What are the fees for buying real estate in Turkey?
Last Updated: 2023-07-27What are the fees for buying real estate in Turkey?
Before buying a property in Turkey, know with us what your expenses are. These expenses vary greatly according to the type of property and its area. Taxes in Turkey are divided into 3 sections (one-time taxes - taxes paid every year - taxes paid every month) so get to know them in this article.
You will read in this article
One-time tax
Value added tax
Title deed tax
Taxes paid every year
Municipal taxes
Catastrophe insurance
Monthly taxes (service)
tax exemption
First: One-time taxes
Value added tax: The value of this tax is calculated from the property's market price. Its percentage ranges between 1% to 18%, according to the type of property, its area, level of construction, and the price per square meter of the land on which the property is based are factors that affect the determination of the value added tax. Also, this value is not calculated from the total area of the property, but from the net area. This property tax is paid once when buying a property in Turkey. Value Added Tax is calculated as 1% of the value of the apartment, which does not exceed 150 square metres. As for hotel, office or residential apartments that exceed 150 meters, the added value will be more than 1% and may reach 18%.
Title deed tax: This tax is imposed upon registration of title deeds, that is, when the title deed is registered in the Land Registry Department in Turkey. Its value is equivalent to 4% of the property price specified in the sale contract. The amount is usually paid by both the seller and the buyer alike, meaning that the seller must pay a real estate tax of 2% when owning a property in Turkey, and this percentage is especially for small real estate sales such as houses, apartments and villas in Turkey. Also, when transferring ownership of a property in Turkey from the owner to the legal heirs, they pay this tax as part of the property transfer procedures.
Taxes paid every year
Municipal tax: Turkish municipalities impose on real estate established within the area under the municipality's service an annual fee of (0.03%) of the property value. This tax is payable for the services provided by the Turkish municipalities.
Catastrophe insurance: Insurance fees for real estate in Turkey against earthquakes and natural disasters is an annual tax paid by the property owner in Turkey to insure his home against natural disasters and earthquakes, and it is equal to 2 US dollars per square meter of property area.
Monthly taxes (service): It is a monthly fee to be paid instead of the building or complex services chosen by the buyer (stairs cleaning, elevator maintenance, garden care, swimming pool cleaning, electricity bills for lighting the complex or building and stairs, building or complex water bills, guard expenses, if any, the expenses of the person responsible building/complex). These expenses are called revenue "Aidat", and their value ranges between 15 TL per month and can reach 1,000 TL in luxury complexes, in the neighborhoods of the rich and famous, the value of the monthly returns may reach 10,000 TL.
Turkish law excludes certain categories from paying taxes, such as children of martyrs and people with special needs. What matters to foreign investors are the laws that exempt them from paying value-added tax, which amounts to 18% of the property value. For example, the added value of a property (with an area of more than 150 meters and a price of 250 thousand dollars) is about 45 thousand US dollars. This tax may be canceled for foreign investors if they fulfill several conditions.
Edited by Mersat Real Estate ©
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