A simple purchase and sale transaction procedure, low costs for purchasing and maintaining real estate attract thousands of buyers to the Republic of Turkey. Despite the fact that taxes on housing and utilities are cheaper for investors from abroad than in most European countries, we recommend that you find out and calculate in advance how much it costs to register a property and its further maintenance, so that these costs do not come as a surprise to you. ;
What are the one-time and annual expenses for real estate in Turkey coming owners – You will find detailed information in our article.
One-time expenses when purchasing real estate in Turkey
Before signing the purchase and sale agreement, the buyer and seller agree on all the terms of the transaction, including payment of expenses for re-registration of housing. As a rule, all costs fall on the shoulders of the investor.
Registration of TAPU in Turkey
TAPU – the only document confirming the ownership of Turkish real estate.
Registration of TAPU in Turkey is accompanied by the payment of a one-time tax on registration of property rights, which is 4% of the assessed value of the property. The buyer pays the tax at the state bank.
Thecost of TAPU in Turkey includes receiving an expert report housing assessment. Assessments are carried out only by companies with a special license. All taxes and fees are subsequently calculated from the estimated amount indicated in the report.
Price – about 1000–2000 TL.
Iskan in Turkey
Iskan in Turkey – thisa technical passport for the facility or a commissioning certificate. The document specifies all technical parameters of the new residential complex and individual apartments. The presence of a technical passport indicates that the property can be used for its intended purpose. You will also need the act when drawing up contracts for utility services.
If you purchase apartments on the secondary market, pay attention to whether the previous owner has Iskan. Since the operating permit is issued once.
When purchase of an apartment in a new building registration of a technical passport – another cost item for the investor. The price depends on the location, characteristics of the object and averages 2000–2500 TL.
Read also a detailed article about all the features of Iskan: "Iskan in Turkey – what is it?"
Other fees and payments
In addition to the costs of obtaining TAPU and Iskan, the foreign buyer pays:
- State duty (Döner sermaye) – 1200–1300 TL.
- Services of a licensed translator, whose presence is mandatory when concluding a purchase and sale transaction and confirms the legality of the re-registration of TAPU. Approximate amount – 500 TL, depends on the amount of assistance provided by the sworn translator.
- DASK earthquake insurance policy. Republic of Turkey – a country located in a zone of increased seismic activity. Thereforereal estate insurance in Turkeyagainst earthquakes and other natural disasters is mandatory for all home owners. Cost – about 100–1000 TL, depending on the location, area and condition of the object.
- Registration of connections to public services. Initial receipt of a subscriber number for water – 1000–1500 TL, for electricity – 250–700 TL. If the apartments are purchased on the secondary market, the cost of re-registration of contracts is lower. The fee is paid to the Cadastral Department. The amount is revised annually.
Power of attorney (optional)
Do you not have the opportunity to come to the country to conclude a purchase and sale transaction or simply want to save your own time and money? Turkish legislation provides the opportunity for foreign citizens to issue a notarizedpower of attorney for the purchase of real estate in Turkeyin the name of their representative.
The authorized representative will act on your behalf, including in matters relating to the legal acquisition of Turkish property.
Execution of a power of attorney – This is an optional cost item and depends entirely on your wishes. The cost of notary services for document preparation depends on the number of characters in the document and, as a rule, does not exceed 2000 TL.
Annual expenses for real estate in Turkey
In addition to the costs of conducting a purchase and sale transaction, buyers will have to pay for maintaining the property in Turkey. Exactly how much will you need to include in your annual budget – Let's look into it further.
Aidat in Turkey – what is this?
Many investors from abroad already know some of the features of maintaining Turkish real estate. However, the question is: “ Aydat in Turkey – what is this?” – this is also often asked by our potential clients.
All modern residential complexes in the Republic of Turkey have internal infrastructure: swimming pools, sports and children's playgrounds, recreation areas and barbecues, hammam, fitness room, security, parking and much more other. The size of the infrastructure depends on the status of the residential complex.
Aidat – This is the monthly amount for maintaining public areas in a residential complex. This includes territory cleaning, landscaping, pool cleaning, maintenance of elevators, lighting, sewerage, concierge services, security, etc. What infrastructure will function, and what management company to hire – Owners decide.
The average cost of an ID is:
- €5–10 for a house with minimal infrastructure;
- €50–100 for housing with extensive hotel-level infrastructure.
A monthly fee is paid by all homeowners, regardless of whether they are currently using the property or not.
Annual property tax
Annual real estate tax in Turkey (Emlak vergisi) is calculated from the cadastral price and depends on the property (residential, commercial property, land).
For housing, the cadastral contribution is 0.2% – This is on average €100 per year. Paid at the local municipality or on the official website of the city administration in two equal installments – in May and November. It is possible to pay the annual property tax in Turkeyin one payment.
Utilities
Utilities in Turkeyare paid by meters.
Tariffication:
- Electricity in 2022 costs about $0.09 for consumption up to 150 kW per month and $0.14 for consumption above 150 kW per month. The cost is constantly revised, so see the current price list on the website of the Energy Atlas of the Republic of Turkey. On average, a 1+1 apartment costs about $70/month.
- Water is relatively inexpensive: 1 cubic meter of cold water – $0.32. There is no uniform tariff across the country. Prices depend on the decision of municipal resource supply companies. Monthly expenses for a family of 3 people are approximately $20–25.
In addition to water and electricity, homeowners in Turkey receive payments for garbage removal. The amount of the contribution depends on the location of the apartment, area and does not exceed $11–45 per year.
If you have an account in one of the Turkish banks, you can pay bills online.
More information about utility costs can be read in our article "Utility payments in Turkey".
Conclusion and offer of assistance from Point Property Real Estate Agency
Registration and maintenance of real estate in Turkey is relatively inexpensive for foreign investors. Nevertheless, it is important to calculate your budget at the stage of choosing housing and make sure that you are ready for one-time and monthly expenses.
These materials have been prepared for informational purposes; they are not of a commercial nature.
Point Property – is a certified real estate agency that specializes in providing a full range of real estate services for residential and commercial real estate transactions in Turkey. Our company takes care of all the organizational aspects of a real estate transaction: searching for an object, organizing a sightseeing tour, assistance in collecting documents and checking the legal purity of documentation, support in re-registration of ownership. In addition, we provide our customers with a wide range of after-sales services.
