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.
Title Deed (Tapu) Transfer Fees
In most European countries, the Public Notary Office processes the transference of title deeds. However, in Turkey, the General Directorate of Land Registry and Cadastre carries out the procedure. Both the buyer and seller must be present unless either side has given Power of Attorney.
3% of the declared value of the property must be paid to the title deeds office, as conveyance tax and there is an extra service cost (Döner Sermaye harcı) of 260 Turkish Lira. Additional but small costs, for this process that adds up to 2.000 Turkish Lira include;
• Passport translation
• Sworn translator
• Power of attorney (optional)
• Documents for a tax number
• Documents for opening a bank account
• Cadastre tax on application
Real Estate Agent Fee
When buying a resale property, by law, registered and licensed real estate agents to receive 2% + VAT service fee from both the buyer and the seller. If the buyer buys a newly constructed or off-plan property, this cost is not applicable.
Lawyers usually charge 1% of the purchase price of the property. The minimum amount is 1.200 Euro + 18% VAT. We can provide a list of several independent lawyers for you to choose from.
Property Tax (Emlak Vergisi)
Property Tax is paid every year and is 2% in metropolitan municipalities and 1% in non-metropolitan areas. The tax rate of commercial properties is 4% in urban districts and 2% in non-metropolitan areas.
Property and Earthquake Insurance
Earthquake insurance 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. Fee varies between 150 TL to 250 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 structure in such cases.
Maintenance Fee (Aidat in Turkish)
Anyone buying an apartment in communal buildings will also need to pay a monthly apartment Aidat fee that goes towards communal facilities such as stairwell electricity, swimming pools, garden maintenance or security.