What Are The Additional Fees Required Upon Purchasing A Property In Turkey
During the consultancy process, a payment plan is drawn and presented to the client. The payment plan explains in detail how much to pay, when to pay, and how. There are additional payments required though and they go as follows:
- Legal Consultancy: A lawyer will be in charge of drafting a contract, checking the title deed, preparing the documents for notarization and transferring any documents to your name. Allocating the power of attorney is also an option. The cost ranges from 9,500tl to 14,000tl.
- Notary & Translation: Most of the legal documents such as the contract and the title deed need to be notarised while others will need translation by a certified translator and then notarised as well. The cost ranges from 2,000tl to 3,000tl.
- Real Estate Appraisal: An independent firm must assess the property cost and produce a value certificate or survey, one of the reasons for such a document is to prove the investment value for citizenship. This costs around 2,000tl.
- Property Taxes: When purchasing a property a tax of 4% is to be paid. However, some projects cover that cost.
- Real Estate Agent: The commission fee differs from property to the other but it usually does not exceed 3%. Some of the developers cover that fee but, if purchasing a resale property the fee will be paid by both the client and the developer to the real estate agent.
- Value Added Tax (VAT): If the property is bought with foreign currency and the property is not sold within a year, VAT does not have to be paid. This law was drawn in 2017.
- Earthquake Insurance (DASK): Since Turkey is located in the earthquake zone, owning an earthquake insurance is a must. The price is calculated by square meter, for example, a property of 70 sqm will be estimated to have an insurance of 220tl.
- Utility Connection Setup / Renaming: When purchasing a new property new connection setups must be established on the owner’s name for the utilities. Meanwhile, when buying a resale property one must change the name of the old owner on the utility bills (electricity, water, gas, and internet) to the new owner. This costs between 500tl - 1500tl.
In addition to these, there is a yearly additional Turkish property tax that depends on the property cost and the number of residences in the property, it ranges around 0.2%
Also, if a property is purchased in a gated residence then monthly communal fees must be paid to cover the garden and pool maintenance, parking, and security services along with other services provided depending on the facilities located in the project.
*NOTE: the prices allocated are based on the current rates and they are subject to change / September 2020