Expenses of Property Purchase in Turkey
The price of a property is not the sole expense when buying real estate. There are a number of payments you must make when you buy a property in Turkey. However, home purchase expenses in Turkey are much lower than in other countries.
The costs of buying a home vary depending on the type, size, and age of the property. Also, in some cases, there might be several additional expenses like translation and power of attorney fees.
List of Expenses When Buying a Home in Turkey
It would be best to ask your real estate agent how much exactly you need to pay after you decide which property to purchase. But, we can still give you a general outlook on the costs of buying a house in Turkey;
The Appraisal Report
The real estate appraisal report is a document that shows the sales value and price of a property. Property sales to foreigners or from foreigners require an appraisal report.
The home appraisal cost varies depending on the size and the aspects of the real estate. It’s approximately 6000 TL. The buyers must pay the appraisal fee directly SPK validated experts.
The Land Registry and Cadastre Directorate (Tapu ve Kadastro Genel Müdürlüğü) demands 4% of the declared sales price of the real estate for the transfer of title deed. This fee is called Title Deed Conveyance Tax and it’s one of the compulsory real estate taxes.
There are also several one-time fees like cadastre tax, value-added tax (VAT), circulating capital, document preparation for obtaining a tax number, document preparation for opening a bank account, and photos. These expenses are roughly equal to 5.000 TL. The circulating capital transaction fee is approximately 1300 TL - 3730 TL.
Real Estate Agent Fee
The regulations on the real estate purchase state that 2% of the sales price of the property can be charged as a real estate agent fee from both the buyer and the seller. The sellers who want to make their properties more appealing undertake the buyer’s fee as well.
You can find many properties that do not require real estate commission from the buyer on our website. These properties’ full real estate commissions have been paid by the seller.
Translator and Power of Attorney (POA) Fees
The documentation for real estate purchases must be translated to Turkish by a sworn translator. The documentation will be submitted to the Land Registry and Cadastre Directorate after translation. The translator fee differs depending on the language and the contents of the documentation. The average sworn translator fee is between 250-500 TL. The passport translation fee is 1000 TL.
Additionally, a power of attorney prepared with a sworn translator is necessary for remote real estate purchases. The cost of power of attorney changes depending on the content of it as well, but it’s usually 1.000 TL.
The utility subscription fees in Bursa change from district to district. Average costs are as follows;
• Electricity Abonnement: The first-time subscription fee (includes; registry fee, electric meter fee, and deposit) is between 200-850 TL.
• Water Abonnement: The first-time subscription fee (includes; registry fee, water meter fee, and deposit) is roughly 1300-1600 TL.
• Natural Gas Abonnement: The first-time subscription fee (includes; registry fee, natural gas meter fee, and deposit) is between 1500-3500 TL depending on the size of the property.
Note: You must have a Turkish residence permit in order to apply for abonnements.
Mandatory Property Insurance (DASK)
It’s compulsory to get earthquake insurance in Turkey. This mandatory home insurance against earthquakes is called DASK (Doğal Afet Sigortaları Kurumu). The cost of this insurance varies depending on the size of the real estate as well. The prices start from 250 TL. Legal insurance costs include fire, burglary, damage, and contents.
Annual Property Tax
Annual real estate tax for residential properties in metropolitan cities is 0,2% and 0,1% in non-metropolitan cities. Annual real estate tax for commercial properties in metropolitan cities is 0,4% and 0,2% in non-metropolitan cities.
For resale properties, the annual real estate tax for the previous years must be paid in the time for title deed conveyance. You must be sure that your home is debt-free from property taxes if you want to sell your home.
The real estate sales agreement is prepared by our company lawyers. Our company lawyers will handle the legal procedures. Our expert real estate agents will guide you through the whole property purchasing process. You don’t need to pay an additional lawyer fee.
Our company lawyer’s expertise covers Turkish citizenship with real estate investment as well. Citizenship application is a bit more delicate matter. So, we can recommend several independent lawyers as well for this process if you like. The legal service fee of lawyers is 2.500 USD + 18% VAT.
Other Expenses Related to Being a Homeowner
Although television and internet subscriptions are not mandatory, they are still one of the essentials nowadays. There are many companies that provide internet and television services. Our team will help you to get these services at the best prices as part of our free after-sale services.
Another expense of being a homeowner is “aidat”. “Aidat” is pretty much like hoa fees. This payment is charged for the maintenance of the complex or the building that your home is residing in. It varies depending on the size and features of the complex.
You might want to get homeowners insurance as well. The DASK insurance policy only covers the damages to the property itself. You can get contents’ insurance and liability coverage as well by obtaining homeowners insurance. Our expert team will help you to find the most suitable insurance policy for you.
We’ve briefly tried to explain the cost of purchasing real estate in Turkey. If you want to learn about the average living expenses in Turkey as well, you can check out our Cost of Living in Turkey article.
If you have more questions about purchasing a property in Turkey, you can contact us via email, phone, or drop by to one of our offices.