Generic Guide to Real Estate Purchase Costs in Turkey
- IVYHOLD
- Aug 28
- 3 min read
Generic Guide to Real Estate Purchase Costs in Turkey
At IVYHOLD, we believe in full transparency when it comes to investing in real estate. Below is a generic guide to help you understand most of the associated costs of purchasing property in Turkey and familiarise yourself with the potential steps involved.
1. Brokerage Commission
Real estate agents in Turkey typically charge a 2% commission (plus VAT) from both buyer and seller. However, in some cases—especially with new developments—buyers may not need to pay this fee, as the developer covers it. Additionally, Buyer Agency services may involve separate fees depending on the complexity of the case.
2. Title Deed (Tapu) Transfer Tax
The title deed transfer tax is 4% of the declared property value, generally split between buyer and seller. That said, it’s quite common for the buyer to cover the full amount in practice.
3. Notary and Legal Fees
If a Power of Attorney is needed to facilitate the purchase, notarisation fees start from around 2,000 TRY and vary depending on the task.
Legal fees for engaging a solicitor for due diligence and contract review also vary depending on the transaction’s complexity.
4. Property Appraisal Report
A mandatory valuation report is required prior to the purchase. Costs start at around 10,000 TRY, increasing with property type and size. This ensures the declared value is in line with market conditions.
5. VAT (Value Added Tax)
For first-time property purchases, VAT ranges from 1% to 18%, depending on the property’s specifications. Many foreign buyers may qualify for VAT exemption, although the application process can lengthen the overall timeline.
6. DASK (Compulsory Earthquake Insurance)
This mandatory insurance is required for title registration. Prices vary based on location and size but usually start from 1,500 TRY per year.
7. Annual Property Tax
Owners must pay annual property tax, typically around 0.1% of the property value, depending on the borough or municipality.
8. Utilities Registration Fees
Setting up electricity, water, and gas involves initial fees:
Electricity: from 1,500 TRY
Water: from 1,000 TRY
Gas: from 1,500 TRY
Internet: varies by provider and package
9. Maintenance and Site Fees (Aidat)
If the property is within a residential complex, a monthly aidat (service charge) will apply for upkeep of shared amenities. Rates depend on the facilities available and the project’s scale.
10. Residency Permit (if applicable)
Foreign buyers purchasing property worth 200,000 USD or more are eligible to apply for a residency permit. Application fees vary based on individual circumstances.
11. Citizenship by Investment (if applicable)
Foreign investors purchasing real estate worth 400,000 USD or more can apply for Turkish citizenship, subject to government criteria. Legal and processing costs vary depending on the case’s complexity.
Summary
While the above points offer a general outline of the property purchase process in Turkey, the real journey is often more nuanced. From verifying title deeds to identifying legal covenants, several details require careful review. Engaging a qualified and regulated consultant is a crucial step to reduce risks and avoid complications down the line.
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Disclaimer: Rules and regulations are subject to change by government authorities. We strongly recommend consulting one of our advisors for the most up-to-date guidance.
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