This guide is designed for foreign nationals who wish to obtain extensive information on the costs of buying a property in Turkey. Based on our experience, we usually advise our buyers to consider adding a reasonable budget around 4% to the purchase price to cover all related purchasing costs and additions as below.
In order to have a better understanding, we categorized the costs in two different titles: the one-time costs that you need to pay to be able to own a property in Turkey, and the ongoing annual/monthly costs that are payable after the property is officially registered under your name.
1- One-time costs for buying a property in Turkey
Title Deed Transfer Cost
Mainly known as Property Purchase Tax in Turkey, which is 4% of property’s total value. This percentage is paid in full by buyer if he / she buys a resale property. If you are buying from the developer as brand new, both the developer and buyer share the costs half, so you pay only 2% tax for title deed delivery.
You must pay the tax fee during the registration of the property at the property title deed offices. Therefore, if you buy a property on the scheme or still under construction, you will be paid the tax fee upon completion of the property.
The foreign buyers are exempted from V.A.T for their purchase ( considering you do not have a residence permit in Turkey.) For the foreginers granted for residence or working permit in Turkey, there is 1% VAT over the purchase price for building permits which were granted before 01.01.2013. For projects permitted after this date, VAT ranges between 1% and 18% depending on the region and other variables.
However, this amount is mostly paid if you are buying a property from an off-plan or under construction project. If your property is already finished and a resale one, the V.A.T might have been paid to the government before, so you do not need to cover this cost.
Please inquire about the cost of certain properties, so that we can give you the correct information whether or not V.A.T is paid for the specific project.
In order to be able to proceed with legal process of transferring the title deed to your name, we or your attorney will need an official notarized power of attorney. The power of attorney is limited only to the purchase of property and management of official requirements on your behalf.
Also, your passport must be translated by a legal translator and attested by a notary public.
The estimated cost is about 1000 TL.
Utility Abonnement fees
Once the property is formally registered on your name in the title deed office, we will organize for you the required documents to make electricity and water ready for use. You will need to pay the abonnement fees for the mentioned authorities about 2000 TL as the refundable deposit. This amount is fully refundable once you have cleared the consumption bills by the time of evacuation of your property.
There is also compulsory insurance as 150 TL on yearly basis, for earthquakes (per 100 square meters)
2- Ongoing costs for your property
- Monthly utility bills based on your consumption,
- Maintenance fees required to be paid to the site management on a monthly basis (if you rent out your property, it will be paid by the tenant)
- Property tax per year which is between 0.1% – 0.2% for residential units.
- Compulsory insurance around 150 TL on yearly basis, for earthquakes (per 100 square meters)