Other Expenses When Buying Property in Turkey
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.
Appraisal Report Fee
Appraisal report showing the value of the property is obligatory before the title deed transfer in sales done to foreigners. The cost of the SPK validated appraisal report is approximately 1.500 TL depending on the city and features of the property. Buyers pay this fee directly to the SPK validated expert. Completion of the valuation report lasts 2 – 3 days. (Read more about the Appraisal report here)
Title Deed (Tapu) Transfer Fees
The General Directorate of Land Registry and Cadastre carries out the conveyance procedure. Both the buyer and seller must be present unless either side has given Power of Attorney for the final signature.
4% of the declared value of the property must be paid to the title deed office, as conveyance tax. Buyer pays Title Deed Conveyance tax as customs. There are several costs and taxes roughly 2.500 Turkish Lira which are.
• Passport translation at Notary (300 TL for each person additionally)
• Address document translation at Notary for opening a bank account
• Sworn translator
• Power of attorney (optional)
• Obtaining a tax number
• Cadastre Tax (Tapu Kadastro Harcı)
Additionally, the Land Registry and Cadastre Directorate also charge one-time processing fees, Circulating Capital (Döner Sermaye Harcı) of approximately 400 TL.
Real Estate Agent Fee
According to the regulation, the real estate agent fee is 2% + 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 2% Estate Agency Fee is demanded. It totally depends on the property seller’s choice.
Property Tax (Emlak Vergisi)
Property Tax is paid every year and is 0,2% in metropolitan municipalities and 0,1% in non-metropolitan areas. The tax rate of commercial properties is 0,4% in urban districts and 0,2% in non-metropolitan areas.
The tax is used by the government to fund water and sewer improvements, provide law enforcement and fire service and other items deemed necessary.
Property and Earthquake Insurance
Earthquake insurance (DASK) 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 275 TL to 370 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.
Getting Connected: Electricity and Water
The electricity and water abonnement fees in — varies from district to district.
Electricity abonnement fees;
If you get the first-time abonnement, you pay between 700 TL and 1000 TL in total for abonnement registry, electricity meter and additional deposit fees. The transfer fee is as much as the deposit amount and additional DASK amount, if DASK has expired.
Water abonnement fees;
If you get the first-time abonnement, you have to pay 775 TL in total for abonnement registry fee and additional deposit fee. The transfer fee is as much as the deposit amount and additional DASK amount, if DASK has expired.
Telephone and Internet
If you have a residency permit, you can get a telephone and internet connection. Turk telecom and TTNET are countrywide, and they hold a majority of the market.
For new subscribers, special packages are available, if you sign a two-year contract. Examples include telephone calls, broadband internet and TV satellite packages for 130 Turkish Lira a month. All companies will charge an installation fee.
Maintenance Fee (Aid at in Turkish)
Anyone buying an apartment in communal buildings will also need to pay a monthly maintenance fee (Aid at) that goes towards communal facilities such as stairwell electricity, swimming pools, garden maintenance or security. Read more article about maintenance fee in Turkey.
MsMentorGroup Turkey has sales agreements prepared by our company lawyers. We do our job with zero failure since 1996. We are experts in real estate sales to foreigners and title deed transfer. Your money is under MsMentorGroup expertise guarantee and experience. Our customers who prefer us 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.
In the FAQ page, we also answered the other questions that buyers of Turkish property often have. And what’s more, you can contact us via email, telephone or by dropping into one of our local offices, if you would like to speak with our local and professional sales representatives.