Real Estate Purchasing Expenses in Turkey: 2023

One-Time Fees You Need To Know About Before Buying a Turkish Property

Are you considering purchasing real estate in Turkey? As a prospective buyer, it's important to be well-informed about the various expenses and costs associated with the process. Turkey offers an attractive real estate market, but like any property transaction, there are certain fees and charges that you should be aware of. This guide will walk you through the key expenses you'll encounter when buying property in Turkey in 2023.

Costs Before Completion

Appraisal Report

The Turkish government has introduced a mandatory requirement for a real estate valuation report when purchasing property in the country. To ensure accuracy and reliability, only experts authorized by SPK (Capital Markets Board) can prepare these valuation reports. The cost of an appraisal report typically ranges from $300 to $350, although prices can vary based on the property's location and amenities. This report is a crucial step in the buying process, offering transparency and trust for both buyers and sellers.

Conveyance Tax (Title Deed Transfer)

The "Conveyance Tax," paid by the buyer, is a pivotal aspect of property ownership in Turkey. This tax is based on the property's appraised value, which is determined through the valuation report. Currently set at 4% of the declared value to the General Directorate of Land Registry and Cadastre, the Conveyance Tax grants you the title deed (Tapu) – the legal document confirming your ownership of the property. This payment is made at a Turkish State Bank when signing the purchase contract. Additional costs during the title deed transfer may include Circulating Capital, Cadastre Tax, Title Deed delivery fee, Sworn translator fees, Notary fees for Power of Attorney, and passport translation fees. Acquiring a Turkish Tax Number and providing necessary photographs are also part of this process.

Expenses of Buying Real Estate in Turkey

Real Estate Agent Fee

Registered and licensed real estate agents in Turkey typically request a fee of 2% of the property's sales price. Notably, newly constructed properties typically have the agent's fee covered by the property developer or owner.

Lawyers Fee

When it comes to a seamless property deal in Turkey, the expertise of a lawyer is crucial. At AGM Homes, we take pride in working with the finest legal minds on the market. Notably, when you choose to work with us, the lawyer's fees for your property purchase are typically covered on our end. While this comprehensive coverage extends to the essential legal aspects of your transaction, additional services might incur separate charges for your convenience.

Ongoing Costs

Annual Property Tax (Emlak Vergisi)

Property owners in Turkey are required to pay an annual property tax. This tax varies depending on the property's location, amounting to 0.1% in provincial zones and 0.2% in cities. Commercial properties are subject to a 0.4% tax rate in urban areas and 0.2% in provincial districts.

Compulsory Earthquake Insurance (DASK)

Turkey's seismic activity mandates compulsory Natural Disaster and Earthquake insurance. This cost, ranging from $25 to $45 annually, is influenced by the property's size.

Utility Subscription Fees

• Electricity Subscription Fee: Setting up an electricity connection entails a one-time cost of $30 for first-time connections. Additionally, there's a subscription registration fee of $25.
  
• Water Subscription Fee: Registering for water supply incurs a fee of approximately $110.
  
• Telephone and Internet Subscription Fees: If you possess a residence permit in Turkey, you can avail of landline telephone and internet connections. The costs vary based on providers and packages available in your area.
  

Maintenance Fee

Many properties in Turkey come with designated site management responsible for maintenance, security, and other services. Property owners are required to pay a monthly maintenance fee, known as "Aidat," typically paid annually for convenience.

Whether you're purchasing property for investment or personal use, understanding the associated costs is essential. The real estate market in Turkey presents a wealth of opportunities, and being informed about these expenses ensures a smooth and successful buying experience. If you have any queries or need the most up-to-date information, don't hesitate to contact us. At AGM Homes, we're committed to helping you navigate the Turkish real estate landscape with confidence.