance policy fee depends on the size of the property. It costs on average about 0.1$ per m2, and it varies from one insurance company to another.
After purchasing the property, you should connect some necessary utilities for daily use like electricity, natural gas, water, and the internet.
For each utility’s first use, a subscription deposit is required, and it costs about 10$. These fees are in charge of the property’s owner.
It is a monthly fee covering the expenses of shared areas and equipment inside each residential project. It includes the cleaning and repairs of social facilities and circulation areas such as elevators and stairs. It also includes the utilities common use of these spaces.
These fees are calculated based on the property size and vary from one project to another between 0.3 to 0.7 $/m2.