Taxes of buying a property in Turkey 2022

March 7, 2022
Realestate

After the volume of demand for real estate in Turkey increased, questions about everything related to it increased. According to the General Directorate of the Real Estate Registry, real estate sales in Turkey from 2019 to the present have increased by 30%.

One of the most prominent topics that are raised about is the taxes that must be paid, especially after the Turkish government has provided many exemptions, facilities, and reductions.

If you want to know accurate details about this topic, you can follow the following article, in which we will provide all the information related to real estate taxes in Turkey in detail.

See real estate taxes in Turkey:

Here we will present to you the most important taxes imposed on owning real estate in Turkey. If you are going to buy a property in Turkey, you must know them:

1 – Fixing property purchase contract tax:

This tax is not obligatory, as the buyer can pay it and may not, but usually the buyer is looking for a way to guarantee his right and make him feel safe, especially if this is his first experience of buying real estate in Turkey or if the property is still under construction because the ownership cannot be transferred to his name, nor Hand over the title deed of the property.

The contract is fixed at the notary public and is called initial or temporary fixation, and the value of this tax is 1% of the total value of the property.

2 – Real estate title deed tax extraction:

When extracting the title deed of the property in Turkey, 4% of the value of the property must be paid, and it is shared equally by both the seller and the buyer, but sometimes the buyer pays it in full.

3 – Annual real estate tax:

If you buy a property in Turkey, there is an annual tax that must be paid, which is 0.002% of the total property value. In this context, we must point out that this tax is paid in two phases, the first being in May of each year, and the second being in November.

It is paid either at the town hall or by transferring it to the town hall bank account.

4 – Residential complex expenses:

Surely you know that if you choose to live and reside in an apartment complex, there are many costs and wages that you must commit to paying monthly, which are for cleaning, maintenance, protection and guarding services. You should know that these costs are not fixed, but rather vary according to the region, the complex and the services that are provided.

On average, these costs are about 50 US dollars per month.

5 – Value added tax:

This is one of the most important types of real estate taxes in Turkey, and its value ranges from 1% to 18% of the total property value and varies according to the property (the area in which it is located – the city – the space – the number of rooms – specifications) and many other details.

You have to know that 18% is paid for very luxury properties or commercial properties and also for properties that exceed 150 square meters.

As for the remaining cases, they are only 1% of the property value. Also, it must be noted that in many cases the buyer is exempted from paying it, and in some cases, construction companies pay it on behalf of the buyer.

6 – Fees for obtaining a real estate appraisal document:

Surely you know that the real estate appraisal document is one of the main conditions that must be met when buying a property in Turkey, and the one responsible for this is one of the parties that obtained a license from the Turkish government.

The fees for obtaining this document vary from one property to another, but in general it does not exceed $200.

7 – DASK document extraction fee:

An earthquake insurance document is extracted when buying a property in Turkey in order for the buyer to guarantee a portion of his right in the event of an earthquake or a natural disaster, so that he is compensated for part of the damages that occur by paying a sum of money that sometimes amounts to 200 thousand Turkish liras.

The annual tax is payable to an insurance company and is valued at about $50.

8 – Fees for translation and attestation of documents:

Any document extracted in Turkey must be translated into Turkish and then certified at the Notary Office, such as a passport. The costs of translation and attestation may sometimes reach 300 USD, or more or less.

9 – Municipality fees (this tax is annual):

Annual taxes are the ones that are paid each year and are in return for the services provided by the municipality to the area in which the property is located, and its value is 0.03% of the property value.

10 – Real estate broker or (real estate company) commission:

If you choose to buy a property in Turkey through the help of a real estate broker or real estate company in Turkey, keep in mind that there are fees you must pay, which amount to one or two percent of the total property value.

There are many real estate taxes and other fees that you should take an idea of when buying real estate in Turkey, such as registering the property in the Land Registry Directorate, which amounts to about 3% of the total property value, and there is also the opening of water and electricity meters.

In this article, we have indicated the most important taxes incurred by the buyer when buying real estate in Turkey, and we hope that we have answered your various questions. If you have more inquiries, you can contact us to provide you with all the information you are looking for.