12 August 2022
Costs of buying and selling real estate in Turkey and owning it
Purchasing real estate in Turkey is a real opportunity for foreign investors to profitably invest their savings and move to permanent residence by obtaining a residence permit or citizenship in a resort country.
Turkish law allows foreigners from most countries, including Russian-speaking investors, to acquire property. The cost of apartments and houses in the Republic of Turkey is lower than in European resorts. The transaction is simple, secure and takes only a few days.
As in any other state, the procedure for buying and selling real estate in Turkey is accompanied by additional costs. In addition, investors should take into account the regular costs of housing maintenance. This is what we will tell you in detail in our article.
Expenses when buying property in Turkey
Any sale and purchase transaction consists of several mandatory stages, including the selection of an object, the conclusion of an agreement and making a deposit, the collection of documents, payment and re-registration in your name TAPU - certificates of ownership. In addition to the amount for real estate, taxes are additionally paid, a fee is charged for paperwork, specialist services.
Payments when buying a property in Turkey involve paying the following:
- Expert appraisal of acquired property
To conclude a contract and issue a TAPU, the buyer needs to order an object examination report, which indicates the estimated cost of housing and its technical characteristics. All taxes and fees are calculated based on this amount.
An independent expert assessment is carried out only by official certified organizations of the Agency for Banking Regulation. The average cost of a certificate is about €200.
- Tax on the purchase of real estate
One-time tax when buying an apartment in Turkey is 4% of its appraised value, indicated in the expert assessment. This value, as a rule, is always lower than the market value.
- State fee for issuing TAPU
Re-registration of real estate in your name at the Cadastral Chamber is accompanied by a one-time cadastral fee and payment for the services of a sworn translator. The costs will be approximately €300.
- Realtor Services
Most Turkish real estate agencies do not charge any additional fees for their services from their clients. Real estate companies usually receive remuneration from sellers and developers.
- Iskan (only for new buildings)
The issuance of an individual technical passport or act of commissioning in 2021 has been simplified for Turkish homeowners. Now the developers receive a technical passport of Toplu Iskan for the whole complex, where the technical characteristics of all apartments are already indicated. Owners of primary real estate do not need to deal with obtaining an individual Iskan.
When buying an apartment from a developer, Iskan is paid separately, or the amount is already included in the price of the property. The document is handed out immediately after the conclusion of the transaction.
The price of Iskan is about €300–1000 and depends on the parameters of housing.
- Compulsory DASK insurance
Earthquake and natural disaster insurance policy is paid by all buyers in Turkey. Without a DASK policy, you will not be able to conclude utility contracts.
The cost varies from €15 to €170 and depends on the location of the house, its characteristics and the chosen insurance package.
After re-registration of TAPU, you become the full owner of real estate in the Republic of Turkey. By law, all owners make mandatory payments for the maintenance of housing, such as:
- Annual Türkiye Property Tax. It is, as a rule, 0.2% of the cadastral price of the object. The amount is paid in two equal installments in May and November.
- Utilities. Electricity and water are paid by meters. Electricity tariffs depend on consumption and are 1.37 TL / 1 kW if less than 150 kW per month was used, and 2.06 TL / 1 kW if more than 150 kW were used per month. The price of one cubic meter of water is 4.6 TL.
- Aidat. Rent in Turkey includes monthly deductions for the maintenance of common areas. The thing is that in most modern residential complexes, infrastructure is provided for the owners right on the territory: swimming pools, gyms, saunas, playgrounds, etc. Therefore, residents pay for cleaning the pool, caring for entrances, landscaping, security, maintenance and other services . Aidat is paid by all owners without exception, even if they do not live permanently in their apartments.
The amount depends on the size of the infrastructure and is agreed upon at the general meeting of residents, on average it is €30–50. In elite complexes, the amount of deductions may be higher.
- Tax on garbage collection. The municipal fee is paid once a year, the amount is about €10–45.
Taxes if the object is sold
Profits received from the sale of real estate are subject to taxation. If the seller is a legal entity, the tax is fixed - 20%. For individuals, the following conditions apply:
- if the property has been held for less than 5 years, there is no tax rate;
- Housing owned for more than 5 years is subject to a fee, the amount of which is calculated based on the difference in the value of real estate according to TAPU and the new price tag indicated in the Turkish title issued to the new owner.
Deductions are 15–35%. If the difference in price does not exceed 15,000 TL, no tax is charged.
Additional costs when buying Turkish property include:
- Designing a notarized power of attorney
If a foreign buyer cannot personally attend the sale and purchase transaction or wants to save his time, he can issue a power of attorney for a representative (for example, an agent of a real estate company) who will do everything for him. The cost of a power of attorney is approximately €100–150.
- Utility contracts
At the initial connection of light and electricity, the owner will pay about €200–300. Re-registration of subscribers to a new owner is cheaper.
As you can see, the costs of buying, selling and Turkish property taxes are lower than in most EU countries. And living in a resort country is cheaper than, for example, in large cities of Russia.
If you are planning to buy quality real estate in Alanya, contact Nordic Property Construction.
Our experts will help you:
- select liquid options in residential complexes under construction and finished;
- guarantee comprehensive assistance in concluding a sale and purchase transaction;
- select the most convenient payment method, including interest-free installment payment;
- will provide a wide range of after-sales services.
Write to us, we are online for our clients 24/7!