Cost of Buying Real Estate in Turkey
It is important that home-owners set aside some capital apart from the actual cost of buying real estate in turkey. The capital can then be used for purchase costs which would include an attorney, notary, taxes, and other relevant costs. There could be service fees and they might vary depending on which lawyer or translator you choose. Some of the other miscellaneous costs are set in Turkish Currency, and it might vary as per the international currency rates if you are from outside Turkey. It is therefore important that you must have about 5-6.5% of the additional amount for taking care of the extra charges. Also, the title deed transfer tax has been lowered down to 3% from 4.4%. There would also be some fixed and variable costs involved when you are buying properties in Turkey.
Variable Costs of buying real estate in turkey
- Transfer Title Deeds (TAPU) Tax: This has been lowered down from 4.4% to 3% since May 2018. This 3% would be split up in between the buyer and the seller, which means that they would be paying up 1.5% each. It is to be noted that this would be going on the assessed value, and not with respect to the purchase price. The relative council would be having the list consisting of all of the approximated property values which would be used for tax calculation.
- Broker Commission: The commission fee in the market would be in between 1% – 3%.
Fixed Costs of buying real estate in turkey
(All the costs mentioned below are with respect to the Turkish Lira and are approximate)
Earthquake Insurance (DASK Insurance): This is mandatory insurance that would be needed while signing the title deeds. The costs would be set depending upon the square meter of the property. The DASK for a two-bedroom apartment of 70 square meters would be 250 lira/year approximately.
Military Checks: This is a formal application which is made to the Government for validating the property, provided that it should not be in the military constructed zones. As an immigrant, you should be within the legal limits of the spaces that you can buy. This measure has been scrapped completely for outside ventures in Turkey from the 06th of August, 2018.
Tapu (Title Deeds) Registration (döner sermaye): 185 TL – 500 TL.
Notary Fees for power of attorney documents: 600 TL.
With the possession of these documents, the solicitor would be able to sign the title deed on your behalf. This would then be delivered in your name once all the clearances are done (military clearances would require about 5 weeks). Even the registration for electricity and water would be in your name.
Certification of Habitation: 1500 – 2000 TL.
This costing for certification of habitation will happen only if you are the first occupant in the property.
After-sales cost; electric and water and gas registration fees: 1300 – 1500 TL.
These are municipality costs whenever a fresh electric and water subscription in your name is registered.
Solicitor’s / Lawyer representation fee (if needed): 1000 EUR.
It is vital to have a lawyer represent whenever a sales procedure is carried, and it is a must. This is a recommendation that is made to the clients.
Appraisal Report Fee:
Appraisal Report is a report that displays the property value and is considered to be mandatory prior to the transfer of the title deed. The procedure is carried out especially for foreigners once the deed document is provided to them. The total cost for this report would be approximately 1000-1500 TL based upon the city and property features. Home-owners need to recompense this fee to the validated expert from SPK, and not to HauzBiz.
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