Expenses Associated with Property Acquisition in Turkiye
When acquiring real estate in Turkiye, there are various additional expenses associated with different transactions involving the preparation of paperwork and documentation, such as translations and appraisal reports.
These are essential for obtaining title deeds and completing subscriptions.
Costs Involved in Purchasing Property in Turkiye
Real Estate Appraisal Report | Turkiye Estate® Appraisal Report Fee:
The appraisal report, a crucial evaluation process conducted by government-licensed experts in Turkiye, is mandatory for title deed transfers involving foreign buyers. Turkish citizens are exempt from this requirement. The appraisal report fee is payable to Turkiye Estate, and we subsequently remit it to the relevant institutions.
Title Deed:
The Tapu or Title Deed is issued by The Land Registry and Cadastre Directorate in Turkiye, incurring a determined 4% fee in title transfer transactions. Typically, this amount is split between the seller and buyer as 2% each. However, in some cases, the buyer may be responsible for the entire 4%, contingent on the seller’s terms and specific project details.
Agency Fee:
According to regulations, the real estate agent fee ranges between 3% and 6% + VAT of the sales price, with the buyer bearing this cost. While many developers cover the full agent fee to enhance their portfolio, our listings may have a 2% agency fee for our clients, varying across projects.
Translator and Power of Attorney (POA) Fees:
For obtaining the title deed, specific documents such as passport translations and notarizations are required. Additionally, during the title deed ceremony, a certified translator must be present. If the buyer opts for a power of attorney, fees for its issuance in the public notary apply. Here is a breakdown of approximate charges for translations and the power of attorney process:
Passport Translation: 500 TL
Passport Translation Notarization: 700 TL
Sworn Translator: 1000 TL
Power of Attorney: 2,000 – 3,000 TL
Utility Subscriptions:
Initial stamp fees and deposit amounts, varying based on property size and location, are applicable for Electricity, Gas, and Water subscriptions. Deposits can be refunded upon subscription closure with all bills settled. Approximate costs, including deposit, for utility subscriptions are as follows:
Electricity: 1200 – 2000 TL
Water: 800 – 1500 TL
Gas: 1400 – 3000 TL
Property Insurance (DASK):
Mandatory for all property owners in Turkiye, property natural disaster and earthquake insurance (DASK) costs depend on factors such as construction age and property size. The average annual fee for a 2+1 apartment in Istanbul ranges between 400 – 800 TL.
Annual Property Tax:
Property owners in Turkiye are obligated to pay yearly property tax rates, which are as follows:
Metropolitan Municipalities: 0.2%
Non-metropolitan Areas: 0.1%
Commercial Properties (Urban Districts): 0.4%
Commercial Properties (Non-metropolitan Areas): 0.2%
Sellers must ensure there are no property tax debts when transferring title deeds.
Legal Process and Lawyers:
We can refer our clients to contracted lawyers for legal processes, particularly for transactions like Citizenship applications, which involve an extended processing time. Clients bear the lawyer fees, approximately 2500 USD + 18% VAT for those seeking Citizenship after purchasing a property valued at a minimum of 400,000 USD.
