Costs and taxes when buying property in Turkey

The asking price is not the whole amount you will spend on an apartment in Turkey. On top of it come the title deed tax, valuation, translations, insurance and utility connections, and after the purchase an annual tax and the complex service charge. Here is what the costs consist of, who pays what, and how to get your budget right.

One-off costs when buying

Land Registry service fee

Besides the tax, the Land Registry charges a fixed service fee (döner sermaye). It is small and reviewed every year.

Valuation report

A report from a licensed valuation company is mandatory when selling to a foreigner. The fee depends on the property type and the company; the buyer usually pays it.

Translations and notary

You will need a notarised passport translation and a sworn translator on the day of registration. If a representative handles the purchase, add the cost of a power of attorney.

VAT on new builds

When buying from a developer, VAT is usually already included in the price. The rate depends on the size and characteristics of the property. Non-residents who meet certain conditions — notably paying with foreign currency transferred from abroad — may be exempt from VAT on their first home purchase. Discuss the conditions with a lawyer and the developer in advance.

Insurance and utility connections

Compulsory DASK earthquake insurance is taken out before or right after the registration; its cost depends on the apartment’s size and seismic zone. Deposits are paid when electricity and water contracts are transferred.

Agency fees and furnishing

The agency fee is agreed in the contract upfront. If the apartment is sold unfurnished, budget for furniture and appliances — many developers offer ready-made packages.

Annual and monthly costs

• Property tax (emlak vergisi) — for homes in metropolitan provinces such as Antalya, the rate is 0.2% of the tax value, which is usually below market value. It is paid in two instalments during the year.

• DASK — the earthquake insurance is renewed every year.

• Aidat — the monthly service charge for security, cleaning, the pool, landscaping and lifts. It depends on the facilities and the apartment size, and is higher in complexes with an indoor pool, spa and 24-hour security.

• Utilities — electricity, water, internet and, where available, gas. Most electricity goes on air conditioning in summer and heating in winter.

• Home insurance — optional, but useful if the apartment is rented out.

Taxes on renting and selling

Rental income in Turkey must be declared every year and is taxed on a progressive scale. If you sell a property you have owned for less than five years, the gain is subject to capital gains tax; after five years of ownership, individuals are exempt. Letting to tourists by the night also requires a permit from the Ministry of Culture and Tourism.

Who pays what

• Buyer: their share of the title deed tax (or all of it, if agreed), valuation, translations, power of attorney, DASK and utility connections.

• Seller: their share of the title deed tax, clearing any debts on the property before the sale, and capital gains tax if applicable.

How to get the budget right

• allow an extra 5–8% of the price for one-off costs;

• before paying a deposit, find out the service charge and ask for recent receipts;

• check that there are no unpaid property taxes or utility bills;

• state in the contract who pays the title deed tax;

• factor in exchange rates: prices in Alanya are quoted in euros, while some costs are paid in lira.

Fees and rates in Turkey are reviewed regularly, so before every purchase we prepare an up-to-date calculation for our clients. This is the second article in our buying series: start with the step-by-step guide and continue with “Tapu in Turkey”. Find a property within your budget in the catalogue.