What are the costs of buying a property in Turkey? 2021
Updated: Feb 14, 2021
You have finally found the property you are looking for with the price you wanted. But you then get surprised by hidden expenses suddenly showing up. Expenses such as Title Deed expenses, document translations, insurance, notary...etc. Today I will be sharing with you a list of all the expenses that you should expect when buying a property in Turkey.
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Governmental Taxes: 2%-4% + 800 TL
There are 2 types of taxes to be mindful of when buying a property:
Title Deed Expenses: According to Turkish Law, the title deed expenses are 4%. Ideally, the 2% should be paid by the buyer and 2% by the seller. However, keep in mind that in Turkey, most of the time the buyer pays the complete 4%.
Doner Sermaye: this word means working capital tax. It is a small tax that the government collects and allocates to its general expenditure budget. For Turkish citizens the amount is around 400 TL while for foreigners it can go up to 800 TL.
Commission Fees: 2%-4%
Second Hand Houses: The commission fees stated by the Turkish Government is officially 4% splitted into 2%+KDV from buyer and 2%+KDV from seller. KDV is the VAT value in Turkey which is 18%. So for example if a property costs 1.000.000 TL, then as a buyer you would be paying 20.000 TL + (0.18x20.000)= 23.6000 TL. Depending on the service provided, the agent can request higher reasonable fees.
First Hand Houses: If you are buying directly from the developer, in many cases you might not pay any title fees nor commission. However, the sales office might request a 1% fees to cover sales transactions.
Expert Report: 2000TL
The Turkish government mandates extracting a valuation report for the properties sold to foreigners. The report includes a valuation of the property by comparing it to the properties being sold in the market. The report also shows if there are any legal problems with the property. The report's average cost is 2.000 TL.
Earthquake Insurance (DASK in Turkish): 170TL
After the earthquake that happened in 1999, the Turkish government requires the purchase of a yearly insurance policy against earthquakes. The price changes based on the size and age of the property but it is on average 170 TL.
Passport Translation Fees: 200TL
Foreigners buying an apartment should submit a translated photocopy of their passports from a noter. Usually one translated copy is 150 TL and 50 TL is given to the translator. So in total 200TL for noterized translated passport.
Judicial Translator Fees: 600TL
On the day of receiving the title deed, it is mandatory to have a sworn judicial translator. The fees of this translator is around 600 TL. This number might change depending on the language being translated.
Proxy Fees: 1000 TL - 5000 TL
If work will be done by a third person who is not a lawyer, the cost of the proxy with the translation is around 1000 TL per one proxy. If a lawyer will be handling the purchasing, then he/she might request a considerable amount with an average of 5000 TL.
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