Turkey is a unique country that harmoniously combines oriental traditions and modern democratic values, natural beauty, a favourable climate, and European level service. The Republic of Turkey attracts millions of tourists from all over the world every year. In addition to high-quality and inexpensive recreation, foreign citizens are driven by the opportunity to profitably invest their savings in the acquisition of liquid real estate.
Foreign investors need to be aware of all the nuances of the buy-sale agreement in advance and navigate the additional costs that accompany the purchase of an apartment in Turkey. Read more about this in our article.
Property valuation in Turkey
The costs of purchasing an apartment in Turkey and obtaining a TAPU (certificate of ownership) include a report on an expert real estate assessment. The official document indicates the market value of the property and its technical characteristics. The assessment is carried out exclusively by authorised licensed companies. In the future, all state taxes and fees will be calculated based on the assessed value.
The parties negotiate who pays for the real estate assessment, the buyer or the seller. However, as a rule, these costs are covered by the buyer.
The cost of obtaining an assessed value is about 1000 - 2000 TL.
Power of attorney
If you do not have time or the opportunity to be present at finalising a buy-sale agreement, Turkish law allows you to issue a notarised power of attorney for a representative who will act on your behalf. The expenses for a real estate purchase in Turkey mentioned above are optional and solely depend on your decision. Many foreign investors appoint specialists from the real estate agencies as their authorised representatives.
The approximate cost of a power of attorney is 2000 TL.
Taxes on TAPU
Registration of TAPU in Turkey is the most important part of a real estate purchase. TAPU is the only document confirming the legitimacy of owning Turkish real estate property. Obtaining TAPU is accompanied by the payment of a one-time tax on registration of the right to own real estate property. It is a mandatory payment for every foreign investor.
The amount of the real estate tax from January 1, 2020, is 4% of the assessed value of the object.
The buyer will also need to pay:
- A state fee for purchasing a property in Turkey (Döner sermaye) – is about 1200 – 1300 TL.
- Services of a sworn translator - about 500 TL. An essential condition for the legitimacy of a buy-sale agreement with foreigners is the presence of an accredited translator in the Cadastral Chamber.
- DASK earthquake insurance. Turkey is located in a seismically active zone, so an insurance policy is mandatory for all buyers without exception. The cost depends on the area of housing, the condition of the building, and other characteristics and is 70-100 TL.
In addition to the initial costs of real estate registration by foreigners in Turkey, other mandatory payments need to be considered in advance.
The owners pay the annual property tax in Turkey for foreigners or the cadastral fee once a year (the total amount in one payment) or divide it into two equal payments. The final amount depends on the cadastral value of a real estate and type of property and ranges from 0.2% to 0.6%.
The cost of translation services
All documents required for finalising a buy-sale agreement must be translated into Turkish by appropriately qualified specialists. Sworn translators in Turkey have special education, a license, and the right to sign.
The cost of the services of a licensed translator depends on the amount of work.
ISKAN designs. Price
Registration of ISKAN is another expense to consider when purchasing real estate in Turkey.
ISKAN (Iskyan) is a technical passport of the real estate object, which contains all the technical information about the building. The document confirms that the housing is ready for use and required when issuing utility contracts (electricity, water, telephone).
When you purchase an apartment on the secondary market, you should be careful and make sure the previous owner transfers the ISKAN to you.
The registration cost depends on the location and characteristics of housing and will cost an average of 2000 - 2500 TL.
Who pays the real estate agency?
Without knowledge of the language, Turkish legislation, and aspects of a buy-sale agreement, it can be difficult to buy an apartment in Turkey. Therefore, most foreign investors turn to real estate agencies for help.
In the Republic of Turkey, licensed real estate agencies are not just mediators but also a trustee of the buyer. Agency specialists help select real estate, check the legality of documents, and accompany clients at every stage of a buy-sale agreement.
New Time Investment provides its clients with a full range of highly qualified real estate services absolutely free of charge.
Additional costs of purchasing an apartment in Turkey
Additional costs of purchasing an apartment in Turkey are:
- Registration of water supply and sanitation contracts. A new client number for water costs about 1,000 - 1,500 TL.
- Primary client number for the supply of electricity - 260 - 700 TL.
If the purchase of the real estate was made at the secondary market, the contracts are reissued to the new owner and the fee will be lower. Payment is provided in Turkish Lira at the Cadastral Chamber. The amount is subject to change and depends on changes in legislation.
Purchasing a property in Turkey is the cherished dream of many foreign citizens, and it is crucial to consider every step. The licensed agency New Time Investment guarantees its clients comprehensive support and protection of interests, no risks, and support at all stages of a buy-sale agreement. We are available 24/7 - contact us!