By. Justin Mays
Investment in Turkey is lucrative with high property value growth rates and affordable prices when compared to Europe and the USA. However, prior to buying a holiday home in Turkey, you should be well informed about the ongoing costs of property ownership and annual taxes. This will help you know exactly what to expect and better prepare you for what's about to come. The following are costs you can expect to pay once off and annually.
Turkey’s Real Estate Taxes Fee
Before the buyer is handed over the title deed an appraisal report must be produced. This report is a must if the buyer is going to use the property to apply for Turkish Citizenship. The appraisal report includes the overall value of the property.
Buyers should pay this directly to the Real Estate Appraisal Department of Land Registry and Cadastre. The report costs 5500 TL and above depending on the property being evaluated and the city it is located. It takes an average of 3 days to receive the appraisal.
Title Deed Charges in Turkey
A title deed is an official document that proves ownership of the property. In Turkey, the title deed is also referred to as TAPU which means property owner. It is charged at 4% of the property value. Since it is possible to have joint ownership of property, the title deed can have the name of one or two people. The buyer and the seller usually share the title deed cost but the buyer can pay the amount alone.
Property Tax
Buyers should also expect to pay an annual property tax. The amount of this tax is largely dependent on the property’s location. For example, properties in metropolitan areas are subjected to 0.2% while it is 0.1% for non-metropolitan areas.
Turkey Property Maintenance Fee
A maintenance fee also called aidat is levied in some apartment buildings, condos, and housing complexes. Always ask about the aidat fee when purchasing a property. It is most commonly a monthly cost that you will be required to pay whether you live permanently or occasionally in your place. The aidat amount depends on the resident’s needs and requests and the quality of service received. Luxury buildings have higher fees while buildings with basic services may only charge a small fee for cleaning shared spaces.
Ultimately, the purpose of paying the aidat fee is to ensure all the facilities in the residential complex are always maintained and in top condition.
Home insurance for Turkey homes
Policies are reasonably priced in Turkey. One unique requirement is that Turkish law states that everyone should have an up-to-date earthquake/Natural Disaster Assurance insurance policy (DASK) which is up for renewal annually. Home contents insurance and property insurance policies are also advisable to purchase to cover any loss due to unpredictable events. It is worth receiving several quotes from insurance brokers as the rates vary.
Utility Subscription Fees
Utility subscription fees is also one of the costs of owning a property in Turkey. For an internet and telephone connection, the average monthly fees vary depending on the operator. However, homebuyers can expect the cost to be anywhere from 250 to 500 TL.
The expenses for an electricity subscription are also similar and it can take a day or two to acquire a subscription.
Additionally, homebuyers can get their water subscription from Iski and expect to pay a cost of 600 to 700 TL for this subscription for a new build. On the other hand, for properties with an existing subscription, the buyer can transfer this subscription to their name. This process also takes only 1 to 3 days.
Real Estate Agent and Lawyer Fees in Turkey
In Turkey, the real estate agent fee is pegged at 2%. This amount is part of the selling price of the property. Some sales companies do not display the agent fee since it is inclusive of the selling price.
Lawyer fees also vary in Turkey. Make sure that you find a professional who speaks Turkish and English so that it can be easy for you to understand the terms and conditions of the real estate industry in Turkey.
Prime Property Turkey has an in-house lawyer who can take you throughout your purchasing process whether you are buying online or you are in Turkey.
That’s not all! at Prime Property Turkey, we can also provide you with multi-lingual real estate agents who will take care of your needs and preferences and offer you appropriate guidance throughout the property-buying process.
N.B; Prices are subject to change and the prices mentioned in this blog were valid when the blog was posted.
